Looking for advice on my options

cugine · #1 (**permalink**) 10-23-2008, 01:30 AM

Like others here I too want to lift my debt burden. Early in our marriage we enjoyed the fruits of what seemed like an endless stream of free money in the mail and amassed a huge credit card bill. That was years ago and it still lingers. Huge. We have been able to negotiate the collective average interest rate down to around 6-8% but I want this chunk of evil gone.

We sold our home last year during the market crash and made a decent profit for our area. We took the profits and paid off a commercial property we had purchased a few months earlier. The renter we initially slated to rent it from us when we bought it backed out so we have since turned down several low ballers looking for cheap rent and use it as personal storage. Some friends and family make use if the space as well.

We will sell the home we live in now next November (a year from now) and take advantage of the capital gains tax exemption. In this market today we still should easily profit $30k (after mortgage payments, insurance, taxes, remodel, etc.) but possibly around $50k. We bought the ugly house in the great neighborhood, just like the previous home. We will follow the same plan as before and make this home the best in the neighborhood and reap the profits in the end.

So, there's our credit card and home situation. Here are some other things:
- I have an LLC which is setup to manage property but with the market crash it never got the opportunity to get going. I thought about selling the commercial property to the LLC to relieve my personal debt and then setting up the property for self storage and make a profit. Monthly income of $1000-1500.
- I have about 80 website domains which trickle in a few dollars but I don't take the time to really work that investment like I should. I could focus on a couple and get them generating cash. (Requires time)
- I have several low-cost start-up business ideas which would require me to obtain more debt but could possibly lead to good profits in a year. Some even less time.

My wife and I both work and have two sons. I work 65 miles away from where we live and get home each evening around 6:30. I make $48k a year, she makes $28k. The average family income in our city is $46k to give a perspective on the costs of living here.

I eat out at work each day for lunch, my wife takes her lunch. My truck gets 21 mpg and my car gets 26 mpg. I drive the car most of the time. We own all our vehicles including a project car for my son and I. We have no satellite/cable bill (we own our equipment), two cell phones, high speed internet, liability auto insurance, insurance on the commercial property, no savings, retirement account through my work (wife has no benefits at her job), student loans, and health insurance premium for our monthly bills.

I have my real estate license but went inactive back in July when fees came due. Selling is so slow here right now plus I never made much because I work a full-time job three counties away.

So, back to the question. What are some ideas on attacking the debt based on the situation above? Invest to get rid of it quickly while taking a risk? Cut back everywhere, sell everything and don't come up until the last check has been written? Peanut butter and crackers for seven months?

Thanks for reading my life saga,
Phillip

pants711 · #2 (**permalink**) 10-23-2008, 02:44 AM

Seems like you are on the right track. Real estate is by far the best long term investment you can make. I would hang onto your property and continue to rent it out as storage space. great idea.

Have you ever considered getting a motorcycle? You would get to work faster, easier and save a lot of money on gas...just a thought.

I assume your sons (or at least one of them) are teenagers? What about trying to get them to help you out with your website(s) domain upkeep? Most kids these days can use a computer better than any adult I know...hehe. Maybe some sort of incentive plan to help the family generate more income.

You should think about brown baggin' it to work a couple of days a week, too.

Just a couple of thoughts.

Keep your chin up. This economy will rebound sooner than folks think. It always does.

shoyos · #3 (**permalink**) 10-24-2008, 12:02 PM

If I may suggest, I have the perfect solution for your situation. It is called a Debt Management Program. It is not a loan nor a settlement, it is a program most people are unaware exists. The program was created by creditors themselves in order to recapture the original principle owed to them instead of risking loosing it, and at the same time allowing you to get out of debt about 75% faster while keeping your payments around the same, or in most instances, actually lowering the payment. This way, most of your payment will go towards your balance which will allow you to save a significant amount of time and thousands on interest. It works by making one simple payment that is distributed to all the creditors for you at lowered prenegotiated rates they are willing to offer you for being on the program. Being on the DMP, most creditors will give you the benefit of waiving late/overlimit fees, plus they will report your account in good standing so it will also help you rebuild your credit if you have deliquencies. It is a win win solution that can lower your payment, save you thousands on interest, pay off your debt 75% faster, plus help your credit at the same time. Neither is there a need to pull credit or be within a certain Debt-to-Income ratio. If you would like to find out more about it, you should try this # (877) 219-9024.

TechMage · #4 (**permalink**) 11-06-2008, 07:41 PM

Quote:

Originally Posted by cugine

- I have about 80 website domains which trickle in a few dollars but I don't take the time to really work that investment like I should. I could focus on a couple and get them generating cash. (Requires time)
- I have several low-cost start-up business ideas which would require me to obtain more debt but could possibly lead to good profits in a year. Some even less time.

I deleted your above reference to a house you're sitting on ... keep on sitting. -- However your answer is right above. 80 sites? wow! I'm trying to start one (on a fixed income) heheh. Goodness. I've been studying Inet marketing for a almost year now. You know all those glowing references they give? I've tracked down phone numbers for many and have up & called them. And you know what? In most cases the profits they claim are real. The exceptions are many who use pay-per-click & such. Those costs bring down the pure profit substantially.
Sounds to me like you're spread too thin, or maybe you start something and get bogged down with details, or maybe tire of it. Too many things not enough time.
Pick one or 2 of those sites and put a little time into them. You don't need to buy any expensive courses. All the info is out there for close to nothing, if you take the time to look. Take that time a bit at a time because if any of your sites are in a profitable niche, you have a gold mine.
Self education the way I have to go, I can't afford to support any of the gurus out there. There many sites out there making 5k a month with one site as well as others whose sites might bring in 50 or 100 a month but they have 50 or more of them. You're paying domain fees on those sites each year; if each site were to bring in 50 a month you're looking at 4k. Then use the extra money to try out some of your business startups, develop them & sell them when you get bored.
Best of luck to you, go get 'em.
Stef

PS--Can anyone explain how the trackbacks work? When replying there is a space at the bottom that says "send trackbacks to"

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