rambling on and on....

iVillage Member
Registered: 11-01-2004
rambling on and on....
8
Wed, 11-03-2004 - 6:45am
OK me again...I am staring at all my paperwork to try a dig my way out of this mess and i still do not know where to begin. I need guidelines. I did print out the info from Ramsey's web site but I guess I so in the hole that I am putting it off. And it is not just CC debt it is every day living debt. And if I was up to par with my bills we would not be in this mess...it is getting out of this mess that I am having trouble with. My days are sad and I have a water delivery today and i can't pay them so they will take our tanks away and we will have rusty egg smelling water that we can't cook with and barely bathe with. I guess I will start with clearing all the checks that are out there, spend no more money, and then making a list of all my debts. OK enough ranting but I enjoy this ring and look forward to all the insight! Thanks
Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Wed, 11-03-2004 - 7:14am

Hey there and thanks for posting!


The truth of the matter is that once you've got everything written down, you can then start to decide how you're going to proceed.

All my best,
Danni

iVillage Member
Registered: 02-19-2004
Wed, 11-03-2004 - 8:03am
>>>Dave Ramsey talks about "giving every dollar a name" - so each pay period, you decide how each and every dollar will be spent on which bill/living expense. This is an excellent way to maintain control over your monthly budget.<<<

This is what I do, although I do not know much about Dave Ramsey. I have my checkbook in excel and each payday I write in the bills that I pay, plus I have a line for the things I will need to buy in the next two weeks such as groceries, gas, entertainment, tolls, household items, dinner out, prescriptions/co-pays, etc. I have a budget amount for each of these items and I put the amount in my electronic checkbook when I get paid. I make sure my checkbook always has a zero balance, becuase money has gone to either pay bills, it's in savings or it's set aside for an expense I plan to have before the next payday. When I get gas I enter the debit and reduce the 'budget' line item, so my checkbook balance stays at zero. I also have a section for savings, which is for emergencies and works like my own personal overdraft protection.

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iVillage Member
Registered: 11-01-2004
Wed, 11-03-2004 - 8:09am
Thank you for your post...so do I do that with all my debt and not just my CC debt? I am more concerned about my/our day to day living. I do know that I am going into next pay period at least $514.00 in the red (basic expsenes). And all I can think about is how am I going to pay the house payment, car payment, insurance and food? Not to mention all the other extra's I gathered along the way. Mundis sya's not to borrow while trying to pay off but I had to or I would have been without electricity in Septemeber.....I am cryong for help here and I should not be in this mess. I just wnat out!!! And I am willing to do it I just need that push!
iVillage Member
Registered: 02-19-2004
Wed, 11-03-2004 - 8:20am
I think a good first step is to figure out how you can live within your means. If you can't do that, you are never going to make headway on the debt. Take your income and your basic living expenses pay period by pay period for the next six months. Figure out what bills (mortgage, utilities, car insurance, etc.) will be paid with what paycheck. Don't worry at first if you are negative in any pay period, just get it all on paper for 6 months. Then figure your average monthly grocery bill, gas costs, entertainment expenses, etc. Allocate 1/2 the monthly amount for each expense to each paycheck. This will tell you what you have to work with now and down the road. Income, bills, living expenses.

This will allow you to see if it's a short term problem or a long term problem. If you are negative for this pay period, is there something you can sell to get you through the next month? If you are negative every single pay period, how much are you negative by? Is it a small amount you could make up by cutting your grocery bill and living off cereal and toast? Is it a huge amount? If so, maybe you need to move to a smaller place you can afford better. Doing this will help you prioritize, obviously the mortage and food are the most important. But what are the penalites for missing payments on other bills? Will you incur fees on your credit card or hurt your credit? Maybe. But having a delinquency on your credit card is better than starving.

Once you have it worked out then see if you can cut a little more to apply toward your debts. But you can't focus on that if you are worried about having groceries.

Also, if you pay your credit card on time each month, call them and see if you can have a free month. I don't know if they still do this, but I know Chase used to let you skip one payment every 12 months if you had always paid on time. Doing this might get you through a short term money crisis.

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iVillage Member
Registered: 11-01-2004
Wed, 11-03-2004 - 8:36am
OK can you possibly send me a visual? I am such a visual person.

And as for not worrying for now if I am in the red ot not then how do I figure out to pay with what little I have? Am i a complete tart?
Avatar for cl_beckymk
iVillage Member
Registered: 03-19-2003
Wed, 11-03-2004 - 9:09am

Welcome!


You have gotten good advice so far, I'm wondering if you have ever tracked your spending, not just what you write checks for every month but *every penny* no matter where you spend it.


Pay a toll for .40 - write that down!

iVillage Member
Registered: 02-19-2004
Wed, 11-03-2004 - 9:25am
I was asked by a couple other board members to see my spreadsheet, so I made an example from it by taking out my personal information and adding in some explanations. If you email me at firstamendment@verizon.net I will send it to you (later tonight though, after I get home).

I didn't mean don't worry about being in the red. I meant don't think about it while you are compiling the information. Get it all down and first see if it's a long term or a short term problem. THEN figure out how to prioritize and fix the problem, based on how far reaching the problem is. Meaning, if you are only short for this month then you can breathe a sigh of relieve for the future and focus on how to get out of the red for the upcoming month, but if you are a few hundred short every month, then you've got a much bigger problem and you'll need a much bigger solution.

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Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Wed, 11-03-2004 - 11:12am

I'm sorry - I didn't understand that there were issues with monthly living expenses as well.

All my best,
Danni