What can I do different?

iVillage Member
Registered: 04-15-2003
What can I do different?
9
Wed, 10-13-2004 - 11:43am
I guess our situation isn't as bad as it could be, but I still feel frustrated about it. I am 22, and my husband is 21. We are just celeberating our 1 year anniversay. We've accomplished a lot; we paid of $5,000 k in debt, paid for our wedding, and honeymoon, and have bought a home and paid for the repairs we needed. I work FT in an 8-5 job that is grating on my nerves. My husband is self employed in construction.

I take home $1,020 net, per month. Our car payment, my health insurance, and my computer payment are all taken out of that already.

My husband makes about 1,200.

Our expenses are:

mortgage: $520

utilities: $128

car insurance: $92

Telephone: $50

Cell phone (for business): $120

Food (groceries/eating out): $200

Credit Cards: $200

Gasoline: $160

Husband's Health Ins: $100.00

Total Expenses: $1,570.00

We have about $650 left over each month, that manages to get eaten up by different things. Car repairs, house repairs, an unexpected bill, etc. We manage to make a few extra payments to the CC each month, but currently,

Our debt is:

Capital One: $250

VISA: $1,445

Credit Union: $720

Lowe's washer & dryer (no payments/int until Oct 2005) $500

I just started my own translation business this month, and have a few leads but so far no work lined up. My ad will come out in the yellowpages in November, so hopefully I'll get some business. I would like to use that money to pay off some debt. But it's hard to get work if you're working full time.

I have asked my husband if he would consider getting a FT job as an employee instead as a contractor. Right now, after paying all his expenses he is only netting about $7.00/hr. So I am basically paying all the bills.

I feel so stressed out because of my health I really shouldn't be working FT. I can't take it, but feel like I'm trapped. I can't quit until we pay off this debt.

Hopefully my husband will take another job! Then I would feel more comfortable that our needs will be taken care of.

I guess i just need some suggestions.


iVillage Member
Registered: 03-30-2003
Wed, 10-13-2004 - 12:08pm
I am somewhat relate to your situation. I'm stuck at my job (which I really, really hate) becuase we need the health insurance. My husband recently quit his job because of brain cancer (and we don't know what the future holds). We used to have 110K income and now down to about 1/3 of that. Its hard. But we have to adjust. What helped for me was a budget that I firmly stick to. Actually, its a cash flow sheet. Make sure all the money going out is for needed basis only and not wants.

I want to get a second job but that means I would spend less time with hubby. We are lucky that we're getting help from family.

Sorry if I wasn't much help. Keep positive. Talk to your hubby and attack your financial problem as a team. Be patient. And good luck.

iVillage Member
Registered: 02-19-2004
Wed, 10-13-2004 - 12:23pm
I think you're doing what you need to be doing. Keep in mind, if you get out of debt that $200 line item in your budget for credit cards can go to savings.

Here are your debts:

Capital One: $250

VISA: $1,445

Credit Union: $720

Lowe's washer & dryer (no payments/int until Oct 2005) $500

It looks like the capital one could be paid off in a two months. If you do that, it's one less credit card in the way. I am not sure what your minimums on the visa and credit union are, but anything over the minimum's should be paid toward the credit card with the highest interest rate. That will make your debt decrease faster.

I have two loans (one for a mattress and one for a fridge) that have no interest for a period of time. I took the balance divided by the number of months I have to pay, and I pay that amount each month. If you do this, figuring you have 11 months to get the $500 paid, you should be paying $45.45 per month toward the Lowe's card starting this month. Or, you could allocate $100 of your budget (paying less on other credit cards) from May 2005 until September 2005. If you do the second option, you can pay more on your Visa and Credit Union from now until next May, which will make a difference since I'm assuming those two have interest accumulating.

If you go to the online debt calculator thread (I think it was from last week or the week before), I have a post at the end that tells you how to make debt amortization schedules in Excel. I ran one for you, and it looks to me like you could be out of debt by February 2006. I made some assumptions, saying interest on the Capital One and Visa were 14% and the Credit Union was 12%, and minimums on the Visa and Credit Union were each $40 per month. If you pay the minimums on those two, and put everything extra of your $200's to the capital one, that will be paid off in January. Then start putting everything extra to the Visa, that one will be paid off in January 2006 (assuming that May 2005-Sept 2005 you pay $100 per month to Lowe's) and then you will only have a tiny balance on the Credit Union card by that time, and can pay it off in February 2006.

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iVillage Member
Registered: 04-15-2003
Wed, 10-13-2004 - 12:28pm
Do you mean February 2005? I think I could pay off all those debts in 5 months.
iVillage Member
Registered: 02-19-2004
Wed, 10-13-2004 - 12:50pm
>>>Do you mean February 2005? I think I could pay off all those debts in 5 months.<<<

How? I calculated your debt as $2,915 ($250 capital one + $1,445 visa + 720 credit union + $500 Lowe's). You said you have $200 per month to pay these four debts, unless I misunderstood your post. So even just simplifying it and taking $2,915 divided by $200, it would take you 14.6 months to pay that off, and that is not counting interest that will accumulate while you are paying them off.

