Wherer do I start ?

Avatar for trwrec
iVillage Member
Registered: 04-05-2003
Wherer do I start ?
5
Wed, 05-24-2006 - 1:36pm

Hi,

I am in desperate need of help! My DH and I are in serious debt. I can not believe I have got myself into such a financial hole. We owe abouot $30k in loans, car notes, credit cards, etc.

I am in such a financial mess that when my DH and I get paid it goes right back out and I am still not paying the debts down. We make really good money and enough to cover our bills but we are not doing it. I have debts I have not paid for months (because I do not have the money). I just do not know where to start to get back on track and get rid of these debts.

So here I am, asking for all advice and tips to get out of debt. What should I be doing to get this debt paid.

Thanks for all your help!!
AT

iVillage Member
Registered: 06-04-2004
Wed, 05-24-2006 - 3:19pm

Welcome! First of all, do you know what all your debts are and where you stand with them all? That is a good place to start. I would also recommend tracking your spending for 30 days to see exactly where all your money is going. Do you eat out a lot, buy a lot of clothes, etc? I am just about to be debt free, next month, after paying off over $30,000 in 2.5 years on a single income. It takes a lot of hard work and determination, but you can do it! I know you can! Stick around the board here and learn from everyone. This is a great group always ready to lend an ear and help out whenever possible! Welcome again!

~leanne

~leanne

deciding to be happy doesn't mean that everything is perfect, but that you had decided to look beyond the imp

Avatar for trwrec
iVillage Member
Registered: 04-05-2003
Wed, 05-24-2006 - 4:02pm

Hi,

Thanks for your reply. I do know what all my debts are and I am pretty sure where I stand with them (most are in default). I guess I need to call them and ask for better arrangements ? I guess this is where I need the most help. I do have a budget (an old one) that I need to get back to using. I just dont know who to start it, because I am always playing catch up with my paychecks.

Thanks,
AT

iVillage Member
Registered: 06-04-2004
Wed, 05-24-2006 - 4:21pm

I know the feeling, I was like that for a long time never having enough to make it from one payday to the next. Do you have anything you can sell, books on half.com, garage sale? I finally took the plunge and told myself that I would only eat the food in my pantry, freezer and refrigerator for as long as possible, I did a little shopping exile. Didn't buy any clothes for a year. I really thought about where all my money was going and tried to have as many days as possible where I spent no money at all. I also read every financial book I could get my hands on at the library to motivate me. I have a picture in my wallet of my dream house so that I would think twice before spending ANY money. All these things really helped reel in my spending and helped me get ahead enough to where I was able to start snowflaking to my debts. That was when I really noticed that I was making progress with it all. I went without a lot and didn't go out with friends, didn't see a movie in the theater for about a year, etc. All these things were necessary in order for me to make a real difference in my financial state. I will be paying off the rest of my debt on June 16 and will finally be DEBT FREE!!! Of course, I have learned a lot of great habits that I am sure I will continue with even after the debts are paid off. I find I am not as wasteful as I was before and that feels great, I love knowing that I am using all my resources. If something breaks I don't automatically go out and buy a replacement, first I see if I can fix it, if I can't, I try to do without. I am amazed at how many things I use to think I "had" to have I can do just fine without now! Also, check in here for the Monday and Friday checkins, it really helps keep you accountable and motivated! And join the snowflaking, remember even $2 is a snowflake and they all make a difference! :) I'm sure others will have more to add, I just wanted to share a little bit more of how I did it. Good luck to you! As I said before, I know you can do this!

~leanne

~leanne

deciding to be happy doesn't mean that everything is perfect, but that you had decided to look beyond the imp

Avatar for endomagazine
iVillage Member
Registered: 11-09-2004
Thu, 05-25-2006 - 2:18pm

Hello,


Instead of pulling out an old budget, I would suggest writing down your fixed monthly expenses and building your budget from scratch. I would highly recommend reading Dave Ramsey's Total Money Makeover, which you should be able to get at your local library.


The most important things to pay for every month are:


1) Food


2) Mortgage / Rent


3) Utilities - electricity, water, natural gas, etc


4) Transportation - Car payment, Gas


First, build a $1000 emergency fund in a savings account. I would recommend setting up an automatic transfer so that on payday, some of your money *automatically* goes to the emergency fund until it's full. This will keep the money from "going out" as soon as it "comes in".


Are you able to pay minimum payments to all of your debts? If not, you'll need to call all of your creditors and let them know that you need to set up a payment plan.

Sincerely,
Lindsey Schocke


Geeks on Tap: Mission Accomplished

Sincerely,
Lindsey Schocke

Geeks on Tap: Mission Accomplished

iVillage Member
Registered: 12-05-2004
Thu, 05-25-2006 - 5:02pm

Is Credit Counseling an option? You might be able to get your interest rates lowered, or be able to combine your payments into a more manageable amount so that all your monthly bills get paid. Keep us updated on how things are going.

Pat :-D