Anyone else having MAJOR financial problems?

[Dace]

Hey Angie....you mention debt but not what type so I assume it is consumer debt? You can keep your home and file BK, look into re-organization (not sure what that type of BK is called).

Also call all of the creditors and see if you can strike a deal. Stop using the cards (if that is the issue). It is a really hard cycle to break but you can do it.

We live pretty lean, I have no cell (dh does for work and my teenage girls do but they pay their own bill) no car payments, no CC payments, no on going expenses other than mortgage, utilities, groceries & gas. The only extracurricular that we pay for is my older two are in competitive cheer. So really, I understand when you say there is no where to cut back from!

 

[enjoy the ride]

I agree with you that some of the expenses can go- cable for one, I agree with you about the cell. I would try my best to keep health insurance as that will help to prevent a serious expense.
I hate to think of losing intenet but can (or do you have) a cheap, slow internet service? What about super basic phone service- you don't have to eliminate it but get the cheapest you can?
Do you know some one who can give you advice on your tax returns? Things like earned income credit and sutff to make sure you are paying on the minimum that is really due?

You are outstanding on your food budget. Can't see any slack in that.
I saw a show about getting rid of consumer debt and it said the first thing to do is list all the debit according to interest rate paid, then pay the ones off first that have the highest interest then go on to the next highest. They made a family game of it by keeping track of it in family meetings and the kids could see why things were tight. The kids even participated in paying some off.

Christmas is close- do you have evergreens at your place to make Christmas wreaths and decorations- I did that one year and it was a big money maker as I used wire hangers and fishing monofilament to put the evergreens branches from my own plants. ANd then did things like spray paint pine cones and get overwinting berries, etc- little expense and lots of profit even if only short term.
My hands were sticky for month afterwards. I used anything from Rhodie leaves to pine.
Do you have things that are saleable- like taking old kids clothes to a consignment place?

 

[Homesteadmom]

Seems the experts conflict on what to pay off first. I have heard you start with the smallest bill & get it paid off & then take that money & roll it into the payment of the next smallest & keep going that way until you can relax a little in your budget by not taking all the money & applying it to the last couple or 1 bill as you have increased the payment you are making tremendously already. Then you have more to spend on groceries or entertainment whichever you choose. But I have used the pyramid method to pay off debt before & it works, starting with the lowest balance. As each bill was paid off or caught up I really felt like I had accomplished something. I made minimum payments on everything except the one I wanted to pay off first, I added $5 to the minimum & when that bill was paid off I added the minimum payment from the previous to the payment of the next bill. That way I was still paying more on the bill each month but my budget was loosening up with each bill getting cleared up. Oh yeah I did add an extra $5 to each bill after I paid off the first 2 that way I was making more than the minimum on them all then & it helped to lower the amt of int on each bill a lot.

 

[FarmerChick]

HM
that was me
I researched how to pay off debt.
it said forget interest rates. pay off the lowest first. Mins. on all, put everything on the lowest and pay off...when done, tackle the second lowest, etc. etc. before you know it when you see that $0 balance on a debt..wow..the relief. It hurts, we all know that, but it can be done.

good post!

 

[Homesteadmom]

Thanks

 

[Sebrightmom]

I understand where you all are coming from. My husband and I are having problems paying the bills. I am a saver, well he isn't. That is some of the problem. I am wanting to cut the dish bill or do away with it. He doesn't want too. I am also trying to think of other ways to save money. Right now, I am working at my part-time job, but this might be my last week. He works outside, since it is winter he doesn't have as much as work. So, his pay check has been cut. We have two mortgages. Luckily, we usually have money left at the end of the month but not much. My goal is to pay all of the credit cards off. I don't even own one. I hate the things, but my dh had several before we got married. I should have one or two paid off this month. That will help, because I can start putting more money of the other two. I am just thankful for what we do have. I try to think positive about everything. It seems to help me handle things better.

