Personal Finance If you are impacted by the federal government shutdown and may have a hard time making your mortgage payments, call your mortgage servicer and ask for assistance. |
- If you are impacted by the federal government shutdown and may have a hard time making your mortgage payments, call your mortgage servicer and ask for assistance.
- [URGENT] Found out that my husband owes $73k to the IRS. PLEASE HELP
- Today, I fully paid off my first student loan! (YAY!) Now what?
- An interesting way I've started looking at my cash flow
- Paying the restaurants credit card processing fee as a waiter
- Father ran away abroad in 2011 and owe's over £20,000 to my Mother in unpaid child maintenance. He has just resurfaced, what do I do?
- Multiple Payday Loan RUTTTTTTTTT
- I have no retirement fund and I am almost 30
- Dad basically offered me cash to buy-out my rights to inherit the house - should I go for it? Details in comments.
- Very shy and negotiating a job offer for the first time. What to say next?
- A Whole New Reason Not To Share Bank Accounts With Family
- What happens to your mortgage when you sell your home?
- Is it better to pay off Mortgage or keep paying to take advantages of deductions?
- 21 & Totaled my $30,000 car. When to buy new one?
- Ideas for putting Birthday/Christmas money to work
- Trading Down to Reduce Vehicle Debt - My Experience
- Rent is about 40-45% of my income, will I be okay?
- $110K Ally or Vanguard?(or both?)
- Need help making a future house purchase.
- I started a new job with a bi weekly pay schedule and has me in a situation where I will not be paid for 3 weeks because I came in in the middle of the pay cycle. I have rent due for a new apartment the the beginning of the month and won’t be paid again til the 18th and am $550 short.
- Got a IRS letter saying I owe over $10,000 due Jan 30th...but government shutdown means there's no one to argue my case to...what do I do?
- $200,000+ Debt Emergency - Advice Needed
- Exhausted ����♀️
| Posted: 05 Jan 2019 06:24 AM PST Your bank may be able to offer a forbearance plan if the shutdown continues and impacts your ability to make payments. I work at a major servicer; we are already fielding calls from federal employees, flagging the loan as potentially impacted, and we are going to help if the shutdown becomes prolonged IF customers ask. This is a scenario where we cannot identify an impacted population without input from the customer. If you don't have the funds and you aren't getting paid, you should call and tell them you are potentially impacted. [link] [comments]  |
| [URGENT] Found out that my husband owes $73k to the IRS. PLEASE HELP Posted: 05 Jan 2019 10:46 AM PST I checked the mail today and there was a letter from the IRS, I opened it since seemed extremely important and he is out of town for work. (He's an independent contractor, files 1099) He'll be gone until the 13th. He never filed his taxes for 2014. (We didn't meet until 2016 and he never disclosed this information to me) A Breakdown of the letter:
2018's combined income was about $60k since he was unable to find work for a few months. If both of our job situations stay the same, 2019's combined income will be about $150k. (neither of these number take taxes into account) We have only been married for 6 months. I am FURIOUS. The penalties alone are equal to my yearly income. We were saving to buy a house, I guess that's not a thing anymore. We were also about 10k away from being 100% debt free. I had NO IDEA about any of this, if I'd known I wouldn't have married him until he got his shit together. I didn't think it was possible to feel this much rage towards the person I decided to share my life with! Side note, last week I was diagnosed with a chronic illness and was planning on going from full time to part time. Guess not :( Do I try to find him an attorney? Will this affect my taxes at all? I'll be doing "married, filing single" since I'm a W2 employee. Is there any hope for us to not be in crippling debt for the next couple of years, or are we megafucked? Most importantly, what do we do? Any help is appreciated, I have never been in a situation like this before and I'm completely lost. If more info is needed, I will gladly edit. Small update : First of all, I'm about 95%sure this is not an error or a scam. The letter had all of his reported income listed and the correct companies that he worked for. It also had legit codes, as one commenter pointed out. It also directed me to irs.gov to make payments or if there were questions. I'll still be calling to confirm once the shutdown is over. I kind of blew up at him when he called. I demanded an explanation, he basically said that he got overwhelmed by the size of the bill and swept it under the rug, and also spent his once - sizeable savings on living expenses when he was laid off and couldn't find a new job for over a year. (this is true, he had just gotten a job and was only earning about 45k when we met.) He also said that if he'd known it was such a large amount of money, he would have told me (I honestly believe that he didn't know how bad it was, we've