I am way over the top????

iVillage Member
Registered: 03-27-2003
I am way over the top????
15
Thu, 01-05-2006 - 7:11pm

About how much do you guys have in just credit cards? This means---Visa, MC, etc and Home Depot, Lowes, Sears, etc. AND----personal line of credits too.

We have about $20,000---I really don't even know. I haven't gotten that far in finding all the statements yet!!

Holly

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Avatar for cl_beckymk
iVillage Member
Registered: 03-19-2003
Sat, 01-07-2006 - 10:13am

Holly - HANG IN THERE!!!


I know how expensive having a larger family is (we are a family of 6 too) but that doesn't mean you still can't make a dent!


I do know the overwhelming feeling and every time you turn around there is another expense.


We probably have about $20,000 in debt and GASP - technically $30,000 since I know 10,000 of it is in our home.


I STILL manage to find snowflakes here & there.

iVillage Member
Registered: 10-10-2005
Sat, 01-07-2006 - 3:12pm

Holly don't get discouraged. And let me assure you, you aren't the only one around here with in the $20K credit card debt club. I'm a member too and just started getting a hold of my spending a few months ago. I also have another $8k in car debt and $12K in student loan debt. I know that when I first added up my debt I was completely over whelmed for a little while, heck for a couple of months I just didn't want to face it.

But looking back, I see it as a first step towards something better. First thing I did was get organized. I had Quicken just laying around so I went ahead and got the information entered. It gave me a really clear picture of where I was at and where I was spending my money.

Then I started cutting away at any extra expenses that I didn't need. First were the things I knew I could live without, I got out of all the mail order clubs I was in. Then I took a big step and scaled my cable way back. Next was stopping eating out all the time, it's the hardest thing to give up this far. I'm cancelling Netflix next. And of course getting hold of my shopping budget.

Then I actually sat down and cut up the credit cards. I still have one for emergency until I can get an emergency fund built up but the rest are cut up.

Now I'm in the phase where I'm going through my apartment and find all the stuff I can live without (ie. the books, dvds and cds that I probably charged in the first place.) and listing them on Ebay and Half.com. I probably won't make a whole lot of money but every little bit helps.

There are foure things that I have done so far that make me feel like there is light at the end of the tunnel. One was figuring out exactly where I am, it's scary but not nearly as scary as not knowing. Two is cutting up the cards, if their cut up then I can't use them. Three is starting an emergency fund, I put $50 a month into it which isn't a lot of money but I actually have a bit of money set aside for car repairs and the like that come up. Three is sitting down and actually drawing up a budget. I have mine drawn up for the next five years. This years budget is really detailed the rest are just estimates for what I expect my expenses will be...at least this gives me a picture of how paying down the debt will affect the future.

I'm giving up a lot the next couple of years, including moving back home with my parents which is not an option for a lot of people I understand, but in 24-26 months I will be out of credit card and car debt. Your out of debt date, may be closer or further away but it is doable it just takes a little planning and sacrafice.

At any rate, welcome to the board. I hope you stick around. I know that being around other people in the same board helps me make strides to getting myself out of the mess I got myself into.

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Sat, 01-07-2006 - 9:25pm

Holly,


You're getting excellent responses

All my best,
Danni

iVillage Member
Registered: 03-27-2003
Sun, 01-08-2006 - 3:05pm

Hi Holly,

When we first started our journey toward freedom from debt, our cc debt total was over $30k (somewhere around $32k). Our annual income was less than $30k. By some debt experts's estimations, we were technically already bankrupt and might as well have filed as such.

But we pulled it out. We now have less than $15k in debt (three years later), and an income in excess of $50k. Those two things have gone hand-in-hand with taking responsibility for ourselves and our finances. It involved some hard choices and hard sacrifices.

But it's been WELL worth it.

Anyway, don't feel discouraged. You are not alone. It *is* a problem, but it's a problem we all share, and one you *can* overcome.

Welcome to the board and take care. Blessings,

Heather

iVillage Member
Registered: 03-27-2003
Mon, 01-09-2006 - 5:09pm

Thanks for all your encouraging thoughts!!

This week--my goal is to find all my statements and write all our debts down. I haven't a clue as to what we owe.
We always try to get a low interest rate card and put the others on it. This last time---they wouldn't let us transfer all our debt---over the limit they gave us. So it just made us get another card now.

I know I'm so stressed. I went shopping this past weekend and just blew over $400. Just on "stuff".
We did shred are cards--except debit card and Home Depot. (we like that one for spring/summer projects when its no interest)

Dh is out of town--so I AM MAKING A BUDGET!!!!

Holly

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