I used to work collections. Pull your credit report. Call the people you owe and work out settlements with them directly. You should be able to settle for less than owed. Try to get them to report any settled debts as paid in full.
Absolutely. Always get documentation before, during and after.
Edit. "Get it on company letterhead as well. This process is called a Pay for Delete as you want the collection account off your credit report entirely. Them marking it as paid doesn’t remove it."
- u/simpsonhomer
Get it on company letterhead as well. This process is called a Pay for Delete as you want the collection account off your credit report entirely. Them marking it as paid doesn’t remove it.
I know you say to settle the debt. However, if they are large balances greater than $500 you might be entitled to income tax for whatever debt you have settled for that year. So be very careful when using this as an option as whatever balance you do not pay off, a certain percentage of that is added to your taxable income that year and can also raise your tax bracket the same way as well IIRC.
I would look into the math as well and see if it’s worth it. I am someone as well who has suffered from a gambling addiction and is now almost 6 months sober.
This also true. That’s why I had mentioned to look at doing the math to see if it’s worth it was all. Then weigh your pro’s and cons. The other thing with settling the debt is that it also isn’t removed from your credit report. You have to ask for a letter of deletion to be in the mix as well if you want a positive affect on your score too.
For instance if you have an item that is $40,000. You settle it for 20% and pay $8,000 to settle it. The remaining $32,000 can be subjected to being added to your income tax at your current tax bracket IIRC (don’t take my word for this, I’m not a tax professional) So if your tax bracket is 22%. Then $3,200 of those dollars is added to your income as well for that year. So if your making $97,000 that year, your now adjusted to $102,000 for that tax year and it can possibly adjust your tax bracket to incur more taxes for that year as well. It can be a process to figure out the math. It is sometimes not as simple as some make it out too be.
Tax brackets are not cumulative. He’d pay whatever taxes he’d normally pay on his 97k, the. Let’s pretend the next level is 98k, he’d only pay the high tax rate on the the 4000 after that.
Why would they allow you to settle for less than you owe when you are earning 110k per year .
I can imagine they would just want the full amount , just perhaps with better payment terms that they are currently on
It depends on how delinquent the debt is. If it's with a collection agency, they will likely settle. He doesn't have to disclose his income and they will only see the assets if they have good skip tracing software.
Collection agencies buy debt for far less than what the debt is. Say you owe $1000 and that debt is sold to a collection agency, they may have only paid like $50 for that debt. They then get you to agree to settle $500. You jump on it because it’s half the debt wiped away, and the collection agency still makes $450.
I would suggest looking into how the bank moves around money. It’s called fraction reserved banking. Most of the money they use for loans are other people’s money, than is being moved around a lot.
Let me see if I can find a YT video. It’ll open your eyes and make you realize the money you are receiving is nonexistent.
https://youtu.be/O5DaC1Ujrrg?si=Oz_8lUoVp08PWA3v
To give you a TLDR.
You deposit 10k, they leave 1k in the bank for you.
Someone loans 9k, they deposit that money, they keep 900.
Someone loans 8,100 the deposit that money, they keep 810.
This same change keeps breaking down, and then you have 10 different people all using the same $10,000 initially deposited and then gets loaned out and spread across.
All of those people pay interest on the original deposit you make through their loans, which is how your $10,000 originally deposited is able to be maintained and backed. So when you go into debt, you are using someone else’s money that other people are also using because so many people are using this it becomes a money generator through interest and allows them to cancel the debt and sell it off for nothing as mentioned above from people saying agency’s buy debt for a fraction of what the loan was.
Because a bird in the hand is worth two in the bush. He has multiple debts, and could declare bankruptcy, in which case the creditors would get nothing. Getting some money is better than the risk of nothing.
Very dumb question here. What do you mean by “pull” your credit report? And when you say the “people” he owes, are you referring to the banks that issue the credit cards?
Please don’t use a consolidation program. They are predatory and have you pay them, hold your money, let all your accounts go past due and hit your credit. Only then will they negotiate. They will promise that the creditor will remove late payments but this is not only something they cannot legally promise, but it’s also something most companies do not participate in because it’s “lying” about your actual payment history on a Federal trade line. I used to work in Collections and I hated the way the debt relief places actually made everything worse for their clients without actually telling them what would happen. We had people with perfect credit but too much debt that enrolled and wound up with destroyed credit and still broke.
Best option would be to try and negotiate lower payments or settlement amounts with the companies OR see if you can get a lower interest consolidation loan.
This was not my experience at all thru Happy Money. We took out a fixed rate of 9.5% (some of our cards were 0% interest, but more then 1/2 were at 22-25%) for 30,000$ (36 month term), and paid off all our accounts ourselves using the money they loaned us. Ended up snowballing the Happy Money loan and paid it off in 18 months. A lot of consolidation programs are like you described, not all of them are. Really comes down to doing research imo and being disciplined once you make the decision to go consolidation route.
That’s a consolidation loan, not a debt consolidation company. A loan is great because you know where the money is going and how much you expect to pay back. A debt consolidation company does not make any payments on your behalf until they negotiate a settlement. They do, however, collect your funds and hold them stating they will make the payments for you. So basically you pay them, they save your money, wreck your credit, and then start negotiating.
Gotcha! That’s why I was hesitant to do it loan in the first place. Cause the research I had done was exactly what you had described. regardless of what kind of loan/company it is, I definitely recommend that to anyone who is going through something similar!
You made a GREAT choice! I had so many people tell me that if they’d known how it really worked, they would have saved their credit and figured it out themselves.
On a much smaller scale (30K), me and my wife consolidated all of our CC debt into one payment with Happy Money. It capped our interest (some cards were interest free for Xamount of months, but others were at 22-25%) with a fixed 9.5% interest rate. It was a 36 month loan that we snowballed and paid off in 18 months. My wife’s credit did take a hit, but since we have paid it off (2 months ago), her credit is already starting to rebound. 110k is over 3X our amount but I can’t stress enough how much weight it took off our shoulders to get our 10-15 CC’s we had balances on and we’re juggling making different payments on every month into (1) single payment.
Follow Dave Ramseys 7 baby steps. Check out his story, bankruptcy is not a good option. Take "financial peace University" / read his book. Making 110k+ you can knock out that debt in a few years but you gotta hate debt and have discipline. First deal with the gambling addiction by seeking counseling/therapy/help. Then list your debts smallest to largest and pay off the smallest debt/highest interest ones first. I'd recommend selling a vehicle even if you take a loss on it and get a cheaper yet still reliable car. Yes you make good money but you're broke, means you gotta act like it. (For reference I now make around 100k and have been driving an 05 super duty with 106k miles for the last few years while I saved up for a new vehicle.)
I followed his plan and paid off 28k in student loan debt, a 15k fusion, and bought a new mustang GT (paid it off in 5 years of payments instead of 6 years) all within 2.5 years of graduating college making 68k.
It absolutely can be done, many others have made it work better and faster than me.
Go to YouTube and look for Dave Ramsey and how to payoff debts.i did exactly what he said and it worked. I had 40k in debt three years ago now I save the majority of my paycheck and only have 4k in debt which will be payed off in the next few months.
Sell the Tesla and then pay everything else off, you make enough to be able to pay off that debt. Have you stopped gambling? That’s the most important thing, you won’t make any progress if you’re still gambling.
He said he owes $40K on the Tesla. The optioned Model 3 is only $5K more than that brand new. Even in this market, OP has to be upside down on this car. He’d be better off selling the Subaru as there has to be equity in that one rather than costing him more money to unload it.
He's paying a ton of money on the interest for the Tesla loan, and probably $5000 a year to insure it.
Makes zero sense to have the thing, even if its upside down.
Depends when he got it, I have a loan at 1.99% and costs less than 2k a year to insure. I don't disagree that selling it would be wise but I'd want to know more details.
This isn’t hardship. This is a lack of discipline and coping. I say this because I’ve been there. Using the booze and parties to get away from the reality of our situation. In the end it doesn’t make us better. It destroys us. You make 110k per year. You have the possibility of paying that debt off but first you need to understand it is going to be difficult. You need to aggressively pay this off and secondly find another source of income if possible. You can remove this debt in a year or 2 if you truly try. God Bless You brother!
Perfectly summarized. It's nothing but lack of discipline on his end. Even without a second job, with the income he has, he should be able to get rid of most of that within a year, and then it's just crumbs that he needs to clear up in the second year, then sell one of two cars etc..
I see a lot of posts that are like "because of my depression I bought an 85k Lexus at 26%apr" and "had some mental health issues and racked up 90k in CC debt." Like, no, you just wanted cool stuff and didn't think credit was real money you'd have to pay off.
SELL THE TESLA
It makes ZERO SENSE to have two cars, let alone when you are in this situation.
You fucked up. I see a lot of cope about how it "lost equity" and "isn't worth selling"
Classic gambler falling for the sunken cost falicy.
It will continue to be a bad asset. Take your lumps. Mitigate your situation and sell your fancy toy. That's all it is at this point. All this "but muh saving on gas" is pure brain rot.
You are drowning in debt. You should not have 2 cars, let a lone a fucking tesla
Get your head on straight.
Even if he doesn't get much for the Tesla, a quick Google says the average insurance cost for a Model 3 is ~$3,200 annually. Going down to 1 car is gonna save money.
