Budget Emergency - I'm not sure if this is the right place to post...

[Molly Meow]

Hi, I hope I'm in the right place. I really need some help. DH's hours for the 1st half of Jan. were cut from 80 a paycheck to 30 a paycheck. So, instead of us having $1100 a month income, Jan. will be about $700 from what I'm figuring. We're stretched to the limit and have no savings. What I'm asking for help with, is which bills should we not pay or only pay some of?

Our rent is $500, car insurance $75, electric $200, gas $50, water sewage garbage (all on same bill) $50, credit card $30, phone $30, gas about $200.

The total of our bills is $1135. We're going to be $435 short.

We can't shut off the phone as I'm trying to find a job. My car payment, my insurance, my internet, and part of my rent (rent is actually $750) is paid by my parents, and they can't help anymore. I only have $30 of available credit on my credit card. I've talked to all of the companies, and none of them are willing to budge on the due dates.

I don't mean to burden anyone, but if there's someone out there with a suggestion of what to do or what bills to cut, we'll appreciate it. We just found out about this yesterday. His hours will go back to normal the last half of Jan. and stay that way.

Thank you in advance.

 

[sk!mom]

I have no suggesstion other than- find a job (any job) asap. Since you have already been falling short every month, while taking help from parents, it seems that a job for you is overdue. I would, also recommend a second job for your Dh for a while. You are so far behind and again short every month that it seems that he should work an extra job while you catch up and get settled in a job.
There are part-time jobs out there. My college student son works part time at Wal Mart collecting carts and doing carry-out. He likes this job as they have been very flexible in accomodating his school schedule. It is a difficult job though with a lot of turn over and Wal Mart is almost always hiring for this position. Our Wal Mart accomodates the schedules of several men who work a few shifts in the evenings and week-ends to supplement the income from their regular employment.
As far as which bills to let slide- be sure that contact anyone that you will not be paying. Most of the bills that you have must be paid or utilities will be cut-off or you will receive an eviction notice.
Best of luck to you as you try to work this out.

 

[Chavi_Ravenna]

I was recently diagnosed with cancer and lost all of my income for a while. So I feel where you're coming from. If you're willing to spend time doing inane paperwork you may qualify for temporary assistance. Food Stamps, reduced or forgiven Utility bills etc.. Youwilll need all sorts of paperwork including, but not limited to, birth certificates. vehichle registration, bills and proof of loss of income.

When you have jumped through those hoops you may not have to make the hard choices of what to pay. Until then I can only tell you that I payed my rent, car and insurance and allowed everything else to "float" until I could get assistance. I did have to move in with my Mom to help save money for myself. I am single and childfree so I understand that isn't an option for everybody.

Pax,
Chavi

 

[aka-mad4themouse]

I wouldn't advise anyone to not pay their bills but obviously, you cannot pay with what you don't have. Since the companies that you're dealing with are inflexible with their due dates, perhaps they may be willing to take partial payments rather than payments in full. If you show an attempt at paying, they are less likely to take any action against you. This will not relieve your debts but it will buy you some time.

Use that time to earn the money you need to live independently from your parents. Even with their help, you're overspending your income by at least $35 every month. And I see no mention of a food budget at all. Sk!mom is correct when she tells you both to get a temporary job - any job. Any income is better than nothing at all. Flip burgers, stock shelves, wait on tables. All of those jobs are good, honest work that require few skills and are readily available. You don't have to make them a career choice. Just use them to get by until you land that real job.

Once you get past this little crisis, you really need to sit down and re-evaluate your spending. You are living way over your heads right now. You need a budget and you need it now. Things will not going to get any better unless you take some action. I know that this is hard when you're young and just starting out in life but it's a lesson that is better learned now instead of when you're sitting in a bankruptcy lawyer's office discussing how to discharge your debts.

Good luck dealing with this problem. I swear that money headaches are among the most stressful situations to deal with. Please keep us updated on how you're doing.

