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Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: Debt Hell in Oct||Date: 11/7/2006 1:06 PM|
|Author: SoccerDad9998||Number: 240703 of 308569|
Honda 2005 Pilot
It has a $2,000 extended 120k mile warranty that might have already been voided with no receipts and not following the required maintenance schedule. I will find out what the Honda cost for the 15k service is for the 19k Honda and then we will take it in and beg them to sign and catch it up to date. There appears to be a maintenance indicator on the Honda that can be set by Honda. Man, it really looks like they either want you to bring your auto for all work into Honda or keep extremely detailed records.
Her stress is through the roof. This is a bunch of change and a bunch of talk about change that is really getting to her. She said she was scared about applying for Super Target (never having had a real paying job in over 13 years). She is very worried about house, Honda, trust, debt and when I sent her the life insurance information she just about had a panic attack. So, I need to give DW a little time to process everything. I let it go that she had found a creative way to spend her last $20 - steam clean the carpets. This is very frustrating for me because she found a way to spend the last $20 and we bought an over-priced Kirby because she said it could do everything (including steam clean) and now she is borrowing her friends steam cleaner and has to buy something with the $20 for the steamer. I also find out that she got an extra $20 from her mom - just in case and used mom's gas card. These are not good signs. But, she is making progress and I think a little patience is in order here.
Final Details of DW trust
Please understand that when I first started to post that DW said "ok - get some help with the credit cards and debt - but, leave the trust out of it - leave me out of it (except for cash budget) - nobody's business and we can not get any money from the trust anyway". Neither DW nor I expected that selling the Honda or selling the house to be some of the first solutions when first asking for help. I also did not expect to go into much detail about DW accident - but, many people pointed out the psychology, DW not being on-board and so on. So, I was really trying to respect DW's wishes and always posted with the anticipation that DW would read this. As I previously posted - she did not approve at all about the level of detail I went into. But, the cat is out of the bag and I now see that you guys are not going to be able to best support or advise me without the final details and the remaining dots connected. DW approved this final update with the mandate that it would be the last details and anything else about her condition or trust would have to be referred to in a much more generally way. For me - many of these dots just connected in the past few days. I really was starting to make plans to sell the Honda when talks with DW clarified things.
DW trust value as of 9/30/2006 = $200,761.58. The trust started giving DW $1,400 per month 15 years ago and has kept sending DW that same amount when she got married, when I got salary increases and when we went into debt (so, it has been a 15 year constant). That amount is included within our net income amount of $7,622.00. DW has asked how that amount was established and what could change it and there has never been a real good reason. But, the trust has indicated that it needs to disburse an amount per month to keep with either a clause or governing trust rule and the formula seems to have calculated $1,400 with no need to adjust it over time. She asked 3 years ago that it be increased and was denied. The only other consistent disbursement by DW trust has been for new auto. After talking with DW about history of her autos and the recent Honda - the precedence and what is assumed to hold true for the future is every 4 to 5 years a new auto is purchased, the previous one is traded in and although the trust had a huge problem with the timing, amount of her last purchase and how she went about getting approval or lack of approval... the trust generally buys a $20k to $33k new auto for DW (minus trade-in value). As it has been suggested... I doubt the trust would object to DW keeping the auto longer before getting a new one. DW does feud with the trust about hardships for her side of the family and occasionally ours and 99% of the time the answer is no. When I say feud - I mean DW feels that fees are un-acceptable, customer service is un-acceptable, performance of trust in an-acceptable and getting different answers depending on which bank currently holds the trust and who is currently assigned as a trust administrator drives her crazy. DW feels strongly that the trust money should be used for her kids. She was very satisfied and willing to not have $1,400 disbursed and take longer to get a new auto when we starting the paper-work for DS for his 2nd birthday for a college savings. At that time DW was assured by the trust that there would be no problem with the trust paying for 2 to 3 kids going to college and that as DS and other siblings got a little older specific amounts of money would be moved into appropriate investment accounts. 4 years later she was told that college would not be paid for by the trust.
So, Honda and trust related and a decision about Honda can not be made without factoring in trust and I have come to the conclusion that a decision should not be made without consulting the trust which DW is un-willing to-do at this time and even if DW did the trust would most likely see it for what it is - an attempt to lower debt by leveraging the Honda and would not approve. I am not sure what they could or would do. It would depend on the trust administrator and/or trust board. I do not think the $1,400 is at risk because it is a formula that trust is required to disburse.
This has been a recent focus of mine as it is time for 2007 enrollment and I have questioned things like having enough life insurance and so on. I think the only other information to pass along to you guys is that I do have short-term and long-term disability, matching 401k (not currently contributing) and generally a pretty nice package if I quit or was fired (needs on why fired - but, if just a lay-off and not something like theft) then I have extended pay, vacation days purchased back, medical extended, employment search help and so on. It would still be a huge problem - but, it would not create a financial disaster immediately and other people who have been "down-sized" have said they generally had 2 months to find other comparable employment without any disruption of medical coverage, life coverage or pay.
Now, I hope that covers everything. I got accepted to the Fool group on prosper.com and I was thinking through how to paint a complete picture for people when I post a listing. Obviously, I will need to find a way to communicate a bunch of information in a much shorter format.
Sorry for the long and rambling post
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