anyone with this sort of debt?
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| Sun, 06-22-2008 - 10:50pm |
Hello,
New to the board, but have read a few of the discussions. I don't like that we all seem to be in some sort of financial crisis, but it does make me feel a little better to know that I am not alone.
It seems that there is a lot of credit card debt out there, and that a lot of us are just trying to make ends meet with our monthly living expenses.
Luckily, I don't have a massive amount of credit card debt, although I do have a visa that I have not used for several years. I believe it had a balance of around $400.00 at last check. That balance is now at $1000.00+, and not on purchases!! $600.00 in fees!!!
I have medical bills for an emergency room visit that I have not been able to pay. I also have some outstanding bills for my son, who visited the ER with a shoulder injury a couple of years ago. Insurance has picked up there portion, but I still cannot cover the remaining balances. I believe there may still be an outstanding bill for my husband at a time when we did not have insurance, so we still have that hanging over our heads somewhere. I'm guessing the total of these bills is around $4,000.00
We struggle to keep our mortgage current, due to the bank taking it upon themselves to escrow our property taxes...(which are outrageous by the way)...causing our monthly payment to increase by $300.00. With the housing market in such shambles, we know that putting our house on the market would be pointless at this stage.
These are situations that worry me, and most certainly have hurt my credit rating, but the debt that really worries me is the money we owe to the IRS. We believe that it is due to the fact that we did not completely file in 2002. My mother had passed away at the end of 2001, and we were not sure how to file, due to the split of the assets to my sister and I. I was listed as the beneficiary, and all monies were in my name, but we were supposed to figure out how each of us could claim our portion of the inheritance. It was confusing to say the least..... our tax preparer did not offer much assistance.... time went by, and we forgot about it, until we received a letter just a few months ago for the IRS. We have also had to use a large portion of our childrens 529 college funds to keep us from losing our home, and to keep our heads above water. There are penalties in doing that, and I'm guessing that some of what we owe to the IRS may be due to those withdrawals. We owe state taxes, as well. Not a huge amount, but enough that when the end of the month comes, and we have paid our living expenses... there just isn't much left. We have contacted the IRS, and each year we have been entitled to a refund.... they take it, which is fine with me, but I'm afraid that this may not be enough. My husband has a good job, and most people would say that he makes really good money, but we are still struggling. (Note.. he was unemployed for several months in a three year period 2001 - 2004, which at times I feel we are still playing "catch up"). We own another property in town, which we owe nothing on, but had some major water damage to the home this winter from busted water pipes. We are now trying to figure out how to finance the repairs so that we can rent out the house, or move into it ourselves, in hopes of selling our home. We owe property taxes on that home, that we cannot pay. Our bills each month consist of our mortgage; one car payment (another vehicle is a company car, and another is paid off); auto insurance; an equity loan; utilities; GAS which we all know is outrageous; groceries; and the all too familiar expenses of raising 4 children... two of whom are in college. In all.... I think we have a total of roughly $25,000.00 debt to the IRS, and the county for property taxes. The equity loan is around $50,000. and our mortgage is $1600.00/month (we owe roughly $150,000.00 on the home which was built 8 years ago.)
Sorry to be so lengthy, but I just felt the need to jump on here tonight and see if anyone has a solution to this sort of debt. I'm wondering if I should be afraid of some official coming to my door and dragging me off to prison in front of my children!!!! I also work, but have been a mom for most of my life, so I have no legitimate experience to get into the high paying work force at the present time. I have been admitted to a community college for the fall, but doubt that I will have the finances to go. I am trying to better myself, and I feel that I keep hitting road blocks along the way.
I think I keep my head in the sand because a lot of the financial lingo intimidates me, and I don't understand a lot of it. A medical bill will come in the mail, and I will toss it on the desk, and forget about it. Tax forms.... forget it... I will never understand any of that. My husband is a bright guy, and he is usually good about getting on the phone and talking to people about these things, but I am so worried at this point, and I am so worried about our retirement, that I just don't know how to remedy this. We have exhausted our savings... we are in our mid-40's, and retirement will be here before you know it.
Thanks for listening, and taking the time to respond if you have some input.
tj

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Yea, well..... I guess that's out of my hands now. Another issue is that we have borrowed against our kids 529 college funds, in order to keep from losing our home. We have used some of the funds for actual college expenses, but we have not turned in the necessary receipts showing what was sent to the universities. Once I get those together, and submit to them, I figure that may have some impact on what we owe, as well.
I have to admit that we have not been the best in the organization of certain financial transactions, and now we are paying for it.
I just don't know how we will pay for anything outstanding, along with the property taxes that we can't pay, and the outstanding medical bills. I can keep my monthly bills somewhat current, but anything over that is just not do-able.
Anyway... thanks for reminding me what a mess I am in. :)
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