That was spoken like a true teenager , somone that has yet to grow up or was born with a silver spoon in their mouth.

 

Jon,

I hate to say this, mostly because it sounds like something my Dad would say...

...but I waited until I could afford it...

it sucked then, but is great now...

...but then you have one of the baddest Vettes around...

Peace
Willfulone

 

I bought my C5 after getting out of cc debt. I went thru a credit counseling service. It took me 4 1/2 years at 825 amonth to pay off $38,000. I have had a friend at work who declared bk on about the same amount and I have had a friend who worked for a credit negotiation service.
The counseling is as good as claiming bk, your credit is screwed for a long time. Some companies will reduce your interest rate, some will even cancel the interest. But do not beleive they are doing this for charity or to help you out. It is a business, they get paid for "helping you out" and they will look at just how much you can afford. You will not save a great deal off your monthly payments.

Bankruptcy, well if you can justify it in your own mind, works out pretty good. I just could not do this route. Once your bk is discharged your credit will be good again in 7 years( although you will get cc offers and home loans almost instantly) you cannot claim bk again for a period of time.

Debt negotiation (just type this in google you will get more companies than you can shake a stick at) They negotiate with your cc companies and you pay a reduced amount in a lump sum. It would take to much space to explain this here but I have met with the Pres of one of these companies, it is for real and is very interesting. The nice thing about this is you get out of debt sooner and thus repair your credit sooner and pay half as much if you had used a CC counseling service.

Above all don't feel bad for the CC companies. They discharge mountains of debt every year, they make a ton off of fees and are regulary taken to court over their unfare business practices. Debt that goes to collectors is even worse. The cc companies sell debt for pennies on the dollar and then the collection companies try to collect the full amount and tack on more in fees and penalties. They will use every illegal practice they can to get you to pay, they are truly amazing.

The best thing is to get out and stay out of debt, how you decide to do it will be entirely up to you. It was an incredible relief not to have the monthly debt. Considering that selling a modded vette will get you maybe 40 to 50g's( yeah some go for more but not many and it usually takes a long time to sell) I would keep the car and find another way to pay the debt. I definately would CUT UP THE CREDIT CARDS TONIGHT.

Sorry for the long post, this may be more info than anyone wants. Maybe it will help someone out.

 

Intresting points.
If I am willing to pay off a CC or two, is it possible to neg. a lower pay off myself without a debt neg. company? Also, does it hurt your credit rating
if I pay them a reduced amount. Even with all my debt I still have a 680+ becon rating and a Tear 0 credit. So, just like to save it as much as possible, and maybe keep the vette.
The interview went well, will find out more info next week if I got the job or not.

Thanks to everyone that understand and helps out. I was curious to see what everyone thought. I lay out my personal issues to see other points of views and learn new things.

Jon

 

Wow, what a thread.

I am very sorry to see anyone in this situation. I went through a similiar situation about 5 years ago and I am proud to say that I pulled through and I didn't have to get rid of anything to do it.

There was a post I want to imphasive again:

"they're your bills. sounds like it's time to call a consumer credit counseling service and renegotiate the terms of the credit card(s), work out a payment plan, renegotiate the rate & principal balance, or worst case declare bankruptcy--but that's a bad idea."

I am just expressing an opnion like most here, but I lived through a repo, bad cc issues and a bad credit score. I, being in the Navy, needed a TOP SECRET clearance and the Navy's Security/Clearance restrictions hold strict credit restrictions on those that have credit issues.

This is what I did...

I was cruising down the road and heard a commerical on the radion about consolidating my credit cards and I called them up. Within a month all my credit cards were gone and I was paying the consolidation company less than half what I was paying previously and they cut my interest rates in half or better...no interest rate at all.

I worked full time for the Navy and part time at a local Video Store (easy easy work) and within three years I was out of the hole and this included paying off my repo.

This work and penny pinching has put me into a position that I was able to buy my 1999 LS1 with little hassels and then I turned around over a year ago and bought my dream car...the 2000 VETTE that I have now. Sure I wanted a ZO6, but truth be known I knew what I could afford and stuck to it.

