please ignore

[CarolA]

minnie1928 and justcruisin,

I have my mortgage taken out weekly by a equity company, this allows for an extra payment a couple times a year on principal. I do this for my car and the mortgage. Every Monday they automatically withdraw X amount and send those payments in for me. This works well for me, except when DH goes to the atm (gas or food shopping) and makes that account low.

1I

THANKS pals!!!!!!

Look into this. Generally this means you are paying more per month then if you just made the payment. While the extra payment a year is nice, you need to put FOOD on the table.
While the suggestion to sell and downsize might be good, I would not recommend this. IF your situation is as bad as it sounds you probably won't get a good rate on the new mortgage.

Personally, I think you probably need to find a credit counseling service and get some real help. As I recall this started about a year ago and if anything your situation sounds like it has gotten worse not better. Something is not happening here.

(It does look like all the Disney vacations were last year, but you had to know you were in trouble then based on past posts... Step back again and look, what "luxuries" are you considering "neccessities" Disney is a luxury!)

 

[tbelfonti]

Ditto to the PP who said to pay medical bills over time.

We were hit with an unexpected $500 bill from my delivery - the hospital never called to pre register me and in all the chaos I forgot (had a baby with heart defects and needed surgery, etc, but enough about that). Anyway, they JUST sent us the bill 4 months ago (many months after the fact).

I called them and said "I don't have an additional $500 laying around to pay you in a lump sum but I can pay you $100 / month". They were completely ok with that. If I had said "I can pay you $25 / month" they would have been fine with that as well - they just want to be paid and if you give them a schedule, they're happy.

 

[ducklite]

You say that your DH has irregular hours, I can understand the daycare thing becoming and issue. But what about weekends? There's no reason that you can't work an 8 hour shift at a store or hospital or whereever on Saturday, and have your husband do the same thing on Sunday. That should cover a good part if not all of your needed income.

That way there is no additional childcare costs, and if you find somehting close to home there should be minimal transportation costs.

As you pay off debt you'll find your cashflow increasing. The worst thing you can do is to keep taking on debts to pay off other debts.

If you have a lot of loans, you might look into consolidating them into one loan with a longer term to bring down your monthly nut.

Anne

 

[EthansMom]

I have my mortgage taken out weekly by a equity company, this allows for an extra payment a couple times a year on principal. I do this for my car and the mortgage. Every Monday they automatically withdraw X amount and send those payments in for me. This works well for me, except when DH goes to the atm (gas or food shopping) and makes that account low.

It's great to make extra payments, but you are putting so much money towards extra payments on your loans that you don't have enough money to eat! I agree with other posters that you need to cancel the relationship with the equity company and get back to paying the regular payments on your loans for now. You are likely paying this equity company an unnecessary fee each year to handle your payments also, so just go back to making your own payments each month. (You can always send extra money towards a loan on your own down the road when you feel you've got things under control.)

I stopped my 401K for now, but we haven't stopped his. We work at the same company and both have great benefits and 401K. I don't know what to do here. How do I get out of debt when I have no extra????.

I agree with the other posters, make sure that your DH is contributing the amount required to get any company match. If he is contributing more, then he needs to drop down his contribution to just get the match -- you need the money right now to live off of. You should also consider contributing in your account to get any company match. You may find that with both of you just contributing enough to get the match, you'll get more money in the 401ks and have more money in your checks. If your company does not offer any match, consider taking a year or two off from 401k contributions while you get things figured out with the finances.

There are sure to be some other places you could cut your expenses. You could always post your budget here. I, for one, would be happy to take a look at it and recommend more ideas.

Best of Luck!

 

[peacefulgirl]

please ignore

 

[peacefulgirl]

please ignore

 

[etwinchester]

For extra money, I started selling Mary Kay. I only host about 1 class a month, if that. You still find people who ask for catalogs, place orders on your online website or call to place orders. Not bad for some extra money. I'd like to host more classes just to get out of the house and have some fun (while making money) so I'm getting things in gear and contacting some new and older customers.

