I need a plan for paying off debt!

[Amy752]

I could really use some help planning the best way to take care of debt. Between CC's, medical bills, and vet bills we owe about $6000. The medical bills are not really a problem because we're on a payment plan and not being charged interest. Our CC's have high interest rates though, and need to be paid off asap. Problem is, we don't have much extra money each month to put toward them. I have already cut out as much that I can from the budget and it is not possible to generate extra income right now (at least not an actual job on top of the ones we already have...). Then those vet bills -- we owe several hundred dollars and although we aren't being charged interest, I am paying interest in the form of GUILT! I'm putting it on myself, but our vet doesn't normally bill people and did it for us only because it was an emergency and my husband was out of work at the time. So obviously, my conscience is really getting to me. In addition to the $6000 total debt already mentioned, I also owe my dad several thousand dollars. At this point I don't even think he expects that we'll pay it back (he always jokes and says "you're spending your inheritance) but it's very important to me that I do pay him back, and as quickly as possible. All this seems so unmanageable, and honestly I'm more worried about personal obligations (vet & dad) than I am about the growing interest on other bills. Who do I pay first? What should my plan be???? Thanks in advance!!!

[Tree0164]

Amy

How about posting a budget? There may be areas that you can cut that you may have not thought of.

Since the vet bills are bothering yuo the most-I would pay those off first.

I would also consider lowering your credit card interest card rates through either asking the companies for lower rates or doing a balance transfer. Also make sure you are not charging.


Then I would tackle the medical bills since you are already on a payment plan with them.

Do you have things that you can sell on ebay or craigslist to help out?

[PrincessPerky]

Originally Posted by Amy752

... I have already cut out as much that I can from the budget ...!

I said that to myself (and to others) so many times, and yet I managed to cut a little bit here and there, little things that only add up to a couple bucks a month (if) but they do add up.

Never give up and keep on trying, but most of all find a splurge you allow yourself every day, week, or month, as a reward for all the hard work so you don't give up. (mine is a hot shower, as hot as I like, as often as the kids schedule allows)

[nanamom]

As a parent, let me tell you you are more worried than your Dad is about the debt. WE were worried about a debt we owed DH's parents and when we finally had the money to pay it off they refused it. What a blessing. But, if it will make you feel better, by all means start paying him off. Do you dump your change into a jar every day? If not start. At the end of the month, count it, give it to him and mark that off of your debt. As to the vet, You would have done the same thing for him. Relax and let someone help you out by taking payments. Consider it another medical bill and give him a few dollars a month. Pay the CC debt first.It is what is preventing you from paying the other stuff. I sold some stuff on ebay for extra money and had a garage sale. I don't know your situation with work but you could try babysitting one evening a week, or selling a item you make or? and using that money for a specific debt. Princess Perky is right a reward once in a while if important.

[Amy752]

Thanks for the replies everyone. All this debt is really weighing on my mind. I do have some things I can sell on ebay. I will do that....but not sure how much it will help. I would also like to take advantage of some of the cc offers we get in the mail where we can roll over a balance for zero interest for a set period. But, even though we get those offers, I'm afraid to try because I'm scared we'll get declined.

Here's my budget -- and while I said I'd already cut out everything I could, what I REALLY meant to say is that I've cut out everything my huband will tolerate not having (aka Netflix, eating out a whole lot, etc)...

This is per month --

Rent - $795

Car Ins - $117

Groceries ($75 per wk) - 300
This includes our food, dog/cat food, toiletries, and hubby's allergy meds...I did join the grocery game to help cut back even more...

Church - 40

Gasoline ($15 per wk) - 60
we only have one car, and it's paid off - thankfully!

Vet/Meds - $75
this is for monthly heartworm/flea meds for 3 pets -- any extra not included in the $75 goes to pay off our debt there

Phone - $100
Phone and DSL internet...I have thought about how to cut this back but am not sure I could...it includes unlimited long distance which is important because my parents live in another state

Cable - $43
defintely something I would nix - but hubby won't hear of it... We did have dish (cheaper!!) but had SO many problems with it that we switched

2 Medical Bills - $100

Federal Tax - $80
had to go on a payment plan for '04 taxes - this $80 will be our last payment. I think (hope!) that we will get money back this year

Eating Out (35 per wk) - 140
again - a hubby thing...but we never eat out without a deal or a coupon

Electric - $160ish
we're already on a balanced billing plan - same goes for our gas bill

Gas Bill - $115

Water/Sewer - $25 or so -- usually less

1 Cell Phone - $40
still under contract - but will go with a local co. with a cheaper rate when it expires!! This is the cell we had before moving across country and it doesn't have a good local plan in our area..

