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AndrewP posted:RIP anyone who bought in 2006.
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Dec 13, 2018 17:37
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I am in critical financial collapse and dont know what to do. I need some serious help guys. (self.personalfinance) submitted 2 minutes ago by Ricksanchezforlife https://www.reddit.com/r/personalfinance/comments/a5vanz/i_am_in_critical_financial_collapse_and_dont_know/ quote:For the past few years my family has been living a fairly decent lifestyle. I made around 100k per year and my wife made around 30k. Early last year (feb) my company let me go due to cutbacks and I had a little in savings (4k). I found another job offering me 60k to start. So i took the job in April and then when I was on a vacation in June they let me go. I my savings helped us through those two months and I got a corporate job in June as well for 45k salary. Sell the house you can no longer afford, dumbass.
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Dec 13, 2018 18:02
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Would it be that ridiculous to ask the sons to get jobs and help support the family? They both have cars.
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Dec 13, 2018 18:07
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You know sometimes I worry I don't make enough then I see things like that and feel so much better. Jesus Christ. Also what jobfield is he in that has had this much downsizing? And how did he think a vacation not even 3 months after being hired was a good idea?
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Dec 13, 2018 18:08
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$850 in car payments sure ain’t great That sucks though, hard to prepare for losing two goddamned jobs in a row and taking a 50% pay cut. Time to make some drastic changes
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Dec 13, 2018 18:17
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AndrewP posted:$850 in car payments sure ain’t great
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Dec 13, 2018 18:19
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UCS Hellmaker posted:And how did he think a vacation not even 3 months after being hired was a good idea? On the other hand, when you lose your six-figure job then maybe you take a good hard look at your vacation plans and see whether some of it can be canceled or postponed. quote:Triple lease
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Dec 13, 2018 18:25
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Motronic posted:I am in critical financial collapse and dont know what to do. I need some serious help guys. (self.personalfinance) quote:Early last year (feb) my company let me go due to cutbacks
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Dec 13, 2018 18:32
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It's called retail therapy, and the unemployed need it more than anyone. Treat yo self
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Dec 13, 2018 18:36
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Duder's numbers are fucky (which he admits). Waiting for the funkopop reveal or whatever
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Dec 13, 2018 18:40
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Fitzy Fitz posted:Student loans may not crash spectacularly, but they will continue to smother the economy as we all barely get by and feed most of our income into the pockets of landlords and banks. If a sector falls apart and everyone just makes it illegal for you to not pay everything you own into it while becoming a homeless wage-slave, did it actually crash?  I read some article in WaPo or NYT a few years back about one particular midwestern US court jurisdiction that treated forebearance or forgiveness requests so strictly that it regularly refused them and ordered the borrowers to move away from their families and find better paying jobs elsewhere to make their payments. The context was a contracted loan agency working with the federal loan program as an administrator (pub/priv partnership), and any time someone requested forebearance or forgiveness, they'd immediately take it to court in their jurisdiction and poo poo all over the requester. I remember one of the cases being "your loans must be paid, move away from your elderly parents you're supporting and find a better job, idiot" and another being "your field doesn't pay enough; leave it and find a new job that pays better, request denied." Can't find it now. Pardon the vague recollection. Sundae fucked around with this message at 19:29 on Dec 13, 2018 |
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Dec 13, 2018 19:26
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saying he "purchased" the car when he's still paying $400/mo for it is one of those word choices that may be correct in conventional use but still irks me a tiny bit. If you're still paying someone else back for a thing, it's not yours yet.
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Dec 13, 2018 19:28
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That's a weird hangup. Lots of people say they purchased/bought houses without paying in cash, do you guffaw at them too?
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Dec 13, 2018 19:49
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nope! i only just realized it irks me because I was trying to work out why this dude's story was causing me more eye rolling than usual. thanks for your question 😊
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Dec 13, 2018 20:07
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The one the irks me is super common on /r/pf: I "bought" this car. My LEASE payment is x. Seems that about half the times the posted literally doesn't know the difference, which is an indication how they end up in that thread I suppose.
