- November 2, 2023
- Posted by: legaleseblogger
- Category: Related News
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Title: Seeking Financial Solutions and the Role of AI Legalese Decoder
Introduction:
I have a close friend who recently went the credit counseling route and advised me against it, suggesting that a personal loan would be a better option. While I am willing to co-sign on a personal loan with her, I am curious if there are superior alternatives available. Currently, her credit score rests in the high 600s, which is not ideal given the substantial amount of debt she faces. To improve her financial situation, we plan to revamp her resume and assist her in finding a higher paying job. However, her existing payment plans offered by the credit card companies are unattractive in terms of both interest rates and timeframes. We haven’t explored the option of a 0% balance transfer card yet, as we are concerned about potential negative impacts on her credit score since she has recently acquired a new credit card. Moreover, given her current outstanding personal loan of $4k from an initial $8k, she would require a co-signer for a new personal loan, with an estimated interest rate of approximately 12% and repayment period of five years. Her payment amount would remain the same as her current minimum payment. In addition to pursuing a loan, we are working on addressing the underlying causes of her debt through the implementation of a budget and more appropriate allocation of bills. We are actively seeking insights, advice, and experiences from those who have faced similar financial challenges in the past. In this situation, AI Legalese Decoder could potentially provide valuable assistance.
Exploring AI Legalese Decoder’s Benefits:
AI Legalese Decoder serves as an innovative tool that can greatly aid individuals like my friend who find themselves trapped in overwhelming financial circumstances. By leveraging the power of artificial intelligence, this decoding software offers comprehensive assistance in understanding and deciphering complex legal terminology commonly found in financial agreements, thereby enabling users to make informed decisions. In our case, AI Legalese Decoder can play a crucial role in unraveling the intricate language employed by credit card companies, personal loan providers, and other financial entities. With its ability to interpret the terms, rates, and restrictions associated with different payment plans, AI Legalese Decoder can shed light on the advantages and disadvantages of each option, assisting my friend in selecting the most suitable path for her situation.
Expanding Financial Strategies:
While AI Legalese Decoder can offer invaluable support, it is essential to explore a range of financial strategies to tackle this challenging situation. For instance, in addition to the personal loan and credit counseling options mentioned earlier, bankruptcy may be a viable alternative that should not be overlooked. By consulting a legal expert and utilizing AI Legalese Decoder to comprehend the intricacies of bankruptcy laws and procedures, my friend can make an informed decision considering the potential long-term consequences, effects on credit scores, and the possibility of debt relief.
Conclusion:
Navigating through overwhelming debt requires a multifaceted approach that encompasses financial education, employment advancement, and informed decision-making. As we strive to help my friend overcome her financial challenges, we have identified the benefits of utilizing AI Legalese Decoder in decoding complex legal terminology and understanding the nuances of various financial agreements. Nonetheless, we remain open to exploring a wide range of strategies, including bankruptcy, to ensure the most suitable solution is implemented. By combining all available resources and seeking advice from those who have faced similar predicaments, we can equip my friend with the knowledge and tools necessary to pave the way toward financial stability and independence.
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Title: How AI Legalese Decoder Can Revolutionize Legal Documentation and Simplify Legal Processes
Introduction:
AI Legalese Decoder: Simplifying Legal Documentation
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Aiding Legal Professionals:
AI Legalese Decoder is designed to facilitate legal professionals in deciphering convoluted legal language and transforming it into easily understandable terms. This innovative technology holds the potential to convert complex legalese into plain English, ensuring that even non-lawyers can grasp the intended meaning without confusion. By providing a simplified understanding of intricate legal concepts, the AI Legalese Decoder empowers legal practitioners to be more efficient and productive in their work.
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****** just grabbed a
People in this level of debt get second jobs and eat rice and beans until theyÔÇÖre dug out.