been living together for a year and a half and I've never seen a letter from the IRS, and I'm the one who usually grabs the mail on my way in.) I told him that he had severely broken my trust in him and it will take quite a bit of time and counseling for us to come back to the place that we were. He apologized profusely and is willing to do whatever it takes to fix both this and our marriage, and he hopes that he can eventually earn back my trust. He's also spent pretty much the whole time since he woke up gathering bank statements and doing research on what to do next. He'll briefly be home tomorrow, so I'm going to sit him down and make sure that this is the only thing he has kept from me. On a personal note, I'm not nearly as angry as I was when I wrote this post, but the massive amount of rage triggered some serious pain (lupus). I am struggling to walk and hold things right now, so that's fun. At least being angry gave me enough energy to rage - clean my kitchen this morning lol. To the guy who commented that I should have an affair and blame it on him, because I would eventually have cheated anyway... You should be ashamed of yourself. Get the fuck out of here with your disgusting redpill/mgtow bullshit. Will post another update when there's more info. [link] [comments]  |
| Today, I fully paid off my first student loan! (YAY!) Now what? Posted: 05 Jan 2019 12:39 PM PST I totally paid off my first of three student loans. The monthly payments weren't huge..only $60/month. Each of the remaining two loans have monthly payments of roughly $240 per month. I heard a while ago about the "debt-snowball" method for getting out of debt where one basically pays off one debt, then subsequently redirects the amount of the monthly payment of the paid off debt towards the next debt with highest-interest to pay it off faster, and so on and so on. Is that best strategy to get out of debt? Are there any others that might be better and/or more effective? [link] [comments]  |
| An interesting way I've started looking at my cash flow Posted: 05 Jan 2019 10:46 AM PST An assumption before I get into this: this is really only useful for people who already have a budget and have their finances under control. I've used Google Sheets to track my budget for a while now and have always been a little annoyed at the lack of context around my finances (what's saving an extra $100 or $300 here and there?). Sure there are calculators for when you can retire based on what you're saving and such but that's so far in the future it might as well psychologically be meaningless. Something I put together as a "what if" experiment has actually been really useful in putting my monthly ins and outs in context. Basically, I set up a tab for my wife and I that asks and answers the question "how long will it be before we can buy an $x house?" It takes our monthly cash inflow, subtracts out stuff from the budget tab (plus a buffer), and tells me in years how long it'll take for us to afford a house and end up house poor and how long it'll take for us to afford a house with a buffer (sheet example is here with a $1.4M house price tag as an example -- changed our numbers fairly significantly for privacy's sake). What this does for us is if we want to add some big monthly expense (new car, a pet, move to a nicer place, etc.), we can see immediately what it would do to that short/mid-term goal. Is it now going to take us an extra 0.7 years to save for it? Is that okay with us? It really just started out as a way for me to try to answer that question but I've kept the tab around for my own personal finance because I think it adds some constant helpful context whenever stuff happens (even a bad month on the budget [holidays or something] taken with a grain of salt has neat context there), so I thought I'd share! [link] [comments]  |
| Paying the restaurants credit card processing fee as a waiter Posted: 05 Jan 2019 06:48 PM PST So I'm talking to a buddy who's been working a a well know restaurant on the jersey shore as a waiter. It's his first waiting job so he didn't think anything of it but they are making him pay the credit card processing for his tables. I've worked in restaurants for years and never heard of this so I always assumed it's a cost a business. Is this legal or just a cheap way of running a business? [link] [comments]  |
| Posted: 05 Jan 2019 05:56 PM PST Hi everyone! My Dad ran away from my family in 2011 and moved abroad from the UK to Cyprus. My Mum then found out that he was in six figures worth of debt and that he had also spent all our the children's (me) savings. To add to this, my younger sister was 12 and myself 15, so up to the age of 18 he should have been paying child maintenance. He moved straight into a new job as an investment banker in Cyprus and then Dubai, but we never knew where he was exactly. Whereas my family got kicked out of the house and couldn't afford food. Just this month he revealed his location to me whilst bragging about his new house in Cyprus with a swimming pool and 6 pets. A brag not well received as my Mum is still working 3 jobs to pay off his debt. What is the best course of action here? I have all the documents about his debt but my Mum says the child maintenance would be the best thing to pursue. My Mum is a proud lady and has luckily sorted out £1 monthly payments to all the companies my Dad owe's money to because of her situation. Has anyone been in a similar situation? Thank you! [link] [comments]  |
