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|Tue, 01-12-2010 - 4:22pm|
I'm Melissa...I'm almost 29 and have kids age 8,7,7,3,&1...and a dayhome lol....and a whole lotta debt..
My husband & I have a horrible habit of racking up our credit cards. However, it's never been a problem before as we have 2 houses (one is a rental property) and have always been able to take out the equity, refinance the mortgage at a lower rate and still come out about even, if that makes any sense.
However, since the downturn in the economy we don't have any equity left. Plus rental income is a lot lower than it used to be.
We were running our credit cards up pretty high last spring, living beyond our means etc...Recovering from a custody battle...
We had full intentions of reducing expenses & increasing income when we returned from a family reunion (once in a life time kind of deal) in the summer.
We got seriously sidelined by all our plans when my husband's ex decided to file a BS "Affidavit of Arrears" and all of the sudden they were taking 40% of my husbands GROSS pay from his regular time and 100% (ALL) of his GROSS overtime (and yes, apparently they CAN do that). We of course appealed it and sent in a financial statement etc (which we've done previously with a reasonable outcome)...however we got informed while on vacation that we could "Afford" to pay $2,000 a month in child support...right...........
So by the time we got back at the end of July, we were out about $6,000 and 2,000 more was taken in August..leaving us with enough to pay the mortgages and that's about it...ZERO cash flow...so the CCs got maxed out.
Awesome...his ex was getting 2,000 a month and we were lucky if we were getting 2,400!
(On a side note, his ex is currently across the world...she doesn't work...she's been living off this child support & "saved up" to be able to go on this month-long vacation..so I'm a little bitter)
So we've made pmnt arrangements with one credit card (almost 20,000) but are 3 months late in another (39,000) and of course now our cell phones have been cut off and we owe them a "cancellation fee", our utility supplier "de-enrolled" us so we owe them in addition to our new provider..etc etc etc.
We also have 10,000 in student loans that currently aren't getting paid at all and my CC of over 3,000.....Plus personal loans from my parents that helped us cover our butts in August & September...
So basically it seems like an never ending black hole.
Worst part, I'm an accountant. Well used to be, before 5 kids when running a dayhome became the only option.
The good news is, the "arrears" are done as of Jan 30th (Husband opted to not hire a lawyer to fight this as it would have been another $5,000).
I have a debt repayment plan, my husband's cashed out his company stocks to get caught up on house bills & the credit cards, we've managed to reduce one of our mortgage payments, and we've got a really cut-down budget that I know we can live with.
So not looking for a whole lot of financial advice but I am looking for emotional support...because the past 5 months have been hell. I've gone into a major depression and being forced into dayhome really quickly landed me with a very..."challenging" child who basically sucked me dry of energy & the ability to be a good mom to my own kids...
So I'm trying to enter into the rest of 2010 with a positive, "can-do" attitude & I know I need some support with it!
Whew...sorry so long!