Hello – I just found this site and am hoping I can gain financial intelligence!
– Where you are from? – South Carolina, previously Florida.
– Do you have a lot of debt or a little debt? – About 15,000
– What sort of debt do you have? (credit card, bad credit payday loans, medical, house, etc) – IRS, medical, credit cards – I’m not considering my mortgage as debt as it is less than I paid to rent a house in FL!
– Are finances affecting your life negatively? Somewhat. How? – everytime I think I’m ahead, I drop back two spaces and have to try and catch up again.
– What do you hope to get out of this site? – Information and resources.
We bought our first home last year due to a move with the company I work for – from FL to SC. We stayed with a relative in SC for a few months – so did not have any utilities or rent topay. I also received a lump sum check from my employer for moving expenses. We wanted to buy a house because the real estate was so much less in SC than in FL. This was at the time of the mortgage companies fall out. I was surprised when I gor approved for a mortgage with the debt I had – I was in the rating of weak to barely fair! I was able to clear that up by calling each of my creditors showing on my credit report provided by the mortgage company and making an offer with them that if I could pay that day, what is the dollar amount they would offer me to pay off the debt. I also made the mistake of taking a hardship withdrawal from my 401K over $10,000. Yikes – I did not realize at the time that I would be paying a penalty for it on my taxes, even after having taxes removed from it upon disbursement. I also knew I had back taxes to clear up, so even before I applied for the mortgage, I set up automatic withdrawals from my checking account to the IRS, bi-weekly to go towards these. Apparently, this amount was not enough to satisfy the IRS and they filed a lien against my house. The tale gets bleeker…when I filed my taxes this year – because of the money I took out of the 401K and the moving expense check – this REALLY overinflated my income from last year and I owe an additional $5000 to the IRS. To top it all off – I cannot get a personal loan to pay off the IRS because the IRS shows on my credit report as a public record and one of the creditors I paid off, reported the payoff as a setlement.
So that is my sad tale of debt. I try not to let it get me depressed or discouraged. I am going through stuff I have at home that I just don;t need anymore and I put that on eBay. I’m also looking for a PT job – I want to get out from under this and start having my income all my own again!