My One Dollar

[Benny]

3rd day on the site.

Let me tell ya. I knew for about 6 months that I was going to be in deep **** for a long time for all the fun I had the last 10 years. I am 26 now and mathmathematics say that if I pay off $10,000 of principal on my debt every year. I will be out of debt in 52 years. Now how to save $10,000 a year?

I can't set up a budget because there is nothing to budget. Every penny I make and then some goes out every month. Only thing is I am starting a photography bussiness and going to wait tables every Friday and Saturday night.

I have cut everything but the power, water, trash, and gas. I have everything anyone could ever want, been everyehere I need to go. Just have to buckle down and not spend one dollar.

So I have one dollar in my pocket and that is the last cash that I will ever see until all of my debt it is paid off. I also work as a route supervisor for a bread company and make good money doing that includes teamster union benifits for health coverage so I am set. Just can never ever spend that dollar on anything that won't just keep me alive. I know I sound drastic and dramatic but seriously; the way I was blowing money it would become inevitable.

In just 3 days of finding this site the thought of it, helps keep me motivated through the day to not spend that one dollar. Knowing that there are millions of people that were just like me who are fighting everyday to cut where they can to pay the demonus debt helps me not spend even one dollar on anything that is not an absolute nessesity.

BOLTA
Benny

[Broken Arrow]

Originally Posted by Benny

if I pay off $10,000 of principal on my debt every year. I will be out of debt in 52 years.

Are you saying that you owe... 520k... before interest?!

Also, you mentioned that you have nothing to cut, but at the same time, you're saying that you're starting a photography business? Can't that be put on hold until you are in a better financial footing?

Well, whatever it is, take care, and yes, we're all in the same boat on this one. I too am working on mine.

[PRICEPLUS]

Whoa that is a boatload. Have you considered bankruptcy? With interest you are going to be hurting for a long while!

[PrincessPerky]

I am looking forward to hearing how long that dollar stays!

[Benny]

Heres the break down.
Primary Residence. 232,000
Rental. 133,000
Home equity on Rental. 80,000
Home equity on Primary. 50,000
Credit Card 12,000
Auto 8,000

So its only $515,000. My one dollar is still in my pocket. The photograpy bussiness is a portion already tied in. But the $$ will start to come from that. My wife is actually the brains behind the bussiness I just take care of the kids and help her when she needs it. We had our last born 6 months ago and when he was born my wife quit working at the orthodontist office. For Christmas I got her a 8.2 Megapixel Professional Grade camera. She has 3 Weddings and many many appointments all set up to take picture of kids and couples. In the fall she will be doing graduation pictures. Amazing what people spend for those kinds of pictures. She/We are acutally getting going with this. Every dollar she makes will go back to the debt of the bussiness and personal. There is no way I am turning back now it is all going to start coming back.

As for that one dollar today I bought food for me for the week. It entailed 3 cans of Tuna, 8 Bannanas, pack of Hot Dogs, Gallon of Milk, dozen eggs. Total was 17.77. I used a debit card that Cingular sent me. We have like 3 dinners worth in the cupboard. My 6 month old eats this stuff called allemntum which is very spendy mixed with rice cereal. My girl who is 2.5 eats what we do. That is how tight our belts are right now.

Can you file for bankrupcy with over 700 credit score? If I filed bankrupcy would they make me sell a house? If I sold out right now I would be net worth 20,000. I am just in a little slump right now and thought I would share my thoughts ideas and story. This isn't the first time in my life I have struggled. But, I don't know if I have ever had so much on the plate before either. I have never had a late payment in my life. But let me tell ya the first may come in June or July.

BOLTA
Benny

[sweeps]

What's the cash flow on your rental home? I'm really puzzled why you're living like a pauper instead of selling it off?

[boomeyers]

Glad to hear your wife if staying at home. Is she on the same path to paying everything off and no new debt?? She should be your key to saving a lot!

[Benny]

Sweepsplayer, I wouldn't sell my first home cause someone is paying that debt off for me. Remember I am 26 not 46. By the time I am 46 that house will be paid in full without a dollar of my own money.

