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| *Ostroff, Fair and Company>>>Personal Finance |
My friend is in serious debt--HELP? |
Shes about $50,000 in debt and her condo is about to foreclose. She has 3 cars, just sold her dog. She is going through hell!!! Shes been a loan officer and hasn't gotten paid in a year!!! What do I suggest her? She wants to file Chapter 13 tomorrow! Is that good? I told her to get a job with Base salary and commission!!! What is the best thing for her? (I'm in debt too) Chap 13 not the best option. Shes in way over her head but there is an end to the debt much faster then 10 yrs that her credit will be messed up for. She needs to downgrade first. Get rid of one of the cars (they are not a wise investment) Get a smaller apartment. Is she married? have kids? If she is married her and her spouse need to sit down and figure out a budget. if the 50 grand is all in credit card debt shes dumb but not completely screwed ive seen people in worse. But it needs to be paid off and fast. Thats where the buget comes in. You need food, Housing, transportation, entertainment, anything left over from the budget needs to go towards one of the debts..preferably start with the smallest balance. Once that one is gone that is one payment paid off. Then use the money that was used to pay off that one and add it to whatever is left after budget then pay it towards another bill. etc etc til its gone. Its not easy but with a lot of determination it can be done by anyone. Biggest myth to life in america is that you cant get by without using credit this is a blatent lie. Best way to live is debt free. I had 40,000 in debt, make 36,000 / year, i paid off all my debt in 2 years. Today I dont use credit cards. I pay cash for my cars, I have a 15 year Mortgage that my house will be paid off in 6 years (4 years early) Ill never be in debt again, and ill have 2 million saved up by the time im 55 by investing. ALL ON MY CURRENT SALARY..this doesnt take into effect any raises ill recieve. She could sell two of her cars. :) she needs to sell her cars. why would she buy three cars? cars are depreciating assets. not a wise investment. The key part of your statement is she hasn't been paid in a year? Get a lawyer. She can't be a very good loan officer, if she doesn't know enough about financial matters to have dealt with this a long time ago. Establish that there is an outstanding equity and that can open the door to delay of payment motions, and the involvement of a lawyer can certainly slow some things down. How has she not gotten paid in a year? That doesn't make sense....Also, if that was really true, why does she ahve 30 cars, a condo and a dog? I do sympathize with her situation, but SHE is the one who put herself here. You can support her, but this really is her battle to fight! First of all if she hasn't gotten paid in a year she should have down graded a long time ago. She obviously doesn't need three cars and should down grade to a cheaper apartment. Isn't much she can do now she waited way way to long, not much to say to her. Sell the three cars. |
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