 

[canwegosoon]

If you're willing to spend time doing inane paperwork you may qualify for temporary assistance. Food Stamps, reduced or forgiven Utility bills etc.. Youwilll need all sorts of paperwork including, but not limited to, birth certificates. vehichle registration, bills and proof of loss of income.
Pax,
Chavi

Try this...call utilities.

 

[dee2zo]

I am sorry you are in this position. I think you should call your electric company. find out if there is an agency which offers fuel assistance for the winter. I work in Boston and there are tons of agencies available to help folks during these times. I am sure there will be help in your area as well.
Good Luck,
Dee

 

[my3kids]

I was also going to suggest public assistance to get you through the month. Of course, internet is likely to be something they say to do without, and I don't disagree. Call you local department of social services and ask what help is available on a temporary basis. Try your church, try a local agency. And I agree, take any job for the time being. Doing a temporary job won't prevent you from looking for something more permanant in your field.

 

[kerry34]

Definately get any kind of job you can for now. Something is better than nothing. I would also look in to some temporary help. I have been in that situation myself. Years ago when I was pregnant with my twins, I had to go out of work and go on bedrest. I had short term disability for a little bit, but that ran out. Soon after I got laid off. After the unemployment, thing were tight for hubby and I. He had just started a new job and with five kids the money wasnt nearly enough. We had to change our lifestyle big time for a while. We qualified for fuel assistance and that was a huge help at the time. We also qualified for WIC which was so helpful. I also called the the utilities and got a discounted rate on my electric bill, and also on my phone. We got behind on two month of electric so I was able to get on a payment plan for what I owed. That way I was able to pay a little extra with my bill every month until the past due balance was paid up. That way we didnt get our lights shut off. I also suggest if you have cable tv, get rid of it, or get the least expensive option you can. The other option is to go to your local church. Sometimes they can help. I had a friend out of work on disablity. She had no income for a while before she started getting payments. The church helped her pay her utilities up to date and paid one months rent. I dont know if you have any religious affiliation or not, but that is another option. Return cans and bottles, cut coupons and shop at stores that will double them. Any little thing helps for sure. Another smart thing to do is if you get any kind of refund for your taxes this year pay off your credit card, it will save you money in the long run on interest. Good luck.

 

[FayeW]

What type of work does your husband do that he only gets paid $1100. per month for 160 hours?? Wiith all the time he is going to have off in the next 2 weeks, I would suggest he use it to try and find a better job, one that doesn't cut his hours by less than half without notice!

In the meantime, we are talking about 2 weeks of reduced income, and although losing $400. when you didn't expect it sucks, they aren't going to cut of your services if you are a couple of weeks late with the payment. Pay what you can, and you should be ok on the others until at least the next billing cycle, especially if you stay in contact with the billing departments and let them know the date you will pay, and the amount of the payment you will make at that time. You might have to play catch up for a couple of months, but do as the others have said, and take ANY job you can to help out. You can look for the perfect job once you are back on your feet.

 

[raven3517]

I don't have a lot of suggestions for you, but wanted to send you my thoughts. I'm sure you're stressed out right now.

The only suggestion I have for you is to call your credit card company back and tell them your situation. I'm not sure who you have your card through, but they are able to temporarily reduce/suspend your payment/rate - or may even give you a payment holiday for that month if you've kept the account pretty well. If you are able, opening a new card with a low (or 0% if you can get it) would be a good idea - you could transfer your balance. Call the rest of the companies you have bills with again and ask again - it can't hurt. Always make sure to explain the situation, and stress that it's temporary - that can make a difference.

Good luck with your situation, and I hope you have some luck!

 

[jeepgirl30]

I don't have suggestions either just wanted to offer some support. The get a job comments really aren't fair. I was unemployed for almost 8 months. I have two small children so I had to make enough to cover daycare or it wasn't worth it. My DH was still working but going from two incomes (I made slightly more) to one was a shock.