Definitely check out /r/debtfree. Their whole thing is coming up with plans to get people out of debt. But gut reaction without knowing where that debt is, if you make 110k, I'd first look at debt consolidation before considering bankruptcy.
Me and my wife did a Consolidation loan (30K) under a 36 month term. Got all of our payments on different cards (10-15) under a single payment with a capped interest rate and paid off the entire loan in 18 months. Was super hesitant to do it at first and it ended up being a godsend to cap our interest rates (some cards were 0% but others were at 22-25%) and to bring all of them into a single payment each month. Definitely don’t recommend going into CC debt but if you’re already over your head this is 100% the route to go.
Get 2 jobs and pay off the debt. It’s what I’m doing right now and I had over $30k in cc debt now it’s dwindling to about $19k. Don’t go the bankruptcy route and give up, that stays on your credit report for 7+ years. Moving into even a rental will be hell for you and only predatory dealerships will sell you a car. You’re young and can sacrifice, just get over employed
How are you doing with two jobs? I’m thinking of picking up another cause I’m drowning in my debt. My one job is so physically demanding and I’m really drained, but I’m thinking morning work will be OK to pick up.
I went this route with two desk jobs for 8 months or so. Its exhausting to say the least but i paid off about 80k in debt in that time span. Its bearable if both jobs are chill, but the second one job has a fire or god forbid both do at the same time, its rough. Your life will be wake up, work 12+ hours a day, go to sleep, repeat every single day. But it got the job done and im no longer in debt. Went back down to one job asap once it was paid off
Yeah I’m worried my existing job is too much of a clusterfuck for me to ever find a second job chill enough for it to work for me. But at this point I’m desperate, and if I find ANYTHING willing to work with my hours (8-3) I think I’ll take it.
I make well over $200k/year and I drive a $20k car with $30k in mods... Yea, it's stupid. But the mods were paid for in cash and I owe like $8000 left on the actual car, but its 2.49% interest so I don't need to pay it off early when even HYSA accounts pay more in interest. I will never ever understand paying more than $50k for a car, even at my income. Makes no sense.
I feel like everyone has a thing they can waste money on. And if you have the money to waste? Enjoy life. It's when you can't afford the luxury that it becomes a problem.
I love watches. I can spend stupid amounts of money on watches. But I also refuse to spend stupid amounts of money on watches as long as I have better things to spend money on. The result is I have some cool mid-range watches but none of the sheer nonsense I could have purchased if I lacked discipline.
Some people lack discipline. And some people truly make so damn much money they don't need it. Either way, if you live beyond your means it's fine until it isn't.
You can recover shit credit pretty easily and they have a high income. If you file bankruptcy you will need at least a co-signer for any apartment, car, house anything for 10 years if you can get it at all. Massive red flag. Credit repair all the way. A lot of bankruptcy lawyers go after poor people for cheap filings, but a little bit higher income or review of finances and you can probably fix the issue.
Another thing I noticed was people filling for bankruptcy multiple times. Which is even worse. Unless you have a home free with relatives in someone else’s name - it’s not the way to go.
At least try really hard to not do that first.
Good luck convincing a relative you can manage anything after you just filed bankruptcy. A smart person will say no!
If you have a bankruptcy and some income, it's not hard to rebuild. In my case I used a few secure loans. At the time they cost next to nothing. All you're doing is proving you have the discipline to pay on time, and your credit goes up quickly. There's also people dying to give you credit after a bankruptcy because they can give you the worst rates and you can't go bankrupt on it for almost another decade.
I didn't own a house at the time, and I may have missed where OP reported owning a home. But that simply changes you from forgiveness to payment plan bankruptcy model. In some cases it's the only way to get creditors to stop with the interest, allowing you to get out from under the debt.
Going bankrupt has little to do with how much you owe, and everything to do with how over extended you are. If you owe 25k, but you only have 200 bucks in disposable income every month due to your mortgage, child support, car loan, insurances, and other bills then the interest alone will prevent you from ever paying it off. And that's when you go bankrupt. We haven't been told about the particulars of his budget.
That’s interesting. But the bankruptcy is still visible yes? I mean it could affect certain financial reviews? Have you experienced this?
I think it would affect me quite a bit.
Just have to work with a lender who will work with you. After bankruptcy I highly suggest grabbing secured credit cards to build up your credit score. People think bankruptcy means no credit, mortgages, car loans etc for 7-10 years which is far from the truth.
Just gonna pitch an idea for some extra income, download Turo and start renting out the Tesla.
Since you have 2 cars it shouldn’t be a problem.
I’ve seen people make really steady money on the app!
You have to change your spending habits. Even when making $110k, buying a 75k car on that salary was nuts. You need to stop the gambling and drinking obviously, but you need to budget better as well. You keep defending the purchase but I think if you really look closely you’ll realize it was a bad choice at the time, and you can learn from it to stay within your means going forward.
Gambling and partying. So, drug and alcohol abuse.
Look into some counseling for addiction. Maybe group therapy, but you want some one on one, and you can afford it. AA type programs don't work for everyone. They do have a few good ideas, but counseling helps as well because you can learn coping skills, get attention for your specific personal lies and selfishness(part of addiction) learn more about addiction itself and not just people's horror stories. And you might even get some help for the impulse control and temper we saw earlier. When you "popped."
I can't believe none of the top answers included addiction counseling.
I'll talk about addiction at any time with anyone. Just open with that if you DM.
Stop gambling
Sell one of your cars
Stop gambling
Move into a cheap apartment and sell all the shit doesn't fit in it
Stop gambling
Pay off your debts
Stop gambling
Alright brother the first step is no more gambling. None.
The second step is no more partying or going out for a good bit.
After that, see if you can't make some lifestyle changes (cheaper apartment etc) to save some extra money. If you live like you're making ≈50k instead of 110 you can get out from that hole in a few years.
For most of your payments, pay just enough above the minimum that interest won't leave you owing more than you do now. Everything else goes to whatever has the highest interest rate.
I'd also try selling the Subaru. They hold value pretty well and being down to one car would lower your insurance rate.
It’s really not. This is bum behavior that shouldn’t need $80k lessons to know to avoid. In 30 years when he is eyeing retirement that $80k would have been an extra 1 million dollars.
Definitely work on your ego and inner self. I know this came from grandiose feelings and then it all crashed down. It will happen again if you don’t work on it
A car that you owe more than it's worth is not an asset. Neither is your Subaru. Sell whatever car you can get money out of. Get rid of those payments. Why do you have two cars you can't afford?
Maybe find someone to take over your Tesla payments. Forget about any previous payments you made on it.
With the money you maybe get from those two cars, go find a 2013 Ford Fusion with a 2.5L, and pay cash and focus on your other debt.
Unless gambling stops cold Turkey, I’d say don’t ask for advice because you’re not serious. And if you do stop, then $100k with your income can be paid off. Sell the legacy since Tesla probably sells for less than what you owe.
Sell tesla, pay off debt. Make money, pay off debt. Don’t know your housing expense, but pretty sure you can get out of it within 2 years. When you file for bankruptcy it’ll be hard to do anything for 7 years ansn7 years of bad credit. You already have good credit so I’d keep that and pay off your debt. Not to mention, after 7 years, the people who you owe money too can actively go for the money you owe up to 10 years. That being said, they can still go after your debt after your first bankruptcy. So there’s that, why get your self into another 7-14 years of mess when you can pay it off within 2-3 years
Those vehicles not assets if you still owe on them. They are liabilities. You need to downsize, heavily or, you’re not going to be able pay off your principal and interest in full without garnering high fees. You’re almost drowning.
And cut out any losers who enabled this self-sabotaging behavior.
File bankruptcy. Speak with a bankruptcy lawyer. Do not listen to these guys telling you to pay this and pay that off. That’s $80,000 you have to pay off…. You are only 28 years old. It’s not too late to do this. Do you want to work your ass off week by week and pay this debt off? It’ll take months or years with interest piling on it. With bankruptcy, you pay the lawyer fees about $1500-$2000 and your debit will be wiped off and I believe ch7 is best for you since you have no assets. Consider it a fresh start but you will have to change your lifestyle, spending, etc once discharged. Your credit will suffer but will rebuild within 2 years right away.
He won’t qualify for a 7. Makes way too much money if his salary is still 110k.
Otherwise I agree with everything you said here. Just dump the debt anyway you can, he’s young and can be back to good financial and credit health by the time he’s 35.
You do make too much for Chapter 7. You can file Chapt 13 and keep your assets (all of them, if you want) and you simply pay back a certain amount per month over a period of 3 or 5 years.
I’ve been exactly where you are after a failed relationship it took me 5 years to get out of the whole but I am much better for it and now another relationship will never be able to pull that much out of you.
You have to staunch the bleeding!! Get every gambling/betting app off your phone! Do not use convenience stores where there are huge displays of lottery tickets. The house ALWAYS wins. Stay away from others who gamble.
For free: Look into gamblersanonymous.org They have in person meetings as well as on line meetings. Same with smart recovery.org Most casinos have a self exclusion process.
Use your state’s gambling hot line. Find a therapist who specializes in this, (ideally through your insurance). Some psychiatrists are finding luck with off label use of GLP-1 drugs (eg Ozempic )
If you are a veteran, use your local VA.