"Play" $$ - 125
This our splurge money, but more often than not ends up going for things we forgot to budget for

CC #1 - $40
min payment

CC #2 - $29
min payment

CC #3 - 20
min payment

CC #4 plus Dad Debt -- However much money is left for the the month.. anywhere from $100- $200 depending on paycheck fluctuations for overtime

If it were just me I think it would be a lot easier. But my husband is not really on board with a "right now, get it paid off" plan like I am. He has gotten better and I have already cut things out although I'm sure it looks like we're excessive.

The only light at the end of the tunnel right now is that my hubby's boss keeps saying he's going to get a huge (think double) raise soon. He was hired at his new job at a very low wage because he had no experience. He's been doing such a great job that they want to promote him to management. But - not sure if/when that will happen. If it does - I can see us actually getting this all paid off rather quickly. As it stands right now, we don't make much....

[sweeps]

I agree with Tree.. Can you consolidate your credit card debt onto one low-balance card? If your credit score is good, you should be able to get a 0% promo offer. If that's not possible, at least put an extra $10 or $20 beyond the minimum towards the highest interest card.

The electric and gas bills seem kinda high to me?

[Amy752]

Credit score...not so good. Actually I don't even know what mine is because I am TOO scared to look. (bad, I know!) Hubby's is ok....but not great - not enough to roll all our CC debt onto one card I don't think...

I've never lived in a house before this, so I don't have anything to compare to as far as gas and electric go... I've just started turning the heat off all day hoping that will help. But, since we're on a budget plan with our gas bill, I won't see any instant savings with that. I have no idea why our electric bill is high? I don't think we use any more than the average person?

[sweeps]

Ok, even if you aren't eligible for a no- or low-interest promo rate, you can at least try transferring the balance of the highest interest cards to the lowest interest cards. 15% is always better than 20%.

Have you and your husband gotten your free credit reports? I know you're scared to look at them, but there may be some issues that need to be corrected. annualcreditreport.com

Maybe you could talk to your neighbors about how much their gas and electric bills are? Even though you're on the budget plan, it should still say how much you would have paid that month. My gas bills right now are huge thanks to wintertime in Chicago. But your location says Gulf Coast... I would assume you don't have to use nearly as much gas?

[Snoopy2645]

Go 0% to ccs transfers & cut the cell completely when contract is up & try going to a cheaper plan if allowed until that time comes. I understand pets are important but I would try not going to the vet so much. Cut your reg phone down we havent paid for long distances in years thier are way to many free calling cards online out thier. Try eating out only half as much or something. Try not to use as much electric turn eat down & wear sweaters stuff like that hang some clothes. only a few ideas here

[PRICEPLUS]

Is there any possible way you can get part time work to supplement your income?

[PrincessPerky]

It ain't easy to go from 60 to 0, meaning you arn't going to get your DH to drop all his fun in one month, take it slow, join him in the belt tightening, and find ways to have free fun. IT will be hard for DH to take you out to eat if dinner is already on the table, stuff like that. Oh and IMO, DONT yell at him!! it never works!

For the heat, go two or three degrees lower now, when he complains go back up 1, still a net drop. Don't think you can go from 75 to 65 in one winter (took me three).

On cable, try not watching it for a awhile, then try finding reasons for DH not to watch (hard to leave your wifes side to go watch) You will see the results in the electric bill now, and you will find it easier to cancel cable that no one tends to watch. (unplug it and check what local stations you do get, borrow rabbit ears)

On your electric, make sure you are actually paying the same amount with the budget plan, sometimes the end result costs more, just easier to biudget for. They offered us one that would have cost over 100 more a year. It might be easier to budget the 140 but only pay the actual, and save the rest for other months. Unplug some things, get power strips and watch it go down . (BTW my bill is about 50 a month, 30 on non air months, 50 for summer and christmas)

It ain't easy, it ain't overnight, but you will get there .

[Tree0164]

Amy
You may want to compare how much it would cost to go to the cable modem route and get a broadband phone, that maybe about $30 $40 cheaper.

Eating out try to limit it to once or twice a month rather than each week. Or tell dh that you have a great new recipe to try out.

Your electric bill seems high. Try turning off the hot water each day. Wash your clothes in cold water.

Food seems decent...

Keep on coming back here for more support.
Also try checking out Dave Ramseys book, you can get them from the library.

