Monthly Archives: August 2015
Just wanted to introduce myself as a new member and try to reap knowledge from those of you out there in the same boat I am. I have one credit card with a large amount on it – lord knows why they gave that to me. I am also buying a home and car. I find myself not making ends meet everymonth to cover the little things that seem to come up. Any advice on what is the most important step to make would help. Also, what have you found most useful in your quest to be “debt free”.
I’ve used FlyLady’s system for my home. Now we desperately need help for our finances. It seems like every plan we try to get out of debt is a dead end. I’m not sure what to do next–if I knew what would work, I’d do it faithfully. Any suggestions you all have would be appreciated!
Good on buying a home.
The mistake that you have done is buy the home with a large credit card debt. Most people buy the home and look at the mortgage payments and say to themselves that they can or cannot afford. This is 100% wrong way to look at it. When you buy the home, you also buy all the problems. It will require, based on some estimates, another 40% more to the monthly mortgage payment just for maintenece. Do not overlook this.
So when looking at your mortgage payments you need to factor in maintenece, etc. That is your true monthly cost. But having a large credit card payment every month will take away from your speandable cash so you cannot do your maintence on the home. Eventually you have to get more credit cards to pay for that broken water heater, etc. Before you know it you are way over your head.
The first thing you should do is get rid of that credit card. Especially since the minimum payments are doubling after the first of the year. Then start paying down your mortgage as quickly as you can. If you have no money at all you can get some urgent cash from here – ElcLoans.com: no credit check payday loans. This website offers great repayment options and high acceptance rates. They also have useful article on fast credit improvement here.
My biggest step was realizing that I was responsible for the situation I was in. NOT ANYONE ELSE. Your comment about why the credit card company gave you the card sounds like me before I faced my problem. That is, not living within my means. My situation was compounded by a dibilitating illness, so I have to fight that to work at all. However, I am making progress. I watch the big things (interest rate, taxes, car payments, repairs, etc) and the little things, (leaving lights on, thermostat, gas prices, meal planning, trips to town, etc). It all adds up to having the money to pay off MY debt.
Start today to re-evaluate your lifestyle and spending habits. A $3 latte every day is $1095 a year…really. Do you need the newspaper and the internet both? Do you need digital cable TV? Should you sell your car and get a smaller, older, more fuel efficient and insurance efficient car? Are you paying PIP premiums on your home mortgage that could be removed?
Watch every penny. (Notice whose picture is on the $100 bill? He was no fool.)
Hope this helps. Good luck and God bless you.
Yesterday I was asked a question:
Where is the best place to get someone to get my finances striaghtened out. Many years ago I went throught consumer credit – hubby had own bank account and blew all his money without my knowing it. I got that stopped in a hurry. CC was able to get us through. Then when my husband retired, his company totally screwed up his retirement ( eventhough it was in writing and they admitted a mistake) so half went to the IRS and his annuity is only 1/2 what he was to get.
I also suffered a heart attack that very next year and we moved which used his 401k. Well, after a couple years we were in trouble again and I made the mistake of going with “Jubilee” to reduce my debt. Yeah right! $250 fee every month, they were to handle everything but I got the collection letters and calls and they never contacted the companies. That hurt us worse than beggin to compromise direct with the companies! I did take them to the Attorney General and got back some of our money. So we then went to Consumer Credit (website) again and got help. I think one place we went wrong is that as soon as we got ahead I paid them off instead of putting the money aside.
Well, after a foreclosure on a home, two moves it has come around again. Yes this is a “don’t you learn?” story. I have the job I have always wanted and making good money. However, we lost the majority of the downpayment I had for a house with a mortgage broker that dragged us around for months in which I spent for 2 inspections, rent, storage and rent for my hubby to keep working in another state.
We ended up with a lease to own home. Love it but I had told them we could do $1000 a month but when the it came to getting the key they raised it to 1300. Hubby just got a job – so much for retirement and what really hurts if we have 3 years in Income taxes to pay. Sorry so long – I am sure others have been there. What do I do? We are supposed to buy this in October and I don’t know how – everything is late because of pay periods.
I guess I’ll be the first to give the standard ‘you have to keep track of your spending’ spiel.
But that said, welcome to the list.
I am currently involved with a company that designs a financial program for the handheld PC running windows mobile.
I understand that not everyone has one of these, but my theory on this is I take it everywhere I go, and if I could use a program to tap in how much money I spend whenever I spend it, that would give me a good idea on how much money I go through a day.
The rules of the software are simple.
A nice interface where you can quickly tpa in how much money you spent, as you are spending it. For instance. Say you stop at the coffee shop. Tap in $1.55 (that is how much mine is) and away you go. After a couple of weeks where you know how much money you’ve spent, you can start to reign it in.
With the hassle you’ve had with companies that are supposed to assist you, I would sugest that you attempt it on your own for a bit. At least until you get an idea on where you stand.
Deb has some great spreadsheets on the debtsteps website to help you track all kinds of things, I would suggest that you download those and begin assessing your situation.
Also, if you are afraid of purchasing this home in October, then by all means don’t do it. Either continue to rent or look for a place more in your price range. You may go ahead and purchase it, and then you will slowly dig yourself a hole and be in the same situation all over again.
But the first thing you need to do is write out all your payments you need in a month, and compare it to your income. This will give you an idea where you should start.
I hope this is a little helpful.