PeaceGirl,
First of all, good for you to have never missed a payment or to even have made a late payment! That told me a lot about how bad (or not) your situation is and more importantly that you are responsible in making your monthly payments.
I just read this thread from the beginning and remember you saying earlier how you never missed or paid late and figured out (assumed) that even through you posted about being $400 short per month not accounting for food and gas, you were still coming up with the funds somehow (at least in the past) to pay the monthly bills that come up. It probably is an internal ponzi (sp?) thing, as someone suggested and you agreed with.
Based on my assumptions, I doubt you are in imminent danger of bankruptcy. Others based this on their assumption that you truly were short $400 each and every month and couldn't put food on the table because the shortage didn't cover food.
Now you may correct me if I'm wrong but reading between the lines, you did live beyond your means up to and including your 2 trips to WDW last year but managed to just barely keep your financial head above water by juggling around money, bills, and maybe some sort of unsecure loans/advances and also maybe using some previous money savings ideas from the disboards.
In a sense the previous budget savings tips helped you "afford" to make those WDW trips but NOT to cut your debt situation. So, while you certainly saved some money, it didn't help your bottom line much.
Your strategy worked so far even this past year and even with the 2 trips, but somehow it's been getting harder to do the "juggle" maybe because a loan source has dried up.
Now you are posting for additional help because you DON'T want to be late or miss any payments which you may be in danger of.
Hopefully you really want to get out of debt this time versus getting enough financial breathing room to justify another future trip.
Please don't feel defensive with posters getting frustrated. Maybe they made assumptions based on your posts that may not be 100% correct.
In response to their numerous references to your 2 WDW trips last year, you had hoped to put it behind you and start from scratch. It's done, money spent, nik-picking about it will not help your current situation.
True but many (including me) had maybe secretly wanted to hear from you that yes you had a great time and will always treasure the memories but in hindsight maybe it wasn't the smartest thing to do, maybe I should have put the money towards paying down debt instead and then things wouldn't look so bad now.
Since it seems you haven't expressed any regret for those past trip, some may fear that even if you do get any advice that can help you, that you will again "use up the advantage" by taking another WDW trip and you will be back to square one with even less options on how to get out of the hole.
I posted this on another thread. Thought is might apply here too:
SleepyatDVC said:
Many people don't understand why some people feel so strong about being able to afford paying for a Disney vacation. Many people do it on credit and have no problems with it - I guess that works for them. But if someone is "worried" about money already and is worried about affording a trip to Disney, then it's hard for me to imagine how the additional expense and the weeks, months, and maybe even years of worry over the added financial burden won't overshadow a week's worth of memories and fun.
Yes, I agree that memories for the kids are priceless, but I also know that tensions and worries at home over money and finances can affect the kids without you realizing it and can last a lifetime.
I really wish you the best of luck. I don't think it's impossible. I think you can do it.
I understand that there are things that you are not ready to cut and you may not need to YET, like your child's private school. I understand that your job situation is actually good and it would be hard to top it which makes it necessary to have 2 cars. Selling the house and downsizing or rent, sounds a lot easier than it is. These are all LAST resorts which many assumed you were down to. I suspect that it is not.
At least you know that you can always cut these major expenses as a last resort if you are ever in danger of bankruptcy. As someone who never misses a payment, I doubt that you will declare bankruptcy unless something major happens like job loss or illness.
Other then these major changes, what can you change? You kind of left us with only those things unless you can think of things you left out.
Do either of you have life insurance? My parents had cash value in theirs which they borrowed from at one point - it's all paid back now. But be careful if you do because when the market is low, your policy may be in dangering of lapsing if you don't pay the loan off.
DH has term life (very cheap now). I have a large UL policy that my parents bought me when I was a lot younger. We took over the payments when we got married but the premiums are really high. I was thinking of applying for a term life policy for the same amount or double of my existing policy. Once I get approved I would cancel my existing UL and keep the cash value (in the high 5 digits) in a separate account (maybe laddered CD's) just to pay for the new premiums.
Then I wouldn't have to pay any new money in but still have basically the same (or more) coverage. This will save me over $5k a year which is one of our largest expenses. I will try to get the 30 year term which will end when I am 66.
Hard decision but those premiums are killers and I assume the UL will run out if the insurance costs use up all the investment cash value? Maybe I show add $$ to the separate insurance account annually so that when the 30 year term expires and I'm still kicking, there are still $$ in the bank.
Something for me to think about.
PG, while we are trying to save you money, if you don't have life insurance, maybe you should think about some term insurance. You certainly don't want your kids to inherit and have to deal with your debts.
Anyway, more for you to think about too. Good luck again and please post when you have had time to think about everything.
HUH ??? See, you don't know what you are talking about!!!! THAT IS NOT TRUE !
How different we all are....
