Bad Credit and Loans

[jspeed87]

My credit is starting to go down hill and I really want to start flying soon! I know of Sali Mai. But I'm afraid of applying since I got several credit cards open right now. Is their any hope for me? If I don't start flying soon I'm going to go crazy. anic: Edit: Cosign is not an option.

 

[surreal1221]

Going to sound harsh, but. . .

How about you fix your credit before trying to go further into debt?

You know, because stabilizing your credit is far more important than dropping further into debt. You're credit is falling for a reason.

 

[Ian_J]

So this doesn't hold true anymore?

Seriously I just fell In love with the car, and had to take it home! RPJ, has giving me some motivation to park the car and remove the plates. I still don't know what I'm going to do. I really don't care much for my credit. I don't plan to buy a house anyway. I'm more of an apartment guy, maybe a condo. The only thing i would need credit for is flight training, and I can arrange that with my father.

Just messing with you.

Seriously though - you are in financial danger, my friend. You are young, have no degree, have debt, and have bad credit. More debt seems counter-intuitive at this point.

While you may want to fly, you don't need to fly. What you need to do, in my opinion, is pay off your debt and establish a good credit history. You need to stop buying things you can't afford. And if you MUST get into more debt, at least use it for an education.

 

[surreal1221]

A real education - such as a degree. At least in my opinion. Going into debt for substantial flight training, that it appears you have no ability to pay back, is a disastrous mistake.

 

[jspeed87]

So this doesn't hold true anymore?





Just messing with you.

Seriously though - you are in financial danger, my friend. You are young, have no degree, have debt, and have bad credit. More debt seems counter-intuitive at this point.

While you may want to fly, you don't need to fly. What you need to do, in my opinion, is pay off your debt and establish a good credit history. You need to stop buying things you can't afford. And if you MUST get into more debt, at least use it for an education.

lol Nice one. Seriously speaking though I just need to start flying! I don't care if it's 20 percent interest rate. Whats the point of waiting?

 

[minitour]

Debt is bad, m'kay?

-mini

 

[jspeed87]

A real education - such as a degree. At least in my opinion. Going into debt for substantial flight training, that it appears you have no ability to pay back, is a disastrous mistake.

Flight training is not a real education? You can make good money as a CFI or a Freight dog. Which is what I actually want to do. I don't plan on getting a 4 year degree.

 

[MarkE]

As someone who spent some time in the past with really bad credit I can definitely say do whatever you possibly can to pay off debt and improve your credit. Do it now!! Seriously. You're young, and being an apartment guy may be cool right now but when you get married and start a family being in an apartment may not be so cool. BTW, renting an apartment when you have bad credit is a lot harder than you think. I've filled out aps to some really cool apartments in my time only to be turned down cause the other dude who applied had better credit than me. When you do find someone willing to rent to you be prepared to fork over 2 or 3 times the normal security deposit.

Bottom line, fix yo credit!!

 

[Maurus]

Flight training is not a real education? You can make good money as a CFI or a Freight dog. Which is what I actually want to do. I don't plan on getting a 4 year degree.

If you actually want a good job in aviation, you will need a 4 year degree. Otherwise you will never make the "good money" you think you will make.

 

[surreal1221]

Flight training is not a real education? You can make good money as a CFI or a Freight dog. Which is what I actually want to do. I don't plan on getting a 4 year degree.

:banghead:

Okay. . .best of luck to you.

Just let us know when you file your first bankruptcy.

 

[Ian_J]

lol Nice one. Seriously speaking though I just need to start flying! I don't care if it's 20 percent interest rate. Whats the point of waiting?

Are you serious?

Flight training is not a real education? You can make good money as a CFI or a Freight dog. Which is what I actually want to do. I don't plan on getting a 4 year degree.

Here's a homework assignment for you.

Define "good money" and cross reference that amount with what people are actually making.

Figure out your payment on a flight training loan with your 20% interest rate.

Determine of you can afford to live on your "good money" while paying off that debt. (Don't forget about your current debts either.)

 

[surreal1221]

lol Nice one. Seriously speaking though I just need to start flying! I don't care if it's 20 percent interest rate. Whats the point of waiting?

Quite the troll I believe.

This type of mentality is what has driven so many ignorant young adults into financial trouble.

But, don't let experience change your opinion of some Utopian world.

I JUST GOTTA FLY!!!! at any cost. No wonder no one can hold the line on any professional standards. Only need one example, and it's right here.

 

[fly4food84]

I'd advise you to work on your credit before you sink more.

Sallie Mae has taken a few steps back from approving loans at this time anyway since the economy is in shambles.

