Startingover:
Your explanation of how to state intentions to reaffirm vehicle(s) sounds reasonable. I think that it may work for me, so long as they are willing to reaffirm a LEASE. Is that possible???? Will they reaffirm a lease?
Logan:
Thank you for your thoughts on why a 401k loan is a reasonable option for post bk car loan.
Debtmonster:
You are 100% correct...cash is the way things should be done. Ideally,that is the way I would like to pay for everything (except mortgage) from now on in this new world of money and debt that we now live in.....just one glitch and it is a big one...I won't have enough money to buy a vehicle (that fits our family's needs) at the moment our vehicles will go back to the lender.
I don't want to finance a fancy bmw, I just want enough money to pay for a $3000-$5000 mini van. Fancy cars/houses/things are not what got me into this problem. I used credit responsibly for 30 years without so much as a hiccup. I always kept my debt to well below acceptable lending limit percentages, bought a house that to this day is not upside down, with a 5.35% fixed interest rate (it is appraised at current mortgage balance, and that is saying something for this part of FL) and used credit cards and paid them off within a month. I even had a 6 month emergency fund of cash that we saved for an emergency.
Then things changed..... We used our savings for an emergency. The emergency was the slowdown of construction. (The industry dh has been in his whole life) We thought were doing everything right. Then the slowdown continued and worsened, it has done this before and we rode it out every time, and made it out on the other side just fine. We thought we could ride it out again and things would get back to near normal.
I don't think anyone could have predicted what is happening right now with the economy and I don't think it is fair to paint everyone with the same brush.
Not everyone used credit irresponsibly and that is not the reason that everyone is filing bk.
If dh had lost his job or took a big paycut and things were normal in this country, we could have sold our assets, paid our bills and walked away with our credit intact, but because of the way things are now that is totally not possible. Nothing is holding its value.
About a year ago we started using our credit cards for a portion of our day to day things and not paying them off every month, still hoping things would go back to a better place. We used our paycheck to pay our mortgage, cars, utilities and cc debt and to this day we are not late on anything. We just know that treading water like this is not going to work for much longer and there is no hope of working our way out of debt at this point. We need a fresh start.
We didn't like charging basics but like everyone else I know we thought the economy would work itself out and we would be able to pay back those credit cards and we would resume our normal life. We still had hope for normal.
I now know normal, the way we knew it, is a thing of the past. It is gone and we have to find a way to do things differently. I will do things differently, I will not charge anything on a credit card for any reason again. I will live life more minimally than before. I don't think loans for vehicles/homes are evil, but will avoid them or think harder about whether a purchase of a vehicle or house is a need or a want. Wants will not be fulfilled, but in order to pay for any of our needs dh must go to work, and he needs transportation in order to do that . That brings me back to my original problem, I need a vehicle.
I will need to finance, for a short period of time, somewhere, so why not myself. That keeps the corporations from sticking it to me with unreasonable interest and dh gets to go to work and we all get to learn how to live life in a different world.
Your explanation of how to state intentions to reaffirm vehicle(s) sounds reasonable. I think that it may work for me, so long as they are willing to reaffirm a LEASE. Is that possible???? Will they reaffirm a lease?
Logan:
Thank you for your thoughts on why a 401k loan is a reasonable option for post bk car loan.
Debtmonster:
You are 100% correct...cash is the way things should be done. Ideally,that is the way I would like to pay for everything (except mortgage) from now on in this new world of money and debt that we now live in.....just one glitch and it is a big one...I won't have enough money to buy a vehicle (that fits our family's needs) at the moment our vehicles will go back to the lender.
I don't want to finance a fancy bmw, I just want enough money to pay for a $3000-$5000 mini van. Fancy cars/houses/things are not what got me into this problem. I used credit responsibly for 30 years without so much as a hiccup. I always kept my debt to well below acceptable lending limit percentages, bought a house that to this day is not upside down, with a 5.35% fixed interest rate (it is appraised at current mortgage balance, and that is saying something for this part of FL) and used credit cards and paid them off within a month. I even had a 6 month emergency fund of cash that we saved for an emergency.
Then things changed..... We used our savings for an emergency. The emergency was the slowdown of construction. (The industry dh has been in his whole life) We thought were doing everything right. Then the slowdown continued and worsened, it has done this before and we rode it out every time, and made it out on the other side just fine. We thought we could ride it out again and things would get back to near normal.
I don't think anyone could have predicted what is happening right now with the economy and I don't think it is fair to paint everyone with the same brush.
Not everyone used credit irresponsibly and that is not the reason that everyone is filing bk.
If dh had lost his job or took a big paycut and things were normal in this country, we could have sold our assets, paid our bills and walked away with our credit intact, but because of the way things are now that is totally not possible. Nothing is holding its value.
About a year ago we started using our credit cards for a portion of our day to day things and not paying them off every month, still hoping things would go back to a better place. We used our paycheck to pay our mortgage, cars, utilities and cc debt and to this day we are not late on anything. We just know that treading water like this is not going to work for much longer and there is no hope of working our way out of debt at this point. We need a fresh start.
We didn't like charging basics but like everyone else I know we thought the economy would work itself out and we would be able to pay back those credit cards and we would resume our normal life. We still had hope for normal.
I now know normal, the way we knew it, is a thing of the past. It is gone and we have to find a way to do things differently. I will do things differently, I will not charge anything on a credit card for any reason again. I will live life more minimally than before. I don't think loans for vehicles/homes are evil, but will avoid them or think harder about whether a purchase of a vehicle or house is a need or a want. Wants will not be fulfilled, but in order to pay for any of our needs dh must go to work, and he needs transportation in order to do that . That brings me back to my original problem, I need a vehicle.
I will need to finance, for a short period of time, somewhere, so why not myself. That keeps the corporations from sticking it to me with unreasonable interest and dh gets to go to work and we all get to learn how to live life in a different world.
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