| Multiple Payday Loan RUTTTTTTTTT Posted: 05 Jan 2019 03:10 PM PST Good Morning or Afternoon all! I'm sorry if this is not the correct place to post... Obviously I'm in a bit of a rut - bad place financially that I want to get out of. I have defaulted on a couple of payday loans - 3 from separate companies to be accurate. **Paydays are Bi-Weekly Wednesday** ***Living in Ontario, Canada*** One of them has been drawing money whenever they feel like it. This loan was taken out on Wednesday August 22th and the contract explicitly says Wednesday every 2 weeks. The first payment they took out was Thursday, August 23rd. The next was Thursday, September 6th. Then they finally took out on the regular agreed dates (Wednesday, September 19th and October 3rd). They've been attempting to take out weekly since then on random days. Obviously I've been paying out the ass for NSF fees. Now the second loan is kind of sketchy - Back story is my payroll is processed by my bank around 8 pm the day before actual payday. This loan is clearly aware as they take the money as soon as it's deposited into my account. I made a payment arrangement with them for Nov 28th, Dec 11th and Dec 24th to finish paying off the loan. They took out the money on Nov 28th (which came back NSF) - They then attempted to take money out on Dec 10th (2 days before my actual payday and 1 day before it's processed) so that obviously came back NSF. My payday then fell on Dec 21st because of the Holiday and they scooped up the money that day even though the arrangement was for Dec 24th. Now this loan I have reached out to today to attempt to pay it off by E-Transfer; they have told me that they would be unable to help me because the payment for January 7th has already been processed on their end (again this is 2 days before my actual payday and 1 before it's processed). This is going to result in more NSF fees from my bank as well as them adding onto the loan. The third one is more manageable they have been following the agreement - fell behind in November. My issue with this loan is that the NSF transactions are double dipping. They are trying to withdraw from my account twice every time now on the same day albeit on the agreed date. TL;DR - Behind on 3 loans - Loan 1 is taking money out like crazy - Loan 2 is taking money before my actual pay / not on agreed dates and Loan 3 is double dipping. Do I have any rights or am I protected at all in any of these situations? [link] [comments]  |
| I have no retirement fund and I am almost 30 Posted: 05 Jan 2019 02:16 PM PST I am a paid research assistant in graduate school. I have no retirement account and my school doesn't offer one. Should I open a Roth IRA? The most I could contribute is like 100 dollars/month, maybe even less. [link] [comments]  |
| Posted: 05 Jan 2019 05:54 AM PST Long story incoming. Not in the US, so I don't necessarily need or probably even can use advice from a legal standpoint but definitely from a financial one. My parents divorced 15 years ago and my father got to keep the house and bought my mother out, however as a stipulation of the sale, my father cannot re-sell the house or put a mortgage on it, unless my sister and I waive the clause. The house is located in a boom-city in Europe and in the most affluent area of the city. Housing prices have exploded over the last 20-30 years and not even the financial crisis made much of a dent. The house itself is worth roundabout 1.5 million and its not coming down again barring any major uproars in the economy. A large family home with roughly 2500 sq ft. of living area and 7000 sq ft. of garden area, 2 car garage, etc. My dad has since re-married and this is where things are getting somewhat complicated. Due to the inheritance laws in my country, his (new) wife, my sister and I would each be entitled to a third of the inheritance. My father would like to retire ideally somewhere else, such as in southern France or Spain and therefore sell the house in my home country. Now in order to waive the clause, he offered my sister and I cash upfront to buy-out our rights for any future home inheritances. He offered 350k for each my sister and I, to be paid 2/3 now and the rest in installments over the next 7-10 years. On the one hand, I am very much aware that current cash on hand is better than future cash value. On the other hand, while 350k is a damn lot of money, in my area that is going to buy me a modest 3bedroom apartment tops. Even as a down payment for a new similarly sized home that would leave me with mortgage payments of close to 40% of my monthly net income. My dad is in his mid 50ies and thus will not retire for another 5-7 years, any inheritance will (hopefully) come at earliest in 20-30 years as I hope my dad will live for a