I need a plan and need some ideas....

[the Fidge]

Well regretfully after years of DH handling the finances we hit a huge mess. Sadly, I did not get involved and just went along with things. Well the end of that era came with a loss of DH job a repo, bankruptcy. Then new debt again and collection calls came.

Well the home we had been paying off from the owner (family member) passed away and the surviving spouse received the property and we have no paperwork about the agreement. Yes another mess I failed to prevent.

Ok so now this late in the game of life I am starting over. DH has turned over all paperwork as of last night and I am truly overwhelmed. Car payment I make is on time along with utilites bills, I handle. Medical bills have all but destroyed us do to DH medical issues.

Our credit score if possible has a negative sign next to it. I am hoping that I can address this all myself with tightening of belts that I have no problem doing.

However I am hoping to learn of some stories of hope I really need them. Dh and I are considering relocating out of the state as our emplyment situation for Dh is at a dead end in his industry here.

I want to be debt free and find a plan to own our own home. So if anyone has any feedback on plans or if they have ever overcame ruin I would appreciate it greatly.

Judgements not required I have beat myself up plenty to turning a blind eye to this whole matter so all I can do is look forward.

 

[threecrazykids]

Well, first off...hugs to you! Don't let the naysayers bring you down, what's done is done and you surely don't need anyone else telling you what you've done wrong.

That being said, I'd look for jobs first in an area you want to relocate to if you are serious about moving.

Second, I'd write down every single bill you have (even the ones your DH handles) and make a call to each one to find out where you are (past due or not) and what you owe. If necessary, set up a payment plan. Avoiding them will only make things worse. Be firm, tell them exactly what you can afford to pay monthly on any past debt and get everything in writing.

 

[StitchBuddy]

My SIL was in a similar situation after a divorce. Thankfully she had some help from her parents, but she went to a credit counselor and they helped by getting her debt rolled into one payment and got some of her interest lowered. Good luck! I admire you for taking the first step!

 

[roscoepc1]

People swear by Dave Ramsay and his financial advice....maybe look into whether there's one of his courses being held somewhere nearby? They're often held in churches, for the space...

 

[racechick8293]

Non-profit consumer credit counseling may be an option for assistance. I've heard that they can work with the companies you owe money to and sometimes negotiate better terms for repayment.

http://www.nfcc.org/

 

[PrincessBelle09]

I recommend Dave Ramsey. Find out where you can listen to his show on weekdays and you'll hear stories just like yours and worse and tales of how people have or are in the process of coming out of their financial messes.

Financial Peace University is his course that is offered by local churches and whatnot. It is kind of pricey and I think that, as long as you have decided that you are determined to fix your finances and will whatever it takes, you can easily get by with one of his books (such as The Total Money Makeover).

Make sure you're current on all of your bills (sounds like you are) and then create a written budget for January. I highly recommend You Need a Budget, or YNAB. You can download a 7-day trial from their website and if you like it, you can purchase the license for $59.99. You will need a new budget for each month because no two months are alike. Then, list your debts, smallest to largest. Figure out where you can cut in your budget and throw any extra money at that smallest debt until it is gone. Only pay the minimums on all the other debts. When you have that paid off, move on to the next smallest and so-on. This is called the debt snowball. Although it makes more mathematical sense to pay off the debt that is costing you the most in interest, the point of Dave Ramsey's system is behavior change so that you will stick to the plan and get of debt forever.

to you and best of luck on your journey!

 

[CleoPahd]

I am no expert in the area, but I believe that medical debt weighs against your very differently than other debt....meaning it has less of an impact. My parents have had mounds of medical debt on and off over the years due to serious health problems. I believe as long as you are in contact with the debtors and make a honest effort to reduce the debt, even if it means only paying $5 or $10 a month if that's what you can afford, you can remain in good standing.

There was a point in my life where I literally had nothing, so I feel for you and your family. It took several years of really sacrificing and eliminating all splurges, but it worked and I'm at a good place in life now and so I truly believe it was worth it. I personally like Suze Orman and think she makes a lot of sense. Good luck with getting things back on track. You can do it, it's just going to take some time and you'll have to be super strict with your spending. Just take things day by day.

