Financial Peace University

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iVillage Member
Registered: 03-26-2003
Financial Peace University
14
Sun, 09-04-2005 - 3:23pm

A local church is going to offer the 13 wk Financial Peace University course by Dave Ramsey. If anyone has completed (or is going through it right now) I'd like to know what are your perceptions of the course. Any pros/cons?

OT, DH got a job Friday (YEA) However, he will be travelling a lot for work. So I am wondering how beneficial the course will be if I am the only one doing the course.

Thanks,
Susan

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iVillage Member
Registered: 09-07-2003
Wed, 09-07-2005 - 12:37pm

Shels ~

First off, I complete agree with your statements. Why BUY something, when BUYING is the problem?

and so, I checked Total Money Makeover out of the library. And I loved it. Admittedly, it hasnt been a "total help" to me, because employeeing all his save-money, work exxtra hours, sell stuff Tips...just gets me to the break-even point every month...no EF in site. So thats me..and the chances of me PAYING for a program are slim.

BUT, all that aside....let me pose it to you this way....If you get his book from the library..and you start on his baby steps...you get caught up on bills, you build up an EF....you start your snowball. and you're a year or 2 into your snowball and its going GREAT....THEN, I think, FPU is something you can appropriately budget for..that will help you move from a "person who got out of debt thru struggle and hard work" ~ which is something to be PROUD of....to a "person who started with nothing and achieved financial freedom to do the things in life they wanted." it will just Fine Tune for you the things you already know. if that makes sense?

**********
Why PAY someone for a course to teach things we already know, but just can't implement. It reminds me of weight loss programs.........we all know WHAT to do, but the support is what we pay for...........
*******

Again, for me, I agree. BUT, my best friend swears by Weight Watchers, and a coworker has lost and kept off a significant amount of weight with "Slim For Life"

and they would both tell you the programs are worth it. If no such program existed, would they have lost hte same weight? no way of knowing for certain.

Similarly, those who achieve success with Dave Ramsey swear by it. but that doesnt mean they couldnt have had the same financial overhaul Without him. The choice is an individual one. :)

Anywho, welcome, Shels.. and I hope you'll keep posting your thoughts, opinions, & struggles! It's always a relief to read similar viewpoints and experiences as our own...AND an eyeopener to read viewpoints and experiences different from our own! ;)

~ Teresa

Teresa
http://www.affordingpickles.blogspot.com

iVillage Member
Registered: 10-29-2003
Wed, 09-07-2005 - 1:18pm

I also checked his book out from the Library-----liked it, didn't love it.......I'm too attached to some of the things I should give up.......like cable and internet.....we have NO outside entertainment (movies, rentals, etc.......we don't even do pay per view), so our TV is our entertainment---love that cable........and the savings while some would say significant, to change to a lower package, wouldn't save all that much. Cell phones, a huge expense, but at this point, my kids are on our plans, and since these were gifts to them, feel like I can't take that back, either.

High Car payments. Here's the deal. Need 2 cars. NO WAY EVER to get another loan---can't afford to 'save' the pmt each month if car is sold (to buy a cheapie used), because we need 2 vehicles.....so I feel stuck on that one.

Other than that, we are making payments---barely, but making them (most of the time). Tons of collection stuff--beyond the point of even having open accounts (except car loans). Have 3 (yes 3---I AM NEARLY IN TEARS FROM EMBARASSMENT) payday loans. THIS IS THE THING I CANNOT GET OUT OF. I need HELP with this situation, and have NO IDEA how to work it out. I was advised 2 yrs ago by CCCS to stop pay, and make arrangements. That worked, but got BACK into the stupid cycle, and because of the kindness of 2 of the lenders, I hesitate to do that to them. They went out on a limb and loaned to me despite my previous history. WHAT CAN A PERSON DO TO STOP THE CYCLE?

I lose sleep, I have no savings, I have no money, and our income is well above average. How is THAT for embarassing. People who make less than half of what we do have homes, cars, savings, and extras. How in the world did this happen?

