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|Mon, 04-14-2008 - 10:00am|
Ok, so Ive been reading alot of the posts here and felt comfortable enough to share my debt information and hopefully gain some ideas from anyone here. My husband and I are both 30 and have accumulated $28781 in credit card debt. It amazes me the number. We had some tough times when my husbands work as an auto body painter slowed down, then they changed our health insurance from a copay to deductible type. We now pay everything out of pocket until we reach our $3000.00 deductible. We no longer have dental as well, so I had to purchase a dental savings plan ourselves as well as pay for all dental costs. We live in a semi rural area where cell phone reception is not very good if we get a signal at all at our house so when our contract was up I switched to pay as you go and bought 1000 minutes upfront for $100.00 for both of us. We still have over 700 minutes a piece since January.
Heres the breakdown of the cards:
Citi Mastercard: Limit: $19700 Balance: $17833 I transfered other cards here. All of the balance here is set at 4.9% for the life of the balance
US Bank Visa: Limit: $11500 Balance: $9350 This balance is under $3.9% until 12/08, then goes to normal rate of 9.9%
Chase Visa: Limit: $4600 Balance: $1672 This is under 0% until 8/08 then goes to 6.9%
I have tried to figure what to do but at times I feel under control and others I feel like Im on a sinking ship. We have been lucky lately that my husbands work has picked up. Some months I have been able to pay $1000 towards the credit cards. I recently cut up the cards. We only have my Chase card not cut up.
I am a stay at home mother of 2. My husband and I are both only children so there are no aunts or uncles to watch them for me to get a job. My mother has type 1 Diabetes and works so she is unable to watch them. My inlaws are both divorced and do not live around here. Daycare would eat up any money I would make from a part time job so I need to figure out how to pay this off with out me leaving the home to work.
I have broken our budget down to needing:
Budget as of April 1, 2008
Electric: $ 206
Water/Sewer $ 70
Telephone/Internet $ 90
Trash $ 25
Satellite $ 100
Life Insurance $ 36
Auto Loans $ 514
Savings $ 100
Total Bills: $2550
Groceries $ 125
Gas Both of us & Hubby Cigerettes $ 125
Total Misc: $ 250
Household Bills: $ 600
Gas & Grocery: $ 250
I have 3 seperate checking accounts:
1. Bills Account: I put $600.00 weekly in it for bills
2. Grocery & Gas: I put $250.00 weekly in it for grocery and gas
3. Debt Payoff: Anything extra he makes goes into our debt account
Hoping you guys see something Im missing to get us out of this mess. Which order would you pay off these cards? I have been paying more on the Citicard with the higher balance, mostly because it makes me sick to see such a high balance. I plan on putting our tax refund next year on the debt as well or would you put it in savings? HELP!
Again thanks to anyone who took the time to read this!
**** Adding additional requested information:
My husband is an automotive worker who makes flat rate. His pay varies each week depending on how much work they turn out. He is guaranteed 40 hours per week @ $23.60. That check after taxes is $800.58. We have only seen this a few times. On average his checks are $950-1050 per week. He made $78000 last year which is approx $6500 month before taxes so $4200 after taxes.
We do have automobile insurance. It is $436 every 6 months. I have a Savings Account set up that $27.50 goes into it each week from our Debt Account. This way we have over $1000 at the end of the year just for auto insurance and personal property taxes.
Our homeowners insurance renews each June and is taken out of our homeowners escrow. I do check each year and find the best rate. It is currently $485.
Eating out: We do tend to buy fast food at least once/twice a week. Im trying to cut this out all together as it is rather unhealthy and Im trying to get in shape. But we had been spending about $40 per week.
Savings: We have 2 Accounts. One for standard savings with $750.00 in it, the other is for auto insurance and personal property taxes: $560.00 currently. We both have IRA's and he has a 401K through work that we wont touch.
Edited 4/14/2008 10:48 am ET by jestock2
Edited 4/14/2008 10:51 am ET by jestock2