OP, I see that you donÔÇÖt want her credit score to be further diminished because you want to buy a home in the next few years. But your better bet would actually be to qualify for the mortgage on your own, without her. Let her score fall if needed but keep yours high, and avoid doing anything like cosigning on the loan which would hurt YOUR credit too (even if you have a perfect payment history it will increase your debt to income ratio substantially). She can still be on the deed of the house without being on the mortgage.
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Man that’s a rough situation OP, you may be able to reach out to the cc companies for financial hardship programs. This would lead to her having the cards closed out so they can get her on a more doable payment plan, but that’s probably for the best. She should do what she can to make more income that will go specifically to paying off the cards. Cut expenses to bare bones and if I were you since you’re planning to get married, I’d use my own income to support food and housing for you both while she uses her money solely to pay debt off.
The fact that suspending the card is part of why she doesnÔÇÖt want to take a payment plan is a bit of a red flag. She clearly canÔÇÖt manage credit cards! You can also pay your minimum while continuing to run up your balance, so thatÔÇÖs not really a clear sign that sheÔÇÖs being responsible or that anything is changing. Getting a balance transfer and/or personal loan are helpful ideas, but IÔÇÖd highly recommend not putting your name on the loan. She already has an outstanding personal loan, so it sounds like sheÔÇÖs had debt issues before, took the same approach, and then ran up debt again.
She needs to have a clear plan to pay the debt and not accumulate more. Nothing else really matters until she does. Part of that may be more income. Think into the future. If she doesnÔÇÖt get this under control, how do you see you guys meeting financial goals like saving a down payment for a home, saving to buy a car, saving for home repairs/renovations, having a child, just simply having an emergency fund? ItÔÇÖs fine to want to dig her out yourself (though IÔÇÖd caution against it), but she needs to learn to do this for herself
YouÔÇÖre getting a lot of flak here because nowhere in your post or comments do you mention that sheÔÇÖs made concrete steps to stop the habits that lead to this debt in the first place. Maybe she has, if the debt isnÔÇÖt growing, but this is the #1 concern here because there is nothing anyone can do for her if this isnÔÇÖt fixed visibly and permanently.
Second, your paragraph about the personal loan makes comments about payment levels and how she hasnÔÇÖt missed a minimum payment. This is another typical r/personalfinance red flag because it focuses on doing the bare minimum instead of talking about concrete existing interest rates, critically slashing your budget, and actually making this debt her priority. Again, no one can help her without this being done first.
As for actual advice, youÔÇÖre on the right path to consolidate debts in order to reduce interest rate, since that will allow her (with your help) to pay off things faster with the same financial ability. I would not consolidate for simplicity reasons only since she cannot afford that luxury. She also needs to likely get a second job if she canÔÇÖt find a higher paying job soon, and cut all nonessential personal expenses. ItÔÇÖs commendable that you want to help her, and it sounds like youÔÇÖve been together for a while so itÔÇÖs not unreasonable, but she needs to be able to take responsibility for herself and your support should not be of the paying-her-debts variety. Consider more free-time based support or re-evaluating your living expenses proportional split if you havenÔÇÖt already.
Think of it this way. She got into that level of debt on her own. What’s she going to do when she has your wallet to fall back on? What is HER level of commitment to getting out of her situation? She may need to take on a weekend gig.
Whatever you do, this is a great opportunity to do a real budget that you both hold to and make it a common goal to kill this debt. If it is a joint effort and you are both working at it then it shows great promise for your continued union and marriage in the future.
If it’s not that, then at least it’s good to talk about how you might each have different relationships with money and what your visions are for your financial future.
When my wife and I were in debt do to unfortunate job loss and medical costs, we would calculate how much interest we had paid each month and then tackle those debts to see how much less interest we had sent to the banks the following month. Made it a competition of us vs. the banks.
I don’t think it’s wrong to want to find common ground on how you will handle finances, and if possible you could help her with it. Something like for every $10 she pays down the debt you will put in $5, or whatever. But if you come in and pay the bulk then you missed the opportunity to see how much you can be in line as a couple with a common goal.
