Debt Advice Desperately Needed....Please!

[idatwilight]

Rachael, in defense of the OP, I am the one who pays $2.00 ($1.89, actually) for Law and Order: Criminal Intent. It's instead of paying an extra $50 a month for cable.

 

[idatwilight]

Also, if you can't sell your DVC, can you rent out or transfer your points for the next year? That would bring in some cash.

I know that renting out your house will be difficult. I am no financial expert but I know a lot of people are walking away from situations like yours. Yes, it will hurt your credit rating, but it's not as terrible as in the past. Look into it.

 

[AnnaS]

I hope the best for you soon and hope things turn around fast. Everyone has great suggestions. On top of what everyone has said, some suggestions (your oldest son might also be able to do one or two of these also).

Pizza Delivery for your husband (cash).

Temp or per diem work for you (not cash) or as others have suggested babysitting or private home care (when your husband is home - cash).

Cleaning homes (privately -cash).

Apply at a hospital/nursing home or a supermarket - anywhere that has a 24 hour shift so you can work around your husband's schedule.

I would definitely sell my DVC. You can always purchase it again when you are back on your feet.

I have no idea on this - can a partial payment be made on your mortgage temporarily or in that case even for utilities?

Does Florida provide WIC for children? You might not qualify for food stamps but what about WIC? They provide juice, milk, cheese, cereal for children. Not sure exactly how it works but I know they get checks every two weeks or once a month for these products.

As others have mentioned, start getting rid of or downgrade any services that you can do it with.

 

[Kay1]

Have you considered moving back home? You say you moved to Florida, well, what about where you came from? Are there jobs there, and family who could help care for your children?

 

[Lucky4me]

520 points x $65 = $33,800
Credit cards will be almost all paid off. You won't have the $2,000 or so annual dues on that 520 points or dvc payments on the last two contracts anymore. Not to mention no more cc payments.
Then you start working on everything else. Dave Ramsey would be a great start. Suze Ormon is good too.
Save your house. Save your good credit rating. Owning DVC is not worth losing either of those things.

 

[snowbunny]

I don't get it. You'd rather file bankruptcy and lose your dvc to that, than sell it to help get you out of debt?
I'm so confused by that.
If you have 3 contracts, you must have a sizable number of points. At $65 a point that could carve a huge chunk out of the cc debt. You wouldn't have that yearly dues bill either. Cutting coupons and getting free lunch is all good and fine, but we're talking thousands of dollars here in one fell swoop!

Yes - sell the DVC and get out of debt. This is a no brainer. Call the Timeshare Store and tell them to price it to sell, you are motivated. If you file for bankrupcty, your toy is going to be gone anyway.

 

[DVCSean]

Many of these ideas are good.

If this hasn't been suggested (or if you haven't already), get out a sheet of paper.

List every single dollar you spend on your monthly bills. You need to determine exactly where you are regarding money in and money out.

This will allow you to see where you can make cuts (Cable, cell phones ect).

ANYTHING you cut now, you can put back later when you get on your feet.
If you sell your DVC now, you can buy DVC later....

Once you have this budget listed on paper, start reducing whatever you can.

This is a good place to start...


Sean

 

[Karenj2]

First of all - to you! I went through something very similar back in 2004, but didn't have kids to support... I got laid off, then DH went out on long term disability. It lasted about a year and a half... (I didn't actively look for a job, because I needed to take care of my husband.)

What others have said is good, so I won't repeat those. What I wanted to say is that you should let your kids know (in an age appropriate format). The older ones certainly - and they're in the position where they could help you out. Either by baby sitting the younger ones while you find some form of work, or by working themselves (and giving you their earnings). My hubby did that when he was younger - he caddied at a golf course, and 1/3 of his earnings went to his parents (not to save for the future, but to pay for stuff for the house.)

If you really feel that you can't work outside of the house, what about offering to sit kids during the day? I'm sure there are plenty of people who are looking to save a few bucks by taking their kids out of daycare. (Although you might need to make sure that you're doing it legally...)

 

[dvcgirl]

I'm really sorry for your family is going through. It must be incredibly scary.