 

[Ian_J]

jspeed - look at this thread for what debt can do to you:

http://forums.jetcareers.com/jobs-n...ly-seeking-ohio-aviation-job.html#post1061751

<link rel="File-List" href="file:///C:%5CDOCUME%7E1%5Cifeyk%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><o:smarttagtype namespaceuri="urn:schemas-microsoft-com<img src=" http:="" forums.jetcareers.com="" images="" smilies="" redface.gif="" border="0" alt="" title="Embarrassment" smilieid="2" class="inlineimg"></o:smarttagtype>

I am a 37 year old male CFI. I have 574 hours TT and 158 hours of dual given. My qualifications include CFI-A, CSEL/CMEL-IA, AGI and IGI certificates.

Relocation out of state at this time is no longer possible unless I can get help from a perspective employer as I have been burned twice already moving out of state for work and consequently losing the job or resigning from a misrepresented, dead-end job.

This coming Tuesday I have an appointment with a bankruptcy attorney as I have been pretty much wiped out financially. I am only able to preserve my pickup truck right now and that may be affected by the bankruptcy. Lack of income is the reason. My financial problems started over two years ago when I had to leave the military. Working as a civilian avionics technician did not work out for me so I decided to become a professional pilot after already having my Private certificate. That brings me here to today after several CFI jobs that were not what they were stated to be, I am now desperate and living with my mother for the third time in two years.

If anyone out there knows of anything in the <st1:state w:st="on"><st1>lace w:st="on">Ohio</st1>lace></st1:state> area, please let me know. A copy of my resume is available upon request.

Thank you,
David

 

[Champcar]

lol Nice one. Seriously speaking though I just need to start flying! I don't care if it's 20 percent interest rate. Whats the point of waiting?

Sallie Mae is the devil. Interest rates are currently at 10.5 percent on those loans and let me tell its impossible to pay back.

Have fun ruining your life just cause you want to fly now.

 

[surreal1221]

Now, I disagree. Impossible to pay, no. A modest loan is certainly possible to pay back without any financial stress.

But, I'm sure this guy doesn't just want a modest 10k or 5k loan. He wants to go big!

 

[jspeed87]

Are you serious?



Here's a homework assignment for you.

Define "good money" and cross reference that amount with what people are actually making.

Figure out your payment on a flight training loan with your 20% interest rate.

Determine of you can afford to live on your "good money" while paying off that debt. (Don't forget about your current debts either.)

Look I'm not in this to get rich. I will be happy making around 40k-50k as long as I get paid to fly. I know I have debt but I also need education to get a better job so I can pay off my debt quicker and have a better life. I can't be stuck at my current job making 10 bucks an hour looking up at the sky wishing I was their. I'm just looking for companies that will finance with bad credit. Is that so hard to ask? :banghead:

 

[surreal1221]

You're clearly not getting the point.

Have you had your head stuck in the ground the past year?

Credit is a hard to come by commodity.

Since you screwed yours up already, no one is even going to give a chance of loaning you money until you get yourself and your financial obligations in order. One of those ways is working hard and paying your debt. The other is filing bankruptcy. Pick your poison.

Until either the banks become totally stupid again (heaven forbid) no one with horrible credit and no ability to pay them back will get any amount of funds from them, even at a 50% interest rate.

Give it up, fix your life, then re-evaluate.

 

[Ian_J]

Look I'm not in this to get rich. I will be happy making around 40k-50k as long as I get paid to fly. I know I have debt but I also need education to get a better job so I can pay off my debt quicker and have a better life. I can't be stuck at my current job making 10 bucks an hour looking up at the sky wishing I was their. I'm just looking for companies that will finance with bad credit. Is that so hard to ask? :banghead:

You can bang your head all day long, but in the end we're sincerely trying to help you out. There's a lot of head banging going on on this side as well.

But to answer your question, I don't know of any legitimate bank who will finance people with bad credit. Especially without a cosigner. And even more especially in this current economic situation. You do realize part of the problem with the economy is that banks gave loans to people with poor credit and who had little chance paying them back, right?

What happens when you are an out of work CFI like many people here on JC? How will you pay your loans?

 

[Ian_J]

You can bang your head all day long, but in the end we're sincerely trying to help you out. There's a lot of head banging going on on this side as well.

But to answer your question, I don't know of any legitimate bank who will finance people with bad credit. Especially without a cosigner. And even more especially in this current economic situation. You do realize part of the problem with the economy is that banks gave loans to people with poor credit and who had little chance paying them back, right?

What happens when you are an out of work CFI like many people here on JC? How will you pay your loans?

Let's do the math here, in some pretty round numbers.

Let's say you get a $50,000 loan at 10.5% at a 15 year term. (No idea if they even do 15 year terms for flight training loans... perhaps someone else could help me out.) Your monthly payment would be about $550/month.

Now let's look at the first three years of a possible flying career.

Year 1:
CFI
Average Monthly take-home pay: $1350

Year 2:
Freight Pilot
Average Monthly take-home pay: $2000

Year 3:
Regional Pilot
Average Monthly take-home pay: $1350

Now look at your monthly expenses; rent, food and utilities are the basics. You'll probably need to drive to and from the airport, so add in gas and car insurance. Hopefully you're still not paying a car loan.

I'm no math wiz, but I can't make all those numbers add up.