I got married in the middle of all of this...I made certain that she knew my situation, I keep no secrets from her and she and I agreed that we would work through this and married. It was a very small ceremony, but it was exactly what we wanted and we had a reception that costed very little money. I won over her dad, because the total price of it all was around $500. Trust me, this wedding will always be a memoriable one, because it was exactly what we wanted.

We are getting ready to buy a home and I am proud to say that I am now in a position to support my wife and child so she doesnt have to work. This allows her to be with our son.

I want the best for you and your GF and I hope that you understand that we all want you to get out of your bind...I honestly would not even attempt to sell that car unless you are selling it to someone that will pay close to what you put into it. My wife gets a little frustrated at times with my vette and modifications, but I never buy anything that I cannot afford...okay the wheels was something I put on the card.

If you need advice...PM me, I am from that part of Florida originally and soon will be back in the SE...I am always willing to help out by just passing along advice...in my world, I see it all and the Navy has trained me to help my subordinates through times like these.

Call up a consolidation company, they will be more than happy to help you through this.

Good Luck!

Micah

 

Damn Jim I don't know what else you could do....that car is beautiful...I really don't know how you will get what its worth....I do know whoever buys it will get an awesome well maintained Vette. I can understand how you are burnt out on the show circuit etc. On the other hand I can't wait to see your new project when its done

 

I seriously doubt he could get the value you mentioned.

I'm not flaming you, but you just made my point. We agree that cars are a liability, not an investment. Even the BB C2's take money and upkeep to keep their value. Providing a garage and upkeep is money spent maintaining a liability. Modding a car is money spent enjoying it. The rate of return on mods is very low and could actually devalue a car for most buyers. A car this modified will only appeal to a minority of buyers. You'd gain more return by taking the mods off (where possible) returning the car to stock and selling off the mods individually.

I've only made money on cars that (a) I didn't keep long and (b) I used my own labor to fix or correct a problem. If I paid myself for that work, it would go in the loss column.

You only lose money when you sell something for a loss. That goes for cars, houses, stocks, donuts or whatever.

This is a forum for Corvette enthusiasts. Corvettes are a passion for us. The posts have been very polarized, we have the "sell it quick!" replies and the "keep it - don't sell!." We could be making things worse.

I don't know the $ figure you owe on the car or your CC's, or what interest you have in the house. Based on your income info you provided, If the CC amount is $15K or less, I don't see how selling would really help. If the amount is more, it IS time to sell and regroup, whatever the loss.

If you can work your way out of the debt once you're back in the taxpayer club, set a budget and get it done. You can stop the hemorrhage of mod spending and still have your Vette and enjoy it as is.

Either way, good luck, God bless.

 

Here is a little different approach: Start a business. What do you love to do? Corvettes are one area you could get into, I am sure you have many others as well. You may be able to use your corporate connections to get rolling easier than most.

There is no better time in the history of the world than now to start a business. You can have a website operate on a shoestring budget or put a few dollars in a month and have millions of potential customers on Ebay.

Anyone with a computer can make a simple website and compete 1:1 with big corporations. You can 'tread' water right now until your sales start coming in.

The reason I suggest this approach is it is what we have done. A few years ago we were in the same situation. I am still learning as I go, but have made our part time business income almost twice that of my 8-5 job. My next big step is quitting my job (and take a temp income cut until I can make up the difference with our own sales).

If this sounds interesting, jump in! Dont think, plan, think again.... it may never happen. "Ready, Fire, Aim, Fire Again, Aim,..." Learn as you go!

If you pursue a "Corvette Business", let me know... I have a couple product ideas that could really take off.

Good luck.

Ron

 

I dont know all that much about Jons car but I'm sure he could get at least $50k out of it. I have heard him mention that he thinks he could get $80k but I know that wont happen. With all of the fresh paint, wheels, engine, etc I am SURE he could get $50k.

As for me taking a loss when I sold my car, yep, I did. But, the difference between Jon and I was that I could afford to take the loss. I make more than enough money to be able to "pay to play" so when it came time to take the hit it wasnt really a big deal. Like I said in my other post, you cant look at mods as an investment because you might as well throw that money out the window. Mods are only for your own personal enjoyment so enjoy them while you have them.

Actually, I think YOU just made MY point for me. Do you seriously think he would be in this situation if the CC debt was under $15k??? Do you seriously think that $15k in CC debt will take 30 years and $600,000 to pay back???

