Ok...I'm here...let's do this.

iVillage Member
Registered: 04-22-2003
Ok...I'm here...let's do this.
5
Tue, 06-17-2008 - 3:14pm

Hi! I'm Marci. I'm happily married & I have two girls...Abigail (Abbey) who is 7 & Grace who is 4 today! (Happy birthday baby!)

I am a SAHM & loving it but will hopefully go back to work part time in about a year when Grace starts Kindergarten.

We are debt-a-holics. I could give excuse after excuse & all that but the fact of the matter is we don't plan, we eat out ALL the time & we spend like crazy. I need to pay off about $25k. Yikes right?

So, I want to do the snowball thing but I need to figure out approximately how much cash I have left over each month (we get paid every other week so it's actually more than twice a month...I think we have 2 extra paychecks a year)to put on debt. Not including 401k we have about $2500 in a savings account. We do have equity but I don't want to use it because as soon as this debt is paid off I am getting a new house & I need the equity as my savings account for that. I am also afraid I would use my equity & then rack the debt back up again. Anyway, how much do you think an average family of four needs to budget each month for groceries, gas (Unless we go out of town we don't drive much...DH's work is like 3 minutes away as is the girl's school....of course I have to drive to store, lessons etc but never more than 10 minutes one way), household items, extras? Once I can figure this out approximately I can set a budget. I *think* I have an extra $500-$600 a month to put towards debt not including those two extra paychecks....not sure if I should count them in or not.

I just wanted to add that we are not behind on any bills & we both have credit scores of over 700. At least that is a positive! =)




Edited 6/17/2008 3:25 pm ET by happymum01
iVillage Member
Registered: 08-29-2006
Tue, 06-17-2008 - 3:55pm

I think it's a great thing that you are attacking your debting problem while your two children are quite young.

iVillage Member
Registered: 11-17-2007
Tue, 06-17-2008 - 4:26pm

Welcome to the board. I will send you a couple of file to download and fill in that may help you get started.


First thing you need to do is make a list of bills. when is the closing date and payment date, What interest rate you are paying and what is the min payment you will be making this month. Bills and mortgage or rent should not be more then 35% to 40% of your bring home pay. That is your target goal.


Then you do the household list See anything that can be cut out. Call waiting, caller id, long distance fee, cable changes you don't really watch. Cable boxes you really don't use that much over the line feed. Anything like that. Since you got saving call insurance companies, homeowner auto check on discounts ask them about if you up the deductible for a policy period how much will you save.


According to the budget board 100.00 to 125.00 is what you should be spending on food and household idems for two adults and two children.


If you are going to make a budget then you might have to temp. borrow some money out of saving (but you will be giving it back) to

iVillage Member
Registered: 06-18-2004
Tue, 06-17-2008 - 4:29pm

I don't think that we can tell you how much you *should* budget for certain items.

iVillage Member
Registered: 04-22-2003
Tue, 06-17-2008 - 5:27pm
Thanks for the advice so far ladies...this is great!
iVillage Member
Registered: 08-29-2006
Tue, 06-17-2008 - 5:30pm

Like the PP mentioned you don't want to drive yourself crazy.