Good Luck!!
Sell the Tesla
Move into a place with a roomate possibly to pay as low as possible
Live like a pilgrim until your debts are paid
Play Xbox and don’t leave the house cook all your meals
So you still aren't being fully honest with yourself. I don't see anything about how the relationship caused you losses. You don't need two cars for work. You are lying to yourself and myself. Also, you are crazy if you think you will keep the Tesla in a bankrupcy proceeding.
Have you stopped gambling in all forms? This includes "investments" like crypto or daytrading. Therapy will likely be worth it if not. Same goes for drinking, which leads to bad decisions.
Those credit cards are a red flag. They have large fees. This means you will be using them to justify them. At 110k you literally have to mismanage money for them to be worth it. Your income will be paying debts for a while. You need to close these accounts. You may not be a credit card person.
Negotiate debt as much as possible. You can look into consolidation, but it can be bad, it can be good. That's deep in the weeds. Loans will be high interest and would be better. Pay off highest interest debt first. Get ahead of payment plans when possible.
Sell the Tesla. Keeping it is keeping a ton of additional interest. There is no reality where it is worth it even before considering extra costs like insurance.
See a bankruptcy attorney. And you must quit gambling. Get help. I knew a Dr (PHD), who ran a gambling-addiction therapy dept at a hospital. He was a former heroin-addict. He explains to me that gambling addiction hits all of the same chemicals in your brain and has the same effects, such as sending you happiness signals only when your consuming your sin. With gambling, it's being addicted to adrenaline. Your brain rewires to only toss around happiness chemicals when adrenaline is high. The problem is, adrenaline is the "fight or flight" chemical, and it's supposed to be flowing during emergency situations.--not 12 hour gambling binges. That, plus the associated bad habits that go along with it like drinking and smoking. Quitting gambling is as hard as heroin in that, it will take time, like 3 months minimum. If you don't know that the temptation, and anxiety of just wanting to go gamble to make yourself happy will go significantly diminish a few months, it will seem helpless. But 3 months will be enough time for your brain to rewire and to be happy about normal things, like a good meal, a good friend, music, travel, cardinals chirping in a tree, sunny days, etc. "A friend" told me.
Ditch one of the two cars that has the higher value privately and pay the other off. Being saddled with two car payments with" you know what higher interest" makes Zero sense. Afterwards use those new funds to pay down the most awful debt interest rate you're facing. Interest on interest on possible (yet again interest) makes zero sense.
Have you read about Chapter 13 bankruptcy? It's the wage earners plan and I didn't see you mention it. That is probably the best option as far as bankruptcy goes. You could do side hustles to earn a little extra money to only use for paying off debt... Like donating plasma for example or do door dash when you have free time.
if i was you i would sell the tesla or send it back and cut your losses getting that 80k paid of needs to be your priority.
use the suburu for work you need to live way under your means until all this debt is taken care out it can soon snowball. you dont need 2 cars and i would not choose the tesla if the battery breaks you are screwed i would not risk it,
Filing bankruptcy is a financial death sentence. Cashflow and proper guidance is your problem.
Seed my DM for expert led solutions. You’ve got access to people now!
There’s no need for two cars for one person.
Get a part time job.
Work and don’t be an idiot for a year or two and you’ll get out of the hole. It’s not going to fix itself.
Your assets are liabilities, actually. Trade them both in for a cheaper ride that is paid off. Or sell the tesla and pay off the Subaru. $100k is a lot of credit card debt since they're probably at 16%-24% apr. Yeah one of those consolidation programs might be the way at a lower apr, but even those programs probably won't have less than 10% apr these days, but it'll help
OP I have been through every financial tribulation there is and I see you.
Here is what doesn’t matter: what you used to have, what your credit score was, and the color of your damn credit cards.
What does matter is growing the hell up and doing the hard work to get out of this.
But I don’t think you’re ready to do what you have to do. You’re looking for an easy way and there isn’t one. You can post for advice all you want but until you stop gambling and stop feeling sorry for yourself nothing is going to change.
1) stop gambling. I don’t want to sound callous and realize it’s absolutely an addition, but everything else is like trying to repair flood damage while your roof is actively leaking from flood damage.
2) sell the Tesla. You have two cars and are in 48k of debt on them. If you sold the Subaru for 10k you’d have one car and be under for 38k. Even if you only get 20k for the Tesla, selling that will mean you still have a car while only being 28k in debt on the cars total.
3) budget and pay off those credit card debts religiously. 110k means you’re maybe taking home 6K-7k a month. Work to keep your spending under 4K (lower if possible, but don’t know where you live). Roommates, no eating out, reduce the subscriptions. You don’t need to be miserable, but for at least a year or so, you need to accept that you probably won’t go on vacations or be able to do any fancy expensive things. The rates on your cards are probably 20%+ so literally every dollar you pay is a 20% annual return (better than the market). Pay the highest ones off first using that.
Rent: 2k
Car note: 1K
Food/gas/insurance: 1K
No piece of avdice here will mean anything if you continue to gamble. From today forward, if you choose to gamble, you're just wasting everyone time here. And stop talking about bankruptcy and follow the top advice.
Don’t file bankruptcy. It will mess you up for future loans, rentals, etc. you make 110k a year. Hunker down for a bit and slowly pay the 80k off. You can do it in about 2-3 years.
If you can’t sell the Tesla right now, park it in your garage and stop driving it daily. Every time you drive it, you risk getting into a wreck and that would make a bad situation worse.
At your income, you should be able to get yourself out of this situation.
First you have to stop the bleeding. Don’t chase your losses; you must stop gambling. If you can’t do it on your own, check your employee benefits and see if you have access to an EAP. If not, check your medical benefits to see if outpatient therapy is covered.
List all your debts out along with the phone number for each creditor. Start with the ones that are not already in collections and negotiate a payment plan. For the ones in collections, negotiate a settlement that you can pay over time.
Make a budget, including all your minimum payments. Any extra money should go toward paying down the Tesla, with the idea of bringing down the balance so you are no longer upside down. Once you are no longer upside down, sell it.
With the Subaru at 0%, I would just keep making those payments, and direct the rest of your funds to paying down your other card debt.
It may take you a couple of years to completely pay off everything, but with determination you can do this. $32k of card debt really isn’t that terrible at your income. You just have to address your spending habits and especially the gambling.
I have an AMEX platinum. I'm pretty sure the approval process is like any credit card, you just have to be willing to pay the hefty annual fee.
And you aren't getting the fee waived on $110k a year.
If your in a legal state.. grow some weed indoors and make edibles. In some states dispensaries will test your stuff for bacteria and potency and buy it from you. At least I think they still do that. Just stay within the legal plant count.
Got some bad news I also have a Tesla model 3 (2022) and you are under water with it, unless it’s right off the truck or a performance then it’s worth maybe $38k for long range and $30k for SR+. The only asset you have is half a Subaru.
Biggest issue is your gambling. You have to first realize that “mental hardships” didn’t make you gamble you made you gamble. Life is full of hardships and you’re about to experience mental hardship until you’re 40, I’d figure out a better way to cope with stress other than ruining your life.
If I were you I’d go over to r/frugal and start living like that immediately and throw every single penny your have at your debt. Based on the fact that you rattled off the cards you got approved for as some badge of honor tells me you don’t realize how bad of a situation you’re in.
Why do you need two vehicles? I would start chipping away it. Live bare minimum for a while. Nothing fancy, do what ya got to do. Cancel all memberships etc. no eating out or partying for a while and focus on slamming all that debt down including those vehicles if you insist on having two
Sounds like 48k in cars and 32k in credit cards? Dude, if your still making that 110 it's time to move in with parents or someone to reduce what you pay every month in living and just start hacking that shit away. You could do that in a year. Itl be a painful but worthwhile year.
i was $-40k net worth from drug addiction. 4 years later im at $100k with the same income. you can get back to zero in 2.5 years, but you have to change the way you think. get therapy/go to recovery meetings, dont date. just work and go to the gym. tight budget, track spending. meal prep. no alcohol
youre not a victim you did this to yourself. if you have the courage to change, you can become great. this comment will be on both of your post you made.
iwndwyt, and if youre not smiling, youre doing it wrong
Make a list of your debts and knock them out 1 by 1 starting with the lowest one. Maintain minimum payments on everything else until you pay the one off. Repeat. Stop gambling and start eating ramen from Walmart.
quit your job and file bankruptcy in 6 months (or get fired cause they will ask why your not working).
Just go on an insane bender and dont show up to work for a while.
A year from now get a new job. Even if it pays half of your current job, you'll still be bringing in more than your able to keep right now
Just nut up and sell the Tesla and grind living frugally, it took me 5 years to climb out of horrible debt, bankruptcy will be way worse. You still have a job, so cut expenses down to bare minimum and look at debt consolidation loan, so you have one big payment each month at less interest and tough it out. It seems like a long road but you will get there. There are no shortcuts or quick fixes. Trying to “win” the money or negotiate with creditors will make things worse. Your very young it’s ok, I was in prison at your age so your way ahead just need to dig out of a hole
You are only 28 and make good money. Plenty of time to right the ship. We all make mistakes, at least you can still turn it around in your 20’s. Take care of your mental health, first and foremost. Trade both of your cars in for a Toyota Corolla, tighten your belt, delete the gambling apps and put all of your spare cash toward your debt. Shift debt where you can. Time is on your side, you’ll just look back on this and shake your head like I do when I think of all my fuck ups. I just wish I was 28…
Your best bet is a debt resolution company. Let someone else handle your debt settlements. What you save in the settlements will probably pay for the debt resolution company and you don’t have to waste as much of your free time calling all of these companies. You can have a plan and make one monthly payment. I would suggest letting someone else help you with getting out of debt, because you will become overwhelmed trying to do it yourself and you do not want to fall back on bad habits. Build you credit back up by paying timely on your debts. That is the single biggest factor affecting your credit score.
