Owe 127k; make 190k

[Anonymous]

OP, what you need to do ASAP is figure out your monthly expenses. You haven't listed them here, which I sort of understand as a privacy move, but I'm also wondering if you've ever really sat down and figured out where your money is going. It's not that hard, but it's absolutely vital if you're going to get a handle on your finances. Then you can figure out which of those expenses you can reduce or cut out.

Those of us trying to give advice have very little info with which to give that advice. Here's what we know:

Income: ~$15,800 gross. That's maybe, what, $9,000 to $10,000 take-home?
Mortgage: $4,800
Tuition: ???. $3800 owed
IRS: ???. $29k owed
VA: ???. $5k owed
Cars: ???. $12,500 owed on one, another "in repo"; OP hasn't said how much it would cost to get that back, or if it can be abandoned
Other: ???. About $76,700 total, based on $127k debt minus what's listed above. Includes credit card debt, medical bills, and unpaid tolls.

All those add up, and OP may be spending so much making the payments on most of that debt to be able to reduce the debt. But we don't know without the monthly numbers. That's okay, we don't need to know (unless OP wants useful advice from us). But OP absolutely does need to know, and I'm not sure she does.

[Anonymous]

I didn’t know you could qualify for $4800 mortgage on $190k income.

[Anonymous]

Anonymous wrote:I didn’t know you could qualify for $4800 mortgage on $190k income.

I haven’t applied for a home loan forever, but in the old days lenders were approving everybody for way more than they could afford. I don’t think this is as common now. That said, it’s surprising how many people get loans for an amount they can’t afford.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I didn’t know you could qualify for $4800 mortgage on $190k income.

I haven’t applied for a home loan forever, but in the old days lenders were approving everybody for way more than they could afford. I don’t think this is as common now. That said, it’s surprising how many people get loans for an amount they can’t afford.

On $190k of income, a $4800 PITI payment would be about a 30% front-end debt-to-income ratio. That's a little high, but if OP didn't have all that other debt when she bought the house it probably wouldn't have been a barrier to getting a mortgage for that much. With all the other debt, though, I'd expect a lender would run screaming the other way—or charge a really high interest rate and add PMI, which would make the debt situation even worse.

[Anonymous]

Anonymous wrote:Mr. Money Mustache website and Dave Ramsey

The Jesus freak? No thanks.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Can you start over with the real numbers and using sentences? Where is the other 100k in debt? Is that 2 in private?

Definitely not bankruptcy

Hello I have 127k in debt including
2 cars ; 1 in repo. 1 with 12500 owed
4800 mortgage total owed 642k.
Tuition ending in June 3800
29k to irs. on payment plan
5k to VA
The rest of debt is credit cards, medical, toll bills that I didn’t catch (eg 810 on a $8 toll).
Thank you.

You need to pull the kids from private first. June is too late. I hope you bought the tuition insurance. You cannot afford private.

Then get on a budget and sell anything you can/get a side hustle/budget and pay off the IRS stat. Then the tolls. Then the other debt smallest to largest. No vacation or eating out.

Sell your house and rent for a while. You can use your equity to pay off some of this debt.

Once you get the kid out of private, you’ll be amazed at how much easier it is to budget.

[Anonymous]

What about side hustles and selling stuff?

My close friend dog sits. 6 dogs x $60 a day=$360 a day. He usually only has 4 at a time but during holidays he has more. It’s a great side hustle. That’s 10k a month if you can juggle 6. Even 2 would still be a big help.

[Anonymous]

Find a side hustle.
Get some roommates or Airbnb part of your home.
Get a part-time job
Pull child out of private
Sell any jewelry, designer purses and shoes

[Anonymous]

Anonymous wrote:I didn’t know you could qualify for $4800 mortgage on $190k income.

It’s 3500 the rest is escrow etc..-op

[Anonymous]

Anonymous wrote:OP, what you need to do ASAP is figure out your monthly expenses. You haven't listed them here, which I sort of understand as a privacy move, but I'm also wondering if you've ever really sat down and figured out where your money is going. It's not that hard, but it's absolutely vital if you're going to get a handle on your finances. Then you can figure out which of those expenses you can reduce or cut out.

Those of us trying to give advice have very little info with which to give that advice. Here's what we know:

Income: ~$15,800 gross. That's maybe, what, $9,000 to $10,000 take-home?
Mortgage: $4,800
Tuition: ???. $3800 owed
IRS: ???. $29k owed
VA: ???. $5k owed
Cars: ???. $12,500 owed on one, another "in repo"; OP hasn't said how much it would cost to get that back, or if it can be abandoned
Other: ???. About $76,700 total, based on $127k debt minus what's listed above. Includes credit card debt, medical bills, and unpaid tolls.

All those add up, and OP may be spending so much making the payments on most of that debt to be able to reduce the debt. But we don't know without the monthly numbers. That's okay, we don't need to know (unless OP wants useful advice from us). But OP absolutely does need to know, and I'm not sure she does.

My take home is only 7800-op
2nd car has been charged off and is out for repossession.

[Anonymous]

Anonymous wrote:What about side hustles and selling stuff?

My close friend dog sits. 6 dogs x $60 a day=$360 a day. He usually only has 4 at a time but during holidays he has more. It’s a great side hustle. That’s 10k a month if you can juggle 6. Even 2 would still be a big help.

How about OnlyFans - there are quite a few people making money hand over fist on the platform and you might be able fix your sinking ship in sort order in which case you wouldn't have to do it forever.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What about side hustles and selling stuff?

My close friend dog sits. 6 dogs x $60 a day=$360 a day. He usually only has 4 at a time but during holidays he has more. It’s a great side hustle. That’s 10k a month if you can juggle 6. Even 2 would still be a big help.

How about OnlyFans - there are quite a few people making money hand over fist on the platform and you might be able fix your sinking ship in sort order in which case you wouldn't have to do it forever.

I’d loss my real job on OF. I’ve looked. Also at the foot pic site.

[Anonymous]

Anonymous wrote:It's not bankruptcy, it's poor financial decisions.

+1 why are you putting your kids in private? Your mortgage is also too high.

[Anonymous]

Op, can you rent the house to cover the mortgage at least? Find a cheap 2k-ish 2 bedroom rental. That cuts 2,800 from expenses. After that hang on until June when that last tuition payment is done. That will cut a further 3,800. That is over 6k a month you can throw at expenses and you keep the house. I would start paying off whatever has the highest interest rate first! With those two changes you can pay off everything in two years or so.

[Anonymous]

Is OP going to be able to find a rental after declaring bankruptcy? Friends of friends were constantly turned down once potential landlords saw that they'd declared bankruptcy.