What would you do? (consumer debt related question)

[arakboss]

I have a substantial amount of credit card debt. The total of my balances is equal to about 20% of my yearly gross income. I also have a relatively substantial gun, ammo and accessories collection. I would fairly value my collection to be about equal to the current total of my credit card debt balances. My balances are almost strictly on low interest (less than 3%) card offers and I juggle them around to keep them that way.

I am considering liquidating a bunch of my collection to speed up my debt repayment and get these cards paid off for good. Then I could rebuild my collection with cash only purchases after my debts are all paid off.

What would you do if you were in my shoes?

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[Alexx1401]

I have a substantial amount of credit card debt. The total of my balances is equal to about 20% of my yearly gross income. I also have a relatively substantial gun, ammo and accessories collection. I would fairly value my collection to be about equal to the current total of my credit card debt balances. My balances are almost strictly on low interest (less than 3%) card offers and I juggle them around to keep them that way.

I am considering liquidating a bunch of my collection to speed up my debt repayment and get these cards paid off for good. Then I could rebuild my collection with cash only purchases after my debts are all paid off.

What would you do if you were in my shoes?

Assuming you can keep the debt fixed at 3%, I would keep my guns. Selling is bad right now if you are trying to get a good price. Now that debt, if it has the potential to go to many times that at some time? Then I would be far more interested in getting rid of it. If nothing else see about a consolodation loan at a fixed low rate to pay it off. If you are just juggling it every 6 months or so? That is risky.

 

[P7M13]

Presuming your CC usage has been impulsive, liquidating to repay is a form of bulimic binge & purge. You will likely repeat the cycle unless you change.

1. Establish a budget.
2. Hack out anything excessive.
3. Include accelerated repayment, i.e. 4-10x the "monthly" payment amount.
4. Stay disciplined.

At the end, you will have improved fiscal habits on many levels, and still have your guns.

 

[arakboss]

Assuming you can keep the debt fixed at 3%, I would keep my guns. Selling is bad right now if you are trying to get a good price. Now that debt, if it has the potential to go to many times that at some time? Then I would be far more interested in getting rid of it. If nothing else see about a consolodation loan at a fixed low rate to pay it off. If you are just juggling it every 6 months or so? That is risky.

I can keep interest rates around 3% or less, I am just getting tired of having it hanging around my neck. I find I get more enjoyment out of finding deals on firearms then actually using them (big problem I know). I realize prices have tanked and I wonder if that will be the new normal, especially with AR related prices.

 

[arakboss]

Presuming your CC usage has been impulsive, liquidating to repay is a form of bulimic binge & purge. You will likely repeat the cycle unless you change.

1. Establish a budget.
2. Hack out anything excessive.
3. Include accelerated repayment, i.e. 4-10x the "monthly" payment amount.
4. Stay disciplined.

At the end, you will have improved fiscal habits on many levels, and still have your guns.

That is a great analogy.

 

[DB is Here]

Monthly payments are wealth building stealers.

Search out a guy named Dave Ramsey, he has books and a radio show and with the knowledge gleaned from him I was able to get out of all debt besides my mortgage. It took 18 months, but it was well worth it.

Good luck walking that road, the juice is worth the squeeze.

 

[2A2Dend]

Presuming your CC usage has been impulsive, liquidating to repay is a form of bulimic binge & purge. You will likely repeat the cycle unless you change.

1. Establish a budget.
2. Hack out anything excessive.
3. Include accelerated repayment, i.e. 4-10x the "monthly" payment amount.
4. Stay disciplined.

At the end, you will have improved fiscal habits on many levels, and still have your guns.

That is a solid plan.

 

[WoodsPlinker]

The biggest thing that got me out of credit card debt was a mindset.

Before using the credit card for emergencies, ask yourself if that emergency could be lived without. Like if it's your washer or dryer going out, can you use a laundromat?

When I started doing that I never used my credit card again, and paid them off.

If you can, put extra into paying it off, keep the guns.

Guns are investments. But if you have extra spending money that should go into saving until you have 1000$, then it should go toward the credit cards. Until the debt is paid off.

If you don't have wiggle room in your budget, the first task is to make wiggle room. Can you live on less in certain areas? You are poor so living like your poor for entertainment and food etc is now a way of life until you aren't negative in your net worth.

Anyway, watch Dave Ramsey, his YouTube videos are free and a lot of good advice.

I wouldn't sell my guns, these are rainy day last resort things to do.

 

[arakboss]

Monthly payments are wealth building stealers.

Search out a guy named Dave Ramsey, he has books and a radio show and with the knowledge gleaned from him I was able to get out of all debt besides my mortgage. It took 18 months, but it was well worth it.