 

[angie68]

I hear ya Angie

you seem like a true pincher when needed...LOL...I am too. you definitely have a handle on the problem, now just to find the right fixes to keep it on the upswing!

one thing I know from having big debt starting the farm, it doesn't just disappear overnight, (big sigh) even though I sure wish it did. It took me about 6 years to pay off over $30K to start this farm to the level we are at...and heck, we had alot of barns and equipment before we started.

just make a list. sit down and truly see what you can cancel and what the biggest savers are. cancer insurance I would cancel. life is a crapshoot anyway..lol...but I wouldn't drop life insurance. that is a real necessity if anything happens. cable, yea, I would do something about that definitely.

the only reason I say DO NOT stay in the red is this.....I was there. Yup, my payments on everything in this household exceeded my income (tony's work and farm) and I was putting groceries on credit card, etc.....well real fast I noticed, duh, that the debt was increasing as I paid off the other debt cards etc...LOL---I was in denial literally. pinching pennies here and there and still racking upn debt. then it hit me....do whatever I had to to stop this cycle. and wow, yes, it can be hard. I went on such tight budgets I drove Tony insane....but after alot of hard years I am in the good now.

just have that long hard chat with yourself. I did. And it stinks definitely, but it has to be done. Only we can save ourselves when it comes to our money! I realized that and put plans into action. UGH--ARGH! hard times happen but they can also be some of the most fun. I looked everywhere to have fun at no charge! I discovered places and events etc. that I didn't even know my county had! Free days for kids and such.....

I made a game out of it...how to still enjoy life at no cost and smile. I didn't realize how dependent on paying I had become. Free things to do, wow, what is that..HA HA, like everyone I got into traps. So now I live my life for my finances, fine free fun things to do, etc......it woke me up.

Sorry for the long post, it is just that it was soooo hard when you are there! But once you dig out, and you will get things in order, like me, then it can be so enlightening to re-evaluate everything like I did. I don't know.....hmm...I guess I learned a big lesson from this. the debt was horrible, but the life lesson was good and now was only a positive influence.

hang in there angie....you obviously are a smart gal and will do what is necessary to get all the ducks in a row!

Thanks so much, just talking about it really helps. I did have some luck today. I called and tried to turn my house phone off and they gave me 3 free months! I did get out of my cell phone contract, and also cancelled my cancer ins. As for the life ins. it's an additional policy that we picked up when hubby went to Iraq, he still has 400 thousand, and I have 150 thousand....so it's not like letting go of that one policy is putting us without life ins.

With all i let go of today, it brought me back into the green, I still have to get about another 100.00 bucks off of us to have a small cushion. I do feel much better today.

At the end of the day, it's not what you have that matters, it's what you know your going to have in the morning! I'd rather go without than to worry at night about losing my home!

 

[angie68]

I didn't really say what bills I have but I have no credit cards, mine is house, car, utilities, college tuition for my son, and ins(house, car, life, health)

We don't really have any bills that are what I call silly bills, this is why it's hard to get on my feet, there's very little i can just drop.

Over the last 6 months, i did call my CC companies and stike a pay off deal with them. I ended up getting all my cards paid off for about 25% of what I owed, therefore I have no CC debt now.

I tried to do a Loan modification with my mortgage but was denied because I wasn't home to answer the phone the day they called to speak with me. Yes!!! you heard me right.......one call....one day....and that's all it took for them to deny it. That tells you all you need to know about how helpful the mortgage companies are.

It happened to others too....do a search for Wells Fargo Loan modification scam and you'll see several! It's sad!

I thank all of you for sharing, it truly helps me feel like I'm not the only one in this condition, and if I had it, I'd give to all of you to help you out!

 

[FarmerChick]

WOW WOW WOW WOW
Great job! So fast you brought yourself out from under those payments. Great going Angie.

AND now you want a little more off ya so you can have a cushion!!!!! COOL that you got to that so fast!

FREE 3 months! You rock! can't ask for better than that.

True survivor. You see the fat, cut it and feel the relief and move forward! Good deal!

 

[DrakeMaiden]

Did somebody say "ducks in a row"????

I have found my discretionary income disappear over the last year. Now the outflow on necessities is about equal to the inflow of cash, and I'm not sure how much longer that inflow is going to last. This is troubling to me, because my husband and I have always tried to live below our means, but we are finding it hard to cut much else out.

Christmas, in our family, this year is going to be a small affair. It has been arranged that we each draw one name and only buy one gift. I'm really glad about this, because it means it won't set me back too much financially, but also because it means less stress and less shopping.