I can barely stand to discuss this because of the OVERWHELMING, HORRIBLE embarassment I feel. I'm intelligent, between us we make alot of money, and we are happy in our marriage. We don't buy extra stuff, I'm not a clothes hound, etc........everything we own is a gift or used, and I am always in tears over this. Hubby although kind, refuses to get involved until I clean up the payday loan and delinquent payment mess. I caused it, you see by poor management, now he'd take it over, but won't til the really REALLY bad stuff is gone. How in the HECK do you get rid of the REALLY taxing stuff........huge fees on these rip off loans? HELP--it is no where near baby steps or snowballing, you see. I can't see tomorrow right now.

I hear sad stories on this board, but most of what I read is have huge credit card debt...making pmts on time, but need to get a handle on it........well we've been sunk in that regard for years--2 judgements, and everything but the cars in collection. I've never seen or heard anything as bad or nearly as embarassing. I just don't know what to do. I'm exhausted and spent trying to rob peter to pay paul, then suddenly peter and paul need double payments. I then rob someone else (figuratively, that is)---it is horrifying and scary and dark where I am right now. Parental help not an option.

I am fragmented and nervous and highly emotional and embarrased over this. I usually am more eloquent in my prose..............this is almost too much for me to bear. Telling is as bad as dealing with it.

Shels

iVillage Member
Registered: 09-07-2003
Wed, 09-07-2005 - 2:27pm

(((HUGS))) Shels!

I can imagine the embarassment and the since of...utter hopelessness you feel. my quickie story is quit a job I hated that was making me ill...got MORE ill....somehow 18 months later I have $30K in debt & my car because I was charging hospital bills, charging living expenses, and working only PT. I had a 4yr degree, I'd been the editor of a magazine and respected in my field. My employer had, in fact, begged me to stay. when I quit that job I had NO debt except for a car loan at 0% and was making $30K plus commissions, living in a very inexpensive area. but, I woke up one day and realized that I would be $2000 short that month in paying bills & making minimums..and I no longer had enough available credit to simply charge that....and so Im here.

I dont think I can tell you things you don't know. I dont want to make suggestions to you that you expect to hear, but dont think they'll work for you, because that wont help you. I DO want you to know that, no matter HOW people have gotten here, we're all here together now, and we're all a BIG step above other because we're all HERE and we're TRYING and there's no need for embarrassment there, OK?

I would suggest for you to take a deep breath. (Sometimes it helps stop the shaking in the hands I know *I* get when I start thinking about my debt.)

I will tell you what I did to start regaining a sense of control. First, if you haven't done so, to list all your income in the month of Sept. Then, list every thing you HAVE to pay in Sept. on a sheet of paper. Mortage or rent, utilities, car, insurance. total it. Everything you SHOULD pay ~ cable, cells, (I say 'should', because you can miss a month without it being turned off). total it with the first total. List everything you'd like to pay ~ the pay day loans, other debts...total it with the others.

I listed everything in order of MUST pay. so, while my internet & cell both let me miss a month w/o dire consequences, the late fee for internet is larger, so that listed first.

Then, I looked at my monthly income, and I started crossing things off the list. When I got toward the bottom, and hit a bill I didnt have enough income left to pay, I skipped it and crossed off a smaller bill.

Did it make me feel better right away? HA! No! I still didnt have enough money!

But I DID have a clear picture of what I *needed* that month. month 1. that first month it was nearly $800 a needed. so. I'd long since brought my bucket of change to the bank, but I had a little under $15 floating around. that was half a cable bill. I dont want to sell everything I own..but I had a few books I could take to the used book store. 3 outgrown outfits to the consignment shop (a whooping $6 a piece). I work for a temp agency, but I worked EVERY extra hour I could. I had to scrap together every bit of *found* money I could.

then, fingers still bleeding from crawling my way thru month 1, I sat down and planned month 2.

It was toward the end of month 2 that I started to think all those things that didnt work for me, might could work for me. I switched to less then half my cell minutes. I refinanced my car to a slightly higher interest rate, but $104 less a month.

Im not saying that any choices you've made in the past were wrong. Im not saying you should have to give up anything you dont want to give up, and you certainly shouldnt take back from your kids if its not necessary. but there comes a point..like when you're paying payday loan interest rates, you need to make clear decisions.

If you're paid hourly, and currently taking a 1 hour lunch, eating at your desk adds 5 hours to your paycheck wihtout adding extra time for you.