long-ass time and since I don't want to come across as a vulture but merely exploring my options as to his offer. Due to my dad being re-married and his wife holding a third of the inheritance rights, my sister and I would then have to buy-out my dads wife or her daughters inheritance share later down the road, which again would require me to put a mortgage on the house anyway in 20-30 years where I then would be in my 50ies. Also, my sister and I would need to figure out what to with the house and either one lives there and buys out the other or we sell and just then take 50/50 of the sale price. I am gravitating towards accepting his offer, mainly because the NPV argument and me having to buy-out the remaining share down the road, the but I am not sure if I have considered all pros and cons or perhaps other options to this. Any help is greatly appreciated. EDIT: There are no taxes on inheritances or gifts in my country, just regular property taxes for home owners. [link] [comments]  |
| Very shy and negotiating a job offer for the first time. What to say next? Posted: 05 Jan 2019 09:11 AM PST Hello. I read a statistic that most women don't negotiate offers and it costs them tons of money over their lifetimes. So I'm doing it for the first time. They offered me the "minimum desired salary requirement" that I listed on my job application which was 85k. In my industry for someone with 1-3 years of experience, and 3 certification exams the range published for salary is 62-89k. I have 3 exams and 2 years of experience. Below I'll put the gist of the conversation so far with the HR lady: Me: "I'm very excited about the position and I'm super motivated to excel in it. I know my positive qualities and proven productivity in my current role will only grow and add value to the X Team at X company. Based on this, and data from the market, I'm wondering if we might be able explore a slightly higher starting salary of $89,000." Her: "The salary in based off internal equity and the team stated it is within the range of the current market rate" I haven't responded yet. Is it time to just accept the offer? Or should I respond once more asking for a higher salary? I'm happy with 85k and I think it's a fair offer. But I don't want to shortchange myself if it's as easy as having a short negotiation conversation. Thanks for any and all advice! [link] [comments]  |
| A Whole New Reason Not To Share Bank Accounts With Family Posted: 05 Jan 2019 05:39 AM PST I was still very new and fiscally irresponsible to the whole personal finance scene when my father passed away, so I added my mother to my Chase checking account to help me keep track of my money. As the years went on my nieces also came of age to get their own bank accounts and steadily build them up, which my mother also helped with. Up until now there's been absolutely zero problems. However, a couple of days ago I was checking my balance to plan for this month's bills and frivolous purchases when I noticed that nearly $1,200 had been transferred out of my primary account for "OD Collections". Long story short one of my nieces had overdrawn her account by that amount, and because my mother's name was on both that account and mine Chase decided to pull the overdrawn amount from me. I received no text message, no email, no phone call, nothing to let me know that I was suddenly down over a grand. Nor was anything even remotely close to this process explained to myself, my mother, or my nieces when our accounts were set up. Thankfully my mother was able to pay me back immediately and my niece (hopefully) learned a valuable lesson, as did I. Chase was completely unapologetic and unhelpful during the entire process of trying to find out where my money went, so I think I will be throwing 20+ years of business with them out the window for another institution. I'm not looking for sympathy or even advice really, unless it's on a new bank/credit union, I just want to warn people about the dangers of sharing your bank account(s) with even the most responsible of family members that the bank may not freely disclose. (Edit: To clarify, I'm aware that this wasn't any "shady, under-the-table" dealing by Chase and they were likely just doing what's natural to a bank. I'm just pissed about the complete lack of communication both in helping me figure out what happened and in their refusal to sent notification about the transfer of funds to either my mother or myself.) [link] [comments]  |
| What happens to your mortgage when you sell your home? Posted: 05 Jan 2019 09:03 AM PST This is likely a dumb question but I'm ignorant because I've never had a mortgage. Hah! What happens to your mortgage when you sell your home? [link] [comments]  |
| Is it better to pay off Mortgage or keep paying to take advantages of deductions? Posted: 05 Jan 2019 03:31 PM PST If you have $200k mortgage, would paying it off be better in terms of tax benefits? [link] [comments]  |