You pay off those credit cards with a loan, don’t be surprised if that cc debt starts building right back up again. A zero balance cc is too tempting. I’d advise not cosigning on anything.
Please do not co-sign a loan unless you are prepared to pay it off yourself. Really bad idea. I do not have a good suggestion for how to consolidate, but will add that you should not really be worried about tanking her credit. She has crummy credit already and should not be considering doing anything on credit until this mess is cleaned up. Cleaning it up will naturally improve her credit score in the future. Good luck.
The biggest impact will be having her get a higher paying job, and possibly a second job. Put all your and her resources towards that. Meanwhile we should also get a second job, maybe a seasonal job. Pay off the debt with the highest interest first (negotiate down as much as possible first). Then put all the money tat was going to that debt to the next debt with next highest interest rate.
>payment plans theyÔÇÖre offering require suspension
>
>the rates and time periods are not attractive at all
>
>could tank her credit
>
>sheÔÇÖs added a card within the last year or so
>
>cosign
Yeah, suspension of the cards is a good thing, especially since she’s trying to accrue new debt.
Her credit is already tanked; there’s no way she can get a good rate on anything. That’s part of having “bad” credit.
Tbh, this is a problem that she created, whether intentionally or by unfortunate circumstances. I don’t think relationships should be transactional, but you are literally investing $35,000 in this relationship, so think about the return on your investment.
How does she plan to prevent taking on more debt if she just added a new card? Is that *also* going to become your problem? Is she going to stop spending? Does she budget?
At the risk of stating the obvious, you know that co-signing affects your credit, and you know she can’t afford to pay it off, so if she fails to pay, then YOU end up paying so that it doesn’t tank *your* credit.
Hopefully this doesn’t happen, but this debt could outlast your relationship. For that reason, I’d back off from putting a loan in your name and instead move towards her getting a higher paying job. If she’s consistently paying her minimums, and on her way to a better job, she can do that for a little while longer. I don’t understand the rush to put her debt in your name.
The fact that the credit card payment plans require freezing the cards is a GOOD thing… Why are you citing it like it’s a bad thing?
Your fiance isn’t a credit card person. If she gets out of this mess, she needs to live using debit cards.
Even if she can’t get a higher paying job (I hope she does but for now), she should get a second job/side hustle and keep it even if she gets a higher paying job.
The other side to look at is cutting spending. Make a list of the necessities and make a budget for her. No restaurants, no entertainment spending, no trips, no new clothes or electronics.
If she doesn’t want to go that route (the live like a monk route), then she could consider bankruptcy. If you guys have a combined household and you have a decent income, it should be possible for her to pay this off if she cracks down. But it will take really cracking down and eliminating all unnecessary spending plus increasing her income through a second job
I don’t think the personal loan will help anything, and you shouldn’t cosign. She can get the interest rate on the cards lower by asking for it so long as she is willing to freeze/cancel the cards which she should be happy to do if she’s really trying to get out of this mess.
She stops spending all together and pays them off over time. ThereÔÇÖs no magic trick
I agree that bankruptcy or a 2nd job may be viable options for her. I would not co-sign on a loan unless I was in charge of paying it.
The biggest thing is that the root cause of the debt is the biggest issue. If you get a loan and pay off her cards, will the debt be back in a year? ThereÔÇÖs no reason pay off her debt, if sheÔÇÖs just going to replace the debt with new debt. Considering, you donÔÇÖt want to do the consolidation because then she canÔÇÖt use the cards, I would be suspicious that was the case.
DO NOT COSIGN A PERSONAL LOAN FOR HER.
She needs to get a 0% transfer card, freeze it, and get a second job to pay it off. It won’t tank her credit to add one new account, and even if it does for a year or two, that doesn’t matter because she shouldn’t be taking on any additional debt anyway.
