$$$ Rc'holics not so anonymous

[KnowAir]

Since I have a some time great benefits from work, I called the help line and got in contact with a counselor. He told me that most likely I have a condition called "process addiction". Next Tuesday we're having another meeting. And it's very easy to meet, since it's through an app on my phone. And best of all, it's free. I'm also going to talk to a financial advisor from the Dave Ramsey network to talk about how to get out of debt ASAP, budgeting, not borrowing any more money etc. I'm dedicating my extra money to get out of debt completely within the next 5 years (around $70-$80k) without borrowing a single dollar. My goal is to only have a mortgage payment and the essentials like food, water, light and gas. It's going to take dedication, strength, extra over time at work or money from side hussles, energy and focus. Luckily I'm a workaholic and when I set my mind to it, I can do it. I really love the hobby, but I just over did it today the point that it became a financial burden.

Hang in there bro. Get things back on track, the toys will always be there. I feel for you, I can easily see getting myself in over my head too. Good luck, and stay strong my friend.

 

[Armarookie43]

Hang in there bro. Get things back on track, the toys will always be there. I feel for you, I can easily see getting myself in over my head too. Good luck, and stay strong my friend.

The past cannot be changed. I don't dwell on it. I just try to learn from it. Thanks. Hopefully others can read my mess and take it as a warning sign.

 

[KnowAir]

The past cannot be changed. I don't dwell on it. I just try to learn from it. Thanks. Hopefully others can read my mess and take it as a warning sign.

That's the spirit!

 

[Armarookie43]

Please let me know if you guys and gals here get tired of me talking about my financial situation mess! With that said, after writing down everything I owe of unsecured debt, it ballooned up to $85k (everything from small car loan, small student loan, braces for the kid, credit card debt and personal loans). That's not including my $110k mortgage. So I'm still trying to find the best way to get the hell out of this financial nightmare. It's so frustrating because around 90% of that unsecured debt has been spent by me and my condition, which my psychologist believes is process addiction. So my options are cash out refinancing through my house equity (I have around $90k equity), but I don't know if I even qualify, and not sure what the rate would be (my current rate is 3.5%). I'm weary of dumping that unsecured debt into my house. Plus, if I do 15 yr mortgage, that $90k would balloon into more than $100k long term. So I would have to make extra payments to negate that and get my equity back. That's the only way I see that even making half sense. Another option would be chapter 13 (chapter 7 is not an option because of the equity in my house. Not sure I would have to ask a bankruptcy lawyer about that one). Plus my $5k student loan would still have to be paid, but that is not a big deal. In TX, the exception is only like $40k in equity protection while doing chapter 7. Chapter 13 is a 5 year process. So yeah, it's a PITA. Then there's the Dave Ramsey baby step method (I'm sure most of you have heard about it). So I'm still in the process of analyzing all these different options. My base pay is $67k pretax, but I'm always doing OT, which I can end up with $100k in a year. So my income is not bad at all. I don't know how my wife hasn't divorced me yet since it's the worse I've even been financially speaking plus my other BS that I'm not mentioning here. Sorry for the rant! Sorry! For now perspective, $25k of my debt has been in the RC hobby. Despite everything that I just wrote, I'm a freaking fighter and I don't mind working my ass off to get out of this crap! I just want my wife and everyone else to forgive me!

 

[KnowAir]

Please let me know if you guys and gals here get tired of me talking about my financial situation mess! With that said, after writing down everything I owe of unsecured debt, it ballooned up to $85k (everything from small car loan, small student loan, braces for the kid, credit card debt and personal loans). That's not including my $110k mortgage. So I'm still trying to find the best way to get the hell out of this financial nightmare. It's so frustrating because around 90% of that unsecured debt has been spent by me and my condition, which my psychologist believes is process addiction. So my options are cash out refinancing through my house equity (I have around $90k equity), but I don't know if I even qualify, and not sure what the rate would be (my current rate is 3.5%). I'm weary of dumping that unsecured debt into my house. Plus, if I do 15 yr mortgage, that $90k would balloon into more than $100k long term. So I would have to make extra payments to negate that and get my equity back. That's the only way I see that even making half sense. Another option would be chapter 13 (chapter 7 is not an option because of the equity in my house. Not sure I would have to ask a bankruptcy lawyer about that one). Plus my $5k student loan would still have to be paid, but that is not a big deal. In TX, the exception is only like $40k in equity protection while doing chapter 7. Chapter 13 is a 5 year process. So yeah, it's a PITA. Then there's the Dave Ramsey baby step method (I'm sure most of you have heard about it). So I'm still in the process of analyzing all these different options. My base pay is $67k pretax, but I'm always doing OT, which I can end up with $100k in a year. So my income is not bad at all. I don't know how my wife hasn't divorced me yet since it's the worse I've even been financially speaking plus my other BS that I'm not mentioning here. Sorry for the rant! Sorry! For now perspective, $25k of my debt has been in the RC hobby. Despite everything that I just wrote, I'm a freaking fighter and I don't mind working my ass off to get out of this crap! I just want my wife and everyone else to forgive me!