| 21 & Totaled my $30,000 car. When to buy new one? Posted: 05 Jan 2019 07:16 PM PST So I totaled my brand new 2018 car. Had it for ~5 months, not even 5,000 miles on it. 72 year old grandpa decided to merge to right lane and slam on brakes in the middle of the road 2 miles before the next intersection because he wanted to let some kids cross in a 45mph zone. They weren't even trying to cross. Awesome stuff. Anyway my 2018 was totaled and crinkled like a soda can, his ~2000s truck only had about $1200 in bumper/exhaust damage. Insurance reimbursed me $3,218 and I got a refund for my gap & vsc for another $2,100. They also paid off the remainder of my loan in full. The accident happened literally 3 days after my credit score updated, so now I have another ~2-3 weeks before it will reflect a ~$27,000 loan disappear. My question is, when should I go get a new car? I already know the car I'm gonna get. Not getting a brand new one that's for fucking sure. I wanted to get a ~$9,000 car I really like. Only problem is my credit score. Right now transunion reports it at 719, experian/equifax report it as 702. My credit score dropped about 70 points when I bought the car, so I was wondering if it was worth it to wait another 2-3 weeks to buy a car so I can potentially get a lower rate, or is it even worth it? When I bought that new car, my credit score was reported by those same agencies as 715 and ~698 respectively, and the hard pull showed it 678. So is it worth it to wait to buy a car? I don't actually have a replacement right now and I literally ride my bike to work or get rides. I'd love a car again. But I'm also unsure about the credit and interest situation. Thoughts? [link] [comments]  |
| Ideas for putting Birthday/Christmas money to work Posted: 05 Jan 2019 05:18 PM PST I've got a money-minded 7 year old. About a year ago, I gave him a set of jars labeled "Spend", "Save", and "Give". Every so often, I take the money out of the "Save" jar and transfer an identical amount from my checking account into his savings account. So far he's managed to save about $500, and I'd like some ideas on putting it to work for him. As of right now, he has his savings account and a 529 account through my state. [link] [comments]  |
| Trading Down to Reduce Vehicle Debt - My Experience Posted: 05 Jan 2019 10:46 AM PST Hi Reddit, I am on a path to reduce my debt and one of the last items was to get rid of my car payment. I was going to get this done in 2019 one way or another, and after putting some thought into it, I thought it would be best to sell my vehicle and buy something with a lower value. At the time, I was driving a four year old BMW 320i. It was a great car, and fun to drive, but I started to encounter some expensive maintenance items and significant depreciation. I could have probably paid the balance on the loan within 2019 ($16,300), but then I would be left with a depreciating asset that had high operating costs (the car was hit, so value was further diminished). What I decided to do was trade down so that I could own a car with a lower value. I decided to start looking for cars at a dealer, which carry a higher value than a private seller, but it would make trading my other car much easier. After a couple of weeks looking for a car I found a nice Honda Civic with low miles for $5,900. This car will have much lower operating costs (my 320i needed tires at ~$1000 and used premium fuel), and has already incurred the largest portion of its depreciation. The dealer negotiated with me and gave me $12,500 for my 320i. When it came time to buy the Civic I took out a loan that I will have paid off by the end of April and I wrote a check to the dealer to cover the negative equity on my 320i. The state I live in gives you a tax break on trade value, so I would not need to pay any taxes on the new vehicle, which is a plus. The only other expense of doing this was title and tabs, which on a car this old was less than $100. In this one transaction, I reduced my debt by ~$10,000!! (Technically, only $6,600, because of the cash I put into the transaction, as pointed out by someone below). I thought I would share this with the community so people knew there was a way to reduce their overall debt and accelerate their plan to become debt-free. [link] [comments]  |
| Rent is about 40-45% of my income, will I be okay? Posted: 05 Jan 2019 07:49 AM PST I will preface this with saying that my rent is what it is. I had to find a place to live in a minuscule amount of time and options were limited. After my lease is up, I will be moving to a cheaper place but for now, I have to work with what I have. I can't bitch about it. I am moving a few states away, starting a new job. I graduated two years ago and job opportunities in my state are limited, so I had to take what I could get. The salary is low but the title is great and will help with future jobs. As of right now, I live with my parents to save money and I have a good bit saved up. They will be helping with moving costs and they will be watching my dog for a bit until I get settled. I do have student loans, federal and private. I was paying $700 a month, but was able to get once refinance and the other based on income, so my payments are about $300 now. I don't eat out very much, once a week if that. I pre plan my meals and always take leftovers. I don't have cable anymore and have cancelled all unnecessary subscriptions (gym, Hulu, etc.) I have calculated everything out and after rent and loans, it looks like I will have about $700-800 dollars to work with for groceries, gas, etc. I will probably also get a small part time job on the weekends. Will I be able to make that work? Looking for reassurance. :) Edit: I found a place that is very close to my job, about 10 minutes, so I will be saving gas. Right now I pay a lot because my jobs are 30 minutes away without traffic. [link] [comments]  |
