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HELP
| Thu, 08-11-2005 - 5:12pm |
I am freaking out...I don't know what to do and feel like such a failure.
I am a divorced mom of three kids under the age of ten. We do not live extravagantly by any means...I don't know how this happened.
I am $25,000 in cc debt and I only make $32,000 a year!!
Will it even be possible to pay this debt off?
I own our home and I would just die before I would make my kids move. They have had such a horrible time with the divorce and their dead-beat dad.
I have put the debt on three 0% cards and am tracking my spending...which really has me depressed.
I haven't even stopped using the cards...I had to charge their daycare this month!
Any ideas?

HUGS!
Are you not making enough money to make ends meet right now? Or is some of that frivolous spending?
Basically, to start with, you need to spend LESS than you bring home, and pay MORE than the minimum payments on your credit cards. Once you can start to do that TAKE A DEEP BREATH AND RELAX! :)
Jennifer
HUGS!!! YES, it WILL be possible to pay this debt off!!! Making a conscious effort is the First and HARDEST step, so congratulations!
A few ideas, which may or may not be feasible in your situation:
First, Im assuming that, as a single mom, ideas like 2nd job or Overtime would result in equal increases in daycare costs....so im NOT suggesting those. but if thats Not the case, and you have someone who could watch the kids, then a shortterm 2nd job would definitely be a good idea.
OK....
Yard Sale. Old toys, books, dishes, baby supplies, clothes, toys the kids dont play with......you name it. send ALL of that money to ONE of your CC in addition to what you are already paying. this will lower the minimum on that one card. (congrats on 0%, by the way!!)
The difference between acceptable living and extravagent living. I know you said you're already tracking your spending, but sometimes we glance over the most obvious things....
example one: if YOU didnt have it when YOU were a kid, your KIDS are not deprived if THEY dont have it. This means cable TV, Play stations and all the newest games, 15,000 DVDs, etc, etc. If you have a game of some sort and the kids use it, keep it, but no more new games for a while, in my opinion.
Call around, analyze, use the web...are you getting the BEST, Lowest rate on your phone? on your cell, if you have one? on your internet access? (you can get dialup in some areas for $9.95 a month, for example).
Dave Ramsey is one get-out-of-debt guru who recommends a zero-based budget. which means sitting down and (as hard at it is) writing down all the incoming money for the month, and exactly where EVERY PENNY will go. Mortage, Car, Utilities, food, toiletries, gas, the bag of M&Ms at the gas station on the way home from work.... EVERY penny is accounted for.
and every penny is used exactly where you say you will.....this sure helps you to iron out the extras you might not see at first. In todays world, just coming home then going back out to the grocery store, instead of stopping on the way by, is a significant loss of gas money, for example.
If you write it all out, and find that you TRULY have More month then money...then it IS time to consider bigger changes. if your car isnt paid off, sell if for something less costly, or refinance it (I just had to refinance my car, to a higher interest,but lower payments...because in the long run paying 4% on the car is better then high CC rates for me.)
if its STILL not working...then you may need to consider moving...IF you could find something that was suitable, with smaller payments, etc, etc.....but definitely I respect tht this would be a last resort for you...and with moving expenses and what not, I would say there's prolly no need for you to move.
Im assuming that since you refer to the dad as deadbeat, you're not getting support from him? if thats the case, I hope you are continuing to persue that as best you can, as that would surely help you with your expenses. I believe there are non-profits to help you with this as best they can, assuming he has a job........ ive no experience in that area....just thinking outloud here for you.
Keep your chin up...we're all here for you!!!!
~ Teresa
Teresa
http://www.affordingpickles.blogspot.com
You can do it.Keep your head up. Take tha deadbeat dad to court for chld support if he isn't paying? He should help with daycare, food etcc...
HANG IN THERE
LOL
First are you calling in to child support enforcement enough that they remember your name? My ex hid for two straight years and I had 4 little ones. Its been 3 years and he has been paying regularly. Your kids deserve their child support so look into geting that. It is possible extremly hard and stressful at times but in the end worth it. Also you stated you make 32 a year well with 3 kids do you qualify in your state for discounted daycare? Every state is diffrent but contact your health and human services about the daycare issue you might qualify you never know till you at least try. YOu will never I repeat never be able to get this under control unless you stop using the cards, its that plain and simple. YOu have to get yourself out of this hole.
Thanks for being so nice everyone. I was having a rough day yesterday (PMS....maybe I was on the wrong board...LOL) but I feel better today.
Yes I have made a lot of cuts...canceled the cell phone, gym membership, magazines, etc. I am getting better at the grocery store also. We eat LOTS of kraft macacroni.
I do have a second job already. Today I actually applied for a new position where I work and if I get it I will make $4 more an hour.
So I am not abandoning ship just yet. When school starts next week my daycare expenses drop tremendously and I will buckle down in all other areas also.
It was a tough summer...car paid off but had to have $2000 work on it (cc, of course)
I am reading Dave Ramsey. I guess what my question should have been is that I read somewhere (Suze Orman?) that if you are in debt close to or at the amount of your salary...you are essentially bankrupt. Is that true? Have any of you paid off as much as you make??
The thought of bankruptcy makes me physically sick...I will do everything in my power to pay this off.
Not sure if this will encourage you or not..
But we pay 48% of our income in mortgage payments, and we our working on paying cc debt which was a tad bit less then 1/2 our salary. We really learned how to tighten the budget.
We strictly shop at Aldi, and eat pretty well, steak, vegetables, stir fry, some convenience foods. I budget $200 a month for 3 adults and 1 baby.
SHannon
Shannon