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Originally Posted by ednaparz
This reply will not have much to do with the article posted, but I am desperate for some financial help and wonder if anyone can offer advice?
My husband will be out of a job in two weeks (he chose to resign due to a hostile work environment), and we have a mortgage payment, car payment, and a credit card bill of around $4K, not to mention other bills like utilities, cable, etc. We don't have much in savings (around $2000), and don't want to dip into 401K or other long term investments, but know that we will run out very soon. We also don't want to get into deeper credit card debt.
We are selling one of our cars and will receive $5K for it. Should we use this money to pay off the credit card or save it for future months? What are some other things we can do to try to keep from going further into debt while we have no income?
Help!
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Here are some suggestions to consider.
I would pay off the credit card debt with the money received from the car and do my very best not to put anything else on it. That saves you 18% interest right away. It may be tough in your current situation though, but it can be accomplished if you really want.
Take a look at your current expenses. There are lots of tips in the tips section on saving on utilities. Take a look at extras you are currently paying for. Is cable tv worth what you are paying?
Some more drastic money cutting measures:
What are the current payment s on the car you are keeping? Is it more car than you need? If they are rather high, you may want to sell that car too and get a used car that is more economical to your current situation. This in turn may reduce your car insurance.
Most people buy more house than they really need. If you mortgage payment is too high, you might want to consider selling an moving into a smaller place.