Feels like I'm spiriling downwards

iVillage Member
Registered: 03-14-2004
Feels like I'm spiriling downwards
4
Mon, 04-18-2005 - 4:05am

Well, it's 3 am and I can't sleep because I'm in a panic attack over debt (and life).

It just 'hit me' that I've been working almost a year and I only have about $1,400 saved. I've been trying to put away $300-$375 a paycheck (not bad :) ) but every time my savings starts to get ahead, crap comes up and it goes right back down to about $800.

I just paid some of my major bills and taxes and out of a $1,500 check, within 1 day I'm down to $240 and I see I have $228 in holding ready to be cashed.

I don't know what I'm going to do.

I have 3 credit cards:

$5,780 with a 0% apr until June (minimum is about $115)
$1,000 with a 17% apr (minimum is about $30)
$200 with a 9% apr (minimum is about $20)

I'm trying to tackle the 17% one asap so I can cut that one up. I am also trying to go beyond the minimum as much as $50-100 over.

But it seems that these utilities are killing me too. On average:

electric $100
gas $50-90 (it was 90 this month)
phone $45
cable $64
ISP $40 (I'm paying for 1/2 my husband's too)
water (it will come once a month now that summer's here) $50
garbage (I don't even remember when that comes) $50

Plus my car--$323
Plus gas $36 a week
Plus tolls $40 every two months
Insurance is $100 a month (around that)
HELOC $120-150 a month (and that is the interest---haven't made a dent in it in 3 years. It's $30K)

I'm trying to get another job so I don't have to spend so much gas.

I was NEVER in debt in my life until I married my husband and got caught up with his ways. I cannot STAND living pay check to paycheck. I'm 33 and I see no future for myself. I'm always going into panic attacks and depression and it just seems more and more that life is becoming hopeless.

I need to do something.

Avatar for cl_beckymk
iVillage Member
Registered: 03-19-2003
Mon, 04-18-2005 - 9:22am

HUGS!!!!

iVillage Member
Registered: 02-19-2004
Mon, 04-18-2005 - 9:49am

First off you are making great progress with your savings by having that in the first place, it is keeping you from charging. That is great.

Second, I would pay the $200 credit card first. You could get that one paid in three months or so and then it's gone, and you can focus the extra $20 on the $1,000 credit card.

Just focusing on the two lowest balance cards, here is what you have:

If you pay the $1,000 card first, paying the minimum plus an extra $50 per month, and just pay the minimum on the $200 card: you will have the $200 card paid in February 2006 and the $1,000 card paid off in May 2006.

If instead you put the $50 extra each month toward the $200 card, you'd have the $200 card paid in June of this year. Then you can take the $50 extra plus the $20 that was the minimum on the $200 card, plus the $30 minimum you were paying to the $1,000 card, you would have $100 per month to put to the $1,000 card starting in July. You would still be out of debt in May 2006, but starting in June you'd have one less card to worry about. Then if you can pay more than $50 extra each month, you'd be done with those two cards even sooner.

Hopefully when the zero interest period expires on your first card you can get another zero interest offer and you can keep from paying interest on that balance. Once you get these debts paid, you will have over $200 per month extra to put towards savings because you will no longer have minimum credit card payments, and you'll also have the extra $50 per month you put to your debts. If you can save a few hundred a month and then get the debts paid and have $200 more per month, that is not so bad, right?




Edited 4/18/2005 9:49 am ET ET by firstamendment

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iVillage Member
Registered: 01-31-2005
Mon, 04-18-2005 - 2:33pm

Putting money into savings is a worthy action but if your savings account is earning less than your current highest credit card rate, you should postpone the savings account until the credit cards are paid off.

Depending on your credit card rate, if your savings account is at only 2 percent, you are paying more in finance charges each month.

While it is noble to have a savings account, paying off your credit card debt at a faster pace would be a more profitable for you right now.

iVillage Member
Registered: 10-06-2004
Tue, 04-19-2005 - 12:30am

Hi! I normally don't post on this board, but just wanted to ask you. Does your job have a credit union? Reason that I'm asking is that I belong to one and have been for numerous years, is it possible if they do that you can join? Most credit unions have great options, especially for savings and the like and consolidating your debt. From reading your post, yours is truly not that bad from what I've experienced. I signed up my DP and it was only $10. If I were you I would definitely look into one. And since you seem to be good at saving - I would definitely start asking questions about how you get dividends and compound interest I believe. Anywho, I don't think it would hurt you as it seems you are trying to go in the right direction. Take care and God Bless you.

P.S. - I am still a member of my credit union, and hindsight is 20/20 - in essense, I just recently started paying attention to what's going on with my money. Originaly, I had planned to be debt-free by 2004, but as we all know there's always setbacks - hmmmm