You just said that "if the amount is more than $15k then its time to sell". Well, I can GUARANTEE that the amount is more than $15k so I guess its time to sell...right?

I still dont see how most people havent come to the conclusion that selling and putting all that money towards his debt and starting over is the logical solution. Nothing says that he HAS to have a highly modded sports car right now. I think if he got rid of the car now and paid off most of his debt, he could be on the road to being debt free and by this time next year he could be looking for his next toy. Only, next time, he will be much smarter and not use the CC's for his toys.

I'm just trying to help Jon. You know that hanging on to the car is just going to cost you more money in the future. Hopefully you will be able to work something out.

 

Yes you can negotiate with the companies yourself. Yes it will effect your credit score. I believe it will state paid as agreed or paid at settled amount. The basic point to this is making minimum payments is a dead end street, even if it protects your credit score. $600 gs will go a long way in your retirement account.
Like I said before, cut up the cards and leave the mods to the rich guys, then buy their cars for pennies on the dollar when they sell them.

Good luck.

 

Jon,

Get rid of depreciating assets, i.e. the car...etc..., put ALL extra money on the highest rate bills first, never charge another thing...EVER, no matter the temptation!

You should start now, with keeping this in your mind "If I can't pay cash...I can't afford it"

This is a tough situation that REQUIRES support from people close to you, but it's all up to you.

I'm hoping you get the job your looking at and get an evening job as well. You will be very surprised how soon a turn around could happen. But of course, Our future is in our hands now isn't it?

Good Luck

 

My post was an attempted sarcastic joke. I just wanted to lighten the mood since everyone else already suggested credit counseling, selling the car, refinancing homes, etc.

And I was born with a silver spoon in my mouth, and I got it ripped out too. Witnessed my parents go through bancruptcy while in high school and they are still paying for it 6 years later. I took out 2 jobs in high school just to help get by. I know both sides of the fence, and I stay out of debt.

BTW I think your car is a work of art. What happened to the hood you had on before the flames...that thing was nice.

 

Good motto to live by... I normally use this method... works out great...you end up "owning" everything you buy.. not paying someone else rediculous interest..

 

Even though the whole CC system is set up to funnel money out of your pocket (interest) and into the pockets of CC company execs, there is a way to make them work for you rather than against you. The problem is you have to have the discipline to NEVER put yourself in a position to make minimum payments, and to always have an understanding of what you can afford, which will almost always be very different from what you want.

Get yourself a low or no annual fee CC that offers some sort of points (hotel, airline, etc) and NEVER make a minimum payment. Set up every bill that you can to go automatically to that card every month and pay off the balance every month on time. That way you get something back for the money you're spending and you don't make someone else rich.

Personally it pisses me off to see so much of our money get sucked away through taxes... but there's nothing we can do about that. We can make sure that we don't lose any more money to CC debt by paying interest however.

 

I agree 110%. I guess as Corvette owners, many people have a special bond which is obviously clouding their judgement. But ask anyone outside of this circle and the solution would be crystal clear.

If he can become debt free (or close to it) by selling his car right now, the answer should be pretty obvious. After all, his car is losing its value every day regardless of whether it's being used or not and with the summer coming to a close in a few weeks, it'll be that much harder to sell.

 

http://forums.corvetteforum.com/show...64&forum_id=53

 

Yeah...probably not getting off to a very good start if you are trying to scrape together money to buy MORE stuff.

 

Definitely need a trip to Modaholics Anonymous

 

Well, what can I say? I don't know all of his finances, nor would I want to talk about them here. You seem to geniunely want to help, as do I.

The return is what I'm talking about. You lost most of your mod money, I have too. I wish he could get 2 times+ the book value of his car. But given what I know, I seriously doubt it. A modded car just doesn't bring the returns he wants or needs. I would think selling the mods seperately (if possible) would be a better solution and raise more cash than if he sold it as is. The target market for a car like this is very narrow.

If the numbers he mentioned are correct (the 600K to repay the debt by making only minimum payments) he'd have to have already racked up $450,000 on credit cards ($450K @ 9.99%apr @ 2% min payments = $134,348 interest, 64 payments of $9000 a month). Per his previous 50K salary, thats a healthy credit limit! You know, I thought he might be exaggerating just a little bit.