I'll just speak to the DVC thing, but from a different perspective. My DH and I moved from NJ to Orlando FL in 2004 and owned a BWV contract. We figured that we wouldn't end up using the DVC villa any longer since we lived in Florida and so we sold it. We paid cash for it in 1999 and sold it for a profit in 2005.

We ended up moving back to NJ in 2007 and don't regret selling the DVC contract. When we do go to Disney, guess what....we'll rent DVC points, enjoy the wonderful accommodations and not have the maintenance costs associated with DVC.

I hate to say it, but in your situation an ownership in the DVC is really insanity. You can't be talking about having $50 a week to feed a family of seven and hold onto a luxury timeshare. It just doesn't fit. Even if you're both employed tomorrow, you're carrying a lot of consumer debt....and well, again, DVC just doesn't fit in your life.

I sincerely hope things get better for your family soon.

 

[punkin]

Forgive my ignorance but is it really so easy to sell a timeshare? I thought generally you'd be lucky to give it away, particularly in this economic environment.

 

[dvcgirl]

Forgive my ignorance but is it really so easy to sell a timeshare? I thought generally you'd be lucky to give it away, particularly in this economic environment.

That really does seem to be the case with most timeshare ownerships, however, I really don't believe that this is the case with Disney. Granted, we sold ours in 2005 when the economy was doing quite well, and came away with a nice gain. I think that they'd likely get most of their money back.....

 

[Fritochips4u]

I don't get it. You'd rather file bankruptcy and lose your dvc to that, than sell it to help get you out of debt?
I'm so confused by that.
If you have 3 contracts, you must have a sizable number of points. At $65 a point that could carve a huge chunk out of the cc debt. You wouldn't have that yearly dues bill either. Cutting coupons and getting free lunch is all good and fine, but we're talking thousands of dollars here in one fell swoop!
If this was me, dvc would be gone, pronto. Then I'd buy a Dave Ramsey book and follow what he says religiously until all the debt was gone.
Disney will always be there. dvc will always be there. Well, at least for 40 some odd years until it's not.
I'm so sorry you are having these problems, but know that if you take the right steps, they are only temporary problems.

In which post did she say that? I'm lost, I didn't see her post that...

And, even if she DID post it, it's her legal right to file bankruptcy if she so chooses. Depending on the exemptions in her state, she might be able to keep the DVC and just lose the debt via bankruptcy.

If she's able to file bankruptcy, keep the DVC and discharge the debt, it's a win-win situation for her.

I wish the OP the best of luck.

 

[Mrs.Reese]

In the state of Florida, your home and car are the ONLY things protected in bankruptcy. You can make your home a palace and still keep it. Hence why we have lots of bankrupt millionaires living here. You really need to get rid of DVC. I live in Florida too and boy it's so tempting but I also like having a home. It's just stuff. You can always get it back when times are good.

My DH was really attached to his tuba. It's a gorgeous, professional F tuba that he used while in college. (He was a music ed major.) Well we got tired of owing people money. We can get by on one income but can't get ahead KWIM? It took a lot of coaxing especially with MIL piping in constantly that he'll play it but in the end we sold it. He was never going to play it again. I knew it. He knew it but selling it was admitting that fact. Kind of like how selling DVC will be admitting that you can't afford it. We walked away with $7,000 that we used to pay off some CC's and socked away the rest.

It's just stuff.

 

[friskykitten]

I have built up a nice list of websites to check out from all of your helpful posts! Thank you!

I know the power of coupons and although we don't subscribe to a newspaper (to save money) the dollar store sells the same Sunday newspaper for $1+tax that sells for $1.75 elsewhere. So I am getting that paper and cutting coupons galore. Our Publix is a lot more expensive than Winn-Dixie so I have been using WD's BOGO sales. Anything tha isn't BOGO that we need I get at our Super Wal-mart. Our meals have changed from meat every night to mac-n-cheese, pasta, things that are easy to make in bulk for a much cheaper price. Then if there are any leftovers DH, Baby and I eat them for lunch the next day. The kids are in school for one more week and eat lunch at school. I will definately look into the summer free lunch program.

