- November 11, 2023
- Posted by: legaleseblogger
- Category: Related News
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Original Content:
“I recently received a legal document that was filled with confusing and overwhelming jargon. As a non-lawyer, I found it extremely difficult to understand the implications and requirements outlined in the document. I struggled to make sense of the dense and convoluted language, and I worried that I might misinterpret important details. This led to a lot of stress and uncertainty, as I didn’t want to inadvertently agree to something that could have serious consequences. I wish there was a tool that could help me decode and simplify the legal language so that I could confidently navigate the document and make informed decisions.”
Rewritten Content:
The other day, I received a legal document that was filled with an overwhelming amount of confusing jargon and complex terminology that left me feeling completely lost and unsure of what to do. As someone who doesn’t have a background in law, I found it exceptionally difficult to comprehend the implications and requirements outlined in the document. The dense and convoluted language made it a struggle for me to make sense of the details, and I couldn’t shake off the worry that I might misunderstand crucial information. The stress and uncertainty that arose from this situation were immense, as I feared that I might unintentionally agree to something that could potentially have serious consequences. It would have been incredibly helpful if there was a tool available that could decode and simplify the legal language for me, allowing me to confidently navigate the document and make well-informed decisions.
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****** just grabbed a
You have about 20k of debt just on the credit cards and personal loans. (Not including medical or car.) thatÔÇÖs on about a 140 salary?
The numbers are doable but you need to first understand whatÔÇÖs going on the credit cards and cut that.
ItÔÇÖs unclear if you just got a budget, in which case great first step(!) or if this is your established budget. If established, you are obviously not sticking to it so you have to find where the leak is first.
You really need to be honest with yourself on your spending. I listed out all your expenses/minimum payments and I’m showing $2,921 left over a month. You didn’t land yourself $13k in credit card/personal loan debt and no cash with this budget.
Edit: Should be ~$1,400 left over. Only did the weekly expenses.
OP – you’ve definitely recognized that you have lifestyle creep, and that’s one of the first steps in changing your mindset as you crack down on debt.
I would offer you a few alternatives, beyond the snowball debt – mainly about getting a new quote for your car insurance, which is $2184 per year. without knowing your details, you MIGHT consider shopping around for a better policy – even with your same insurer. I was paying insurance through an “agency” but when i got a quote directly with the company who insured me, my rates dropped by 45%. If you can get a new quote for insurance for $125/month, you’re adding more than $50 to your snowball debt payments!
I don’t think $200 in food is very budget-friendly for you either. you should be doing the majority of your food shopping at Aldi or discount grocery stores, and shopping the sale flyer for the best deals. try targeting $125 per week in food and see if you can make it work. r/budgetfood is a great resource to follow for cheap & easy meal planning.
Finally – snowball on your highest percentage interest rates but lower balances to get some quick success to propel you forward on your debt repayment. your minimums are $770, but you’re paying $921 towards debt. If you can get that up to $1000/mo, that’s an extra $230 in debt killing $$.
* Hubs CC 2 is paid off in 4 months, (new min monthly payment $255).
* Your CC 2 is next. $255+30 = $285, paid off after 3 months (we’re at 7 months total of snowballing)
* NOW – you’ve got 2 cards paid off, and it might be time to investigate 0% transfer offers for any credit cards (Discover is a great option for this). Push as much debt at 20+% interest rate to 0%, and continue snowballing!
That 500 into emergency debt should go towards the CC debt, which itself is an emergency. If you have an emergency, just put it back onto the CC.
Reduce 401k (only contribute enough to get full match).
The truck is too much based on your debt, but you already said he refuses to budge. Sounds like we know why you’re in debt in the first place. That needs to change.
I personally suggest the avalanche method instead of snowball. Snowball is for small mental victories. Avalanche is faster financially.
Personally IÔÇÖd stop 401k for now and throw it at the debt. Idk if that makes sense mathematically bc you lose the time value of the 401k but some of those interest rates are almost 30 percent. You need to get rid of those !
There’s good advice here and as you see, it mostly focuses on your “consumer debt,” and especially credit cards.
I did a few things to get myself on the right track some time ago:
**Credit debt is a double-whammy.** It’s not just that you’re paying interest on the revolving balances; it is that the money you’re paying to service that debt could be in some kind of investment or high yield savings account or CD or something *making you money.* So it’s not just consuming your money, but it is also making impossible to *gain* money — you get hit twice.
This, coupled with the background psychological stress of debt, made me look at credit cards as something akin to an expensive drug addiction. Our culture, for whatever reason, normalizes the idea of carrying revolving credit card debt, and what should be taught is that if you’re carrying revolving balances for anything but an emergency expense you can’t afford (and these happen), you’re actually behaving delinquently. When I finally killed my credit card debt, I put them in a drawer and carried just one, for emergencies, and never used it.