Good luck walking that road, the juice is worth the squeeze.

I have watched many of his videos on youtube. If I called in to his show, I know exactly how he would answer my liquidation question. "Sell so much stuff the kids think they're next."

 

[DB is Here]

I have watched many of his videos on youtube. If I called in to his show, I know exactly how he would answer my liquidation question. "Sell so much stuff the kids think they're next."

LOL...100% true.

 

[arakboss]

The biggest thing that got me out of credit card debt was a mindset.

Before using the credit card for emergencies, ask yourself if that emergency could be lived without. Like if it's your washer or dryer going out, can you use a laundromat?

When I started doing that I never used my credit card again, and paid them off.

If you can, put extra into paying it off, keep the guns.

Guns are investments. But if you have extra spending money that should go into saving until you have 1000$, then it should go toward the credit cards. Until the debt is paid off.

If you don't have wiggle room in your budget, the first task is to make wiggle room. Can you live on less in certain areas? You are poor so living like your poor for entertainment and food etc is now a way of life until you aren't negative in your net worth.

Anyway, watch Dave Ramsey, his YouTube videos are free and a lot of good advice.

I wouldn't sell my guns, these are rainy day last resort things to do.

The investment argument could be made for a few of my firearms but most have decreased in value with prices tanking like they have. In addition I rarely buy firearms that are collectable type. I am a budget oriented shopper (impulsive for sure).

 

[Alexx1401]

I can keep interest rates around 3% or less, I am just getting tired of having it hanging around my neck. I find I get more enjoyment out of finding deals on firearms then actually using them (big problem I know). I realize prices have tanked and I wonder if that will be the new normal, especially with AR related prices.

Well it's a buyers market on guns right now for sure. Sadly that means it's not a good market to sell in though. The new laws both our states put in also made it even harder. It has made me end up with more damn guns at one time than I have ever had

 

[2A2Dend]

A good approach if do-able, and if several cards. You'll at-least gain some traction.
Make minimum payment on all but one. That one, pay the highest payment you can feasibly afford.
Before you know it, you'll get where you need to be. One step at a time.

Rinse/Repeat

 

[User 1234]

Keep in mind that the ever increasing number of unconstitutional gun control laws might make it impossible to buy certain guns in the future. This is especially true for ARs which coincidentally won't bring in any money right now anyway.
If you had a collector's piece like a Python then yes I would sell it to accelerate paying off debt.

 

[arakboss]

Well it's a buyers market on guns right now for sure. Sadly that means it's not a good market to sell in though. The new laws both our states put in also made it even harder. It has made me end up with more damn guns at one time than I have ever had

Same here! I own a bunch of firearms that have not been fired by me or may have had one or two range trips since I bought them. And all kinds of AR projects that have not been put together. I have a problem for sure

 

[WoodsPlinker]

The investment argument could be made for a few of my firearms but most have decreased in value with prices tanking like they have.

Yeah, gold and silver fluctuates too but, over 20-30 years it will go up.

I've sold a few guns that I didn't like, always did it when they were worth something though. And I traded up.

I'd you don't like them, it doesn't hurt to trade in a few to get one you like more and has better investment potential.

Crap my best investment was one that was super cheap at the time until the import ban came, now it's worth 3x it's cost. And I traded one in I didn't like to get it.

 

[slimmer13]

I say sell if there are some that are safe queens, doubles or easily replaced.

Getting that debt knocked out, and establishing good financial habits will get you to a place where you can re expand your collection debt free down the road.

 

[arakboss]

A good approach if do-able, and if several cards. You'll at-least gain some traction.
Make minimum payment on all but one. That one, pay the highest payment you can feasibly afford.
Before you know it, you'll get where you need to be. One step at a time.

Rinse/Repeat

I have been doing that. I am down to four cards right now. I will have another one paid off by end of year.

 

[arakboss]

I say sell if there are some that are safe queens, doubles or easily replaced.

Getting that debt knocked out, and establishing good financial habits will get you to a place where you can re expand your collection debt free down the road.

That is what I am leaning towards doing. Many were impulse buys anyways and I probably won't want to replace them. I was thinking of selling the least used but easily replaceable ones first and hanging on to the ones that might not be available if things go badly in the law making dept. Maybe prices will tick up a bit as election day nears if the gun grabbers gain any more traction.

Edit: I would gladly live with decreased values of my evil firearms if it meant no more laws restricting them.

 

[American123]

I would:

Eat eggs and ramen for a whole year, spend no money on anything outside of dire necessity. I'd imagine your debt would be paid off sooner than you think.

Create a plan, stick to the plan, have some self control. Whenever I want to keep myself from doing an impulse buy I just go clean some guns. Seems to work.