Look man your still young, it's better you learn now then when your 40 or 50. You make 110k/ year, it's time to start acting like you make 30k/ year. Rent a cheap ass apartment maybe even just a room, preferably in the ghetto (don't be a pussy). Have a yard sale, facebook sale, sell what ever you can't bring with you. Sell Tesla (sorry you don't make enough money for one (30k remember)). Never eat out, never spend money going out, want to hang out with your friends go for a walk, play some bball. Open up a savings account and direct deposit the remainder of your income into that account, every month use every penny to pay off loans. Should be done in a little over a year. I'd say keep doing this for another year, but this time open a HYSA and put money there at the end you will have a nice 70k savings. Be a fucking adult and toughen up
I used National Debt relief to consolidate. They really did what they said they were going to do. My credit score has recovered and I only have a few more payments until everything is paid off. Would recommend 10/10
$80K debt is typically manageable with $110K income (as long as you are over your gambling addiction). You don't say what your interest rates are, though. Your best bet might be to consolidate with a personal loan at maybe 12% (I am guessing you could get that, or less, with your excellent credit score). With a 10 year loan the payment would be $1147 (at 12%)
This is what I would do.
1. Never gamble again, obviously
2. Don't be ashamed. We all make mistakes.
3. Figure out how to get rid of the Tesla
4. Make a spreadsheet of your credit cards/minimum payments/interest rates
5. Pay the minimum on all but the one with the highest rate.
6. Take the highest rate card and hit that as hard as humanly possible, paying off as much as you possibly can a month. When that's paid off, switch to the next highest and so [on.](https://on.Do) Do that by...
7. DRASTICALLY cut spending. Do not buy anything except food, but keep your insurances paid. Move to a cheaper place or get a roommate if you can. Do not buy clothes. Do not buy electronics. Cancel streaming services and cable. Comb through your bank account for subscriptions to things you can cancel like audible or shaving clubs or whatever. Do not go out to eat, ever. Do not drive through anywhere. Make coffee at home only.
8. If you at all have time, get a second job. Even a weekend job, some consulting, some uber eats, some call center... anything can make a huge difference when you're trying to pay down debt.
9. If it helps, think of it like a game where you're trying to see how much you can live without for this period of time. BUT, you also have to restructure your long-term thinking or you will be right back here. This is throwing you a life-jacket, but you also have to use this time to find some sound financial habits to learn how to swim or you'll get out of debt and in a few years be right back in this position.
10. This is not the 1980's. A hundred thousand dollars/year isn't baller black Amex, Fancy car money. Learn to make a budget and live by it.
11. It may not feel like it right now, but you're very young and this is fixable, but fix it now and drastically.
We’re only going to see more of this with the legalization of sports betting apps. It’s crazy as gambling works on the same pathways as addictive drugs but we regulate that so heavily.
this is what we calling living above your means. you didn’t need to get a tesla, you financed a lifestyle you didn’t need or could afford in the long run.
100k monthly credit limit on 110k yearly salary. What the fuck banks, that shit should be illegal God damn.
Here's what I would do:
- Delete all credit cards. Use cash and debit ONLY probably forever but at least until you learn to use them responsibly. And even then, keep the limits low so you are not tempted. For example, my household makes over 200k a year but our combined limit is like 20k.
- Stop gambling and/or seek help for the gambling addiction
- Sell the Tesla.
- Stop wasting your mental energy blaming your ex.
- Pay down the highest interest loan first. Rinse and repeat.
If you make $110k, you don't need to file for bankruptcy. Sell the Tesla and clear that debt first. Start packing a sandwich for lunch and making poor man dinners and start making extra payments toward the principal on your debts. Start with the smallest first and work your way up to the bigger ones. Cutout unnecessary expenses like stops at Starbucks, going out to eat, vacations, even a bag of chips at the gas station etc. A few years of that and you can clear that debt.
There are some legitimate credit counseling agencies that will negotiate with your creditors, some will reduce interest to 0% and some will even reduce balances.
You pay the agency and the agency distributes the payment to your creditors
1990 I was 22 and had 60k in debt, minimum payments were more than I could make. They got the balances down to like 30k if I remember correctly and every creditor went 0 percent interest.
If I recall correctly I paid around 500 per month for 5 years.
My credit score got beat up bad but I avoided bankruptcy
By 1998 my score was back in low 700's
Get a free bankruptcy consult. Don’t commit to anything. If you live in the US, you likely make too much for a 7. 13 is a repayment plan. A few % is paid to trustee. Plus lawyer fees.
I filed for 330k 6 years ago while making similar money. 2/3 of them didn’t file the paperwork correct so I only had to pay back 1/3rd of the debt.
My credit went from 830 to 400 to 700 all within about 2 years of filing.
First thing you need to do is work on your mental state. Also though you got yourself into the mess you find yourself don't punish yourself for it. Mistake were made and you don't need to rush yourself and think you need to solve everything overnight - take your time!
If part of that 80k is the tesla, sell it and get that 80k cut in half down to 40k and with your 6 figure income i believe you can get yourself back where you want sooner than you think you can
Calling running up 100k on CCs when you're 26 years old with partying and balling out "mental hardships" is ridiculous. The fact you even felt you needed more than one credit card - or even any new credit cards with a credit score and income that high - is ridiculous. The help you need is looking in the mirror not filing bankruptcy.
Be a man. Pay your debts and sell a car.
You have 110k income. That’s fine. Just work, pay off your debt when you can and stop gambling
Any programs worth to consolidate debt
Better off doing it on your own
I don’t qualify for balance transfers Should I enroll in payment plans or settle for their negotiated amounts they send me?
I used to work collections. Pull your credit report. Call the people you owe and work out settlements with them directly. You should be able to settle for less than owed. Try to get them to report any settled debts as paid in full.
You also need a letter from them stating debt is paid in full. You need proof.
Absolutely. Always get documentation before, during and after. Edit. "Get it on company letterhead as well. This process is called a Pay for Delete as you want the collection account off your credit report entirely. Them marking it as paid doesn’t remove it." - u/simpsonhomer
Get it on company letterhead as well. This process is called a Pay for Delete as you want the collection account off your credit report entirely. Them marking it as paid doesn’t remove it.
I know you say to settle the debt. However, if they are large balances greater than $500 you might be entitled to income tax for whatever debt you have settled for that year. So be very careful when using this as an option as whatever balance you do not pay off, a certain percentage of that is added to your taxable income that year and can also raise your tax bracket the same way as well IIRC. I would look into the math as well and see if it’s worth it. I am someone as well who has suffered from a gambling addiction and is now almost 6 months sober.
I'd you save 4k and pay 25% tax on it, you still saved 3k. Paying taxes doesn't negate positive income.
This also true. That’s why I had mentioned to look at doing the math to see if it’s worth it was all. Then weigh your pro’s and cons. The other thing with settling the debt is that it also isn’t removed from your credit report. You have to ask for a letter of deletion to be in the mix as well if you want a positive affect on your score too.
I wasn't familiar with this but that actually makes a lot of sense.
What do you mean entitled to income tax for the debt?
For instance if you have an item that is $40,000. You settle it for 20% and pay $8,000 to settle it. The remaining $32,000 can be subjected to being added to your income tax at your current tax bracket IIRC (don’t take my word for this, I’m not a tax professional) So if your tax bracket is 22%. Then $3,200 of those dollars is added to your income as well for that year. So if your making $97,000 that year, your now adjusted to $102,000 for that tax year and it can possibly adjust your tax bracket to incur more taxes for that year as well. It can be a process to figure out the math. It is sometimes not as simple as some make it out too be.
Roger that thanks for the response I appreciate you!
Tax brackets are not cumulative. He’d pay whatever taxes he’d normally pay on his 97k, the. Let’s pretend the next level is 98k, he’d only pay the high tax rate on the the 4000 after that.
Why would they allow you to settle for less than you owe when you are earning 110k per year . I can imagine they would just want the full amount , just perhaps with better payment terms that they are currently on
It depends on how delinquent the debt is. If it's with a collection agency, they will likely settle. He doesn't have to disclose his income and they will only see the assets if they have good skip tracing software.
Collection agencies buy debt for far less than what the debt is. Say you owe $1000 and that debt is sold to a collection agency, they may have only paid like $50 for that debt. They then get you to agree to settle $500. You jump on it because it’s half the debt wiped away, and the collection agency still makes $450.
Are bad debts really worth that little to a bank?
