New and want my debt down

iVillage Member
Registered: 09-22-2003
New and want my debt down
8
Tue, 10-05-2004 - 11:58am
Hi - my name is Rachel and I wanted to find a place to gain support while I try to pay down my debt and reach the financial goals that I have. This is long - so I understand if you don't read it all! I have always kept a good eye on my accounts, but since I bought a condo last year and live on my own, I have begun accruing debt. I had no debt 3 years ago and now I owe, not including mortage and condo fees, just over $10,000. Part of the debt was due to an emergency room visit back in July 04, two weeks before my health insurance kicked in for work. All of those different bills that came through with the visit have been put on a payment plan, and at the current rate I will have the last one paid off in just over 2 yrs. My medical bills total currently at $3,667.31, and I had 35% discounted off the largest of the bills! I have credit card debt from just general debt at $2,716.86 due to being between jobs for 2 1/2 months at the end of last year. I have $2,875.80 in share secured loans, for the construction work done to my condo(and badly done at that, in the process of trying to get them to improve the work!) and bills, ones that my exH used to pay till this July. I have of course car insurance, and all the bills for the other incidentals such as the different home insurances, food etc. I also owe a couple of family members money, and they're the first ones I would like to finish paying off. I have a clear idea of what my outgoings are monthly, and keep a spreadsheet for each month, showing debt paid down and when all bills are due. My outgoings (including all bill payments etc.) before I even eat food or put gas in the car are just under $1500 a month, and my base salary can cover this. I'm lucky I make commission on top, and have recently begun to make very good commission so far, but things can be just so expensive. I am able to pay these and other incidentals, but it's when those major things happen I start to realise it can just add to my already growing debt.

My credit is clean, and my FICA score isn't terrible but I would like it to be higher. My car has no payment, but not too sure how much life it has left in it. I would like a new to me car, but until I can get the FICA score higher I will have a high interest rate. I need to get my credit card balances down, as they are pretty much maxed at the moment. This is what is affecting my credit. I would love not to have the medical bills, which are equivalent to a car payment at the moment - how annoying!

I have quite a few goals, but something keeps coming up to prevent me from paying down the cards. For example, I now need work done to the common shed I share with my neighbours. They keep going on about it, so I have a business contact going out today to give an estimate for the work. The 1st estimate I got was $450! I just don't have that amount lying around, and hope my contact can give a better price. I found my kitchen sink leaking yesterday, and have called the home warranty company. Luckily it's just a flat $50 including parts thanks to this warranty, but I do have to pay for the policy each year. Last year, it put a new heat pump in my condo saving me a lot of $$$$$$$. Now it's time to get my dog his flea stuff and heartworm, and when the bill comes to nearly $80, it's not exactly cheap. My cat ruined a very good futon I bought new last year, he peed on it a number of times and I had to throw it out. I need furniture for my condo and to paint it. Paint isn't cheap, neither is furniture. I also have zero time to work in my condo, and for my sanity will probably need someone to come in and paint it. It was painted top to bottom in a horrible apricot colour, everything and I unfortunately don't have the time or expertise to paint it well. My home is kind of upside down at the moment, because I did start some of the painting, but I have started to work longer hours, especially with networking in order to make contacts to make more sales. More sales = more commission = debt paid down.

I'm glad I've invested in the condo, it's already gone up $25,000 from what I paid for it last year, and is less than a mile from the beach and boardwalk. I have started a savings account not linked to a loan for emergencies. I also have a LOC, to cover bills when I'm waiting for my commission. I do get my reimbursements back in a week, but I must have $$$ upfront for all the lunches and networking activities I take part in and only claim monthly.

I need to feel that I am making progress with this debt, and have money saved for emergencies or unexpected expenses like the shed and sink. Thanks for letting me share and for finding a place I can vent when I'm feeling overwhelmed with the cost of living a pretty regular life.


iVillage Member
Registered: 02-19-2004
Tue, 10-05-2004 - 12:21pm
Hi there. You might recognize my name from the other board, we had the big discussion about debt and credit and after that I found this board, so I'm new here too.

It is was amazing to me last year when my now ex and I sold our house and paid of all our credit cards - how much of a difference that made in my credit score. It went from low 600's to low 700's! And the only change was not having maxed out cards. Now if only I could have kept my credit cards paid off. It was a tough year being on my own for the first time in, well, forever. But having a good income is always a plus. It sounds like you and I are similar places.