The fact that she’s hesitant to suspend the cards is concerning.
Is she as motivated to get this debt paid off as you are?
Are you living together? If so and sharing expenses try to use as much of her income to pay off her debts and live on your income. Otherwise could she live with parents for a year or so and work on aggressively paying down debt? Could she get a part-time second job? With Christmas coming she might be able to work at a store over holidays and use any of that money to pay down debt. I’m not sure about best course for paying off loans (snowflake or other option or consolidating debt), but try to work on getting these paid down and you both will feel better as you see progress. Even if it takes a year or two, you will make good progress if really committed to doing this, and it could be a good way for both of you to work together as partners and prepare for your married life together.
In all honesty, all you can do is suppirt her. Dont dig her out at the expense of you falling in.
Dont be in a situation where ur partner has all these debts and expects you to clear them out. Its a hole you do not want to fall into.
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Who cares about her credit if you can get a 0% transfer. If thatÔÇÖs even a possibility, do it and save like you couldnÔÇÖt get one.
Paying minimums is noob vibes here, you need to find a way to pay off more of the principal. Your girlfriend is poor because sheÔÇÖs paying the minimums. 2nd jobs, better job, rice and beans.
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Do not cosign the loan. Fiance needs another job or a higher income job. Eliminate all extra expenses. If you canÔÇÖt do these, your fiance will be in the hole forever
I would help her to write out a budget so that she can pay the minimum payments on all do her debts except for one. She should pick one debt she wants to pay off first and put every extra dollar towards that debt while paying the minimums on her other debts until it is paid off. Then she selects a second debt to pay off and does the same thing. I would not co sign on anything until you are legally married. If you break up and she stops paying, then you are stuck with the debt.
Time for a second job, beans and rice.
DO NOT CO-SIGN! She has poor money management skills, will not make the payments, and then you will have to.
DAMHIK.
Also, might want to re evaluate the marriage idea. This financial disarray will be YOUR problem.
My ex was similar and left me with $87,000 in debt. That she walked away from.
DO NOT CO-SIGN!!
You can chip away at this. She needs a waitressing or bartending gig a few nights a week.
Everything she makes at the side gig, goes straight to a card. Ideally that gives her several hundred extra per week to use to make payments. Every time she gets off a shift, deposit the money and make the payment right away.
If she can transfer any to a zero percent, she should.
Look up Dave Ramsays snowball method. Follow that process.
If you can bail her out; do it. SheÔÇÖs your fianc├® and $35K is not a lot of money.
From that point, you two can just move on to being happily ever after.
Of course she would need to understand no expensive wedding, no giving gifts during christmas, eating at home for a while, etc.
IF you donÔÇÖt feel like bailing her out, or she will be in the same place in a while, then you need to leave her.
The fact that she doesnÔÇÖt want to live without the credit cards is a red flag, as it tells me she canÔÇÖt live off of what she makes
Also, she needs any other job. Working at McDonalds would make her $40K. IÔÇÖm sure she can find way better than that easily.
In a month IÔÇÖm finishing off 4 years of paying off my debt through https://members.consolidatedcreditsolutions.org/CUSTOM/About.htm. They negotiated my cards to between 8% and 0% rates.
I started with around $55k in various loans and credit cards. I was paying $1100/mo through Consolidated plus whatever else I could. IÔÇÖm now down to my final $256 payment with a 793 credit score.
IÔÇÖm so relieved I went this way and it didnÔÇÖt kill my score while I was in the plan.
She needs to upskill so she can earn more. Of course she needs to get out of debt but the only real way out of the debt trap is to upskill and increase wages.
Please watch a couple episodes of Caleb HammerÔÇÖs YouTube before making any decisions (doesnÔÇÖt matter which episode). He sits down with folks in similar situations and helps them build budgets to get out of debt. HeÔÇÖs very direct, but his intentions are good. It sounds like your fianc├® needs that kind of tough love.