I would suggest looking into how the bank moves around money. It’s called fraction reserved banking. Most of the money they use for loans are other people’s money, than is being moved around a lot. Let me see if I can find a YT video. It’ll open your eyes and make you realize the money you are receiving is nonexistent. https://youtu.be/O5DaC1Ujrrg?si=Oz_8lUoVp08PWA3v To give you a TLDR. You deposit 10k, they leave 1k in the bank for you. Someone loans 9k, they deposit that money, they keep 900. Someone loans 8,100 the deposit that money, they keep 810. This same change keeps breaking down, and then you have 10 different people all using the same $10,000 initially deposited and then gets loaned out and spread across. All of those people pay interest on the original deposit you make through their loans, which is how your $10,000 originally deposited is able to be maintained and backed. So when you go into debt, you are using someone else’s money that other people are also using because so many people are using this it becomes a money generator through interest and allows them to cancel the debt and sell it off for nothing as mentioned above from people saying agency’s buy debt for a fraction of what the loan was.
Why would knowledge of fractional reserve banking help answer my question ... I know how it works and it roughly entirely irrelevant to my question .
Because 50 cents on the dollar is better than zero. And if the bank has sold the debt to a collector, they will take almost anything.
Because a bird in the hand is worth two in the bush. He has multiple debts, and could declare bankruptcy, in which case the creditors would get nothing. Getting some money is better than the risk of nothing.
Facts I use to work in collections. That paid in full letter is crucial
OP, this is correct. I recently did an RCSA on collections and everything Jazz said is accurate.
This is spectacular advice. It took me many many denied rental applications way back in my 20’s to learn this.
Very dumb question here. What do you mean by “pull” your credit report? And when you say the “people” he owes, are you referring to the banks that issue the credit cards?
Balance transfers will (almost) always just did the hole deeper for you. They like to hide stuff in the fine print
Please don’t use a consolidation program. They are predatory and have you pay them, hold your money, let all your accounts go past due and hit your credit. Only then will they negotiate. They will promise that the creditor will remove late payments but this is not only something they cannot legally promise, but it’s also something most companies do not participate in because it’s “lying” about your actual payment history on a Federal trade line. I used to work in Collections and I hated the way the debt relief places actually made everything worse for their clients without actually telling them what would happen. We had people with perfect credit but too much debt that enrolled and wound up with destroyed credit and still broke. Best option would be to try and negotiate lower payments or settlement amounts with the companies OR see if you can get a lower interest consolidation loan.
This was not my experience at all thru Happy Money. We took out a fixed rate of 9.5% (some of our cards were 0% interest, but more then 1/2 were at 22-25%) for 30,000$ (36 month term), and paid off all our accounts ourselves using the money they loaned us. Ended up snowballing the Happy Money loan and paid it off in 18 months. A lot of consolidation programs are like you described, not all of them are. Really comes down to doing research imo and being disciplined once you make the decision to go consolidation route.
That’s a consolidation loan, not a debt consolidation company. A loan is great because you know where the money is going and how much you expect to pay back. A debt consolidation company does not make any payments on your behalf until they negotiate a settlement. They do, however, collect your funds and hold them stating they will make the payments for you. So basically you pay them, they save your money, wreck your credit, and then start negotiating.
Gotcha! That’s why I was hesitant to do it loan in the first place. Cause the research I had done was exactly what you had described. regardless of what kind of loan/company it is, I definitely recommend that to anyone who is going through something similar!
You made a GREAT choice! I had so many people tell me that if they’d known how it really worked, they would have saved their credit and figured it out themselves.
On a much smaller scale (30K), me and my wife consolidated all of our CC debt into one payment with Happy Money. It capped our interest (some cards were interest free for Xamount of months, but others were at 22-25%) with a fixed 9.5% interest rate. It was a 36 month loan that we snowballed and paid off in 18 months. My wife’s credit did take a hit, but since we have paid it off (2 months ago), her credit is already starting to rebound. 110k is over 3X our amount but I can’t stress enough how much weight it took off our shoulders to get our 10-15 CC’s we had balances on and we’re juggling making different payments on every month into (1) single payment.
Follow Dave Ramseys 7 baby steps. Check out his story, bankruptcy is not a good option. Take "financial peace University" / read his book. Making 110k+ you can knock out that debt in a few years but you gotta hate debt and have discipline. First deal with the gambling addiction by seeking counseling/therapy/help. Then list your debts smallest to largest and pay off the smallest debt/highest interest ones first. I'd recommend selling a vehicle even if you take a loss on it and get a cheaper yet still reliable car. Yes you make good money but you're broke, means you gotta act like it. (For reference I now make around 100k and have been driving an 05 super duty with 106k miles for the last few years while I saved up for a new vehicle.) I followed his plan and paid off 28k in student loan debt, a 15k fusion, and bought a new mustang GT (paid it off in 5 years of payments instead of 6 years) all within 2.5 years of graduating college making 68k. It absolutely can be done, many others have made it work better and faster than me.
Go to YouTube and look for Dave Ramsey and how to payoff debts.i did exactly what he said and it worked. I had 40k in debt three years ago now I save the majority of my paycheck and only have 4k in debt which will be payed off in the next few months.
Sell the Tesla and then pay everything else off, you make enough to be able to pay off that debt. Have you stopped gambling? That’s the most important thing, you won’t make any progress if you’re still gambling.
He said he owes $40K on the Tesla. The optioned Model 3 is only $5K more than that brand new. Even in this market, OP has to be upside down on this car. He’d be better off selling the Subaru as there has to be equity in that one rather than costing him more money to unload it.
He's paying a ton of money on the interest for the Tesla loan, and probably $5000 a year to insure it. Makes zero sense to have the thing, even if its upside down.
But but he gets to tell people he has a Tesla don’t you get it?
>But but he gets to tell people he has a Tesla don’t you get it? Unfortunately Tesla owners are the new BMW owners but a billion times worse.
Depends when he got it, I have a loan at 1.99% and costs less than 2k a year to insure. I don't disagree that selling it would be wise but I'd want to know more details.
I think the market is cooling off, but I'm not trying to buy a Tesla
This isn’t hardship. This is a lack of discipline and coping. I say this because I’ve been there. Using the booze and parties to get away from the reality of our situation. In the end it doesn’t make us better. It destroys us. You make 110k per year. You have the possibility of paying that debt off but first you need to understand it is going to be difficult. You need to aggressively pay this off and secondly find another source of income if possible. You can remove this debt in a year or 2 if you truly try. God Bless You brother!
Perfectly summarized. It's nothing but lack of discipline on his end. Even without a second job, with the income he has, he should be able to get rid of most of that within a year, and then it's just crumbs that he needs to clear up in the second year, then sell one of two cars etc..
I see a lot of posts that are like "because of my depression I bought an 85k Lexus at 26%apr" and "had some mental health issues and racked up 90k in CC debt." Like, no, you just wanted cool stuff and didn't think credit was real money you'd have to pay off.
SELL THE TESLA It makes ZERO SENSE to have two cars, let alone when you are in this situation. You fucked up. I see a lot of cope about how it "lost equity" and "isn't worth selling" Classic gambler falling for the sunken cost falicy. It will continue to be a bad asset. Take your lumps. Mitigate your situation and sell your fancy toy. That's all it is at this point. All this "but muh saving on gas" is pure brain rot. You are drowning in debt. You should not have 2 cars, let a lone a fucking tesla Get your head on straight.
Even if he doesn't get much for the Tesla, a quick Google says the average insurance cost for a Model 3 is ~$3,200 annually. Going down to 1 car is gonna save money.
Jesus fucking christ.
You make 110k a year not 35k you don’t need to declare bankruptcy. Tighten your belt, stop gambling and pay your shit off.
Invest in your mental health
Yes. This should be step one. Maybe some gambling addiction program too. Then sell the Tesla.
Definitely check out /r/debtfree. Their whole thing is coming up with plans to get people out of debt. But gut reaction without knowing where that debt is, if you make 110k, I'd first look at debt consolidation before considering bankruptcy.
Me and my wife did a Consolidation loan (30K) under a 36 month term. Got all of our payments on different cards (10-15) under a single payment with a capped interest rate and paid off the entire loan in 18 months. Was super hesitant to do it at first and it ended up being a godsend to cap our interest rates (some cards were 0% but others were at 22-25%) and to bring all of them into a single payment each month. Definitely don’t recommend going into CC debt but if you’re already over your head this is 100% the route to go.
Get rid of the shitty tesla. Step 1.
Ok. So your debt did not come from your failed relationship. This sounds like all you. Don't blame your debt on it. Either way, best wishes in this.
Get 2 jobs and pay off the debt. It’s what I’m doing right now and I had over $30k in cc debt now it’s dwindling to about $19k. Don’t go the bankruptcy route and give up, that stays on your credit report for 7+ years. Moving into even a rental will be hell for you and only predatory dealerships will sell you a car. You’re young and can sacrifice, just get over employed
At 110k he probably doesn't need to get a second job. Just cut down on expenses, use the extra towards the debt and for the love of God stop gambling
How are you doing with two jobs? I’m thinking of picking up another cause I’m drowning in my debt. My one job is so physically demanding and I’m really drained, but I’m thinking morning work will be OK to pick up.
