rambling on and on....
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rambling on and on....
| 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

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
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.
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.
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?
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!
Becky
CL of 4th, 5th & 6th grade Scoliosis
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.
I'm sorry - I didn't understand that there were issues with monthly living expenses as well.
All my best,
Danni