| $110K Ally or Vanguard?(or both?) Posted: 05 Jan 2019 01:43 PM PST 29 years old. Not married, no kids. Live with Dad and pay no bills. No plans for major purchases anytime soon. $0 debt, never had a credit card. $20K/year salary(zero benefits). I save 100% of income because no bills. Currently have $110K in 14 month Ally CD @ 2.9% that matures in March 2020. I am TOTALLY green when it comes to investing, and only after my CD was locked up(January 1st, 2019) did I find this subreddit and realize how stupid I am. After a few days of research it seems like the best approach is to invest a portion(or all) of this money into a Vanguard index fund(perhaps VFIAX?), but I had a few questions about how I should go about this. Whereas I already have an Ally account(it would be nice to have everything under one roof), and they're currently offering a promotion for deposits($300 bonus for $100K) I wasn't sure whether I should invest through them, or go direct through Vanguard? Does it make a difference? I don't plan on doing any trading or anything like that, just park the whole $110K into the index fund and leave it alone for the next 30 years. Does that impact the fees, etc? Are the fees higher(or lower) if I went through Ally, considering i'm only going to make this one single deposit of $110K? Is it worth it to get the free $300 promo bonus? Does Ally even offer the VFIAX? Am I missing something obvious here because i'm a complete idiot? My next question is whether it would be worth it to close my CD and incur the penalty(60 days on interest), in order to then go fund the VFIAX, which obviously has a much higher projected yearly return than the 2.9% APY i'm receiving with the CD? Should I just wait for the CD to mature(3/1/2020) and avoid the early withdrawal penalty, and perhaps even avoid some volatility that's occurring currently with the market? Or is it better to just incur the penalty and invest ASAP? As i've read on this sub "time in the market is better than timing in the market", so I don't know what to do. As stated, I know next to nothing about investing and i'm clearly not very bright, so any and all suggestions are appreciated. Thanks in advance for your help guys! [link] [comments]  |
| Need help making a future house purchase. Posted: 05 Jan 2019 08:24 PM PST I am graduating in May 2019 and already have a job lined up making 58k. I live in the midwest so the cost of living is fairly reasonable. I am going to be debt free when I graduate. My only expenses will be ~$100 for my phone and car insurance, ~$100 for gas, and I have no idea what I spend on food each month. Once I graduate, while I stay at home, my parents are going to charge me $250/mo. for rent until my gf (who lives with us) completes her last year of college. The thing is, I'll be almost 24 by time I graduate and would like to move out on my own. I believe I will be bringing in ~$3000 to $3300 a month after taxes and 401k contributions, my girlfriend will be working part time making about $500-$1000 a month. I want to buy a house in the 90k-120k price range. The only problem is, I wont have much money saved up. My savings will be somewhere in the 1k ball park. I'll get a 6k bonus from my employer when I start full time, but I plan on using that money for an engagement ring. How much should I save up before really looking into buying a house? Should I go for the 20% down to avoid PMI? What about closing costs? Tldr; graduating in May with 58k income, no debt but no savings and I want to buy a house ASAP. What do? [link] [comments]  |
| Posted: 05 Jan 2019 08:18 PM PST I don't know where to go what to do, I've been working full time since I was 16 and always budgeted and been fiscally responsible but am now out in a situation where my landlord is selling the property and kicking me out with very short notice, and there's not much I can do about it because I'm not on the lease. So I went and found the cheapest place in my area and payed the security deposit, I would have had enough for the first months rent if my daily driver didn't blow a head gasket today and now I feel like I'm screwed. So my question is where to go from here, I already paid the security deposit on my new apartment I can't get that back, I'm only 21 and don't have much credit and if I don't pull this off, I'd be homeless also. I am short the rent on this new place for my first month because it was such a surprise. I can afford the rent easily but I've just been caught off guard low on funds. I only have a couple days to figure this out so please help me out with as much advice as you can give. [link] [comments]  |
