Kate - Introducing myself . . .

iVillage Member
Registered: 01-06-2010
Kate - Introducing myself . . .
8
Wed, 01-06-2010 - 9:44am

Hi everyone!
I am 32, married for 6 years with a 2 year old and another baby due in March. I have been in debt in since someone foolishly gave me a credit card my freshman year of college. I have also been trying to get out of debt as long. Last summer after we found out we were pregnant with #2, we got serious about calculating our net worth and working our way out of this hole.

At that point our stats were:
Credit Cards - $29,322.44
Car Loans - $5,465.34
Student Loans - $45,211.21
Mortgage - $149,626.99

We actually make a decent amount of money but have never made headway in our debt because we never stopped using our cards and would justify any purchase under the sun if we really wanted it.

For the past 6 months, we have not used our credit cards at all and have paid down about 12% of the total. We have been doing well, but I really need the support of a group as this next year will be challenging and I can't discuss any of this stuff with my family. I will be taking a 3 month unpaid maternity leave and I am the primary wage earner in the household.

Thanks for listening and I will update my stats and tickers tomorrow.

Cheers - Kate

iVillage Member
Registered: 01-06-2010
Wed, 01-06-2010 - 10:16am
Testing signature . . . .






AlternaTickers - Cool, free Web tickers
iVillage Member
Registered: 07-02-2008
Wed, 01-06-2010 - 11:57am

Welcome Kate. Congrats on the baby-to-be!

First off, if you two are making solid money then you are on the right track. What are you plans to tackle first? I am assuming some of your c/c's have higher interest? Perhaps those should be the first cards you tackle to pay off. My DH and I worked at paying off $28,000 in c/c debt. We did it over a 17 month period but we had some great windfalls come out way to use towards debt.

Anyway, I guess I'd also have to ask if you are getting paid for maternity leave coming up shortly? Do you have a game plan for that? If you don't - saving for maternity leave right now should be your main goal so you aren't using c/cs for living in a few months.

I will post more later. Sorry - just wanted to say welcome.

iVillage Member
Registered: 12-30-2009
Wed, 01-06-2010 - 12:25pm

Welcome Kate! You will find so many people here with so much great advice and support.

I can totally relate as far as using the CC and justifying ALL purchases. It's really scary when you think about how quick and easy it is to get into debt compared to the time and MAJOR attitude changes that must be made to get out!

Again, welcome and I look forward to getting to know you!


Jenn


“For the love of money is a root of all kinds of evil” ~1 Timothy 6:10


Jenn<?xml:namespace prefix = o ns = "urn:schemas-microsoft

iVillage Member
Registered: 08-24-2007
Wed, 01-06-2010 - 1:33pm

Hi Kate, I'm a Kate too!

Kate


empty purse

iVillage Member
Registered: 11-14-2008
Wed, 01-06-2010 - 2:31pm

If you are going to be income reduced I would pay minimums on everything and save save save. The family has to have a roof over its head and food during those three months so concentrate on that first. When that period is over and you can breathe, then concentrate on paying off debt.

Good luck and congrats on the baby that is coming.


iVillage Member
Registered: 10-01-2008
Wed, 01-06-2010 - 2:48pm

Hi Kate and welcome.

Norma


"Patience is the best remedy for every trouble"- Plautus


iVillage Member
Registered: 01-06-2010
Wed, 01-06-2010 - 3:18pm

Hi! Thanks for the warm welcome!

A bit more about our actual plan . . .

1. Car Loans - We have been paying off the cars at their current payment and no extra because they have a low interest rate of around 4% on one and 7% on the other but because they are term loans, we can't pay less and they should both be paid off by this summer and can be one more thing we strike from the list.

2. Credit Cards - for the past 6 months we have been concentrating on not incurring any more charges AND paying the card with the highest rate first (24.99%). It is almost paid off and the next highest interest rate to tackle is 19.99%.

We have paid down about 12% of our car and cc debt since June of 2009 and have not used the cards at all.

3. Emergency Fund - We have been paying $250 a month towards our emergency fund and had it at $1000 until December wiped it out. We had to replace the water heater, pump the septic tank and have some plumbing work done. I hope to have $1000 back in the EF by the baby's birth.

4. Maternity Leave - I will be taking a 3 month unpaid maternity leave. This makes me a bit nervous as we took on a lot of cc debt during my first maternity leave because we didn't plan and I am the breadwinner so not having my paycheck will hurt. I have made our budget for those 3 months and between my short term disability payments and some stock we have to sale, we should have enough money and maybe a bit extra depending on stock prices. We won't be able to pay down any debt during this time, but at least we won't increase our debt. Worse case scenario is I would have to go back to work at 2.5 months.

My goals for maternity leave -
* have cc and car loans paid down by 20% before the maternity leave
* pay cash for the few things we need to buy for the baby before March
* not put anything on the credit cards during my leave

Again - my tickers (except the pregnancy one) are not up to date. When I get home tonight I will check my balances and correct them.

Thank you again for such a warm welcome. I am really looking forward to getting to know everyone on this board. We have started out good but I have started out good before and lost motivation and momentum when I didn't have someone to keep me accountable. Cheers!







AlternaTickers - Cool, free Web tickers
Avatar for sohappilyme
iVillage Member
Registered: 03-26-2003
Wed, 01-06-2010 - 9:06pm
Hi, Kate! Congrats on not using the credit cards for so long and congrats on your baby due in March! I'm due in June myself with #6. (Big surprise since we planned five and had a tubal ligation - this new kid is already breaking the rules!) Welcome to the board and I hope to see you often!

Photobucket









FLINGING DEBT:
Sarah