Personally I think that if you (collectively) are in a situation which is causing you stress, as many of us are, we all need to be truthful about our spending habits. Start at the core reason, once we understand what got us here, it is easier to find the solution. Once the late payment bills and the notices of cancellations start, panic sets in and one cannot think with a level head.
Spending habits start early in our lives, with how we are brought up, and the various justifications that we make as to why we can spend what we do on items which are not needs, even if it is the most popular electronic on the market.
There are many people who I have had chance to speak with who got into real estate deals which were much bigger than they could actually afford, but by using those wonderful fantastic 'A.R.M.'s. They had a house which if they could have qualified for a fixed mortgage would have cost them their entire pay checks + more. Now that the market has fallen, they are hurting. I was speaking with a friend who is a mortgage broker and he said that mortgage companies are aware of this situation and have actually been calling on people asking to refinance their homes, to keep them out of foreclosures.
I would actually suggest that if you find yourself in such a situation where your ARM rate is rising that you check into something like this, you would be surprised at the deals being done.
It takes baby steps to get out of debt, with a huge dose of patience ! But it can be done. The last resort should be bankruptcy. The lawyers and paralegals tell you, the hit should only be on your records for 7 years, in most cases it is still there after year 10. Those companies who you tried to get credit with in year 5, when you attempt to get credit in year 12 will still have a record of your bankruptcy and will still use that reason for denying you your American Express Card, or your Gold Visa. No matter how 'clean' you have kept your payment record.
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27-04-2007, 09:07 PM #21
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27-04-2007, 09:46 PM #22
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Fix Your Credit Score Rating
Do this and you can do almost anything. About 4 years ago I made alot of money selling my house and land (and the horses ) and paid off everything I had cause of fixing to get a Divorce.
Any ways we worked it out after the sell. And rented a House in town for a Year. When we went to Buy again, I learnt since I paid all my bills off and had no revolving accounts that this was worst then Bad Credit. What kind of math is that.
Anyways we got a house in that sub-prime market. Got Interest Rate (7.3) but had to do a adjustable rate after the first 2 years. Which was up last month. I started early looking for a Mortgage company when the time came and to my surprise my rating was still middle. I wanted the Historical lows of todays Interest on this house.
So I hired the Lady about 60 days ago. She isnt cheap but she is good. ($500.00 down and $89.00 a month until done.) My credit Scores are all there in the 700's. Went up over 100 points in each Reporting Company and I just got my call today of when I can close on a 5.25% Mortgage. Just 60 days ago I was looking at 10%.
I want post it here, but if anyone would like this ladies info, just send me a PM and ask for Deanna's info Plaese. I will be more than happy to hook you up. My Dad always said, "A Poor Man is Poor, But a Poor man with out Credit is Worst-Off".
Once you get your rating where it needs to be. Take care of it. Dont buy what you don't have to have. And Paying cash is not always the best advise.
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27-04-2007, 11:28 PM #23
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I have to disagree with the post about correcting spending habits causing stress financially, I don't have credit cards, never have, our personal situation just did not afford us the luxury of catching up, the mortgage co. wasn't very pleasant when i tried to work with them, in fact each time i suggested some sort of payment schedule i was rudely treated, the guy spoke to me as if i were some deadbeat bum who didn't bother paying bills, sometimes situations arise where there really is no way out other than "out", lol.......I was pretty angry back then, but have always beleived in karma as well, and to be honest, after the fact, I'm happy, my kids are healthy now thank God, and we are getting back on track......it's not always a matter of being budget wise, it's just a fact of life, poop happens and it can't be avoided.
it can be said for all investors from the Arabs and foreigners, you enter now for it will be a golden opportunity for you.
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28-04-2007, 12:06 AM #24
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Agree 100%
Only thing is, I had to refinance because I was paying 12% on my house. (12% because HSBC falsely reported my wife as being late several times.... we are in the middle of a *long* process of litigation against them...another story if you are interested)
Anyways now I am down to 7% and paying 1000.00 less per month.
The plan is to do one more re-fi when "the stars line up again" and the rates are down closer to 4% like I had my house in CA.
But as far as adding more credit cards, or any other "bad debt".... that would not be a good idea at all. Although it took me a little over a year to get out of 30K in bad debt, I have been "in" bad debt for 18 years.
I'm at that age where I don't really "need" that shiny new car, or anything else that requires a monthly payment, and if I have any money that can be taken out monthly, or bi-weekly, I want that going to one of my investments.
Yes you make a very strong point. Once you get out, do NOT get back in.
I keep one credit card now that has a 1K limit for emergencies. If they raise the limit I will probably ask them to lower it back to 1K or close it out.
I feel bad when I hear about people filing bankruptcy with such very little debt. They either have it REALLY bad, or they were misinformed. Unfortunately there are a lot of lawyers out there that are not 100% honest.
(dont be shocked)
Thanks mike for this thread.
I bet there are a lot of people in here that can use the info and even if it's just one person that is saved from making a huge mistake, that is awesome.Last edited by The_Mad_Scot; 28-04-2007 at 12:09 AM.
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28-04-2007, 12:16 AM #25
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I think that it is a terrible fact that most people see a person with "bad" or sometimes even just "fair" credit as being a bad person.
Same goes with people that can't pay their bills.
Sure there are people out there that just "choose not to" pay their bills.
But there are also a lot of good people that are just in a bad situation and they are treated like criminals.
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28-04-2007, 12:24 AM #26
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28-04-2007, 03:25 AM #27
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Mike, what a wonderful idea to start this thread! Thank you and for those who are giving their opinions and advice. I am awful at sticking to a budget, no discipline!! I have a great paying job (more then I've ever made an hour before) and I should have more to show for it. But that is my fault. I am turning over a new leaf, starting tonight. Thanks ROC for the support.
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28-04-2007, 03:50 AM #28
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I wish refi's were that easy. I have over $200K equity in my house and can't get any one to refinance me. So final decision is to put it up for sell. It's way too big anyway. The last of 5 kids graduates in a month and it will just be me and hubby. I'd almost rather cut off my right arm than sell but we can't afford it anymore. $8000 in taxes every year plus the note and utilities put us in a very uncomfortable place.
So having said that anyone interested in a Texas hill country stone and cedar house with 5 bedrooms and 6 1/2 baths, 3 car garage with a game room on 2 3/4 acres, PM me!! Oh yea, the taxes are really only $800!!Last edited by TEXASGIRL; 28-04-2007 at 03:53 AM.
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28-04-2007, 03:55 AM #29
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Many of you with bad credit need to lok at your character. YOU made your choices. You borrowed. Pay it back
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28-04-2007, 03:58 AM #30
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