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Tag Archives: debt

My Shoe Is Still Loose!

Last time, I left everyone hanging with the news that my car was almost repossessed. So, here’s the story and why it is my fault that it happened.

Gosh, that call center lady was so friendly!

I started making extra partial payments above what I owed every month so that in November and December, I wouldn’t have to make a car payment. Smart, right? Right. I called in August, bypassed the automated system and spoke to a representative. While their computers were running very slowly, I explained what I was doing with the extra payments. She thought it was a fantastic idea. She then told me that I could do that over the automated system. The automated system would give me the option of applying the extra money to the principle payment, or the next month’s bill. “Just press 2, and you won’t have to wait so long on the phone.” How convenient!

So I called another time in August, twice in September, paid what was left of the payment to cover December, and I was so proud of myself! So, I’m ignoring all of these weird phone numbers that never leave a message, only dead air.

Don’t take my car! I paid extra!

Finally last Sunday, I answered the phone for this weird number. I was prepared to really mess with these scammers! It was my lien holder informing me that my car payment was 87 days past due, and my car was going to be picked up at any time. SHUT THE FRONT DOOR!!!! I explained what happened, and the nice young man explained to me that the excess payments had gone to principle and not to the next payment. So I haven’t made a payment since September. There was no way to change this. The only thing I could do was promise a payment when I got paid on the following Monday.

He did put a hold on my account that would stop it from accruing another day, more fees, and interest since the payment was coming the next day. That would bring me down to only 57 days late. I only had enough to make one payment since I planned on the January payment being the one that was due. I was furious! I’m still not very happy, because I REALLY do not like being this far behind. I am working on building good credit after all, and this does not help! Plus, I just have this terrible, nauseated feeling that I will wake up and my car is gone. I have a plan to fix all of this, and by January 15th, I will be completely caught up from 70ish days late by then.

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How Much for Christmas?

It’s just money, right? Photo by @ametov41 via Twenty20

First things first! I am not going to judge anyone for how much or little they spend on Christmas presents. I do not have that right. What I am going to do is pass along tips that I received and found helpful from a single mom, with a single income, with four kids, many presents to buy, and many bills to pay. So when I make a suggestion, it isn’t coming from someone who blows their nose on $50 bills.

I see so many people every year who end up with a mountain of debt, behind on their bills, absolutely miserable and hating Christmas all because they had to buy gifts at the last minute without a plan.

Christmas is on the same day every, single year. We all know it’s coming, and we all know we’re buying things. Getting behind on your rent/mortgage to Christmas shop for people is an absolutely terrible idea. Those are probably your biggest bills and they are so hard to catch up on. Not impossible, but you will be a mess for months afterwards trying to do that. And the bottom line with landlords and mortgage companies is they are running a business. They can’t float you along because you just decided that you’d skip rent/mortgage to go and shop for your cousins that you’ve had your whole life. It’s actually really unfair to expect anyone to do that for you.

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Don’t Get Sick! Your Credit Can Suffer!

You can’t predict illness or accidents, but you can predict they will be costly.

Yesterday I wrote about how some of our tenants would really like to buy the houses they are living in. Sure, there are lots of people who, in the current economy, prefer to rent, but there are others who would rather put their money into property, because as you know, they aren’t making any more land!

Wanting to buy a home and actually being able to do so are two very different things. Unlike the people you see on House Hunters, who always seem to have money for million-dollar homes in their late twenties, a lot of people have barriers to coming up with the all-important down payment, or they have such bad credit that lenders will not let them buy other than with cash. Too often, both of these situations are caused by people having the misfortune of becoming injured or ill, which in this country means anyone not mega-rich or lucky enough to be able to afford good insurance will owe lots and lots of money.

Here are a couple of examples of people we are currently working with (details are vague to protect their privacy).

Small Business Owner Gets Hurt

One of our tenants was a small-business owner when they first leased one of our houses. Small business owners often have trouble buying a house, because they don’t have the proof of a steady income that’s needed. Then, our tenant became badly hurt in an accident while engaged in a sport they loved. Of course, this prevented them from being able to work for a while, and of course, large hospital and doctor bills piled up (it’s also really hard for small business owners to afford insurance; that’s why I have a job in Corporate America that will insure me and Lee).

This tenant had always intended to buy this home from us. But, who will lend them the money? No one, so far. So, they keep paying us for the house they’d like to own and renovate for themselves.

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How to Get Through College Without Drowning in Student Debt

I love how graphics always make a process seem so much simpler than it really is. But seriously! Wholesaling is the best way for many people to get into this business. Those who are great at marketing choose to make it the only thing they do.

Part Four: Another Way

You knew I’d eventually bring this thread back to real estate investing. Didn’t you? Well, of course I would. Let’s not talk about the fact that it takes me three posts to describe a two-part solution.

Long after I graduated from university, I started investing in real estate again. I get to meet a lot of wonderful people from very diverse backgrounds. I once met a young woman who wanted to be a lawyer. Her family could afford the tuition, books, and dorm expenses for her, but it put a real strain on her parents’ finances. Continue reading →

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How to Get Through College Without Drowning in Student Debt

Part III: Pay for Your Education Without Sacrificing Your Future

Many people graduate university with enough debt to buy this nice starter house in Cameron, TX. Now add the stress of finding a job and starting a career so that you can begin to repay that debt. There has to be a better way!

One of my younger friends once told me a staggering truth while recovering from the party to celebrate his graduation from the University of Texas. “Yesterday, I knew who I was,” he began. “I was a college student with a 3.7 GPA. I lived in a dorm and had a meal plan. This morning I’m homeless and unemployed.”

Being homeless, unemployed, and facing a mountain of debt with no real hope of ever paying it off is not an uncommon situation in this country.

Unless you are born to wealth, there are only a few options to obtain a degree without also acquiring ridiculous amounts of debt. The most obvious way is to work and pay as you go. That’s what I did. I graduated with honors from both my undergraduate and graduate programs without debt by working full-time while being a part-time student.

Here’s How I Did It

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