[Amy752]

Thanks everyone! These are all good ideas! I also started a $20 challenge to help pay off my dad (or maybe that will turn into the vet payment since that's a lot less). I know it will be slow going but it's nice to have a challenge that doesn't require squeezing any more pennies out of our already stretched budget. Of course, I know it needs to be squeezed, but I will use extra money from the budget to pay those CC's down. I am going to careful consider all the ideas here over the next couple of days and see what I can do! All of your successes inspire me - so thank you! I am determined to get where I need to be and finally - for once in my life - become a financially responsible person. I'm so "good" at everything else in my life (not my words, but others) that I feel like more of a failure that I can't get my finances under control. Especially since this is not the first time we've been into this kind of trouble.

[Lostsoul33]

Another small idea is to not use your dryer as much. I hang all of my clothes and when they're almost dry, I pop them into the dryer for 15 mins or so.
Also, you can look around for freebies and that will save money on your grocery bill. There are tons of freebies out there if you just search them out. There are also surveys that you can do which would give you a couple of bucks in your pocket.
Think of household products that you can do without. If you ever google "vinegar",you would be amazed at all the things you can use it for. You can also make your own laundry soap.
That's all I can think of right now. This is an awesome forum and if you take the time to read and ask questions, you will learn a lot. Best of luck

[frugalfarmwife]

Make a list before going to the grocery, shop monthly/ bi-weekly, cut down on extra trips, combine errands. You say your in a house? Grow a garden! It's all baby steps, nothing huge happens overnight.

Do check into the 0% CC options, also check into online pet meds, get a script from your vet and order online, much cheaper!

Put up a laundry line (LOL, I love this too because it drives my neighbors nuts! But compared to what they do it's small beans!)

Prepare a menu and go by it, dinner on the table does prevent you from going out to eat.

Trust me I do understand feeling like it's an uphill battle with hubby, mine was raised with the "we'll handle it tomorrow" mentality and it drove me BATTY for years! He recently had his eyes opened when seeing how much money his mom has gone through in the last four years, he has a whole new appreciation for me and my frugal ways, I am MUCH more appreciated now and it has really helped our marriage

Maybe if you work on it quietly yourself and then can show him the difference you've made it will bring him more on board?

kj

[Ima saver]

I do think it would help to pay on your high interest credit cards first. Then I would pay your vet and your dad last. Maybe you could give your Dad $5 a week, then he would know you are trying. I loaned money once to a friend. If she had given me $5 a week, I would have felt good and would have loaned to her again. But she didn't . She did not pay me for about 5 years.
Also, i am a dog lover and have always had them. I got them shots when they were puppies and that was it. My dog's have never been on heartworm/flea meds. One lived to be 20, another 14 and I currently have a 15 year old dog who has been to the vet once in her life, to get spayed.
$75 a month could really help out of those credit card bills.
Try taking advantage of those 1% cc offers. I don't think you would get them if your husbands credit was not pretty good, and that is usually whose credit they look at.

[Ima saver]

Oh and turn off your hot water unless you are using it. That will probably save you $30 a month on your electric bill. Make yourself a note to turn it on 20 minutes before a shower and turn it off immediately afterwards.

[Amy752]

More good ideas - thanks all!

I've been trying a lot of the ideas at home to cut back on bills, and best of all, the vet bill is off my mind. My husband works for a fairly small company and gets along well with his boss. He explained the situation and his boss gave him a loan. He's only going to take out $25 per paycheck til it's paid off!!! I am so happy! I have way too much pride to do that, so I'm proud of hubby for taking the initiative. I know a lot of you said the vet bill was the least of my worries, but a couple days after I posted I got a notice from them saying it needed to be paid or off to collections! As far as the CC debt, I got a pre-approved 0% interest for balance transfers until '07 offer in the mail so I am going to roll our highest interest rate card onto that. Finally - the dad debt - I scoured my house and am going to sell some stuff on ebay to start get that ball rolling.

It's all a start and I'm feeling much better. Thanks to all - not only did you give me some great ideas, but you got me motivated to really tackle this problem head-on!

[Ima saver]

Now you are taking some steps in the right direction!! The vet bill will be paid, you will soon have no interest charges on your highest credit card for a year and you are selling some things to pay your dad back. Like I said, if I loaned a family member money and they paid me back just $5 a week (more if they could) I would consider them to be really trying. Keep track of what you pay your dad on paper too.
(And go turn off the hot water heater. It is on the circuit breaker, my husband installs a switch in all the houses he builds, so you can turn it off in the kitchen)

[Amy752]

Our hot water heater is gas though, not electric... I wonder if it would save on that bill?