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Originally Posted by brightfuture
I have about 12,000 in credit card debt..... this just recently became overwhelming to me and my husband since we purchased a home a year ago. The mortgage payments, and utility bills are often enough to wipe us out every month. Somehow things always manage to work out though, and we have never been late with a payment on anything.
I am getting tired of living paycheck to paycheck and recently considered taking out a personal loan to pay off the debt. The interest rate would be lower and the monthly payments would be lower. Is this a good idea? I have learned my lesson and have already cut up those cards. I can't live in a state of anxiey like this.
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I can hear the hurt and frustration you are feeling.
We got into a similar situation about 25 years ago. Our problems happened when I got a promotion, had a bad auto accident and and to move to a remote area where we had to buy for weeks at a time. All the expenses came at once and nearly swamped us. Today I could sort out the situation in a week by reorganising my borrowings and selling some assets. Back then it took 4 years to climb out of the mess.
The good news is that we came through and so can you.
The question of refinancing is a challenge. The refinance option can be good if it means you get through the short term. The problems occur when the debt takes longer to repay. In the end, refinancing at a lower rate usually ends up costing more. The advantage is that you can have a life along the way and that's worth considering.
The first step however is getting a list of what your expenses really are.
Then you need a budget that works.
Then you need to know that we all go through these times. The details vary, but the hurt is the same.
You can do it!
Enjoy Your Money
The Budget Man
www.PersonalityBudgeting.com
The starting point for any budget is a system that works