No problem with me. If peeps don't want to read, they won't? I'm thinking the refinance would be your cheapest way out. Cc interest rates are no joke. You'll have to research what all the costs of refinancing will be I suppose.
Your family loves ya, rich or poor, if they're anything like you I'm sure they'll understand.

 

[Smilinbri]

Me personally, I don't mind at all. You need to talk it out. Just typing stuff out sometimes helps. Plus this place is awesome with a lot of caring people, so I'm sure just statements of support help!!

Like I said before, I was in the same boat years ago. Not as much, but about the 2/3 of your unsecured debt. We were living paycheck to paycheck.

Home Equity Loan:
Most banks won't give you the whole amount. They want you to have some equity. It used to be 80/20 (they will loan up to 80% of your equity). It's been a while since I was in that section of mortgage, so things may have changed. Look into that to make sure you know exactly what you can get out. HE is a decent option. All depends on future plans. Are you planning on moving anytime soon? If not, then you could re-fi in a few (probably longer) years to combine both mortgages into a lower rate one. Not ideal, but if this is your "forever home", you have time to wait for great interest rates (maybe a while before they go down again though).

Chapter 13:
This was created to help people that get in debt, over their heads. We did everything we could to get out of debt. Canceled everything, watched spending, etc. We had no equity at the time, so that was not an option. I have a lot of pride and never wanted to look at filing BK. I don't like getting help from others unless I have no choice. Well, we just had our 2nd kid in 2012 and I had to swallow my pride to keep my family financially stable and a roof over their heads!! So we filed BK13. It was embarrassing, had to borrow money to pay for an attorney (asked my bestfriend......most embarrassing thing I have ever done!! Def humbled me), fill out all kinds of paperwork, go in front of a BK judge to answer some questions......it was stressful. But I'll say this......it was the best thing I ever did! My health got better, less stress, we were able to start saving money and creating a tight budget. It literally saved our financial lives!! I did get some negative comments from strangers if I mentioned it. "O, so you are one of those people we pay to get out of debt!". A cashier said that to me once. I explained the purpose of BK, what all we did to avoid it and that I was not one of those people that got lots of credit cards and said, "O, I'll just max these out and file BK!" B!tch......whatever! That's why you're old working as a cashier!!

By filing that years ago, and raises/promotions at work, has allowed me (and taught me!!!!) to not live paycheck to paycheck, save money, improve my credit, improve mine and my family's stress/quality of life, afford the RC hobby and we just moved into a 3k+ sq ft house in the country a couple of years ago and also split the mortgage 4 ways with my sibilings on a beachside condo we own! I literally felt the weight off my shoulders!!

Credit Score:
I was surprised it did not kill my credit score. It obviously lowered it a lot, but not as bad as I thought. Never went below 600. Currently it's over 700. Yes, it will stay on your credit report for 7 years. As long as you did not get into more debt, your credit score should jump up about 100 points when it drops. We knew we needed to move out of our small house and had a plan to do so once my son was out of elementary. That coincided with the BK falling off credit report. It all worked out.

Don't be ashamed to file BK. Don't listen to others that complain about having to pay taxes that support BK filers. You are not an "abuser of the system". Sure, there are some like that out there, but I can tell you are an honest man just trying to correct some bad decisions and do right by your family. We all eff up in life......that's life....you learn from your mistakes!

It was a rough 1st couple of years after filing, but as long as you don't have any major plans that require a great credit score in the next 8 years (new house, car, college loans, etc), it is very doable. Time flies. The BK will be off your credit report before you know it!!

I'm rootin' for ya man!! Been there and I feel for ya!! Good luck and feel free to vent or ask any questions here!

I hope my experience and suggestions help!! Just stay positive, for you and your family. Extreme debt can really put some people in dark places, especially when they are supporting a family.

Keep us informed!!

 

[KnowAir]

Me personally, I don't mind at all. You need to talk it out. Just typing stuff out sometimes helps. Plus this place is awesome with a lot of caring people, so I'm sure just statements of support help!!

Like I said before, I was in the same boat years ago. Not as much, but about the 2/3 of your unsecured debt. We were living paycheck to paycheck.