All that being said, I wouldnÔÇÖt co-sign a loan to get her out of this situation. She needs to work extra jobs or get higher paying jobs, build and stick to a budget, and get out of this before combining finances. One of the leading causes of divorce is financial security, so please be very careful going into a commitment thatÔÇÖll put you on the hook.
About 2 yrs ago I had to take out a personal loan to cover ballooning cc debt at high interest. I spent 3 months aggressively saving and changing my lifestyle prior, doing all the math and weighing all the options and at the time a $22k loan at 8.8% was far and away my best option. I ended up doing a 36 mo payment plan but paid it all off in about 11 months.
Regardless of the path you take, it is so much about actually changing your ways, which is very hard and painful. You may not even live a lavish life at all, but you may have to give up a lot of comforts youÔÇÖve become accustomed to. Once you do actually change, it will take about 30-60 days for your next step to become evident. Again, for me, I knew iÔÇÖd reached a point where I wouldnÔÇÖt go back into debt once I had the loan and that I would be able to pay it back pretty quickly, I just was losing/wasting a lot of money on the interest and it wouldÔÇÖve taken me 6mo more and an additional $1100 if iÔÇÖd done everything the same just not the PL. If there is anything at all she can do to advance her income, do it. Serving jobs can be a great weekend/night gig and the harder you work the more you make
$30K a year and $26K just in CC debt?
If that is just discretionary spending, you are in for a lot of pain in the future.
What did she do for work? Can she work overtime, get a better paying job, or get a second job? This will help to pay them down faster. 30k is only 15/hr. Depending on location and skill, she can probably do better, or work more, or both.
Second, has her spendinggotten under control? If not, none of this matters. She could earn 100k and still not be debt free. Fix that problem too.
Follow the debt snowball method. Knock out the small ones while making minimum payments on the others. Then knock out the big ones.
Let it all go into collections, don’t pay a goddamn penny of it. Use your good credit for the next few years. Once it’s all been charged off or settled open a secured CC in her name, cosign for a couple more cards and her credit will bounce back just fine. If you’re looking to buy a house in the next few years her low income isn’t going to help you anyway. So keep her off the mtg and put her on title. Also use NACA mortgage program bc it’s the best mtg in America. I am giving you the best advice you will get, don’t listen to the morons who are telling you to eat rice and beans and don’t file for bankruptcy, it stays on her credit for years.
PS: I’m assuming you’re relatively young. Don’t do this if you are old
SheÔÇÖs really not that bad off, buckle down for 2 years and minimize spending, apply principle payments to the highest balance and % cards now. Ramen noodles and no outings for the next 2 years
She has to increase her earnings and slash her spending. ItÔÇÖs really that simple. A higher paying first job, a second job taking shifts as available, and strict budgeting at the pathway for how she gets out. Yes, a personal loan might be the most mathematically cheap way to do so, so it should be on the table, but you should not co-sign one until you see her following through with this plan ÔÇö *at least* on getting and holding down a higher paying job and strict budgeting.
Think no going out to eat, no frivolous purchases, and a diet that is almost exclusively made from cheap staples. If you have the extra money to finance some more fun lifestyle changes for both of you, thatÔÇÖs how you can help her in the time being.
She should be okay with the paused credit cards. The potential for points/cash back just is not worth the risk of debt continuing to go up.
I’ve looked through the other replies and I’ve not really seen any mention of what I’m going to say, which is probably because it’s the kind of thing PF hates. Where do you factor into this? If you’re planning on getting married, your finances will be linked. All those debts will become yours. So can you help to pay them off? The suggestions some people have of her living off beans and rice and slashing her budget are not really practical or applicable if you’re living together and sharing a life together. What, so she’s going to eat beans until she pays off her debt and you’re going to eat steak and takeaways in front of her? Come on. You need to come up with a solution that pays off those debts and deals with the problem of building those debts in the first place as a couple. I don’t know the intricacies of US credit and loans but I’d guess that getting a joint loan would be a bad idea if you can things under control in any other way. Can you pay off any of her highest interest loans? Can you personally get any loans with good interest rate that would pay off the worst of hers? Honestly, everyone on here always seems to go on the assumption that you’ll go your separate ways and not marry because sure, financially speaking, you’d be better off splitting up but that’s not what real life is like and we don’t usually make marriage decisions based on a bank balance.