If you'd like any additional information, just PM me and I'd be glad to help and answer any questions you may have...

 

[peacefulgirl]

please ignore

 

[peacefulgirl]

please ignore

 

[peacefulgirl]

please ignore

 

[etwinchester]

I just purchased Quicken which helps keep track of where you are spending money. It also helps you make a budget & debt-free plan. This is an excellent program and I highly recommend it. I purchased it for these reasons alone.

I too have made a plan to become debt-free and quicken will help me stay on track.

I AM A WOMAN ON A MISSION !!! (my new slogan)

 

[pjlla]

May I recommend that you get the "Tightwad Gazette" books (by Amy Dacyczyn) from your local library?? They may help you get your household budget (clothes, food, etc) in line. Read all three thoroughly.... they are full of helpful information. But you have to have a mind that is open and ready for these ideas, suggestions, and recommendations... I think you do.................P

 

[lovemygoofy]

Look at every cent you spend and I mean every penny.

Don't pay extra on your mortgage until you have the other bad debt paid off.

Do you have credit cards of any kind including gas or store charge card? Cut them up or put them away in the freezer.

Either you or your spouse, I would say both to keep it fair, need to have an allowance that is CASH. This cash for the week would include anything extra like lunches, snacks or coffee, whatever, and also include gas for your car. If you use the ATM in that time period charge yourselves a dollar and put in a tin at home.

How bad is the interest on your loans? Are we talking home equity loans or students loans or cc cash "loans?" Look into consildating them into one bill. I would say that even if the interest is 20% ultimately you would be better paying one bill a month longer than 5 or 6 bills and just paying the minimum.

Look into your utility bills. Some companies wil let you average out your bill and then you have a set amount that you pay for the month no matter how much the meter reads. Sometimes you may use more and sometimes you may use less but the bill stays the same.

How do you grocery shop and where do you grocery shop? Do you use coupons and buy generic? If you have picky eaters, that would have to stop. Eat less meat meals or make that the small portion on the plate. Make a chart for your meals so you stay on track and can keep a good grocery list. Don't go to a grocery store that is the next block over if it isn't the cheapest. Make your meals around what is on sale.

You mentioned that you can't use the cell phone from your house. Get rid of it. I promise that before the invention of the cell phone people still traveled and managed okay. If you and your dh have to have a phone get a prepaid one and use it just for emergency use. Put it in the glove compartment and don't chat on it just to be using it.

Do you drive alot? Are you just stopping anywhere for gas? Right now with gas the price it is I would start to look for the best price and just plain unleaded not the high end stuff.

I would go back to putting money in your 401k because you need that money for retirement. Are you putting money into a savings acct for your daughter or doing anything for her future? If so, stop it and use that money elsewhere towards your bills. This may sound heartless but you can put money back in those accts when you have that money extra and if you can't your daughter can still find a way to college or whatever.

Anytime you or your dh earn extra money like in O/T put it all towards ONE loan. I don't care if you chose the highest interest loan or the smallest amount owed loan but put it all towards one loan so you can see a difference.

Create a spreadsheet so you can see where all the money is going. You and your family are going to have to make saving money a family goal. I'm sorry but if your dh isn't on this bandwagon to help your household then I don't see how it can be done. It's a family effort to save money.

I know that some of what I have mentioned is little piddly stuff but over time it can really add up especially between two adults, if done on a regular basis.

I hope it works out for you and that you and your dh do seek financial counseling. Good luck and fee free to PM me anytime with other suggestions or just a need to vent.

 

[ducklite]

As far as which loan to put anything extra towrds, my vote is the one with the highest monthly payment. Get that gone, and that frees up that much more cash to work with.

Anne

 

[MyGoofy26]

How attached to your dentist are you? You could most likely save a LOT of money if you have a university close by with a good dental program and have basic work (such as cleanings) done by students. I know a lot of people find that to be a scary thought, but these are the same people who will be charging significantly more in a year when they have that piece of paper.