Home Equity Loan:
Most banks won't give you the whole amount. They want you to have some equity. It used to be 80/20 (they will loan up to 80% of your equity). It's been a while since I was in that section of mortgage, so things may have changed. Look into that to make sure you know exactly what you can get out. HE is a decent option. All depends on future plans. Are you planning on moving anytime soon? If not, then you could re-fi in a few (probably longer) years to combine both mortgages into a lower rate one. Not ideal, but if this is your "forever home", you have time to wait for great interest rates (maybe a while before they go down again though).

Chapter 13:
This was created to help people that get in debt, over their heads. We did everything we could to get out of debt. Canceled everything, watched spending, etc. We had no equity at the time, so that was not an option. I have a lot of pride and never wanted to look at filing BK. I don't like getting help from others unless I have no choice. Well, we just had our 2nd kid in 2012 and I had to swallow my pride to keep my family financially stable and a roof over their heads!! So we filed BK13. It was embarrassing, had to borrow money to pay for an attorney (asked my bestfriend......most embarrassing thing I have ever done!! Def humbled me), fill out all kinds of paperwork, go in front of a BK judge to answer some questions......it was stressful. But I'll say this......it was the best thing I ever did! My health got better, less stress, we were able to start saving money and creating a tight budget. It literally saved our financial lives!! I did get some negative comments from strangers if I mentioned it. "O, so you are one of those people we pay to get out of debt!". A cashier said that to me once. I explained the purpose of BK, what all we did to avoid it and that I was not one of those people that got lots of credit cards and said, "O, I'll just max these out and file BK!" B!tch......whatever! That's why you're old working as a cashier!!

By filing that years ago, and raises/promotions at work, has allowed me (and taught me!!!!) to not live paycheck to paycheck, save money, improve my credit, improve mine and my family's stress/quality of life, afford the RC hobby and we just moved into a 3k+ sq ft house in the country a couple of years ago and also split the mortgage 4 ways with my sibilings on a beachside condo we own! I literally felt the weight off my shoulders!!

Credit Score:
I was surprised it did not kill my credit score. It obviously lowered it a lot, but not as bad as I thought. Never went below 600. Currently it's over 700. Yes, it will stay on your credit report for 7 years. As long as you did not get into more debt, your credit score should jump up about 100 points when it drops. We knew we needed to move out of our small house and had a plan to do so once my son was out of elementary. That coincided with the BK falling off credit report. It all worked out.

Don't be ashamed to file BK. Don't listen to others that complain about having to pay taxes that support BK filers. You are not an "abuser of the system". Sure, there are some like that out there, but I can tell you are an honest man just trying to correct some bad decisions and do right by your family. We all eff up in life......that's life....you learn from your mistakes!

It was a rough 1st couple of years after filing, but as long as you don't have any major plans that require a great credit score in the next 8 years (new house, car, college loans, etc), it is very doable. Time flies. The BK will be off your credit report before you know it!!

I'm rootin' for ya man!! Been there and I feel for ya!! Good luck and feel free to vent or ask any questions here!

I hope my experience and suggestions help!! Just stay positive, for you and your family. Extreme debt can really put some people in dark places, especially when they are supporting a family.

Keep us informed!!

Hear! Hear! Do what's best for you and your family. Some great info @Smilinbri .

 

[Doom!]

As Frazier says "I'm Listening"

 

[jkflow]

Please let me know if you guys and gals here get tired of me talking about my financial situation mess! With that said, after writing down everything I owe of unsecured debt, it ballooned up to $85k (everything from small car loan, small student loan, braces for the kid, credit card debt and personal loans). That's not including my $110k mortgage. So I'm still trying to find the best way to get the hell out of this financial nightmare. It's so frustrating because around 90% of that unsecured debt has been spent by me and my condition, which my psychologist believes is process addiction. So my options are cash out refinancing through my house equity (I have around $90k equity), but I don't know if I even qualify, and not sure what the rate would be (my current rate is 3.5%). I'm weary of dumping that unsecured debt into my house. Plus, if I do 15 yr mortgage, that $90k would balloon into more than $100k long term. So I would have to make extra payments to negate that and get my equity back. That's the only way I see that even making half sense. Another option would be chapter 13 (chapter 7 is not an option because of the equity in my house. Not sure I would have to ask a bankruptcy lawyer about that one). Plus my $5k student loan would still have to be paid, but that is not a big deal. In TX, the exception is only like $40k in equity protection while doing chapter 7. Chapter 13 is a 5 year process. So yeah, it's a PITA. Then there's the Dave Ramsey baby step method (I'm sure most of you have heard about it). So I'm still in the process of analyzing all these different options. My base pay is $67k pretax, but I'm always doing OT, which I can end up with $100k in a year. So my income is not bad at all. I don't know how my wife hasn't divorced me yet since it's the worse I've even been financially speaking plus my other BS that I'm not mentioning here. Sorry for the rant! Sorry! For now perspective, $25k of my debt has been in the RC hobby. Despite everything that I just wrote, I'm a freaking fighter and I don't mind working my ass off to get out of this crap! I just want my wife and everyone else to forgive me!