Now I use credit cards for everything (because of points and cash rebates), but I pay them off *once per week, on Friday.* I do this for psychological reasons (some people true up once per month).
I never, ever carry revolving debt, and so never pay interest. But I needed a few years of credit detox to be able to manage this properly. The prospect of using a credit card for anything made me wince. It is like I developed an allergy to using them, once they were paid off.
**At minimum you should be checking your finances and budget once per week.** I usually do it twice per week. This habit lets you stomp on problems before they fester. As you improve your situation, staring at your financial situation becomes a lot less stressful. But if you find this stressful, that’s all the more reason to force yourself to rub your nose in it, using the stress to make the necessary changes. Keeping yourself accountable means you have to face the music once per week: you can’t put off the consequences. For me, this made me a lot more miserly about buying a soda or coffee when I’m out. Now I do this so occasionally (once a month, maybe?) it’s not a big deal. I feel discomfort when I buy something I know I really don’t need.
**Sit down and make a spreadsheet — I use two, one for long term and one for short term/monthly** so that you are only a few minutes away from knowing your total net worth (some people use apps and that works too; I prefer spreadsheets). As you enter data into this sheet, you can generate charts and see trends which aren’t obvious. (You know what trend disturbed me? The expenses for “special meals” — that is to say, when I want to make something special and I have to buy a bunch of ingredients I don’t normally buy — my staples are cheap, but those ornate meals I cook maybe once per week comprised a disturbing amount of my monthly food budget.) My entire estate fits in these two documents, so that if something were to happen to me, my wife could take over immediately and know exactly where we’re at. Tracking your money in a granular manner, though entailing some extra work, also keeps you focused on improving your situation. For me, financial management takes about 20 minutes total per week these days, and then, on a quarterly basis, an hour session pulling down statements to update my long-term stuff (investments, 401K, etc.) It is a worthwhile thing to do. **Get downright obsessive and anal-retentive about this**. There is no downside to knowing exactly what is going on and the more organized you get, the less time you have to spend each week: most of the time investment is up front, getting organized. This also has the effect of *gamifying* financial management: I don’t see it as a chore anymore. It’s a long-term game I’m playing to win. On Fridays, when I pay those credit card bills, resetting their balance to zero, there is a sense of well-being which sets in. I am debt free for the weekend and I can relax.
**Make it known to your spouse that this is of supreme importance to you.** He doesn’t have to be involved, but he should know you’ve made this your personal project. When you have it all organized, you should sit down with him and show him, in detail, what you’re doing. It will help him think about money differently.
Getting out of debt is climbing to level ground. From there, that money you used to use to service debt can now be used to generate some interest or dividends, each of which compounds, growing your money faster. As your savings account grows, you will have peace of mind knowing an unexpected medical bill or car repair will mean you won’t have to go into debt again to pay it: you just pay it from savings. The de-stressor of this cannot be overstated. So it’s not just getting out of debt, but knowing, in your subconscious, that you likely won’t have to go into it again.
Lastly, and this is controversial: I advocate going down to ramen or rice and beans (which I eat anyway) if you’re not going to meet your monthly goals. For me, not making those goals is more important than missing out on a couple of nicer meals. Remember: it’s gamified. So it’s like sprinting extra hard to reach the finish line of the month in an alotted amount of time.
All of this has worked for me. So I intend it only in that sense; I am sure others manage things differently.
Your situation, by the way, is not disastrous. It is manageable and with some work, you can right the ship. It will take some time. Every journey begins with a first step, as they say, and your post here was that first step.
It’s certainly not insurmountable. Just keep paying extra towards the highest interest debt, and work your way down. Those balances are not outrageous, so you should be able to overcome this with some discipline.
>I’ve never been in so much debt before but we’ve also never made this much before.
You been living a life style you can’t afford for sometime. You need to get your entire household onboard with this.
So far that’s the best formatting I’ve seen (only missing interest rate on husband personal loan 1, and missing car loan amount)
The only things I can suggest:
1. Look into home internet, might find better deals (ex. t-mobile for $50 per month)
2. Power bill, assuming high because of heating. Check door seals for leaks. Check all windows, sometimes double hung windows drop and there’s a gap at the top, make sure all latches are engaged.
3. Possibility of adding another job/income source.
Overall I would say you are doing everything right by tracking it. You could set up notifications for anytime a credit card is swiped.
