Just wanted to introduce myself
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.