Even if I add up 85k plus 110k mortgage with a ~$90-100k income, why are you worried? If this math is true, you could be debt free rather quickly without cutting too much, unless you have high monthly expenses.
Key is that you are addressing the problem, if you can avoid refinancing etc that would be ideal, but you have a lot of variables.
Address the highest interest item first.

ANY hobby, set yourself a spending limit and stick to it.

 

[TheBadazz]

Bro finances are a big part of the RC game! Discussing your problem may alert someone else to their's. It's all good to me.

 

[Armarookie43]

Even if I add up 85k plus 110k mortgage with a ~$90-100k income, why are you worried? If this math is true, you could be debt free rather quickly without cutting too much, unless you have high monthly expenses.
Key is that you are addressing the problem, if you can avoid refinancing etc that would be ideal, but you have a lot of variables.
Address the highest interest item first.

ANY hobby, set yourself a spending limit and stick to it.

Because my base pay is $67k per year and the extra $40k I'm making could be gone next month. That could happen. I don't want to depend on my overtime that is not guaranteed. And that's EXACTLY what the bank that I talked to wanted me to do. Right now my mortgage is at 3.5% interest and I owe $110 with around $150k in equity, which I'm not touching for ANY unsecured debt period. They are out of their mind if they think that I'm going to turn my $110k mortgage into a $200k mortgage at 5.5% with a monthly payment of $1900! My current payment is only $1100. Who in the world would do that to just pay off unsecured debt that if I decide, I can just skip on it and ruin my credit, which I don't want anymore? Baby steps and Dave Ramsey method, here I come! I'm going to grab those $40k in extra money, and throw as much as I can to this $80k of debt and be done with it within 5 years or less without putting my damn house at risk! Sorry, I'm mad at irresponsible banks and myself. Don't worry, I'm not on crack to do something like that
BTW, if I did that insane move, I wouldn't be "paying off" any debt. I'm just moving it from one place to another. Then I get hammered for 15 years at 5.5%. I'm 46 now. I don't want to grow old with a GIANT MORTGAGE.
If I don't pay that $200k in 10 years, than it's not a good financial decision. For that to happen, I would have to pay $1900 plus an extra $600 per month. Somewhere around there. I asked the banker those questions.

 

[ABabyEater]

Guys help. I just pre-ordered an xlx2 hydro for my BJ42 and am considering building a 30in twin cat from bare hull to run with a friend all before finishing my last crawler build (although all I need for that is servo)

 

[jkflow]

Banks are evil, if you think otherwise you are doomed. They only want your money and give a cr$p about you.

Do not ruin your credit, that will get costly if you do.

 

[Armarookie43]

Me personally, I don't mind at all. You need to talk it out. Just typing stuff out sometimes helps. Plus this place is awesome with a lot of caring people, so I'm sure just statements of support help!!

Like I said before, I was in the same boat years ago. Not as much, but about the 2/3 of your unsecured debt. We were living paycheck to paycheck.

Home Equity Loan:
Most banks won't give you the whole amount. They want you to have some equity. It used to be 80/20 (they will loan up to 80% of your equity). It's been a while since I was in that section of mortgage, so things may have changed. Look into that to make sure you know exactly what you can get out. HE is a decent option. All depends on future plans. Are you planning on moving anytime soon? If not, then you could re-fi in a few (probably longer) years to combine both mortgages into a lower rate one. Not ideal, but if this is your "forever home", you have time to wait for great interest rates (maybe a while before they go down again though).

Chapter 13:
This was created to help people that get in debt, over their heads. We did everything we could to get out of debt. Canceled everything, watched spending, etc. We had no equity at the time, so that was not an option. I have a lot of pride and never wanted to look at filing BK. I don't like getting help from others unless I have no choice. Well, we just had our 2nd kid in 2012 and I had to swallow my pride to keep my family financially stable and a roof over their heads!! So we filed BK13. It was embarrassing, had to borrow money to pay for an attorney (asked my bestfriend......most embarrassing thing I have ever done!! Def humbled me), fill out all kinds of paperwork, go in front of a BK judge to answer some questions......it was stressful. But I'll say this......it was the best thing I ever did! My health got better, less stress, we were able to start saving money and creating a tight budget. It literally saved our financial lives!! I did get some negative comments from strangers if I mentioned it. "O, so you are one of those people we pay to get out of debt!". A cashier said that to me once. I explained the purpose of BK, what all we did to avoid it and that I was not one of those people that got lots of credit cards and said, "O, I'll just max these out and file BK!" B!tch......whatever! That's why you're old working as a cashier!!