| Posted: 05 Jan 2019 08:12 PM PST I got a note today from the IRS saying I owe over $10.000 for miscalculated dividends and an employer check I didn't report. It's due Jan 30th, 2019. I'm doing my research with my accountant, but realized there's no one at the IRS to dispute my case with due to the shutdown . I'm afraid I'll send a certified letter but no one will read it (again due to the govt shutdown) and my penalties will only increase after Jan 30th. What do I do? Pay the full amount and then dispute it to see if they'll refund some of it later? I'm sort of stuck. [link] [comments]  |
| $200,000+ Debt Emergency - Advice Needed Posted: 05 Jan 2019 12:58 PM PST I'm trying to help my brother and sister in-law with what I would describe as a debt emergency. Over the holidays, I sat down with my wife, her parents and her sister and brother-in-law to discuss potential options. At the conclusion of that meeting, we thought we had a best course of action but have recently met with some hurdles. Here's a breakdown of their current financial situation, options we proposed and where we're at now. I wanted to see if anyone here has ideas we haven't come up with yet. Also, I should mention that they have two small children under the age of 4 which is relevant when discussing expenses. Current Financial Situation: Monthly Income: $5,400 Brother-in-law brings home $5,400/month and is receiving about $7,000 in a year-end bonus this month. Sister-in-law used to bring home $4,400/month working full-time but recently lost her job and may be unable to work full-time in the future due to a medical condition. Monthly Expenses: $9,755 Mortgage: $2,100 Utilities: $330 Medical Debt: $79 Cell Phone: $218 Groceries: $880 Daycare: $1,998 (this could go away if Sister-in-Law stays home with the kids) Car Insurance (Liability Only): $160 Clothing: $100 Credit Card Payments: $845 Unsecured Personal Loan Payments: $2,007 Student Debt Payments: $1,038 Current Monthly Cash Flow: - $4,355 Assets and Liabilities: Assets: Single Family Home Valued at $320,000 Checking and Savings Accounts are tapped out: $0 Liabilities: Mortgage Debt: $243,000 @ 3.5% interest 30yr fixed Credit Card Debt: $33,500 @ 20.5% Weighted Average Interest Rate Personal Loan Debt: $80,500 @ 14.2% Weighted Average Interest Rate Student Loan Debt: $111,350 @ 6.63% Weighted Average Interest Rate Total Debt (excluding mortgage): $225,000 @ weighted Average of 11.4% Ideas we proposed for digging out of this hole: - Sister-in-law stays home, that gets rid of $2,000 per month of child care costs. - File Chapter 7 Bankruptcy - this would have theoretically get rid of $2,900 in personal and credit card payments and $114,000 in personal and credit card debt. However, Brother-in-law makes more than the median income for the state they live in which disqualifies them from filing Chapter 7. - File Chapter 13 Bankruptcy - this means they'd have to pay all of their disposible income to their creditors for 5 years. This may be an option but I'm not sure how the court calculates their disposible income. I've heard that any bonuses they make and any money my sister-in-law makes if she goes to work part-time, would essentially be taken directly by the bankruptcy trustee. At this point, they're thinking of selling the house to get the $45,000 - $50,000 in equity left over after paying escrow and realtor fees and applying that to their highest interest debt (all of the credit card debt and part of the personal loan debt). Then they plan on renting a house in a less expensive part of town which would cost about $1800 per month. Taking away the $2,000 in childcare costs, $845 in credit card payments and $300 in reduced housing costs, their new monthly expenses would be $6,610. This still represents a shortfall of about $1,200 per month. There's not a lot they can cut from the budget at this point to get their expenses down another $1,200. His parents do live locally but it would be a huge inconvenience for all involved if the 4 of them moved into his parents' house. I don't think it would be good for anyone. I'm kind of at a loss for what to suggest next. Any help you all can provide is appreciated! [link] [comments]  |
| Posted: 05 Jan 2019 07:37 PM PST I'm work in the non profit field full time. I also work part time. While I love my job I make about $48,000. I have over $100,000 in student debt due to my graduate degree. Cannot leave my non profit job. It is tied to the loan forgivenes program which is supposed to be forgiven in 2026. Yes, I'm sending in the yearly certification I have credit card debt, a car loan and I need to move out of my parents home by the end of 2019. Houses costs $400000 mortgage or renting costs $1400 for a one bedroom, $1800 for a 2 bedroom, $2600 for a 2 bedroom townhome. Living paycheck to paycheck sucks. I'm barely making it. I'm in my late 20s and I'm tired. I'm venting. Thanks for listening [link] [comments]  |
| You are subscribed to email updates from Personal Finance. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment