Finally facing my demons...My numbers

iVillage Member
Registered: 08-14-2007
Finally facing my demons...My numbers
2
Mon, 04-14-2008 - 3:22pm

Hello Ive been lurking and figure I need to be as brave as others. My situation is a little diffrent because of a messy divorce and needing to file bancruptcy with my ex husband my new husband and I do not comingle anything. He pays the mortgage, all the utilities like water, gas electric,phone,satelite tv. He has great credit and is really responsible. So I am not including any of these things that he takes care of in my numbers. Both of us own our automobiles free and clear.


Here are my debts:


I have an income of 1,100.00 a month. Im not working full time.


I have a student loan with W company for 30,107.21 with a monthly payment of 330.00. I am going to try and defer this since we have a baby due in april and I am going to need to be home for a bit.


I pay about 450 a month in groceries sometimes more sometimes less.


2nd student loan from my old university I filled out the paperwork for deferment but I guess it didnt get there in time. So they sent me to a collections agency I just found out they say I owe like 5,999.oo but my last statement from the university says the balance is 4,192.28 so I think the collections is trying to run a scam... So I have no real payment but know I owe atleast 4 grand.


Sallie mae is 55 dollars a month and the balance is 751.76


Medical bills 200


10.30


346.71 ( pending my ex husbands insurance hasnt paid it yet so I am on hold about this.


and 357.32 for my old ob doc


Im sure there will be more medical soon. Im hoping my dh will help since this is also his child. However he has over 400 a month taken out for me to be covered on his insurance.


I also want to pay off a bank my ex and I had together for 524.03 They arent even trying to collect but it needs to be paid.


so total debt 36,289.61 I am sick to my stomache, I dont have my 4 year degree because my dh was sent to a new job in a new state and they dont have my degree program here :( I can still get an okay social service job after the baby gets older.


My dh just says well go back into the army to get your student loans paid off but I hated it so badly and would rather just pay it off.


Questions...Besides my stuff I pay monthly what should I start snowflaking on first?

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iVillage Member
Registered: 11-17-2007
Mon, 04-14-2008 - 6:00pm

Most people say the lowest bill which is a

iVillage Member
Registered: 12-04-2006
Wed, 04-16-2008 - 3:56am

Just a thought in terms of the degree. I'm not sure what its like in the US (I'm located in New Zealand), but would it be possible to complete the degree via distance learning - just a thought if having the degree is going to help you earn more in the long term.

With regards to the snow flaking, its a personal choice.
Some people pay in order of interest from highest to lowest, this usually has the advantage of reducing the overall total of interest that you pay.
Others will snowflake in debts in order of lowest to highest. The main advantage of this is that when you pay off your smallest debt first you have a sense of accomplishment and feel that you can get there.
And still others, will snowflake in order of minimum payments from largest to smallest. As Mary Ann pointed out this tends to free up more money for snowflaking to the next debt as each is paid off.

The main key regardless of which order you choose to snow flake is that you should choose one system and stick with it. Basically what I mean by this is that if you choose to pay in order of interest then you don't change to paying in order of size once the first debt is paid.

Hope that has helped.

Lyn