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Dec 13, 2018 20:12
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i really like when people don't know if their $X/mo is for a lease or a loan
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Dec 13, 2018 20:26
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It's almost like institutions intentionally obfuscate the actual terms of a transaction and the nature of financial tools to try to pull one over on customers
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Dec 13, 2018 20:32
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Uncle wants to use my name to purchase house out-of-state. (self.personalfinance) submitted 32 minutes ago by FlashElectrico https://www.reddit.com/r/personalfinance/comments/a5wguq/uncle_wants_to_use_my_name_to_purchase_house/ quote:My uncle who lives in California wants to buy a house in Texas to rent it out (not to live in it). Banker told them that since he lives out-of-state and planning on using the house to rent that he will get a much higher APR and down payment . He asked me if he can use my name (since I already live in Texas and do not own a house) in order for him to get a lower APR & down payment , and then 6 months after purchase switch ownership to his name. He says he has good credit and money but needs someone who lives in Texas. I’m not worried about him not making payments or not switching ownership down the line, he’s trustworthy, however I am concern as how would this affect me when It comes time to buy my own house. Would I lose first time buyer incentives? Would my credit score be effect negatively ? I’ve been thinking of buying my own house within a year or so.
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Dec 13, 2018 20:34
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Not a Children posted:It's almost like institutions intentionally obfuscate the actual terms of a transaction and the nature of financial tools to try to pull one over on customers  
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Dec 13, 2018 20:42
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Motronic posted:Uncle wants to use my name to purchase house out-of-state. (self.personalfinance) > how would this affect me when It comes time to buy my own house. Would I lose first time buyer incentives? "hey bank, that last time I bought a house? That was actually my uncle, so that's all set, right?"
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Dec 13, 2018 20:51
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Motronic posted:Uncle wants to use my name to purchase house out-of-state. (self.personalfinance) I feel like the top comment could go into a lot of r/personalfinance threads: quote:No.
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Dec 13, 2018 21:00
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Motronic posted:I am in critical financial collapse and dont know what to do. I need some serious help guys. (self.personalfinance) Is that a viable option? It costs money to move and I don’t know where he lives but can he afford to buy a new place and save on a monthly payment. How much should a person afford on that salary for a home? It’s under 30% of their monthly income.
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Dec 13, 2018 21:44
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Motronic posted:I am in critical financial collapse and dont know what to do. I need some serious help guys. (self.personalfinance) Don't sell the house, sell the car he can't afford, and get your kids off of your insurance (assuming they are adults). He has 4 total cars, and is paying more in car payments and car insurance than his house payment. $1,200/mo for a house isn't bad, and he would likely have a hard time finding a much cheaper place to rent unless he's in a real low COL area. The real problem is the guy had almost zero savings to begin with. He had less than one month's salary in the bank account when he got fired from his first job. A lot of bad spending has been happening this dude's whole life to be making a combined $130k and have so little in savings. The mortgage payment before he got fired was really low, like 10% of his income. Even with two kids, he should have been able to save more than that.
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Dec 13, 2018 21:52
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step 1 as with most Reddit maroons is figure out Where Do The Money Go
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Dec 13, 2018 23:05
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Bird in a Blender posted:Don't sell the house, sell the car he can't afford, and get your kids off of your insurance (assuming they are adults). He has 4 total cars, and is paying more in car payments and car insurance than his house payment. $1,200/mo for a house isn't bad, and he would likely have a hard time finding a much cheaper place to rent unless he's in a real low COL area. He's going to need to do all of those things, but the house takes the longest to get sold. I'm 95% sure of this based on the presentation and the vast majority of other similar posts where the real numbers finally come out. But I can't because I'm supporting my adult children, etc, etc so it's not going to happen. He may get his budget cut down enough to just be miserably house poor on that income. The only way out without getting rid of the house is more income.
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Dec 13, 2018 23:45
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ChickenOfTomorrow posted:saying he "purchased" the car when he's still paying $400/mo for it is one of those word choices that may be correct in conventional use but still irks me a tiny bit. If you're still paying someone else back for a thing, it's not yours yet. What bugs me is people saying they bought a house for $X, but they don’t include the additional $100k or whatever that it will cost to finance.
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Dec 14, 2018 01:48
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Switchback posted:What bugs me is people saying they bought a house for $X, but they don’t include the additional $100k or whatever that it will cost to finance. Does anyone do this at all? If I bought a house for $120k down and $480k financed, I would definitely say I bought it for $600,000
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Dec 14, 2018 01:54
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GoGoGadgetChris posted:Does anyone do this at all? well yeah you would, because you're a braggart
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Dec 14, 2018 01:59
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I think he means the total cost of interest payments. If you finance $480,000 at 4% for 30 years you actually end up paying $825,000.
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Dec 14, 2018 02:01
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Guinness posted:I think he means the total cost of interest payments. I follow, but that seems weird as hell to me and I've definitely never seen someone say they bought their house for N, where N = down payment + loan principle + loan interest.