I could not apply at minimum wage places because of daycare and it would take away unemployment while still being less. I spent hours every day networking, job hunting, etc. I went on interviews and was constantly asked why I wanted X job for less money? I had people ask why I was unemployed. It was horrible.

I finally got a new job but it is less money and not what I want.

You did not give a ton of detail so people shouldn't assume you aren't trying to get a job or you may have other circumstances preventing you from rushing to McDonalds.

 

[Microcell]

With your car payment, most do not report until the bill is over 30 days overdue, so you may want to delay that if you can't get anymore income this month. It should not hurt your credit. Check first of course. It is important to get any job you can, but you simply may not get paid in enough time. Clark Howard.com gives all kinds of information, but his mantra is to be sure you pay your essential debts first. You have to have a place to live, food to eat etc...

 

[TripMom]

I am so sorry that you guys are in that situation. It can be very stressful and also hard on your marriage. As Microcell mentioned, pay the essentials first. Food, shelter, transportation & utilities. Any job that you or your husband could pick up part-time to make up for the lost hours needs to happen quickly. Something that includes cash tips (waiting tables, delivering pizza, etc.) would get you some quick cash. I know it's winter but try putting together a quick garage sale or list some things for sale in the paper. Start today by writing down everything you have spent in the last two months (including eating out, quick trips to the store...EVERYTHING) then put together a budget for January. List your payments/expenses by importance. Then as you get money in (regular income, extra jobs, selling some things, etc.) start knocking things off the list in order. I would also try contacting each utility/creditor as others have suggested to see if you can make arrangements or cancel whatever services that are not necessary (cable, cell phone, etc.). I wish you the best and remember if you make the right changes this will hopefully be only a bad memory soon. You can pm me for more specific information but I would highly suggest daveramsey.com.

 

[crisi]

Do you have any "better off" friends or relatives? We've been known to help out by providing odd jobs. My cousin mowed our lawn. A friend housesat while we had deliveries come - the kind you need to be home for. Another helped plant shrubs. Housekeeping, babysitting, painting has all been done for a fee for friends in a tight spot.

I know if any of my friends called with "we are in a tight spot, can you help by providing jobs - babysitting, painting, whatever" we'd hand our honeydo list over and pay them. Provided, of couse, that they were responsible enough to be trusted with a paintbrush or our kids.

On the other hand, we've gotten the "we are in a tight spot, can I borrow (have) some money" calls and its rare we do anything but laugh. (We are helping my BIL, but its an odd circumstance involving a soon to be ex wife).

 

[Molly Meow]

Wow, thanks for all the replies and advice! I truly appreciate it.

I'll give you a little more info...I've contacted ALL of my creditors, and they've all said the same thing - "You can send in a partial payment, but that doesn't guarantee we won't shut you off." I'm going to do it, but I'm still worried about it.

I was told by my electric company to call the Red Cross in our area, that they'll help out. I called them, and their money has already run out for this month.

We make too much to qualify for food stamps, etc., and it takes 8 weeks to get emergency cash assistance.

I'm not allowed to work right now because of a medical condition, and my disability has run out, but I'm looking for any job I can get anyway. I'm registered with 6 temp agencies and have checked everywhere in town. We live in a small town and really can't afford for me to drive to the next town over (about 30 miles) everyday to look for a job, with gas prices as they are now.

DH is looking for another job, he works at Wal-Mart right now. They will not give him a set schedule, and his hours are all over the map. Ex - he works 3pm-8pm tomorrow, and 7am-11am the next day. There's no way for another employer to schedule around that, and he's scared to quit his job in case he can't find another one fast enough. The unemployment rate in this area is quite high.

The only people that we know that are better off than we are, are my parents, and they're already helping us with more than $1500 a month. They can't help any more, and they won't let us move in with them. I'm very grateful right now that we don't have children, I wouldn't know what to do if we did.

I have a budget that we normally go by, we don't spend anything extra. The only reason that I have the internet (paid by my parents) is so that I can take this paralegal course I'm involved with, so that when I graduate in August, I can make a lot more. As far as playing catch-up goes, even when DH is meeting his full income, we don't have any extra we'd be able to use.