Same with haircuts - any good local cosmetology/beauty schools? Call up a well established salon in your area and ask to speak to the owner. Just ask which school(s) they recruit new employees from.

And as for work on your car, I know that my old high school people would bring their cars in for work by the shop dept. Are there any trade schools in the area? I'm sure they'd charge significantly less, probably not much more than the cost of materials, since their students need the experience.

 

[ducklite]

I'm still not understanding why they can't get weekend jobs? One work Saturday and the other Sunday, or one work days while the other works evenings. That way no daycare issues.

Anne

 

[minnie1928]

are you paying PMI insurance? If you are and you have atleast 20% equity in your home (using market value, NOT original purchase value), you may be able to get the PMI dropped. PMI benefits your lender, not you so it's in your best interest to get this dropped as soon as you are eligible to, if you have it.

Someone mentioned CCCS. If you are good on your payment history, and are able to keep it up, then don't go to CCCS. I've heard things on creditboards.com that lead me to believe that it could negatively affect your credit score unnecessarily. With that said, my mom was in near bankruptcy and I took her to the local CCCS office. Those people are fantastic. They are so nice and completely understanding of the situation their clients are in. They charged a $50 setup fee. They then calculate a payment plan for your debts. Any other money you pay to them is up to you in the form of a donation. They were able to negotiate some of mom's accounts to 0% and no late fees.

Please keep posting, you have many here that are concerned and would love to see you pull through this.

 

[crisi]

I thought this seemed familiar. We've all been here before.

http://www.disboards.com/showthread.php?t=644815

 

[Lisa loves Pooh]

I thought this seemed familiar. We've all been here before.

http://www.disboards.com/showthread.php?t=644815

I thought I heard an echo. I actually checked post dates to see if this was just an update.

PG: You need serious help and you need to get yourself to a credit counselor PRONTO!

You shouldn't be planning any more Disney trips EVER until your situation has been fixed. I saw someone mention that and you didn't do a rebuttal--so I'm wondering if one is on the table.

You situation hasn't really changed in 10 months. And it isn't likely to change.

You should not be paying extra on your mortgage--and dare I say it--you shouldn't be paying into a retirement account if you cannot put food on the table. If you must put away--put the minimum you are allowed and not one penny more--even if a company match is on the line.

I am having a hard time fathoming how extensive your bills are in relation to the income of 2 FT working individuals.

And if you really think that God will help you through with it--God also wants you to tithe and I hear no mention of any donations that you make to your church or charities. Not that one should look for a reward or blessing as a result of a tithe, but we have been blessed when we give--and noticed blessings take a break or disappear when we don't.

I am not clear on what loans you have..but if you have anything beyond home and car---For some people--bankruptcy is the only way.

I suggest--that if you are a faithful person--check out www.crown.org . and see how their tips might help you.

If your situaton is indeed this bad--you might check into social service programs--at least in the short term so that you guys can eat.

10 months on the budget boards--you need to see how desparate your situation is. It seems to me that it is beyond what help we can offer you.

 

[Lisa loves Pooh]

- - dropped both our 401K's (temporarily) to the 6% that is matched from 10%. Take that 100.00 a week and earmarked it to paying of interest debt)


PG--My math may be a little off---but you seem to have a very large income. I don't recall where you lived---but by trimming 4% off the contribution you got an extra $400 per month.....trim hubby to 2%--you'll get $200 a month..

I don't know what you are doing on your budget and I don't mean to flame you--but I'm highly suspcious especially since last Sept you said:

We have a house (got good price), 1 CC, I have 2 personal loans and 1 car payment.

We have GREAT credit and great jobs. We both do 401K's at work. He just opened a roth. We have small IRA's.

But we have no CASH! Not a penny ! No emergency fund! Yikes !

Sounds like you are set up way beyond your means. And if you have indeed hit rock bottom--time pony up, cash everything out and pay off the debts.