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Dec 14, 2018 02:02
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Along similar lines, it's not your house at all until it's paid off. "Homeowners" should really call themselves renters-to-owners or something because only a small percent of them actually own their home.GoGoGadgetChris posted:I follow, but that seems weird as hell to me and I've definitely never seen someone say they bought their house for N, where N = down payment + loan principle + loan interest. Just another way we Americans like to delude ourselves imo, and very much for the convenience of financing institutions everywhere. We love illusions! KingSlime fucked around with this message at 02:07 on Dec 14, 2018 |
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Dec 14, 2018 02:03
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Switchback posted:What bugs me is people saying they bought a house for $X, but they don’t include the additional $100k or whatever that it will cost to finance. Yea on my variable rate mortgage I like to break out my calculator to brag about how much I may eventually pay for “my” house.
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Dec 14, 2018 02:08
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I think it's less Bad American Financial Savvy and more that it's a dumb way to describe the amount you're paying for a house. You're paying $120k in today dollars and ~$705,000 in today-through-30-year-from-now dollars. Your final $2,292 payment is worth $691 today. It doesn't account for how much less valuable Payment 360 is compared to Payment 1, and it doesn't account for the offset from mortgage interest deductions.
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Dec 14, 2018 02:22
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KingSlime posted:Along similar lines, it's not your house at all until it's paid off. "Homeowners" should really call themselves renters-to-owners or something because only a small percent of them actually own their home. You own your home when the contract is signed and escrow closes. You have the property interest in it. Want to paint it a different color? You can do that. Want to rip out the kitchen and put a new one in? You can do that. The bank that holds the mortgage can't require you to let them in if they give you a certain amount of notice, or decide they'd rather someone else live there and evict you (unless you stop paying them, obviously). You can sell the house to anyone you want to. You have the rights of possession, control, exclusion, enjoyment, and disposition, those things spell ownership. Saying you don't own the house because the bank can take it from you if you stop paying them is like saying you don't own the house because the state can take it from you if you stop paying property taxes. People in a lot of states have to pay a personal property tax on their car every year; does that mean they don't own the car? Phanatic fucked around with this message at 02:38 on Dec 14, 2018 |
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Dec 14, 2018 02:36
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Guinness posted:I think he means the total cost of interest payments.
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Dec 14, 2018 02:39
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Dik Hz posted:Yeah, but if inflation is 2.5% during those 30 years, you wind up paying ~$560,000 in 2018 dollars. Lol if you think wages won't be stagnant for another 30 years
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Dec 14, 2018 02:48
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Methanar posted:Lol if you think wages won't be stagnant for another 30 years
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Dec 14, 2018 03:28
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GoGoGadgetChris posted:I think it's less Bad American Financial Savvy and more that it's a dumb way to describe the amount you're paying for a house. There's no reason you couldn't do a present value calculation to take into account TVM. I suspect the main reason people don't is because 1) they don't even think of it in the first place 2) purchase price is easier to convey and compare 3) people want to delude themselves about the true cost they're paying. Also talking in those terms might allow people to figure out just how terrible your credit is since the numbers imply a 10% apr on a 30yr mortgage or whatever. It is certainly a good idea to do that analysis tho and there's a reason that type of thing is the cornerstone of corporate finance.
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Dec 14, 2018 03:57
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Motronic posted:I am in critical financial collapse and dont know what to do. I need some serious help guys. (self.personalfinance) My favorite from this is this reveal: redditor posted:Fantastic. Any advice on moving one of these cars? It's a 2018 kia forte. 21k miles. it's new. I definitely dont mind selling it for a cheaper car. I just dont want to be upside down in a cheap car Lmbo the car he bought early this year after losing jobs and taking a 50% salary cut was a brand new kia forte. Why? Just loving why. $400/mo + ins for the privilege to drive a brand new kia, just unbelievable. And calling a car that now has 21k miles on it (also how? That's a fuckton of miles for someone whose household has 3 other cars) new. But I'm sure he just means he bought it new.
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Dec 14, 2018 04:12
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Well I bought a $5 sandwich today but over the next 50 years that $5 could have turned into a 95% confidence interval range of $428 to $3124 but I discounted it based on my family longevity and inflated it based on the likelihood that I have heirs who inherit the hypothetical sandwich fund so I have averaged all possible futures and concluded that this sandwich cost me $19876.27 over the next 10 generations of my family. Once we successfully build a quantum computer I will be able to complete the analysis for all time until the sun explodes and I can finally know what my sandwich actually costs.
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Dec 14, 2018 04:12
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