These are the only bills that I have to worry about: Our rent is $500, car insurance $75, electric $200, gas $50, water sewage garbage (all on same bill) $50, credit card $30, phone $30, gas about $200.

Everything else is paid for by my parents.

I'm sorry this is so long, but I appreciate the suggestions and wanted to give some more information. I'm going to call all of the utility companies again, and get the highest person that I can. I've been a good customer in the past, and they're just refusing to work with me. Maybe if I can get someone with more pull, they can help me figure it out.

Also, I went to all the churches in town yesterday. They can't help me since I'm not a member. They need all their money to go towards helping those in their congregation, which I understand.

Again, thanks for all of the advice and well-wishes. I'm not trying to whine, but just give more info. I know we'll get through this, I just have to keep searching until I find the way.

 

[disneysteve]

We live in a small town and really can't afford for me to drive to the next town over (about 30 miles) everyday to look for a job, with gas prices as they are now.

electric $200

I don't know what type of place you are renting but $200/month for electric sounds awfully high. We have a 3-bed 2-story house with basement and our gas and electric combined is less than $200. I would check on this.

As for looking for work, considering your situation, how can you say that it wouldn't be worth driving 30 miles to find a job? Even if gas is $2.00/gallon, the round trip would cost about $5 or 6 bucks. You don't need to do it every day. Just plan one or two trips and spend the whole day filling out applications. Besides, can't you look in the newspaper or online to find job listings? You could also call various stores, restaurants, etc. and ask if they are hiring. You could probably do a lot of the legwork without ever leaving your house.

I totally agree with aka-mad4themouse. Once you get through this crisis, you really need to sit down with DH (and maybe with your parents) and totally re-evaluate your lifestyle and spending habits. You are currently living incredibly beyond your means. By your account, your parents are paying at least $18,000/year of your bills. If the local economy is so bad, you may need to consider moving to another area. I realize that is a difficult decision to make but it doesn't sound like you have much of a choice. If the "best" job your husband can find only pays $13,000/year, you need to take drastic actions before you find yourself in bankruptcy court.

I hope everything works out soon and you can get on more stable footing quickly.

 

[fourfoxesinpa]

post deleted

 

[sk!mom]

I'm sorry that some were offended by my suggestion to secure employment and possibly a second job for her DH asap. I realize that finding a job is not easy and have had to deal with an unexpected lay-off in the past. However any other suggestions in this situation are temporary fixes at best. Most of the expenses mentioned by the OP are necessary and somewhat fixed and the reality is that when your expenses exceed your income by such a large amount every month catching up next month is not possible. The only solution when your income is short of your expenses is to cut spending or increase income. The OP seems to have a pretty bare bones budget already.

Do you have anything that you could sell? If you have two cars, how about selling one? You would have some catch up income and your insurance cost would be reduced. I know that having only one car is inconvenient- DH and I did it for several years in our starting out days, but it can be a big savings. You could drive DH to work and look for work while he's there.

 

[danacara]

How are you eating? No mention of food, and despite the fact that you're on medical disability, no mention of medical expenses? I took a look at your past posts, we are close to the same age (23 and on disability - is there anything that can be done at all? You have another 40 years to work here), you are a smoker and you have 5 cats, how are you paying for cigarettes, cat food, vet expenses? I'm blown away. How are you surviving? How bad is the credit card debt? (I assume the $30 is the minimum payment)

Do you have any relatives in any other area of the country? Maybe you can live in their basement while you get on your feet in a different area, one where there are jobs? Whatever you do right now is really a band-aid on a much larger issue.

 

[undertheradar]

While utilities are indeed high cost here in California, why is your gas bill so high? What type of cars are you driving that you are spending so much on fuel? Whichever gets the better mileage is what should be used. Does Walmart have an assistance program? Contact the utlities again and try to set-up a payment plan.

Good Luck!