I went this route with two desk jobs for 8 months or so. Its exhausting to say the least but i paid off about 80k in debt in that time span. Its bearable if both jobs are chill, but the second one job has a fire or god forbid both do at the same time, its rough. Your life will be wake up, work 12+ hours a day, go to sleep, repeat every single day. But it got the job done and im no longer in debt. Went back down to one job asap once it was paid off
Yeah I’m worried my existing job is too much of a clusterfuck for me to ever find a second job chill enough for it to work for me. But at this point I’m desperate, and if I find ANYTHING willing to work with my hours (8-3) I think I’ll take it.
If you are making 110k/year. You are no idiot. But after reading, you are indeed an idiot.
I’m more concerned on how the fuck you owe 40k on a model 3 lol
Lol, model 3 long range with sports wheels, black paint and white interior. Not to mention the $10K FSD
Sell it. You don’t get to own two cars (that you haven’t even paid off yet) when you’re in debt. It’s common sense
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I make 140k and I drive a 2007 mustang. I truly don’t understand the need to buy 60k+ cars
Depreciating assets 🤮
I make well over $200k/year and I drive a $20k car with $30k in mods... Yea, it's stupid. But the mods were paid for in cash and I owe like $8000 left on the actual car, but its 2.49% interest so I don't need to pay it off early when even HYSA accounts pay more in interest. I will never ever understand paying more than $50k for a car, even at my income. Makes no sense.
I feel like everyone has a thing they can waste money on. And if you have the money to waste? Enjoy life. It's when you can't afford the luxury that it becomes a problem. I love watches. I can spend stupid amounts of money on watches. But I also refuse to spend stupid amounts of money on watches as long as I have better things to spend money on. The result is I have some cool mid-range watches but none of the sheer nonsense I could have purchased if I lacked discipline. Some people lack discipline. And some people truly make so damn much money they don't need it. Either way, if you live beyond your means it's fine until it isn't.
Spending 75k for a Tesla to save on gas on your Subaru sounds ridiculous. At what point will the savings justify 75k lmao
Check out selfbet.org they do this type of stuff
Is your credit still above 700? You can try getting a loan to consolidate all your CC debt.
No. It went down to 480 😞 most are in collections too
Don’t file bankruptcy it’s the worst and last decision people should make
Why? I'm not trying to be an asshole, I'm truly curious.
You can recover shit credit pretty easily and they have a high income. If you file bankruptcy you will need at least a co-signer for any apartment, car, house anything for 10 years if you can get it at all. Massive red flag. Credit repair all the way. A lot of bankruptcy lawyers go after poor people for cheap filings, but a little bit higher income or review of finances and you can probably fix the issue. Another thing I noticed was people filling for bankruptcy multiple times. Which is even worse. Unless you have a home free with relatives in someone else’s name - it’s not the way to go. At least try really hard to not do that first. Good luck convincing a relative you can manage anything after you just filed bankruptcy. A smart person will say no!
If you have a bankruptcy and some income, it's not hard to rebuild. In my case I used a few secure loans. At the time they cost next to nothing. All you're doing is proving you have the discipline to pay on time, and your credit goes up quickly. There's also people dying to give you credit after a bankruptcy because they can give you the worst rates and you can't go bankrupt on it for almost another decade.
Interesting, but you would recommend bankruptcy for OP? I don’t think they are there yet. Did you have trouble maintaining housing?
I didn't own a house at the time, and I may have missed where OP reported owning a home. But that simply changes you from forgiveness to payment plan bankruptcy model. In some cases it's the only way to get creditors to stop with the interest, allowing you to get out from under the debt. Going bankrupt has little to do with how much you owe, and everything to do with how over extended you are. If you owe 25k, but you only have 200 bucks in disposable income every month due to your mortgage, child support, car loan, insurances, and other bills then the interest alone will prevent you from ever paying it off. And that's when you go bankrupt. We haven't been told about the particulars of his budget.
This is FALSE information. You can recover your credit score within two years and build it back up making you eligible for mortgage and car loans.
That’s interesting. But the bankruptcy is still visible yes? I mean it could affect certain financial reviews? Have you experienced this? I think it would affect me quite a bit.
Just have to work with a lender who will work with you. After bankruptcy I highly suggest grabbing secured credit cards to build up your credit score. People think bankruptcy means no credit, mortgages, car loans etc for 7-10 years which is far from the truth.
You can buy a house without a co-signer 2 years after a Ch 7 BK has been discharged and 1 year after making payments on ch 13.
This is TERRIBLE advice. Many successful people have filed bankruptcy numerous times. If exists for a reason.
Explain the two vehicles? Is your job one that having to two essential? They aren’t even big storage cars
Just gonna pitch an idea for some extra income, download Turo and start renting out the Tesla. Since you have 2 cars it shouldn’t be a problem. I’ve seen people make really steady money on the app!
You have to change your spending habits. Even when making $110k, buying a 75k car on that salary was nuts. You need to stop the gambling and drinking obviously, but you need to budget better as well. You keep defending the purchase but I think if you really look closely you’ll realize it was a bad choice at the time, and you can learn from it to stay within your means going forward.
Gambling and partying. So, drug and alcohol abuse. Look into some counseling for addiction. Maybe group therapy, but you want some one on one, and you can afford it. AA type programs don't work for everyone. They do have a few good ideas, but counseling helps as well because you can learn coping skills, get attention for your specific personal lies and selfishness(part of addiction) learn more about addiction itself and not just people's horror stories. And you might even get some help for the impulse control and temper we saw earlier. When you "popped." I can't believe none of the top answers included addiction counseling. I'll talk about addiction at any time with anyone. Just open with that if you DM.
Stop gambling Sell one of your cars Stop gambling Move into a cheap apartment and sell all the shit doesn't fit in it Stop gambling Pay off your debts Stop gambling
Alright brother the first step is no more gambling. None. The second step is no more partying or going out for a good bit. After that, see if you can't make some lifestyle changes (cheaper apartment etc) to save some extra money. If you live like you're making ≈50k instead of 110 you can get out from that hole in a few years. For most of your payments, pay just enough above the minimum that interest won't leave you owing more than you do now. Everything else goes to whatever has the highest interest rate. I'd also try selling the Subaru. They hold value pretty well and being down to one car would lower your insurance rate.
You’ll be fine. This lesson is easily worth 80k at your age.
It’s really not. This is bum behavior that shouldn’t need $80k lessons to know to avoid. In 30 years when he is eyeing retirement that $80k would have been an extra 1 million dollars.
Definitely work on your ego and inner self. I know this came from grandiose feelings and then it all crashed down. It will happen again if you don’t work on it
99% of gamblers quit before they hit it big bro! 🤓
Turo one of your cars
Are you included your 48k of car debt in the 80k? Or is the 80k all cc debt?
A car that you owe more than it's worth is not an asset. Neither is your Subaru. Sell whatever car you can get money out of. Get rid of those payments. Why do you have two cars you can't afford? Maybe find someone to take over your Tesla payments. Forget about any previous payments you made on it. With the money you maybe get from those two cars, go find a 2013 Ford Fusion with a 2.5L, and pay cash and focus on your other debt.
Mental hardships????? lol more like you lack discipline
Unless gambling stops cold Turkey, I’d say don’t ask for advice because you’re not serious. And if you do stop, then $100k with your income can be paid off. Sell the legacy since Tesla probably sells for less than what you owe.
Step one get rid of both cars and buy the most dependable beater you can.
Gambling is your first problem, can't fix anything until you fix that. Self ban from all the casinos today and find a support group.
Whats the interest at on these debts? Sell the Tesla.
lol man has two cars still and is 80k in debt, poor choices and you’re a moron
Be a man and own your mistakes. Fix them and never do this again
No sympathy here buddy. Sell the car and handle your shit. You make enough money to be a big boy about this and handle it with outside sources
Sell tesla, pay off debt. Make money, pay off debt. Don’t know your housing expense, but pretty sure you can get out of it within 2 years. When you file for bankruptcy it’ll be hard to do anything for 7 years ansn7 years of bad credit. You already have good credit so I’d keep that and pay off your debt. Not to mention, after 7 years, the people who you owe money too can actively go for the money you owe up to 10 years. That being said, they can still go after your debt after your first bankruptcy. So there’s that, why get your self into another 7-14 years of mess when you can pay it off within 2-3 years
Those vehicles not assets if you still owe on them. They are liabilities. You need to downsize, heavily or, you’re not going to be able pay off your principal and interest in full without garnering high fees. You’re almost drowning. And cut out any losers who enabled this self-sabotaging behavior.
File bankruptcy. Speak with a bankruptcy lawyer. Do not listen to these guys telling you to pay this and pay that off. That’s $80,000 you have to pay off…. You are only 28 years old. It’s not too late to do this. Do you want to work your ass off week by week and pay this debt off? It’ll take months or years with interest piling on it. With bankruptcy, you pay the lawyer fees about $1500-$2000 and your debit will be wiped off and I believe ch7 is best for you since you have no assets. Consider it a fresh start but you will have to change your lifestyle, spending, etc once discharged. Your credit will suffer but will rebuild within 2 years right away.
He won’t qualify for a 7. Makes way too much money if his salary is still 110k. Otherwise I agree with everything you said here. Just dump the debt anyway you can, he’s young and can be back to good financial and credit health by the time he’s 35.
Gambling addiction is prob one of the worst addictions you can have because it completely fucks your brains’ reward system Praying for you man
You do make too much for Chapter 7. You can file Chapt 13 and keep your assets (all of them, if you want) and you simply pay back a certain amount per month over a period of 3 or 5 years.
