Saturday, January 17, 2009

Unsure about my financial future...

I am in over my head in debt. I have been trying to analyze my financials for the past month trying to figure out how I can make it work. My business brings an ample amount of cash flow, but the problem is that I have so much debt. My credit card debt alone is almost $200,000. The minimum payments for my credit cards totals to about $3,000 per month. Adding to this is the negative cash flow on three rental properties I own, an additional $1,300 per month. So, my total is already at $4,300 and this does not even include my personal living expenses!

I did some research on debt counseling/consolidation, but it doesn't seem like the best move for me. These companies require that you stop making payments on your credit cards and instead make an affordable monthly payment to a trust account that they open for you. Once you reach a certain amount, they contact your credit card companies and negotiate a settlement for 60-70% of what your outstanding balance is.

I have also begun to research filing a Chapter 13 bankruptcy. This would eliminate my credit card while allowing me to retain all of my real estate (it's not like there's equity in any of them anyway).

I am currently in the process of loan modifications on two of the properties I own. One loan is with Countrywide and the other with Washington Mutual. The outcome of these loan mods will determine my decision for all of my credit card debt.

On a more positive note, my business is doing well considering the economy and recession.

2 comments:

Christian P said...

Not one to comment or rant about anything. Got hold of this link from someone who I shared the WV opportunity with. I read all of the comments because I love hearing what people have to say, whether good or bad. It is amusing to read the rants and bashing from supposed unhappy "former" reps and those who were invited to view the information but "were too smart" to join. To me it seems pretty obvious who is who from their grievances'. Notice that those who made negative remarks are from people claiming to have been reps who were "duped" into thinking they would get rich. Ha, ha, these are the people who usually dupe themselves and lash out at everyone else with blame. The tendency of a "lottery mentality" with a minimum wage work ethic is likely the cause of most of the discontent with these people. One guy says, 25 years old and a million in debt. He wrote all this nonsense and never mentioned where this debt came from. Certainly not from WV, where the start up fee for product and business is a one time fee that's less than most smart phones. When you have that little investment into a business the risk is small and therefore most will have a tendency to treat this as a hobby. Another guy said some B.S. about being involved and spending $17.000 after 3 years or some lie like that. He must have gone on A LOT of trips to spend that much. Being in that long and not being able to refer 4 to have your product and business fees waives says a lot about this persons effort. Even if you don't refer anyone and pay $65 a month to maintain your websites and membership it's approximately $700 a year. However, each $1 you pay goes into a vacation "piggy bank" that you can use $650 at the end of the year to go on a trip. So, how do you lose this money? Even our trainings, which are NOT mandatory, are anywhere from $40 for a regional event to a couple of hundred bucks for an international event, not counting travel expenses. A couple of hundred bucks is actually a rip off for those giving the training, which is world-class and these guys could easily charge thousands and thousands for these motivational and training events. You are a LIAR and your statements are false. There were some great comments as well that were legitimate. People are a trip and if you are looking for something negative you will always find it no matter what you're looking for. Like those who declined to join the club already had a preconceived notion and were ready to say no regardless of what it was beforehand. One girl said something about trusting her friend with her life yet, before making this statement, said that she did NOT look at any links or credible information her FRIEND gave her but instead did her own "research" before coming to a conclusion. Seems to me like you did not trust this friend from the beginning. This is not for everyone and our motto is "fun, freedom, and fulfillment." If you are not having this as a rep then you are doing something wrong. Be a customer. How come no customers made complaints, only former reps? Bottom line, if I like pork, which I love, and I know you like a good pork sandwich as well, I will tell you where you can get the best pork if you are my friend or not. I don't care if you do or don't eat it. I've been there and know how well it's prepared and how tasty it is. If you are happy eating an inferior sandwich I will not lose any sleep if I tried to tell you. You will just have to find out for yourself.

Christian P said...
This comment has been removed by the author.