Budget Suggestions
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| Mon, 12-28-2009 - 5:37pm |
Hi These are my numbers
Credit Balance 665.57 20% $19.00 Minimum
Credit 81.54 21.9 % $15.00 min
Credit 1080.08 24 % $39.00 min
Credit 2559.1 14% $51 min
Credit 6310.24 6% until Feb plan to renew hardship rate $132 is minimum
Credit 74.33 13% $25.00 is minimum
Elect 60 averaged
Gas 15 averaged
Water/Trash 35
Rent 550
Grocery 150
Cell Phone 120 still have 18 months on this plan
*Savings 100 per month toward Christmas
I have appx $400 in an E fund - I used $600 of that recently for tires and spark plugs and oil changing/fluids on my car recently
I would like to replenish this with at least $75 per month
which would put my outgoing at almost $1400 -
$10,771 is the total amount of debt
$1317 is the minimum outgoing payments (does not include gas for my car appx $45.00 per month *I work close to home)
Also does not include entertainment and the fact that I have a teenager in my home.
I bring home $1900
I should have nearly $600 to put toward something but it's so hard ---some advice please should I make little payments...big ones...
I think I should get rid of the 2 small ones ASAP that will open up $40.00 per month to put toward something else
I also have the hard ship interest rate until Feb and would like to possibly ask for another extension. If I pay a lot toward that I am worried they will not grant me the extension again. So I think I should save up a large chunk of money and if I get the extension save the money and then in July when the next 6 month extension is up I would pay a large chunk and lower the amount that is due - so if the interest rate goes up it's not on such a large balance.
I have had the hardship deduction for a year now. They said as long as I continue to pay on time it will continue, so I don't see a problem with getting an extension.
Also - I always try to pay more than the minimum due if it's $20 I pay $30 - I also sometimes flake small amounts such as $5.00 here and there -- I like to have at least $500 in my checking account or I get anxious -
Suggestions welcome

Hi & welcome! I am sure others will chime in, but the first thing I notice is that you said $600 should be going to debt repayment. But, with $1317 already accounted for plus your gas, and &1900 take home, that leaves you with less than $600 per month.
I would focus on the two cards with the smallest balances first. You can get rid of those right away. And then I would tackle the card with the $665 balance. The motivation you'll get from getting three cards to a zero balance will be great!
I think it's great you put aside $100 a month towards Christmas savings. But, for now, I would apply that $100 towards your debt. You can always get back to that when those first bunch of debts are paid off.
Is it possible for you to take on more hours? A second job? The cell phone - I realize you said you're under contract, but sometimes while under contract you can change plans, to something more affordable.
Just a couple thoughts off the top of my head.
Post often, this board is a great support!
http://www.TickerFactory.com/savings/
My first suggestion would be to get your efund back in place before you do anything else.
I plugged your numbers into this new budget spreadsheet I just found online. Try it out
http://www.gailvazoxlade.com/resources/interactive_budget_worksheet.html
Here's the problems I see. You are already putting 10% of your income towards debt and that's still only the minimum payments. You should start to snowflake small amounts towards those smaller debts. It would be easy to get rid of credit cards 1, 2 and 6 first. Then you'd only have 3 left and although they are large balances, you would have an extra 60 bucks a month to put towards one of them.
I am locked into my cell phone plan for another 18 months as well, but a few months ago I realized that I wasn't using all of my minutes and so I called and changed my service plan. I went from 1400 minutes to 700 minutes plus I got rid of texting and the internet and I went from 120 a month to 80 for 2 phones. Huge difference! I know you've said before that you are stuck in your cell phone plan, but just call and see if there's anything they can do for you.
The biggest problem I see is that you are not calculating for any 'Life' costs. The only variable costs you added for just plain old living expenses was groceries and gas and cell phone. What about internet? Cable? You've got to spend something on Entertainment and clothing/gifts? What about maintenance on your car, license and registration fees, Medical costs! There's so much that can happen in life that it's so hard to budget for, but you have to think about them. Now if you're like me, a lot of those unexpected costs like medical and car repair come out of my emergency fund but I don't want it to be like that forever. I agree with the poster who said that you may have to forego the Christmas savings until you have better control of the finances. Having money for Christmas is nice, but when you think about the importance of life versus Christmas, I think we all know what has to win! We changed our Christmas plans long ago because we knew we couldn't afford a large Christmas with so much debt. I spent $447 dollars this year and it's been my biggest year in 3 Christmases!
It's so hard to be in the position of having too much debt and not enough money. Is it possible for you to try to bring in more money somehow? A second job, more hours, a change in career? My husband and I realized awhile ago that the only way we would get out of debt is if we made significantly more money. He switched careers and I took on more piano students and got a job as a church pianist. It was probably the hardest thing that both of us ever did because it was so new and scary, but it is now the best thing we ever did!
Good luck to you!
You are living pretty tightly with reasonable rent in general. Of course the debt payments are killing you, but what the largest issue is is not the outgo - but the INCOME.
I don't remember what you said about possible jobs? Are you on disability? Can you get a second job? Is this a fixed income?
If you can get to even the average wage of $40k a year, that would allow you to bring home almost double what you are bringing home now and the debt would be gone in no time.
-Marie