Yes, you need 2 cars, but do you NEED the 2 cars you HAVE? can one be traded in for even an $8,000 good used car on a 60 month loan? or 72 month? No, not the wisest choice longterm...but start with getting thru month 1.

OK, Im rambling. Sorry. Really, I guess I only needed to say 2 things: 1) Dont be embarassed. we're all here to support eachother.
2) the lendor of your payday loan is making a profit off you. however kind they might be. Unless they're also inviting you over for Xmas dinner, you need to put yourself and your family First. if that means making payments, Do So.

HUGS shels!

~ Teresa

Teresa
http://www.affordingpickles.blogspot.com

iVillage Member
Registered: 10-29-2003
Wed, 09-07-2005 - 3:11pm

I have it all on paper thru November. I've already missed what I can miss without disconnect---luckily at one point and time I could miss a pmt.......now I need to catch up. I'm 1 month behind on all utilities, including cable and my car loans. I pay right at the 30 day point to stop from being reported to the credit bureau (as if it would matter right now at my 510 FICO score).

I CAN"T trade my car---nobody in their right mind would loan me money on a cheaper car. Besides we only have 1 yr left on hubbys car and 2 on mine (plus the late fees) so if we can just hold out.......

I know all the right things, and I actually know what to do, EXCEPT with these payday loans. Here are my fears (based on experience): If I call and ask for help, even tho I'll disappoint the nice people, they'll immediately go and try to cash my check. If it clears, then all disposable income will be GONE, and if it doesn't then they do a 'bad check' rap on you-------same with stop pays---bad check......I think I heard once that our local procecuting attorney does not prosecute the payday loans gone bad as bad checks. I HEARD that they just send them back to the lenders and tell them to collect on their own, but I am not positive of this, and certainly do not want to find out that ISN'T the case. I've tried on previous occasions to go to our board of Finance that regulates these lenders, and they have no options available. Obviously a credit union or bank loan with more reasonable rates is out of the question. I feel so stuck and so dumb and so backwards for falling into this trap that I could just scream. I do take deep breaths, and generally tomorrow is always better---but when in the throes of a panic over money NOTHING seems to work. I could probably buy a home in our area with the fees I've spent over the years to these yahoos.

Here are some GOOD things financially that I can say....In February, I learned of a program with our credit union called the 'fresh start' program. I was using my 'overdraft access' at $20 per check or transaction to the tune of 4-500 dollars a month. They offered me a no interest loan (no credit check)for the amount I was overdrawn, and I can pay it back over 1 year---at 40 a month. What a relief this was. I have a 2nd acct that is up to its eyeballs in overdrafts too, but smartly ( I say sarcastically) I just empty this acct into my 'good' acct and only overdraw myself once, hence, one fee instead of 15 fees charged to the acct. My mom loaned me 600 in Jan to help out (again, can't pay her back, which makes me feel terrible) and this along with our tax refund eased the burden for a few months. With her loan, it gave me the courage to call several creditors (collectors) and get set up on payment arrangements. Thank God none of them have done the horrible things I've heard about like going into my acct and taking more than the agreed amt..........so far, that is. I still have a few I'm avoiding, but not nearly as many as I did in Jan. The judgement taken out on hubby will be paid in 2 more months (only because I promised I'd double a payment due to a missed payment---so 2 in sept, and one in Oct.....then done) And another one held by the same collector/attorney will have about 7 more months---unless I take that $100 from the paid off bill and place it towards the remaining bill (no judgement, just pmt arrangement on this one). My judgement was satisfied in April. Horrible on credit, but no more payments on it.

I am just absolutley confounded as to how to dig out of the $500 per month payday loan mess. Wow, with $500 a month, what bills I could pay!! The only other trap I see myself in is the grocery store trap---buying too much, or unneeded things---quick an easy, and especially healthy/easy snacks for my athlete kids that need tons of carbs and protien to snack on---plus the gatorade & water bottles for easy transport.........but those could be MANAGED without the huge payday loan fees.

I try to remain upbeat, but there are days, like today, when I have my own personal pity party and wish for some fairy godmother to waive a wand over my payday loans and make them go away. Tomorrow will be better, and hopefully, my pity party will not last. I can't take it...........

If anyone has any suggestions about a payday loan solution, please fill me in. I'm all ears.

Shels

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