 

[sameyeyam]

I agree with the others about Dave Ramsey. Go to his website and learn the basics, you can listen to the last couple of weeks shows in the archive section. I've never taken his class or bought his books, but I listen to him every day at work and have gathered a wealth of knowledge absolutely FREE.

He has excellent advice about setting up your budget when you are in debt. You start with the necessities, food, utilities, rent, etc...then go from there as to what you can pay. As far as medical bills he also has advice to make an appointment in person (not on the phone) and see if you can negotiate directly with them for reduced prices.

Even if you never take his class or read his books, you can still learn a lot from just listening to how he advises others with the same sort of problems that you have.

 

[sk8jdgca]

First great that you have taken control of everything

Now call everyone and find out where you stand and let them know you want to work with them

I like the snowball debt elimination method- google it there are lots of free calculators that you can use!

I would recommend trying it this way first-heard lots of horro stories about credit services. Just cause they get your payment lower or some debt forgiven, it will still stay on your credit bureau for the next 7 years

 

[the Fidge]

Thanks for all the wonderful feedback I will look into the tips you gave. Here's hoping for positive results for this new year!

 

[Aliceacc]

I have absolutey nothing to offer except my sincere good wishes, both for your financial situation and your husband's health.

Don't beat yourself up over not knowing, or him over his mistakes. It's all water under the bridge.

But I agree that a professional credit counselor is probably the way to go.

Best wishes!

 

[luvthatdisney]

I agree with everyone that suggested Dave Ramsey. We fell off the wagon financially in the last 2 years and now have huge credit card debt along with a huge car loan. So we are turning over a new leaf and cutting way way back.

I found a site that follows Dave's principals, but it is free. Check out LLNOE dot com. You can post your budget there and there are many experienced people there that can help you get it on the right track.

Good luck to you!

 

[polineedyan]

People swear by Dave Ramsay and his financial advice....maybe look into whether there's one of his courses being held somewhere nearby? They're often held in churches, for the space...

I am by no means an uber conservative bible beater, and I found ramsays advice to be very helpful. Learn about the snowball method. Google "snowball method template" and you will find a template that you can download and create your own. Its quite easy, and it really does work. I paid off a LOT of debt in just a few months with it.

 

[princess isabella]

first

I have been there. My best advice is be careful of those credit agencies. i used one, made all my payments on time and found out that they weren't paying my credit cards. it was a big mess. i have since declared bancrupcy and am working towards making things better. One paycheck at a time.

I think Dave Ramsey's plan is a good one. Whatever you decide good luck!!

 

[snowywhite89]

Well regretfully after years of DH handling the finances we hit a huge mess. Sadly, I did not get involved and just went along with things. Well the end of that era came with a loss of DH job a repo, bankruptcy. Then new debt again and collection calls came.

Well the home we had been paying off from the owner (family member) passed away and the surviving spouse received the property and we have no paperwork about the agreement. Yes another mess I failed to prevent.

Ok so now this late in the game of life I am starting over. DH has turned over all paperwork as of last night and I am truly overwhelmed. Car payment I make is on time along with utilites bills, I handle. Medical bills have all but destroyed us do to DH medical issues.

Our credit score if possible has a negative sign next to it. I am hoping that I can address this all myself with tightening of belts that I have no problem doing.

However I am hoping to learn of some stories of hope I really need them. Dh and I are considering relocating out of the state as our emplyment situation for Dh is at a dead end in his industry here.

I want to be debt free and find a plan to own our own home. So if anyone has any feedback on plans or if they have ever overcame ruin I would appreciate it greatly.

Judgements not required I have beat myself up plenty to turning a blind eye to this whole matter so all I can do is look forward.

I would suggest watching "Til Debt Do Us Part". People are in worse shape then you are and they get out of it with Gail's plan. This will give you ideas on how to start. I would also suggest you find a person who will act as your Gail and take the credit and debit cards and oversee your plan.

 

[GoofyGolferGirl]

I don't have any additional advice, just wanted to say good luck and I hope 2011 is a great year for you!!