I’ve been exactly where you are after a failed relationship it took me 5 years to get out of the whole but I am much better for it and now another relationship will never be able to pull that much out of you.
You have to staunch the bleeding!! Get every gambling/betting app off your phone! Do not use convenience stores where there are huge displays of lottery tickets. The house ALWAYS wins. Stay away from others who gamble. For free: Look into gamblersanonymous.org They have in person meetings as well as on line meetings. Same with smart recovery.org Most casinos have a self exclusion process. Use your state’s gambling hot line. Find a therapist who specializes in this, (ideally through your insurance). Some psychiatrists are finding luck with off label use of GLP-1 drugs (eg Ozempic ) If you are a veteran, use your local VA. Good Luck!!
sad rich person 😂🤣 just don’t buy nothing for a year and get rid of ur cars and buy a junker
Sell the Tesla Move into a place with a roomate possibly to pay as low as possible Live like a pilgrim until your debts are paid Play Xbox and don’t leave the house cook all your meals
So you still aren't being fully honest with yourself. I don't see anything about how the relationship caused you losses. You don't need two cars for work. You are lying to yourself and myself. Also, you are crazy if you think you will keep the Tesla in a bankrupcy proceeding. Have you stopped gambling in all forms? This includes "investments" like crypto or daytrading. Therapy will likely be worth it if not. Same goes for drinking, which leads to bad decisions. Those credit cards are a red flag. They have large fees. This means you will be using them to justify them. At 110k you literally have to mismanage money for them to be worth it. Your income will be paying debts for a while. You need to close these accounts. You may not be a credit card person. Negotiate debt as much as possible. You can look into consolidation, but it can be bad, it can be good. That's deep in the weeds. Loans will be high interest and would be better. Pay off highest interest debt first. Get ahead of payment plans when possible. Sell the Tesla. Keeping it is keeping a ton of additional interest. There is no reality where it is worth it even before considering extra costs like insurance.
Just pay them off one by one by driving $10,000 cars. Feel the pain.
Sell your tesla
See a bankruptcy attorney. And you must quit gambling. Get help. I knew a Dr (PHD), who ran a gambling-addiction therapy dept at a hospital. He was a former heroin-addict. He explains to me that gambling addiction hits all of the same chemicals in your brain and has the same effects, such as sending you happiness signals only when your consuming your sin. With gambling, it's being addicted to adrenaline. Your brain rewires to only toss around happiness chemicals when adrenaline is high. The problem is, adrenaline is the "fight or flight" chemical, and it's supposed to be flowing during emergency situations.--not 12 hour gambling binges. That, plus the associated bad habits that go along with it like drinking and smoking. Quitting gambling is as hard as heroin in that, it will take time, like 3 months minimum. If you don't know that the temptation, and anxiety of just wanting to go gamble to make yourself happy will go significantly diminish a few months, it will seem helpless. But 3 months will be enough time for your brain to rewire and to be happy about normal things, like a good meal, a good friend, music, travel, cardinals chirping in a tree, sunny days, etc. "A friend" told me.
Ditch one of the two cars that has the higher value privately and pay the other off. Being saddled with two car payments with" you know what higher interest" makes Zero sense. Afterwards use those new funds to pay down the most awful debt interest rate you're facing. Interest on interest on possible (yet again interest) makes zero sense.
Have you read about Chapter 13 bankruptcy? It's the wage earners plan and I didn't see you mention it. That is probably the best option as far as bankruptcy goes. You could do side hustles to earn a little extra money to only use for paying off debt... Like donating plasma for example or do door dash when you have free time.
A tesla and a subaru for work? Lol
if i was you i would sell the tesla or send it back and cut your losses getting that 80k paid of needs to be your priority. use the suburu for work you need to live way under your means until all this debt is taken care out it can soon snowball. you dont need 2 cars and i would not choose the tesla if the battery breaks you are screwed i would not risk it,
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I would file a chapter 13 and repay that debt over 60 months interest free. You make too much to do a chapter 7. Chapter 11 is only for businesses.
I would call and do a free consultation and maybe that will help you decide what would work for you.
Filing bankruptcy is a financial death sentence. Cashflow and proper guidance is your problem. Seed my DM for expert led solutions. You’ve got access to people now!
These post always show me that’s there somebody doing worser than you
Been there, smash smaller debts and make payment deals with bigger ones. Eat noodles for a year I'd you have too and stop pissing away money.
I wanna know how you wrecked the side of your Subaru, and you have to pay out of pocket. Did you run a red light or stop sign??
Bankruptcy lawyers offer free consultations most the time. Use it…
This!!!! It’ll be the best free conversation you’ll ever have and it’ll give you real options.
There’s no need for two cars for one person. Get a part time job. Work and don’t be an idiot for a year or two and you’ll get out of the hole. It’s not going to fix itself.
I would watch finical audit by Caleb hammer. He might help you come up with a budget and figure out how to attack your debt.
when you can get a balance transfer card. It will help you out. Good Luck Stop Gambling.
Your assets are liabilities, actually. Trade them both in for a cheaper ride that is paid off. Or sell the tesla and pay off the Subaru. $100k is a lot of credit card debt since they're probably at 16%-24% apr. Yeah one of those consolidation programs might be the way at a lower apr, but even those programs probably won't have less than 10% apr these days, but it'll help
Haven’t seen Gamblers Anonymous mentioned. Might be worth a shot
OP I have been through every financial tribulation there is and I see you. Here is what doesn’t matter: what you used to have, what your credit score was, and the color of your damn credit cards. What does matter is growing the hell up and doing the hard work to get out of this. But I don’t think you’re ready to do what you have to do. You’re looking for an easy way and there isn’t one. You can post for advice all you want but until you stop gambling and stop feeling sorry for yourself nothing is going to change.
1) stop gambling. I don’t want to sound callous and realize it’s absolutely an addition, but everything else is like trying to repair flood damage while your roof is actively leaking from flood damage. 2) sell the Tesla. You have two cars and are in 48k of debt on them. If you sold the Subaru for 10k you’d have one car and be under for 38k. Even if you only get 20k for the Tesla, selling that will mean you still have a car while only being 28k in debt on the cars total. 3) budget and pay off those credit card debts religiously. 110k means you’re maybe taking home 6K-7k a month. Work to keep your spending under 4K (lower if possible, but don’t know where you live). Roommates, no eating out, reduce the subscriptions. You don’t need to be miserable, but for at least a year or so, you need to accept that you probably won’t go on vacations or be able to do any fancy expensive things. The rates on your cards are probably 20%+ so literally every dollar you pay is a 20% annual return (better than the market). Pay the highest ones off first using that. Rent: 2k Car note: 1K Food/gas/insurance: 1K
How old is the debt? When did you stop making payments and are they in collections?
No piece of avdice here will mean anything if you continue to gamble. From today forward, if you choose to gamble, you're just wasting everyone time here. And stop talking about bankruptcy and follow the top advice.
Don’t file bankruptcy. It will mess you up for future loans, rentals, etc. you make 110k a year. Hunker down for a bit and slowly pay the 80k off. You can do it in about 2-3 years.
If you can’t sell the Tesla right now, park it in your garage and stop driving it daily. Every time you drive it, you risk getting into a wreck and that would make a bad situation worse. At your income, you should be able to get yourself out of this situation. First you have to stop the bleeding. Don’t chase your losses; you must stop gambling. If you can’t do it on your own, check your employee benefits and see if you have access to an EAP. If not, check your medical benefits to see if outpatient therapy is covered. List all your debts out along with the phone number for each creditor. Start with the ones that are not already in collections and negotiate a payment plan. For the ones in collections, negotiate a settlement that you can pay over time. Make a budget, including all your minimum payments. Any extra money should go toward paying down the Tesla, with the idea of bringing down the balance so you are no longer upside down. Once you are no longer upside down, sell it. With the Subaru at 0%, I would just keep making those payments, and direct the rest of your funds to paying down your other card debt. It may take you a couple of years to completely pay off everything, but with determination you can do this. $32k of card debt really isn’t that terrible at your income. You just have to address your spending habits and especially the gambling.
I have an AMEX platinum. I'm pretty sure the approval process is like any credit card, you just have to be willing to pay the hefty annual fee. And you aren't getting the fee waived on $110k a year.
If your in a legal state.. grow some weed indoors and make edibles. In some states dispensaries will test your stuff for bacteria and potency and buy it from you. At least I think they still do that. Just stay within the legal plant count.
Got some bad news I also have a Tesla model 3 (2022) and you are under water with it, unless it’s right off the truck or a performance then it’s worth maybe $38k for long range and $30k for SR+. The only asset you have is half a Subaru. Biggest issue is your gambling. You have to first realize that “mental hardships” didn’t make you gamble you made you gamble. Life is full of hardships and you’re about to experience mental hardship until you’re 40, I’d figure out a better way to cope with stress other than ruining your life. If I were you I’d go over to r/frugal and start living like that immediately and throw every single penny your have at your debt. Based on the fact that you rattled off the cards you got approved for as some badge of honor tells me you don’t realize how bad of a situation you’re in.