If I had the mentality of my wife I would never have gotten this far into debt. She is very stingy. And a great mommy. She wants to get out of the hole the same as I.

Off to work!

BOLTA

Benny

If you can't pay off debts in a timely manner, perhaps you should consider bankruptcy.
You can repay your creditors after you get back on your feet, although you would have no obligation once your debts are legally discharged.
Living under crushing debt is not living.

[sweeps]

Originally Posted by Benny

Sweepsplayer, I wouldn't sell my first home cause someone is paying that debt off for me. Remember I am 26 not 46. By the time I am 46 that house will be paid in full without a dollar of my own money.

Ok, then I assume you do have positive cash flow on your rental. But that means you've made a choice to operate your 1st home as a rental property instead of cashing out and paying off other debts (assuming you have any equity).

I'm not a bankruptcy attorney, but I would be shocked if a judge would allow you to keep both homes while discharging all your other debts.

[34saving]

You only have $12,000 in unsecured debt. Bankruptcy wouldn't be worth it. You're going to have to do what you're doing. Save, save, save, pay, pay, pay and hope your tenants don't miss a payment.

In the meantime, it sounds like your wife is doing very well for somebody who just started and you certainly won't be able to recoup what you've spent by bailing now. Keep going with the business.

I don't think your situation is all that uncommon for young entrepenuers (you have at least two businesses going now). Just don't give up by spending money you don't have. When unexpected expenses come up try to be creative and never pay retail! Good luck!

[Ima saver]

I had 3 rentals and that was the worst time (moneywise) in my life. I would sell the rental property. I don't understand why someone is paying on your house for you?? Glad you have a thrifty wife!!

[PrincessPerky]

mt kids are 4 and 2,5 and 7 months, the older two eat what we eat, period..the youngest drinks milk (I make it free, cxame with thg female plumbng .)

tuna bannanas and milk soud like a great healthycouple of meals..got flour? you can make buiscuits form flour and water......If you read/watch fantasy it is known as 'cram' if you read/watch history it is 'hard tac'

[boefixepa]

Don't give up! We'll keep giving you the encouragement and lots of little ideas (from the web site) and you hang in there!!

PS. I would recommend 'The Complete Tightwad Gazette' for how to eat for nearly nothing as long as you and wife can cook. I'm working on $50 a month for one person. She feed a family of 8 for $200 a month in the 90's.

[Benny]

Thanks for all the advise. I hope all is well for everybody. Still just tight as hell around here and will be for a while if I want to succeed. No way am I filing bankrupcy.

BOLTA
Benny

[PrincessPerky]

Good glad to hear it (if you care what an online person thinks..)

[boefixepa]

If you don't want to buy the book check out this site. It's basically the same info on cooking, though the gazette has lots of other great money saving ideas, it's been fun to try and do it.
http://www.hillbillyhousewife.com/index.htm
This came from someone on this site, just another thread, so I thought I'd put it here for you. Also this site is good for cooking and freezing to make things easy.
http://snider.mardox.com/

Hang in there!! This is doable.

[Ima saver]

We are all pulling for you Benny!!

[Benny]

Today I looked at the online checking account. It said we put $55 in gas into the 1999 Ford Explorer that I owe 8 Gz on. Had to get another gallon of milk and cream cheese. I am a breadman supervisor so I get all the bread goods I want so I took home some bagels and texas toast. The final payment of 71.00 came out for Lowes. New washer and dryer a year ago. Took advantage of a year no intrest on that. Have the Neptune washer and superduty dryer. Will never have to buy either of those again. I pay bi-weekly on my rental so really I have no cash flow form that. Plus the tenants are super. They have 3 kids, do yearly agreements, and credit is so bad from previous divorces that they can't buy a home. If they ever moved out I could probly get a lot more a month.

Just wanted to let you know that I still have that buck. Cause i am gonna need it my bank account is the lowest it has ever been. Long Long road ahead.

BOLTA
Benny

[asha]

ok you say you have everything anyone would ever want. I think that maybe ebay could be your next bext friend? I don't think going bankrupt is ethical to your debtors when you ahve property and possessions.