I think you'd need to put around $600 per month toward your credit cards to pay them off in 5 months. Of course, I did mention I made some assumptions of the interest rate and minimum payments due. But I don't think it would make a difference of 12 months (I did intend to state February 2006 in my post).

If you paid $600 per month for 5 months, that would be $3,000. That would pay the $2,915 you currently owe plus my interest rate assumption assumes you'll be charged about $68 in interest over the next 5 months.

But maybe I have the facts wrong. Let me know if I do.

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iVillage Member
Registered: 09-22-2003
Wed, 10-13-2004 - 1:09pm
Congrats for knowing so well what your outgoings are monthly, that's a big step in seeing how you can pay your debt down, and give yourself a huge pat on the back for accomplishing so much with your DH at such a young age. I'm guessing you're looking for suggestions on how to lower your outgoing expenses, so you have more disposable income for now. I saw that the business cell phone is $120 a month, is there anyway to get a cheaper plan. Some now offer unlimited minutes at a much lower cost. I would look to see how to cut that expense as it seems awfully high, at least for my area. That could free up some disposable income. What people suggest here often with CCs is see which has the highest interest rate, pay only the minimum on the lower interest card, and pay more than the minimum on the higher interest to pay it off faster. Then once that's paid off, add the amount you've been paying on the higher interest card to the minumum payment of the lower interest. They also suggest the one with the higher balance and doing that. You seem to have an aggressive plan to pay them off, I'm guessing you're paying more than the minumums to the cards, and not far left to pay off your Capital One card. Be careful though if you pay them off, and leave it unused - it can affect your credit.

With marriage, you have a shared responsibility so unfortunately you have to do things you don't love to do - like work a 8-5 job. I do transcription work at night on top of my FT job (8-5). I feel like I don't get much of a life at the moment, but hopefully I can pay some debt down. I'm sorry to hear you are having problems with your health. My mother had to leave FT work because of health related issues, so I know how devastating they can be to an individual. I'm also guessing your DH wants his own business, as do you, and unfortunately it can be a struggle, especially for a recently married couple. I would talk to your DH about how much time do you think he can dedicate to starting this business before it's decided that he may need to work for someone else and not pursue it. Set the business to be grown by time limit, if he's willing. My exH also started a business when we were flat broke, it was a strain.

Best of luck.

iVillage Member
Registered: 04-15-2003
Wed, 10-13-2004 - 2:56pm
I'm sorry I didn't make myself clear. We have about $650 per month to go toward our debt each month, on top of the $200 payments we already make to the CC companies. I know I have so little time left to go until we pay all of this off but I am feeling so frustrated. It's proably just my health that makes me feel that way. I barely make it through work each day because I feel so sick. My husband has had his own business for about 5 years but he could be making more money as a contruction foreman as an employee rather than the owner of a business. I guess what he really likes is the freedom that comes with being self employed.

My husband agreed to work out until the end of this contract and then look for job as an employee doing the exact same thing he's doing now. My DH is lucky in that he works in what he loves doing. He also has a flexible schedule. I, on the other hand, have a rigid schedule, hate what I'm doing, and don;'t have the health to work this way. That is why I am starting a business on the side. Once he gets a job with a steady income, then I will quit my job and maybe take a part time until my translating business gets off the ground.


Anyway thanks for the moral support; and you're right, we need to work as a team. On the bright side, my DH came today to my work and wisked me off for lunch! He told me, I know how hard this is for you, and all I want you to do is hang on one more month!

I can't wait!

iVillage Member
Registered: 05-06-2004
Wed, 10-13-2004 - 5:23pm
I'm tempted to send you all my info. But then you'd probally need oxygen or have a stress induced heart attack! What kind of job do you have? You seem really smart about the payment plans needed for individuals. donna
iVillage Member
Registered: 02-19-2004
Wed, 10-13-2004 - 6:18pm
I have a very detailed Excel workbook I use for my budget, checkbook, and debt repayment plan. I set it up as a template (taking out personal information) and have sent it to two other members of this board. If you want it, you can email me at firstamendment@verizon.net and I will reply with it attached. My system was created out of frustration when my now-ex-husband used to get the mail and never give the bills to me. I had to develop some way to know who I had to pay, how much and when without relying on getting the bills in the mail. As it turns out he was religious about getting the mail because he was hiding the fact he was not paying the two bills he was responsible for. Now we are divorced and I get my own mail, but I still like my system.

And it is probably not surprising that I'm an accountant :)

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iVillage Member
Registered: 03-27-2003
Wed, 10-13-2004 - 9:23pm
Hi ariana! I know you from the MSN boards


Don't worry it's not UNDOUBTEDLY SHOTCALLER!