She should get a part-time job and apply all of that money to her debt.
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Cut up the cards. Or stick em in the freezer so that they’re harder to get too.
DO NOT cosign, not even for one cent. You’re on the hook if she dips.
She needs to find a higher paying job, or another one part time to dig herself out of the hole she’s in.
Make a budget and stick to it. No eating out, no fancy shmancy coffees, no going out, no shopping sprees until this gets under control.
Make food that you can brown bag to work after the previous night’s supper.
I always hesitate to respond to posts like this but the reality of this situation is that she has more debt with credit card companies than she can realistically handle. Someone in your relationship has to be financially responsible, maybe thatÔÇÖs you. Do not under any circumstances combine this debt and make yourself responsible for her debt. My recommendation is as follows:
1. Stop making payments on her credit cards. Her credit is ruined for the foreseeable future but yours is still good. SheÔÇÖs shown she canÔÇÖt manage cards or her finances without oversight, so you need to help her. This is common in individuals who may have come from families with poor financial skills. Use one card in your name and pay it off every month. Her card companies will eventually negotiate a reasonable payment plan with you but it may take a few months. Talk with the card companies when they call and make sure they understand she has no way to pay off this debt and her living expenses. DonÔÇÖt let this debt go to collections but do not pay it all off at the rates theyÔÇÖre charging her now. You will pay a reduced amount on a schedule and after itÔÇÖs payed off youÔÇÖll have to pay taxes on the forgiven amount, so be prepared for that. Make the payments once youÔÇÖre done negotiating, do not miss a payment, and make the payments from her bank account.
2. You both have to be completely transparent with finances going forward. Create a budget and track your spending against it. Use some software, I use Quicken but there are lots of other tools. Review your spend against your budget together at the end of every month & year to see how youÔÇÖve performed. Look for areas that can be improved and adjust areas that may be under budgeted. All spending gets tracked.
This will be a long road to recovery for her credit but if yours is still good then with proper planning you should still be able to save for a house and get a loan under just your name in the future. Good luck, finances and financial infidelity are a major source of stress in a relationship so this can be a challenge.
* She needs to learn to budget her existing money and stop spending money she doesn’t have
* She needs to earn more money.
You have a lot of comments on here and forgive me if this has already been addressed. You mentioned in your first edit you are addressing a budget. This is the most critical factor she needs to find a sustainable budget and live with it. 24k cc debt isnÔÇÖt a huge deal if you are bringing in 200k but at 30k this is a rather large problem. This could just be a bad case of adulting and lack of knowledge or some control issues. Either way itÔÇÖs a rather significant issue that needs to be addressed. Not to be controlling or belittling but if you want to continue a relationship she canÔÇÖt have credit cards in the future. Moving forward I would get a home loan on your own and if you get married I would highly recommend going over bank statements monthly. I do this for myself every month to make sure IÔÇÖm keeping the course and being honest. ItÔÇÖs uncomfortable but I found it to be a necessary evil.
I think we need to address her employment. 30K is $14.42/hr and that’s low. Servers at restaurants can make more than that and some retail is advertising more than that right now. Income going up is the best item if she can make it on 30 now, anything over that can go strait to debt and get it gone in short order. Sort them to what she could pay off first and pay that down first, and as you said above, this is a behavior issue, not as much a math issue. She could also look for some kind of second job to fit in some extra shift and bring in more income, if she can draw another 1000 a month this shortens up pretty quick!
Bankruptcy might be a good option for her