WWYD???

iVillage Member
Registered: 01-13-2005
WWYD???
17
Wed, 01-14-2009 - 2:00pm

Hi All,

Me again,
I have started to think about our tax check and what we are going to do with it. I had it all set till last FRi when DH called me and said they are doing MASS lay off and he wasn't sure if he was gong to make it. We found out Monday that he was ok but at this point we don't know for how long. He has already started to look for a job but he is at a hirer pay scale and they are hard to come by.
Quick back ground, DH was laid off most of last year after working for a co for 6 years. He was out of work for 7 mo and found the job he has now. In that 7 mo we got into so GOOOOOOOD CC debt. I am bound and determined to get out of it in the next few years. ALSO we have no saving.....

So here is my questions....

With not knowing what is up with his job do we but all of our tax money into saving?

Do we pay off 1/2 of our debt and but 1/2 in saving.

We were planning on buying a new couch ( YES I KNOW BUT WE REALLY NEED ONE, we needed 1 last year and said we could hold off 1 more year) and putting the rest on a CC
Instead should we put the $$ we were going to spend on the couch in saving till we know what we are doing and then add the rest to CC?

AHHHH I am so confused!

Thank you for letting me pick your brain AGAIN!!!!

Erin

Erin

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iVillage Member
Registered: 03-03-2004
In reply to: erinmom2005
Wed, 01-14-2009 - 2:27pm

This is what I'd do (and I am in a similar situation, layoffs are coming at my DHs company as well and he thinks he might get hit this time).

iVillage Member
Registered: 02-17-2005
In reply to: erinmom2005
Wed, 01-14-2009 - 2:42pm

We also have lots of credit card debt (as well as other debt) and no savings, so we are sort of in the same boat. I am planning on using a small portion of our tax refund to create a bedroom for my almost 2 year old (she has GOT to get out of our room, and the room we will be using is NOT useable as it sits) and then socking the rest of it away in savings. I figure if we put it all (or some) into paying down the cc, then if we had an emergency we'd have no choice but to rack up more cc charges and we'd be back where we started.

I also would hold off on making any larger purchases, like the couch. When it comes down to it, if he were to lose his job, you might need that money for more important things like food, medicines, etc.




Edited 1/14/2009 2:44 pm ET by imsupermommy
~Liz
Avatar for sarahfran
iVillage Member
Registered: 03-26-2003
In reply to: erinmom2005
Wed, 01-14-2009 - 3:32pm

Since you are now paying off CC debt that you incurred while your DH was laid off last year, that means that your household budget is different now (higher since you have debt to pay) than it was during his last period of unemployment, so you'll be in even worse shape to weather a layoff now than you were then.

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Avatar for jenud97
iVillage Member
Registered: 03-29-2003
In reply to: erinmom2005
Wed, 01-14-2009 - 4:28pm
First, let me tell you I really hope your DH does not get laid off. Second, my two cents worth of advice would be to put it all into savings and definitely forego the couch! Seriously, if he loses his job you may need all your extra money to help pay the rent/mortgage until he gets a new job. What good is a new couch, if you have nowhere to put it? Also, if you pay off the credit cards then you will just end up paying them back up b/c you have no money is the emergency fund. Look at freecycle.org if you need some place to sit. Maybe you get get some old beanbags or chairs that someone is casting off b/c they redecorated.

Jennifer


Jennifer

 

 

Avatar for momtb4
iVillage Member
Registered: 03-27-2003
In reply to: erinmom2005
Wed, 01-14-2009 - 5:04pm

This is what *I* would do, and it's different than everyone elses.

iVillage Member
Registered: 07-26-1997
In reply to: erinmom2005
Wed, 01-14-2009 - 7:31pm
Me I'd be wanting to pay off as much debt as possible.

 

iVillage Member
Registered: 01-13-2005
In reply to: erinmom2005
Wed, 01-14-2009 - 7:51pm

OH MAN..... RASPBERRIES To all of you responsible smart people that are telling me that I can't buy my couch. BUT I WANT IT!!!!!

FTR Yes I do have something to sit on, it is just ugly and the back is ripping off. Yes we can sew it, but it is only a bandaid.....and I am a SAHM.I am thinking in March that I will go back to work at night if the babysitting I am doing isn't more consistence. I have worked up a budget that is working for us now and will start a good saving again plus pay a bit more on our CC. It is just getting in the mind set. You know and NOT buying a new couch. GRRRRRR

Thanks Everyone I love to hear your input. I still don't know what to do with our taxes....

Erin

Erin
iVillage Member
Registered: 04-08-2005
In reply to: erinmom2005
Wed, 01-14-2009 - 8:30pm

I know what you mean about a new couch but if you are babysitting...chances are you might not want to get anything nice right now anyways.

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iVillage Member
Registered: 03-03-2004
In reply to: erinmom2005
Thu, 01-15-2009 - 11:43am

Sounds like we all agree that you should wait on the couch (ok, everyone but you maybe ;-))

iVillage Member
Registered: 03-27-2005
In reply to: erinmom2005
Thu, 01-15-2009 - 12:28pm

I would put some money aside into savings. What you don't want to do in the event of a job loss is have to go deeper into debt.


Additionally I would seriously look at alternatives to buying a brand new couch.

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