I am signed up on several job websites such as Monster, Accountemps, etc. So everyday I am checking those websites and putting in an average of 5 resumes/applications a week. I am very actively searching for work. And although I have been in contact with ex-coworkers they are mostly in the same boat I am. Our company used to employ over 2500 people and are now down to a little under 1000. The employees that are left had to agree to salary cuts. So there are a LOT of unemployed people in my general area all from one employer. Daycare in Florida has a lot of "rules" that have to be followed in order to watch children including that you are supposed to be licensed with the state. In order to be licensed you have to pay a fee, attend classes for more fees, have a certain amount of sq ft designated to the daycare space, etc. Any temporary work would negate my unemployment. If it was for three or more months in length that would be fine but a two week assignment is not worth losing unemployment for. So I am looking for anything that is for three months or longer and for more than the unemployment would pay including my childcare and gas. Trust me I have run all the numbers on that one!

I have never been one of those types of parents who gave their children everything they wanted. With five of them they have always had to deal with the fact thier friends had things they didn't. If they want something bad enough then they have had to "work" for it. B-day money, odd jobs, etc. The oldest has been looking for work just as I have but she is competing with everyone else who is out of a job and looking for work. Places are hiring the teens last. She has an option with the Suncoast
Workforce that may be able to help her out and she is waiting for their response now. She also has put in several applications. It is always the same story. "We are accepting applications but not hiring right now." Still, she is trying. My 14YO DS is also hoping for something but hasn't found anything either.

As for the cell phones, we are in a &*@##**!!% contract until November. It would cost us near $1000 to cancel it. But the cable/internet/phone can go without a fee. Electricity is tied into our water as we have a well. In order to get water the electricity has to run the pump. So we will see if there are any assitance programs to help us with that. We need both cars that we have. One is a truck that my husband bought off of a friend for $1.00. He uses that to get to work. The van is our family transport and has four years left on its loan. Once we are both working we will need both cars. We could not travel together as he works (for now) an hour away up north. Well, what if my job ends up being an hour south from our home? I am not being too picky about where the job may be at this point. Therefore, both vehicles are needed. We live in a community that is smack in the middle of two metropolitin areas. An hour each way to the good paying jobs. DH is looking for a second job but his hours at his first job are so variable that it is a bit hard. As soon as I get my first job I will be looking for a second one as well, until we can get as debt free as possible. If both my husband and I are working then my DD17 will not have a way to get to a job if she finds one. She does not drive yet as she does not have access to a car. Nor can we pay for her insurance. So she has been waiting to get her Dr. License until she can find a job and save up some money. The logistics are mind boggling. Our public transportation is not the best so that will only work if she finds a job in a certain area that the public trans. services.

I know it may be hard to believe but for the past two years we have been trying to pay the cc debt down as we knew the economy was 'slumping'. So we have rarely used them and have only been making payments (more than minimum) for the past two years but it is such a slow process that it feels like we have barely made a dent in them. So we were already trying to move in the right direction in the past two years and then we lost the jobs.

So, I only have one thing I can do......I will have to contact the Timeshare Store on Tuesday and put my contracts up for sale. It will bring in some money although not as much as others have proposed. Don't forget that we still have a loan on two of them. Once the loan is paid from those we might be looking at about a $3-4000 surplus on one and about $1000 on another. That will help with paying off a cc or two. And it would further reduce the monthly payments by the loan payments and the dues owed. I will start with the one's I owe money on. I really don't know how long it will take to sell them. The Timeshare Store's website has quite a long list of those that are up for sale at this time. And if I try to "give them away" Disney will exercise their right of first refusal. I will need to be smart about this.

Ok, I am rambling now and really need to get back to going through all of our stuff to see what we can sell off or get rid of. I need to find those darn SScards so I can try to get some public assistance like WIC too.

I really do appreciate everything that you have all shared with me. Even if I don't like to hear it.... I do know what needs to be done with the DVC. I don't like it and I will go through some terrible mourning but I will do what is best for our family's situation.

 

[KristinBelle]

Sell your DVC. When you're in debt up to your eyeballs(and we've been there!!) you need to take drastic steps, believe me the peace you will get from being more financially stable is well worth not having DVC anymore.

