How to handle old debt

formerlyGDaisy09 · October 2014

I would also look into removing a lot of the insurance on your 21 year old car, if you haven't already....chances are that if you're in a collision it will not be worth repairing that car, so there is no need to pay for the collision insruance...you still want insurance to cover repairing someone else's vehicle, property etc. and medical.

noffgurl · October 2014

The old car only has liability, its just so high because I haven't had the best record. Does anyone know anything about Elephant Insurance? They quoted $110 a month, but we are hesitant to switch because we don't anyone that has them.

Sisugal · October 2014

Neither of the insurance companies you have mentioned are main line insurance companies. I would stick with a well known company.

noffgurl · October 2014

At the moment we are with Esurance.

Xstatic3333 · October 2014

noffgurl said:
The old car only has liability, its just so high because I haven't had the best record. Does anyone know anything about Elephant Insurance? They quoted $110 a month, but we are hesitant to switch because we don't anyone that has them.

It looks like they're a very new company to the US, so I couldn't find a ton of reviews or ratings. Some bad reviews were out there for customer service but honestly, in your situation, I'd probably try it. You could also visit an independent insurance agent to run prices on several companies for you. Many people have great luck doing that.

formerlyGDaisy09 · October 2014

noffgurl said:

KBB.com Value for private sale is $8,575 for very good. It's in pretty great condition. Principle owed is $11,271.54, payoff quote is $11,355.54. So that's an upside down difference of about $2500.

Ok, so you're not going to be able to sell the truck anytime soon, so your car loan needs to go into the pile with the rest of your debts. once you get right side-up on that loan I'd consider selling the truck and getting something affordable (ideally paid for in cash) that gets better gas miledge....I think most trucks get 15-20 mpg in town...upgrading to something that gets 25-30 in-town would be huge. plus fillling a smaller tank hurts a lot less

brij2006 · October 2014

noffgurl said:

KBB.com Value for private sale is $8,575 for very good. It's in pretty great condition. Principle owed is $11,271.54, payoff quote is $11,355.54. So that's an upside down difference of about $2500.

I would recommend to still sell the truck, then find a local credit union to borrow the difference at as a personal loan. The payments on a $2,500 loan will be immensly less than your current $400/month.

In the meantime, save up and find yourself a cheap beater car for $1,000 or less (yes, they are out there). It doesn't mean it's a car you drive for the next 2 years, but it's one to get you by while you dig out of your hole.

As far as insurance, google "independent insurance agents" in your area and call around to get quotes. Some specialize in non-standard companies, which it sounds like with your credit and history, may be what you end up with. Then at least you know you are insured through a company an agent is willing to endorse and promote. Random companies you find online may or may not be legitimate or have the support needed in the event of a claim.

Otherwise I would highly recommend Dave Ramsey's, Total Money Makeover book. You can buy it online, in the stores, or listen to it on audiobook. His methods are definitely strict and seem crazy, but they work. There are a few girls on here who have already been through his program and are debt free and will never have debt again. My H and I are current on baby step #2, and his plan and steps have changed our marriage and our family tree. It's worth every sacrifice.

There's also another book I would recommend to help you figure out how to handle your mom and brother, along with your current living situation (which it sounds like you are better off getting out of). The book is called Boundaries by Henry Cloud.

Princess_Lily · October 2014

The great thing is, your here! That is a huge step acknowledging this. You also have stashed away a little bit each paycheck, another positive! AND your planning for Christmas now- yay!

I suggest Dave Ramsey's snowball payment system. 12% of your income goes to debt pay off. Organize all your balances by lowest to highest, then highest interest to lowest.

Pay off the lowest balance first, first of course pay all the minimums first, and whatever monies are left, use to pay off the debt. Its a hard pill to swallow, to see our failures...but IMO eye on the prize & you'll get there

How to handle old debt

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