Not sure where to start!

iVillage Member
Registered: 07-17-2008
Not sure where to start!
42
Thu, 07-17-2008 - 5:59pm

Hi, I am embarrassed to even share the amount of debt I am in! Most of it is credit cards. I have tried lowering the interest rates and not one of the companies I called was of any help. I can't even apply for credit cards with lower interest rates because I get refused which makes my credit score go down.


I have been paying down the cards but not fast enough! I don't sleep worrying. My husband and I make quite a good income but we sure have made a mess of where our income goes now - practically all credit cards! We'd be living a wonderful life, even if

iVillage Member
Registered: 07-07-2007
Tue, 07-29-2008 - 1:45am
I have to agree again with kimmomto.
iVillage Member
Registered: 04-10-2003
Tue, 07-29-2008 - 10:34am

Hi Judy,


Maybe I missed it somewhere but how are the bills paid in the house? Do you each pay some or does one of you do it. Also, do you both work?


The reason I am asking is because I am trying to think of any advice to give that may help you out. I agree with PP that those 28-30% interest rates are out of this world, and you need to go through each statement line by line and figure out what the rates are, minimums, due dates and fees. My next step would be to start making phone calls and see if you can get some of those rates lowered. If you can't then maybe its time to seek help.


If you feel comfortable, post your numbers here. The ladies are amazing at seeing things that you never thought of!


Bex -


"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."



Bex -

iVillage Member
Registered: 07-17-2008
Tue, 07-29-2008 - 10:54am

Hi and thanks for this! I did go through most of the past bills and had my husband contact the cc companies. They would not reduce his rates. My husband and I both work, but I make the bulk of our income. I have a home business and make over a 6 figure income. My husband

iVillage Member
Registered: 07-02-2008
Tue, 07-29-2008 - 11:14am

Judy,


Show us your totals. Nothing shocks these ladies and it helps to see it on paper. Your DH and you need to sit down together with the bills and lay it all out. Once you have it down you can figure out where his check and your check can go to get the maximum effect for debt repayment.

iVillage Member
Registered: 04-10-2003
Tue, 07-29-2008 - 12:58pm

No worries about not feeling comfortable posting numbers. It took me a while to do it to.


Sooo, let's see what I can offer.


1) Do you have a budget? It sounds like you have an idea of what your bills are but are you actually making enough to cover minimums and basic living expenses?


2) Can you cut out anything at all from the budget to start tackling debt? Looking for discounts on internet/phone/cable? Cutting landlines or cellphones? Getting rid of subscriptions or cable? Finding cheaper insurance? Do you pay for any services you could do yourself (i.e. gardening, snow removal etc)? What about reducing bills for electricity, water etc.? I think its Mary Ann (who responded earlier) who says to watch the cents and the dollars will take care of themselves (Sorry if I butchered that Mary Ann, or if its not even you who says it, lol). The grocery budget always seems to be one that can be reduced with a little planning.


3) Can you bring in extra income? Get another parttime job? Rent a room to a student? Etc?


4) Do you have a repayment plan? Obviously if you've already reduced minimums by $2000 then you have some idea what you are doing, lol. I've noticed that a lot of people (myself included) get into trouble because they focus on reducing expenditures but have no plan with where to put the money (i.e. which card to target).


Based on what you said,


Bex -

iVillage Member
Registered: 07-17-2008
Tue, 07-29-2008 - 1:50pm

okay, well here is exactly where I lose it.

1. No, I don't have a budget exactly. I sort of play it as it comes. For example, I just this minute got my credit card statement. The minimum is $228 and not due until August 17th. Because I sent so much to the other one and I don't get paid before the 10th, this one waits until then. Then I usually would send about $500 - $800, depending on how I feel that day! I figure as long as it's WAY over the minimum, I'm ok.


2. I did start to cut back on uneeded things, wasteful things so that helps.


3. My husband is looking for another job that pays more. I can't, I have too much on my plate now with my business and 6 dogs!


4. I don't know what you mean by a repayment plan. The way I got the overall charges down was by sending a lot more than the minimums. Honestly, I don 't know which cards to target. I've been focused on mine so that eventually, I can get them paid off, then get some 0% when I qualify to take on my husband's.


I guess I've focused on my own cards because at least I can see daylight that I can make them go away.

iVillage Member
Registered: 04-10-2003
Tue, 07-29-2008 - 2:31pm

Hmm, well all I can do is tell you what has worked for me (its a bit labour intensive but I am a visual/ list person who needs to see things infront of her).


What I did was grab all of my bills, automatic withdrawals, automatic savings, CC due dates, what the minimums were


Bex -

iVillage Member
Registered: 07-17-2008
Tue, 07-29-2008 - 2:59pm

That makes a lot of sense. This week I will gather up all the information I can and make a list of everything that goes out. Not too much is automatic so it may take a bit of time, but I can figure that pretty accurately. It never even occured to me to put in the dates I get paid and approximately how much because it's not the same every month, although thank goodness, constantly growing.


I like the idea of focusing on one bill, but by paying minimums only, doesn't that drive the balances up? I am almost positive that by paying minimums, they increase the finance charges which means, bottom line, higher balances. That's what happened to my husband's cards.

Judy


By the way, I have 6 standard poodles! HUGE! And although they are a handful (or 2 or 3!) I love them to death! But I will tell you, EXPENISIVE to keep. I used to be a groomer so that's not an issue. I could show them to you..am I allowed to show you photos in here?

iVillage Member
Registered: 01-25-2006
Tue, 07-29-2008 - 5:06pm

Sounds like you are starting to get a handle on things.

iVillage Member
Registered: 07-17-2008
Tue, 07-29-2008 - 6:21pm

Hi Peg,


Thank you very much for explaining the cc issue to me. I had no idea why his charges went up when he had not charged. I assumed because he had paid the minimum but now I totally understand. He got 2 letters just the other day that 2 of his cards are now at a reduced maximum line of credit and that surprised me, since he never uses them anymore. One of them reduced the credit line to less than what he has on that card now, so you I guess that one better be a priority.


Believe me, I am very grateful to all in this group for the suggestions and nothing is taken wrong. It definitely helps to have those of you who have already gone through this to steer me in the right direction. There's an awful lot to learn. I did some figuring today on the monthly household expenses that even shocked me, so I need to take a look at some of that to get it reduced. Some of it I hate dealing with, like insurance companies, but it's really time for me to get a grip on it and know where we are.


I've been very fortunate with my home business and work really hard at it. I've been doing it for 9 1/2 years and I guess the hardest part for some people is to understand one concept and that's in the beginning, you are grossly underpaid for your time and efforts. Then one day you wake up, and all of a sudden it starts taking off and you find yourself grossly overpaid for the amount of hours you put in. I think some people don't find the right company or have a passion for the products they are selling. I've been very fortunate with both.


I will get my husband to look into getting Quicken or Money and hopefully teach me how to use it. A lot of people have suggested that and I haven't done that yet.


I really appreciate all the great tools and ideas you've given me to work with. I know I can do this. I know there will be an end to this worry.


Judy