About To Hit Rock Bottom.....
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About To Hit Rock Bottom.....
| Tue, 08-02-2005 - 12:17pm |
Hi Ladies~
Its been quite some time since I've checked in...sorry about that.
| Tue, 08-02-2005 - 12:17pm |
Hi Ladies~
Its been quite some time since I've checked in...sorry about that.
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"My only other worry is that both mortgages are interest-only because we cannot afford to pay for them if they are principal and interest."
Hello Kim,
Welcome Back! Glad that you are posting. I have to say that I do not believe that refinancing your mortgages is a good idea. Especially since they will only be "interest only" The bottom line is if you can only afford the interest, then you cannot afford to live in that house. And really you are putting a lot on the line to only save $300 a month, or $3600 a year. The closing costs on your refi probably equal that. As hard as it may be, it may be better financially to sell the house and rent an apartment until you get your finances under control.
"So I am hoping that in a few years we will start making enough money to refinance into a fixed rate or just start throwing money towards the principal."
Its a bad idea to live today on tommorows money. Their is not guarantee that you will make more money in a few years. It is my understanding that intro only loans are for a short period & then the principal kicks in. Is this correct? When does the principal payments kick into effect?
I looked back on some of your previous posts. You have had several refi's to pay off auto loans and credit cards. How will this refinance be different then the last 3 refinances? The biggest part of learning to live below your means and paying off debt is changing your behavior.
I think if you sit down with your budget there has to be a better solution. Why don't you post your budget and we can help you find a solution?
Hope this helps, (and I hope it does not sound like I am being hard on you, thats not my intention)
Shannon
Edited 8/2/2005 1:13 pm ET ET by shannoninmd
Shannon
We used to be able to afford the mortgage.
Hey Kim,
I just edited my previous post. Can you go back and read it again?
SHannon
Shannon
I noticed.
Kim,
I do understand. I too have a $250,000 mortgage. (and we pay it on 1 1/2 incomes) We refinanced our house to pay off auto/cc debt. In reality we would have been much better off selling the cars, buying inexpensive autos, and working extra hard to pay off the cc's. Not even 1 year later we were sitting with another $20,000 in credit card debt. Since we started budgeting and getting serious about debt (June 05) we are down to about $12,000!
Have you read Dave Ramsey's Total Money Makeover or Financial Peace? Is your husband on board with getting out of debt? I think that sometimes the harder you work towards something the better you appreciate what you have done. A refinance is a cop out and really only a good choice when you have changed the behavior that created the problem AND when it saves you money in the long run. Interest Only will cost you money.
If you are only looking for $300 to create comfort in your budget, you and your husband would be better off getting part time jobs, side work or overtime to make up the $300.
Shannon
Shannon
"Half of our CC debt is from a small business that I started and I am still trying to break into...hopefully that will work soon and I can start paying that portion off."
"I think I answered everything....."
Except.. How have you changed your behavior? What are you doing differently to live below your means?
Shannon
Shannon
Shannon~
I am ultimately looking to consolidate my cc's because I have about 6 different ones that I have to pay per month and its gets confusing!!
Kim,
Please go take a look at the following link. You do have to register which is free to read the the posts. Some of their ideas and philosophys can be pretty hard core serious, but it may give you hope. I know you can get out of debt, but I think you may just have to prove it to yourself.
http://www.livinglikenooneelse.com/forum/index.php?
Shannon
Shannon
Hello,
Is it possible to take a second, part-time job? Maybe at some place that you shop (for necessities)? That way not only you get some extra income, you may also get employees' discount on things you normally need anyway? Futhermore, it may keep you occupied and you have less time to spend money. (At least it works for me - when I am super busy at work I don't spend as much money).
The second thing is rather personal and I would apologize in advance. In some of your previous posts you might have mentioned that you are trying to have a baby (please excuse me if I got you mixed up with someone else). If I were you, I would wait a bit longer until you have your finances sorted out first, and maybe "stress test" your budget. Perhaps you can do some research and see how much diapers, formula, additional health insurance, car seat, clothing, college savings, etc. cost. Figure out a number (or ask a friend who has kids), and set aside that amount each month. If you cannot comfortably do that, then having a baby will put even more stress on you.
What are we doing to leave below our means?
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