By filing that years ago, and raises/promotions at work, has allowed me (and taught me!!!!) to not live paycheck to paycheck, save money, improve my credit, improve mine and my family's stress/quality of life, afford the RC hobby and we just moved into a 3k+ sq ft house in the country a couple of years ago and also split the mortgage 4 ways with my sibilings on a beachside condo we own! I literally felt the weight off my shoulders!!

Credit Score:
I was surprised it did not kill my credit score. It obviously lowered it a lot, but not as bad as I thought. Never went below 600. Currently it's over 700. Yes, it will stay on your credit report for 7 years. As long as you did not get into more debt, your credit score should jump up about 100 points when it drops. We knew we needed to move out of our small house and had a plan to do so once my son was out of elementary. That coincided with the BK falling off credit report. It all worked out.

Don't be ashamed to file BK. Don't listen to others that complain about having to pay taxes that support BK filers. You are not an "abuser of the system". Sure, there are some like that out there, but I can tell you are an honest man just trying to correct some bad decisions and do right by your family. We all eff up in life......that's life....you learn from your mistakes!

It was a rough 1st couple of years after filing, but as long as you don't have any major plans that require a great credit score in the next 8 years (new house, car, college loans, etc), it is very doable. Time flies. The BK will be off your credit report before you know it!!

I'm rootin' for ya man!! Been there and I feel for ya!! Good luck and feel free to vent or ask any questions here!

I hope my experience and suggestions help!! Just stay positive, for you and your family. Extreme debt can really put some people in dark places, especially when they are supporting a family.

Keep us informed!!

Thanks. The way I see it is that if I lose all my OT, which has never happened, I would most likely have to file chapter 13. But I'm not there. I have a good cushion for now. My $40k in over time

Banks are evil, if you think otherwise you are doomed. They only want your money and give a cr$p about you.

Do not ruin your credit, that will get costly if you do.

My friend. Id rather ruin my credit than lose my house. I don't want to ever borrow another dime from anyone, including banks, credit cards, my friend, whoever. My goal is to be debt free and pay off my house early and invest 15% of my salary or more into my TSP from the post office. I don't need credit for that. You need credit to get into more debt, which I have sworn off. After I pay all my $80k then I'm going to save at least $10k in my checking account and not touch it for anything! That's my emergency fund. No credit card needed

 

[jkflow]

Credit score impacts your insurance, just keep that in mind. They will go up significantly (car, home etc).
By all means, I can't recommend what to do in your situation. It's too complex for a forum post, and only you know the details.

 

[Smilinbri]

Credit score impacts your insurance, just keep that in mind. They will go up significantly (car, home etc).
By all means, I can't recommend what to do in your situation. It's too complex for a forum post, and only you know the details.

That's not entirely true. My insurance was not affected at all. Maybe it's an Insurance company specific thing. Now applying fir new insurance, yes, low credit may affect your premium cost.

 

[Armarookie43]

Credit score impacts your insurance, just keep that in mind. They will go up significantly (car, home etc).
By all means, I can't recommend what to do in your situation. It's too complex for a forum post, and only you know the details.

I can take that hit if it means that I can have absolutely no payments except my house. Then I'm even going to pay the house early and be debt free. Those things are trivial when you are making yourself debt free and are making a ton of money by investing in things that makes you money. Cash is king

 

[slick2500]

I just spent $105 at Jenny's, $30 at Amain, another $30 on eBay and I have yet another $100 worth of stuff in my cart on Jennys and another $40 on eBay................

 

[Armarookie43]

I just spent $105 at Jenny's, $30 at Amain, another $30 on eBay and I have yet another $100 worth of stuff in my cart on Jennys and another $40 on eBay................

That gave me a headache. It's all good my friend. I'm just thinking out loud. I've spent $0 the last two weeks in RC stuff.

 

[Armarookie43]

I just spent $105 at Jenny's, $30 at Amain, another $30 on eBay and I have yet another $100 worth of stuff in my cart on Jennys and another $40 on eBay................

For comparison, the last time I bought something RC related was 07/28/22. So it's been around half a month. I haven't bought anything else either, except gas for my SUV to make it to work, groceries, etc. In other words, just the needs. No wants. Tomorrow I have an appointment with the counselor again.