Perhaps once you start making a dent in your credit cards and they aren't all maxed out, you can get a home equity loan and pay the rest off. That way the interest is tax deductible. I think it's hard to get when you are in dire financial need, but if you can get on top of things, your credit score will improve and you might be able to turn things around to your advantage.

My car just hit 100,000 miles on Friday. I am hoping I can make it last another 100,000 miles. I don't have much of a choice, I have no room in my budget for a car payment at all.

Not much advice, but wanted to say hi and I'm in the same boat.

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iVillage Member
Registered: 09-22-2003
Tue, 10-05-2004 - 12:39pm
Hi - of course I recognise the name, and I remember you joining into the thread on the 'Living' board. Decided this is the board I need to be on more, as my debt is my main focus. I have thought about the equity line, but once the credit cards are down it won't be necessary. The medical bills have 0% interest, and the loans are share secured, so the interest rate on those is as good if not better than a home equity. But hey I appreciate the suggestion. It does seem we're in a similar boat. I have around 150,000 miles on my car. That's why it needs oil every two weeks LOL! Hey I'm glad the thread inspired you to find this board. I look forward to the support.
Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Tue, 10-05-2004 - 12:49pm

Hello rwblair and welcome to the DSG!

All my best,
Danni

iVillage Member
Registered: 10-09-1999
Tue, 10-05-2004 - 1:41pm
Hi, and welcome to the group. Medical bills are no fun...they can really hurt a budget. It sounds like you have a good handle on your income and expenses and know where your $ is going. I am glad that your job is doing so well, I'll bet you'll knock this debt out in no time. I agree with Danni, car payments are a good way to keep us all broke. I no longer think that we'll always have a car payment either and taking care of the cars we have is the first step. Using the $ we put into car payments every month for investing is our future is a much better way to use that $. Good luck and I'm glad you joined us.

cindylee
iVillage Member
Registered: 09-22-2003
Tue, 10-05-2004 - 2:57pm
Thanks for the advice about the car. It probably is something that can wait a while to get, and I liked Danni's idea of saving to buy a car. I really don't have anything to put down on a car, and I do have one that runs and I try to maintain it as best I can. I have a great mechanic who doesn't charge me an arm and a leg for work, but there's nothing that can be done about it losing oil. Just keep a quart in the car! I try and budget my spending, but I do eat out too much and that's a lot to do with no time to cook. I do spend too much on going out, and I need to really priortise my spending. My famiy owed money and credit cards are my primary target.

Thanks for all the positive feedback too Danni on how I am managing my expenditure. I've always kept an eye on my finances, but no matter how careful I try to be I do need to reign in some of my spending. I will check out the snowflake board also, and will be posting my progress and offering advice whenever I can.

iVillage Member
Registered: 02-19-2004
Tue, 10-05-2004 - 3:05pm
I recently started bringing my lunch to work. The last two weeks I bought a loaf of bread, lunch meat, cheese and mayo, a bag of chips and some fruit, and just keep it in the fridge at work. I also bought a loaf of raisin bread and butter for breakfast when I don't have time to eat at home - and that is in the fridge at work too. Much cheaper than $1.50 for a bagel every morning. The whole loaf probably costs $2.00.

Before I was taking about $40 out in cash each week for lunches and stuff, and sometimes it wouldn't even last the whole week. Since I've been bringing my lunch I only take out $20 per week and I usually do not spend it all.

I went over what I spent on groceries and eating out the last 8 months (I keep my checkbook in excel so it was easy to make a copy, sort and analyze). I was shocked. I was spending $200 more than I budgeted each month at the grocery store. I think $100 of it is because my budget was unreasonable, but I'm trying to buy carefully and cut $100 out of that expense, which I can then use elsewhere.

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Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Wed, 10-06-2004 - 6:20pm

Hey - I used to eat out all the time too!

All my best,
Danni

iVillage Member
Registered: 09-22-2003
Fri, 10-08-2004 - 9:06am
Hey Danni -

Thanks for the crockpot suggestion. I should look into something like that and make my own veggie chilli instead of spending $4 a tub for it at the health food store. I really need to start making more food at home, I used to be good about it then I got lazy. I just love eating well even as a veggie! Will check that site out. Thanks again.