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Personal loan after Chapter 13

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Tmooooo
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Personal loan after Chapter 13  Reply with quote  

Looking for some help. Very discouraged. Been through a rough ten year stretch. While I've had the same very stable job, we have a house that was mortgaged at about 95% equity when the market collapsed, which quickly became upside down, ended up having to file Chapter 13 and working thru the payment plan. All over now, but looking for a personal loan and no one will touch me. Don't understand the system when yes I had problems but I stuck with it, kept the house and worked thru the bankruptcy, I think I should get some credit for that but everyone seems to treat Chapter 13 the same as a 7. Like I said, I'm confused and discouraged and would appreciate any suggestions.
Post Wed Apr 13, 2016 1:35 pm
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littleroc02us
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Yes it's hard to recover from a Chapter 13 bankruptcy, that's why they always say it should be a last resort. It can stay on your record for up to 10 years and a lot of banks look at it the same way employers look at a criminal record. I know it's not what you wanted to hear, but take it slow, don't borrow money for a while and once you get your household in order and debts paid down you should be able to apply for a credit card that will help you establish your credit score again. This isn't going to be a fast process, but I would wisely advise you not to borrow money at this time.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Wed Apr 13, 2016 2:28 pm
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Tmooooo
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Understood, and it was my last resort at the time. Unfortunately, waiting isn't really an option. I had some small loans with family and friends that need paid off, as well as sinking into the trap of payday loans. My biggest issues is there doesn't seem to be any options in the space between finance companies (who charge like 28% interest and who say I'm almost there but not quite) and the payday loans (who charge 200%+). I could afford something in the middle but it doesn't seem to exist Sad
Post Wed Apr 13, 2016 3:11 pm
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littleroc02us
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Remember, borrowing money is what got you to the chapter 13, so as you know that wasn't the best choice. Are you saying your using payday loans now? That is a recipe for disaster. My advice again is to stop borrowing money completely or you're gonna end up with another bankruptcy. Lastly, your gonna have to find more work and put in 100 hours a week to catch up. Is there anything you can sell, like your home, your car, toys or anything else worth value to help [pay off debt. Look at your budget and really look into areas you can cut out, like cable, cell phone, entertainment, eating out and vacations. Because if you don't make enough money for the payments you have, taking out more loans is poison.

Good luck!

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Wed Apr 13, 2016 3:18 pm
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Tmooooo
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Unfortunately, while I agree with your advice, it doesn't help when your already 5k in the hole. Not borrowing isn't an option.
Post Wed Apr 13, 2016 4:01 pm
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littleroc02us
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What about working 100 hours a week to produce income to pay back debts?

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Wed Apr 13, 2016 4:05 pm
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littleroc02us
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5K isn't that much and if you worked extra for a year or two you'd be able to knock out that debt in no time versus risking everything.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Wed Apr 13, 2016 4:06 pm
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oldguy
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quote:
While I've had the same very stable job, we have a house that was mortgaged at about 95% equity when the market collapsed, which quickly became upside down, ended up having to file Chapter 13 and working thru the payment plan.


Tmooooo, can you elaborate? How did the market collapse cause a problem for you? (Usually, if your mortgage payment doesn't change, and your job income doesn't change - going upsidedown is a loan has no effect?)

quote:
I had some small loans with family and friends that need paid off, as well as sinking into the trap of payday loans. My biggest issues is there doesn't seem to be any options in the space between finance companies (who charge like 28% interest and who say I'm almost there but not quite) and the payday loans (who charge 200%+). I could afford something in the middle but it doesn't seem to exist


It appears like your income and your outgo are badly mismatched - and have been for many years. You will probably need to offload some of your big items - usually the Big Two is house and cars - and get into a less costly situation. Otherwise you will be fighting this for another 10 years. Even then, you may get out of debt but still be broke.
How new are the cars? And what are the loans? And does the house now have equity? Figure out the value of your assets, then plan a way to convert them to cash - and then get an affordable home and an affordable car. You'll need to take drastic steps to end this PayDay cycle, just moving your loans from lender to lender won't work, you are in too deep.
Post Wed Apr 13, 2016 4:07 pm
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Tmooooo
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Sorry, this whole thread is just heading down the wrong road. I have no car loans, no equity in the house (at least its not upside down) and a pretty good job, per my budget I have about $600 extra a month. All I'm looking to do is turn $1200-1400 worth of interest a month into a $300-400 loan payment. Killing myself working isn't going to fix anything when I'm $800 in the hole a month.
Post Wed Apr 13, 2016 4:18 pm
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littleroc02us
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You won't kill yourself working. Here's the math, if you work an extra 40 hours a week for only 5 months making $10 an hour, the 5 k in debt you mentioned would be paid off. What's so hard about that. Payday loans are 200% to 800% loans that are a complete ripoff, where the only goal is to keep you coming back and pay a ton of interest.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Wed Apr 13, 2016 5:07 pm
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Tmooooo
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Nm, gotta say your advice isn't very helpful. I already work 12 hour days, including drive time. I was looking for assistance with making my payments affordable, telling me that all I have to do is work 20 hrs a day is just aggravating.
Post Wed Apr 13, 2016 5:18 pm
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littleroc02us
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Working 12 hour days isn't something you mentioned. Is that 7 days a week? You have to understand something, tackling consumer debt isn't solved by taking on more debt in the majority of cases. There experts such as Clark Howard and Dave Ramsey that have proven methods of getting out of debt. Your problem is a math problem, if your payments are more then your income, then the only solution is to increase your income. Income - debt= disposable income. If jay number is negative, no amount of payday a will solve your issue. I speak from experience. I'n my late twenties I was 30k in debt and broke with a good job. So my only solution was to put those debts in order from least to most. I got 2 extra jobs and worked my butt off. 5 years later I'm completely debt free with a large net worth, I know what it takes. I'm not going to fall for the idea of taking out debt to pay debt. If you want my help in retiring your debt then I'll need all of the numbers (income and monthly payments), if you don't want my help them that is fine also.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Wed Apr 13, 2016 5:30 pm
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oldguy
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quote:
My biggest issues is there doesn't seem to be any options in the space between finance companies (who charge like 28% interest and who say I'm almost there but not quite) and the payday loans (who charge 200%+). I could afford something in the middle but it doesn't seem to exist

I have no car loans, no equity in the house (at least its not upside down) and a pretty good job, per my budget I have about $600 extra a month. All I'm looking to do is turn $1200-1400 worth of interest a month into a $300-400 loan payment. Killing myself working isn't going to fix anything when I'm $800 in the hole a month.


Collateralized loans (car loans) are much cheaper and easy to get - how about financing the cars - and using that money to cover the PayDay loans?
Post Wed Apr 13, 2016 6:53 pm
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