All Forum Posts by: Bill Drutz

Current Situation

Own home for 5 years now in suburbs of IL. Owe $390k on mortgage. Can sell for $520k

Wife and I credit scores both in low 600’s due to cc consolidation a few years ago, still being resolved.

$50k in debt

Daughter is going to college in fall of 2023 in FL.

Not in a situation to leave IL at this time (work and family)

What do I do?

1. Keep living in existing home, pay out of state FL college fees.
2. Downsize in IL and purchase something very small in FL to take advantage of in state tuition.
3. Keep current home, see if I can get some type of loan and still purchase small property in FL to take advantage of in state tuition.

My other daughter has 2 years of high school left and will start college in fall of 2025 (pending FL). Would most likely move to FL then.

Hi All,

These last few weeks have been going a little better. Lots of driving lyft and wife picking up extra hours.  Still not sure how I'm going to approach the next step.

No eating out.

Read Dave Ramsey's book.

2 now FT jobs.

Can't sell home right now. Too many on the market and will loose out huge.  I much rather struggle and not pay a couple bills vs. loosing our home.

Driving Lyft every minute I can.  I'm 41 years old for the question above.

I'm torn between going with a Debt Management Plan (DMP) or just stopping paying on 2 of the loans above, waiting for them to call and then trying to negotiate next year when I get my bonus.  Even with doing all the Lyft and 2 full time jobs we are going to break even which I can't do for the long term and continue to get by for more than a couple more months. 

I really need help with the first step/action to take:

Should I stop paying and call on the loans and credit cards first and call to negotiate?  Also, do I do that for all credit cards or just mine and keep my wife’s going for a chance to save her credit score?

Want to sell the car and downgrade with the payment of $730 per month but I owe $7k more than what the car is worth? Should I hang on to the car and keep making payments or go find something and trade in upside down?

Need some help.Please help me decide on next steps.

Current Bills= $10,300 month

Mortgage - $2,600 month, already discounted.

Credit Cards –$1,030 month………..$150mo @ $7k, $55mo @ $2k, $27mo @ $1k, $35mo @ $3k, $40mo @ $4k,$25mo @ $1k, $47mo @ $1k, $67mo @ $2k, $25mo @ $1k, $25mo @ $1k, $45mo @ $1k, $80mo @ $4k, $25mo @ $1k, $80mo @ $2k, $102 @ $4k, $110mo @ $4k, $90mo @ $2k.

Loans - $470mo @ $10k, $591mo @ $15k, $270mo @$3k, $650mo @$30K (not in my name),

Kid’s School -$900 month

School Loans - $785 month

Cell phones - $200 month

Personal loan to Dad - $1,000 month, $28k left.

Cars - $730 @ $31k, $330 @ $17k

Car insurance - $150 month

Cable/Internet/Gas/Electric/Water - $500 month

INCOME = $7,300 month

Both at 600 credit scores.We spend $10,300 per month above,we have FT jobs and drive Lyft make bring in $7,300 month. I am $3k upside down a month.Don’t know what to do, please help.

Do I stop paying on the loans? I can’t get any more credit/loans approved to get 0%, etc.

Want to sell the car and downgrade with the payment of $730 per month but I owe $7k more than what the car is worth. Can’t stop paying personal loan to Dad since he depends on the $1k per month.

Please help!