OK, just read your update- sounds like you're on the right track. Just keep selling stuff, like someone said above it's just stuff. It's a long, hard road but you can do it!! Best of luck to you, I wish you success on your journey out of the tunnel of debt!

 

[chobie]

I wouldn't get rid of Internet but I would find a cheap dial up package. You can sell things through the Internet plus some jobs only hire through the 'Net. My last two jobs in fact only advertised and then accepted applications throught the Internet.

I can't imagine how difficult it would be to use the library computer when you have five kids and most libraries limit your time anyway. I would hit website after website and search and search. Go to Monster and some of the other job websites.

I hope for the best for you.

I agree. Having the internet is a necessity these days for finding a job, not a luxury. I apllied for some jobs on Craigslist where I was sent an email the next day wanting me to interview with just a few hours notice. Had I not been able to constatnly check my emails, I would not have had those interviews. Both those job interviews, BTW, were with legtimate firms.

 

[etraible]

. We are a family with five children and have always had just enough money to get by from month to month. Not enough to put into savings but enough to pay all of the bills and anything that might pop up as a 'surprise'.

I guess I'm confused as to how you got $35,000 in the hole if you've always had enough money to get by from month to month.

 

[snowbunny]

And if I try to "give them away" Disney will exercise their right of first refusal.

So? That simply means that Disney will buy the contract from you at whatever price per point it was under contract to someone else. That is a win/win for you. It's a sold contract either way.

Yes there are plenty of DVC contracts for sale but a good many of them are priced at what the seller thinks they "should" get, not necessarily their worth in the current environment. A well-priced contract, just like a well-priced home, will still sell in a buyer's market.

Most of all you need to acknowledge the seriousness of your situation (which you are) and every $1000 is meaningful when you don't have the funds to feed your family.

 

[torinsmom]

As far as doing childcare, do the laws in FL say you need a license if you are only watching 1-2 children in addition to your own? In NC, I believe the law applies if you are watching 3 or more unrelated children. You may be able to find someone who needs childcare for the summer. That would bring in some extra moneyor you or for your oldest daughter. I found an evening job on Craigslist babysitting for a child after my teaching job is over for the day. It is the only way I am making ends meet right now.

Good luck to you! I only have one child and have a fairly secure job and still struggle. I can only imagine what you are going through.

Marsha

 

[friskykitten]

In which post did she say that? I'm lost, I didn't see her post that...

And, even if she DID post it, it's her legal right to file bankruptcy if she so chooses. Depending on the exemptions in her state, she might be able to keep the DVC and just lose the debt via bankruptcy.

If she's able to file bankruptcy, keep the DVC and discharge the debt, it's a win-win situation for her.

I wish the OP the best of luck.

Fritochips, thank you for your (and your family's-you know who you are ) support.

What I actually said was "Either sell them or lose them in bankruptcy I guess" in post #11. So although I never said I would rather go into bankruptcy than sell my DVC I can see where Lucky4me would get that idea as I am (was) very reluctant to sell my DVC. And he, like so many others, is 100% correct. It is what I should do. Even if I still had my job we really should have considered selling one or two of the DVC contracts until we could get rid of that cc debt. So everyone is right. And I am owning up to the fact that we are in trouble and need to make some hard choices. Everyone's support has been wonderful. I really expected to get some hard bashing and people telling me how stupid I am for getting into our situation. So those that are holding back with the nasty comments......thank you.

On a positive note, I am learning things I never knew. Never really wanted to know them either but.....WOW! What a learning experience. I remember learning about Chapter 7, 11 & 13 in my business law classes in college. Now I will have to study the different options for individuals in case it gets that far. I keep telling myself that it won't get to that. Anyday now a job will be offered and we will dig ourselves out. After talking with all of you, even once I get a job I will still need to 'simplify' our life and belongings to the bare minimum to eliminate the debt we have. That CC debt has got to go! I am not looking for a quick and easy way to get out of this. (although that might be nice and easier on my nerves and ulcer) I know we will have to work hard to do this and you have given me the means to get started.