Before switching from the snowball to avalanche method as many have recommended check the fine print for the 0% debts. Some of those programs still track the interest at a high rate and will tack all of it on at the very end if you don’t pay the balance off in full. If that’s the case for any of them then I’d prioritize them such that they get paid off in full before the 0% interest rate ends. Either method would have you prioritize them differently and start paying interest on them so it’s the one deviation that makes sense for both.
Once again, for the 700th time – The car payment is way too high
Your phone bill seems a bit high. I’d recommend shopping around for lower price plans, at least until diaper kiddo is older.
If your energy bill has nearly doubled, it would be worth your effort to find out why. It’s possible there’s nothing you can do about it, but it’s also fully possible you’ve got something draining power unnecessarily.
Outside of that, your situation isn’t untenable. Buckle down and spend every penny you can on your debt. Thrift shop, garage sale, etc for as much of kid needs as you can. Figure out why you’re running up credit cards and plug that leak, and you’ll be fine.
DonÔÇÖt snowball, pay off the high interest debt ASAP. It needs to go.
Once thatÔÇÖs done, you can snowball the lower still if you want.
Make sure youÔÇÖre not contributing more than the match amount to the 401k. Add the excess to snowballing the debt
At this point, I wouldnÔÇÖt save $500 to the emergency fund. IÔÇÖd add that to paying off high interest debt faster.
Your available credit limit can serve as your current emergency fund. If you put $500 into a savings account that might accrue 5% annually – youÔÇÖll earn $2 a month on that $500 in savings, but that $500 will cost you $11 a month in interest at 29%, so youÔÇÖre losing $9 a month or $108 a year for every $500 put into savings vs paying off insanely high interest rates
So I really want to point this out, but please do the math and estimate what your student loan payments will be when you recertify your income..it looks like your $50/month payment is going to be much higher on your next recertification based on $7200/month take home.
There’s nothing wrong with having debt if it’s manageable and your income can sustain. Just chip away. You seem to be fine, just tackle the highest rates first.
Looking now, with $3400 remaining after expenses per month, you should be able to kill that credit card debt wtihin a few months then you can “coast” a little. Those interest rates are huge.
You should throw everything except an emergency fund and your minimum payments at the credit card debts
“Hub credit card 1: -100 [balance: 4.3k 28%]
Hub credit card 2: -25 [balance: 1k 29%]”
​
Get a Slate Edge, they are doing balance transfers at 0% for 20 months.
>Car loan: -620 (refinance needed. Currently at 8 percent. My husband uses this vehicle for work he needs the 4wd and towing capacity).
Okay but does he need *this* vehicle? There are older, cheaper vehicles out there that can get the job done.
If you didn’t have so much other debt, I’d say you could just pay this loan down faster. But that is clearly not the case. Imagine what you could do without that auto loan payment each month.
Tackle the smallest balance credit cards and then snowball those payments into the stuff you dont need like theme park and car loans
Sounds like you need a new husband ƒñÀÔÇìÔÖé´©Å Is he taking any control or accountability for everything he is doing? Or just leaving you with the headache of his actions?
Cut unnecessary spending NOW. Go after highest interest debt FIRST. Snowball makes you feel like you are accomplishing something, but the extra interest payments could go to debt. Just need to be frugal and consistent.
You’re not getting a lower % car loan.
For the car, if he works for himself – can he sell the car to his company and then the company takes out the loan?
You most likely donÔÇÖt need towing and 4WD capabilities on a car & you donÔÇÖt need to go to amusement parks. Easy savings right there.
It is absolutely idiotic to have all that debt in credit cards.
Pay all the high interest debt (7% and upwards) off as quick as you can and then get rid of those damn cards if you canÔÇÖt handle them.
Also pause 401k contributions and all of that while you have any debt with two-digit interests
I think your me only I don’t have the debt part. I’m gonna venture to say you live in Orlando!
Sign up for a 0% intro offer credit card. Transfer all cc debt into that. Pay off highest apr loans first after that. Make sure you keep up with minimum payments. Easy fix
As others have said I would only contribute to your 401k if there is a match. I would take the emergency funds and put them towards debt. I would also look at co solid sting as much as you can to an interest free credit card or do a debt consolidation loan. You are smart to get ahead of this now. Your actually in better shape than most. Your car loan is not as bad as some say. Your mortgage rate is great. You could easily be debt free in under 2-3 years with planning.
Is there any way to increase your income? Overtime? Second job? Sell random things you currently own on eBay/Facebook Marketplace?
If youÔÇÖre anything like my wife and I, you probably have a couple thousand in things you wouldnÔÇÖt miss at least. ThatÔÇÖd knock out a chunk of debt, plus youÔÇÖd gain some storage space.