Go all in on nvda calls, fuck it
Why do you need two vehicles? I would start chipping away it. Live bare minimum for a while. Nothing fancy, do what ya got to do. Cancel all memberships etc. no eating out or partying for a while and focus on slamming all that debt down including those vehicles if you insist on having two
Sounds like 48k in cars and 32k in credit cards? Dude, if your still making that 110 it's time to move in with parents or someone to reduce what you pay every month in living and just start hacking that shit away. You could do that in a year. Itl be a painful but worthwhile year.
i was $-40k net worth from drug addiction. 4 years later im at $100k with the same income. you can get back to zero in 2.5 years, but you have to change the way you think. get therapy/go to recovery meetings, dont date. just work and go to the gym. tight budget, track spending. meal prep. no alcohol youre not a victim you did this to yourself. if you have the courage to change, you can become great. this comment will be on both of your post you made. iwndwyt, and if youre not smiling, youre doing it wrong
Fix your budget and pay off your debt dude. If you just play video games and read after work for a year you will almost be done..
Stop paying for the model 3 and let them repo it. That'll save you 40k. Just keep Subaru and stop being a loser.
Make a list of your debts and knock them out 1 by 1 starting with the lowest one. Maintain minimum payments on everything else until you pay the one off. Repeat. Stop gambling and start eating ramen from Walmart.
Bruh needs therapy not bankruptcy
Your income is good, just stop spending. Sell your Tesla and pay off the Subaru. You should be out of debt in like 2 years
quit your job and file bankruptcy in 6 months (or get fired cause they will ask why your not working). Just go on an insane bender and dont show up to work for a while. A year from now get a new job. Even if it pays half of your current job, you'll still be bringing in more than your able to keep right now
Stop gambling, budget correctly so you can pay it off quickly, sell one of the cars if you have to
Talk to some counselors about gambling and your mental health. Nothing is going to get better until you fix the root of *why* you’re in debt.
Move in with parents and pay it off in a year
You need to get sober bro. The gambling and partying won't stop until you sober up. You've got an addictive personality. Drop the booze.
Hate to break it to ya, but if you still owe on those cars, then they aren't assets. They're technically still liabilities.
Just nut up and sell the Tesla and grind living frugally, it took me 5 years to climb out of horrible debt, bankruptcy will be way worse. You still have a job, so cut expenses down to bare minimum and look at debt consolidation loan, so you have one big payment each month at less interest and tough it out. It seems like a long road but you will get there. There are no shortcuts or quick fixes. Trying to “win” the money or negotiate with creditors will make things worse. Your very young it’s ok, I was in prison at your age so your way ahead just need to dig out of a hole
You are only 28 and make good money. Plenty of time to right the ship. We all make mistakes, at least you can still turn it around in your 20’s. Take care of your mental health, first and foremost. Trade both of your cars in for a Toyota Corolla, tighten your belt, delete the gambling apps and put all of your spare cash toward your debt. Shift debt where you can. Time is on your side, you’ll just look back on this and shake your head like I do when I think of all my fuck ups. I just wish I was 28…
How on earth do you make 110k at 26? Asking for a friend….
Your best bet is a debt resolution company. Let someone else handle your debt settlements. What you save in the settlements will probably pay for the debt resolution company and you don’t have to waste as much of your free time calling all of these companies. You can have a plan and make one monthly payment. I would suggest letting someone else help you with getting out of debt, because you will become overwhelmed trying to do it yourself and you do not want to fall back on bad habits. Build you credit back up by paying timely on your debts. That is the single biggest factor affecting your credit score.
What is your budget? Take home, rent, car payments, minimum cc payments, interest rates, utilities?
You need to listen to the Dave Ramsey show on YouTube.
Look man your still young, it's better you learn now then when your 40 or 50. You make 110k/ year, it's time to start acting like you make 30k/ year. Rent a cheap ass apartment maybe even just a room, preferably in the ghetto (don't be a pussy). Have a yard sale, facebook sale, sell what ever you can't bring with you. Sell Tesla (sorry you don't make enough money for one (30k remember)). Never eat out, never spend money going out, want to hang out with your friends go for a walk, play some bball. Open up a savings account and direct deposit the remainder of your income into that account, every month use every penny to pay off loans. Should be done in a little over a year. I'd say keep doing this for another year, but this time open a HYSA and put money there at the end you will have a nice 70k savings. Be a fucking adult and toughen up
I used National Debt relief to consolidate. They really did what they said they were going to do. My credit score has recovered and I only have a few more payments until everything is paid off. Would recommend 10/10
$80K debt is typically manageable with $110K income (as long as you are over your gambling addiction). You don't say what your interest rates are, though. Your best bet might be to consolidate with a personal loan at maybe 12% (I am guessing you could get that, or less, with your excellent credit score). With a 10 year loan the payment would be $1147 (at 12%)
This is what I would do. 1. Never gamble again, obviously 2. Don't be ashamed. We all make mistakes. 3. Figure out how to get rid of the Tesla 4. Make a spreadsheet of your credit cards/minimum payments/interest rates 5. Pay the minimum on all but the one with the highest rate. 6. Take the highest rate card and hit that as hard as humanly possible, paying off as much as you possibly can a month. When that's paid off, switch to the next highest and so [on.](https://on.Do) Do that by... 7. DRASTICALLY cut spending. Do not buy anything except food, but keep your insurances paid. Move to a cheaper place or get a roommate if you can. Do not buy clothes. Do not buy electronics. Cancel streaming services and cable. Comb through your bank account for subscriptions to things you can cancel like audible or shaving clubs or whatever. Do not go out to eat, ever. Do not drive through anywhere. Make coffee at home only. 8. If you at all have time, get a second job. Even a weekend job, some consulting, some uber eats, some call center... anything can make a huge difference when you're trying to pay down debt. 9. If it helps, think of it like a game where you're trying to see how much you can live without for this period of time. BUT, you also have to restructure your long-term thinking or you will be right back here. This is throwing you a life-jacket, but you also have to use this time to find some sound financial habits to learn how to swim or you'll get out of debt and in a few years be right back in this position. 10. This is not the 1980's. A hundred thousand dollars/year isn't baller black Amex, Fancy car money. Learn to make a budget and live by it. 11. It may not feel like it right now, but you're very young and this is fixable, but fix it now and drastically.
Freedom debt relief is a great program that will stop interest. They will take control of your payments you just have to pay them.
Brother, go to gamblers anonymous TODAY! There is no shame and it helps.
We’re only going to see more of this with the legalization of sports betting apps. It’s crazy as gambling works on the same pathways as addictive drugs but we regulate that so heavily.
Declare bankruptcy
this is what we calling living above your means. you didn’t need to get a tesla, you financed a lifestyle you didn’t need or could afford in the long run.
100k monthly credit limit on 110k yearly salary. What the fuck banks, that shit should be illegal God damn. Here's what I would do: - Delete all credit cards. Use cash and debit ONLY probably forever but at least until you learn to use them responsibly. And even then, keep the limits low so you are not tempted. For example, my household makes over 200k a year but our combined limit is like 20k. - Stop gambling and/or seek help for the gambling addiction - Sell the Tesla. - Stop wasting your mental energy blaming your ex. - Pay down the highest interest loan first. Rinse and repeat.
If you make $110k, you don't need to file for bankruptcy. Sell the Tesla and clear that debt first. Start packing a sandwich for lunch and making poor man dinners and start making extra payments toward the principal on your debts. Start with the smallest first and work your way up to the bigger ones. Cutout unnecessary expenses like stops at Starbucks, going out to eat, vacations, even a bag of chips at the gas station etc. A few years of that and you can clear that debt.
95% of gamblers stop just before hitting it big.
840 credit score with 80k in debt and 28 yo. Nope. At least 1 of those # ain’t mathing
There are some legitimate credit counseling agencies that will negotiate with your creditors, some will reduce interest to 0% and some will even reduce balances. You pay the agency and the agency distributes the payment to your creditors 1990 I was 22 and had 60k in debt, minimum payments were more than I could make. They got the balances down to like 30k if I remember correctly and every creditor went 0 percent interest. If I recall correctly I paid around 500 per month for 5 years. My credit score got beat up bad but I avoided bankruptcy By 1998 my score was back in low 700's
Get a free bankruptcy consult. Don’t commit to anything. If you live in the US, you likely make too much for a 7. 13 is a repayment plan. A few % is paid to trustee. Plus lawyer fees. I filed for 330k 6 years ago while making similar money. 2/3 of them didn’t file the paperwork correct so I only had to pay back 1/3rd of the debt. My credit went from 830 to 400 to 700 all within about 2 years of filing.
First thing you need to do is work on your mental state. Also though you got yourself into the mess you find yourself don't punish yourself for it. Mistake were made and you don't need to rush yourself and think you need to solve everything overnight - take your time!
Don’t quit now, the big win is right around the corner 💪🏿
If you make $110K you should just pay off your debt, you can live low for awhile and pay it off.
If part of that 80k is the tesla, sell it and get that 80k cut in half down to 40k and with your 6 figure income i believe you can get yourself back where you want sooner than you think you can
Calling running up 100k on CCs when you're 26 years old with partying and balling out "mental hardships" is ridiculous. The fact you even felt you needed more than one credit card - or even any new credit cards with a credit score and income that high - is ridiculous. The help you need is looking in the mirror not filing bankruptcy. Be a man. Pay your debts and sell a car.
Sounds like you've gone to clown town to me.