Mortgage question/help?

[atatat]

Ok...how great is this. Last night I was going thru all my bills and my HUBBY got down on the floor and helped! Yes, this is a true miracle!We both sat there and went over everything...it was great. I must admitt I was pleased to finally break everything down in front of him and show him exactly "WHY" we have no money. I have always had a small gut feeling he really was clueless about where all the money goes.
He actually did know more than I gave him credit. He actually did have some input, and I think this is really going to work.
Here is what we came up with:
( This is per month......)

Income: 3036 monthly
Expenses:
617.34 Mortgage
430.50 Car (this is the kicker)
363.73 truck
94.00 Gas/heat
130.00 Electric
70.00 water
39.00 Cable
42.00 phone
28.90 Internet
174.50 Insurances home/car
118.00 taxes/property
350.00 gas/vehicle
20.00 RX
60.00 Dr.Bills
22.00 Union Dues
_______________

2559.97 monthly Bills

Income: 3036.00
Bills -2559.97
------------
476.03
That only leaves me with $476.03 every month for credit card debt($1736.13), food, extras and savings.........

Now we know why we are in the mess we are in! When something comes up, we go to the credit card! It looks horrible! Aghghghgh.........I need to fix this!

I have posted this in my journal as well so I may always go back and look it it as I go...So, here I go and I'm ready for your advice, ideas and yes...I will do anything I can to make this better!

[autoxer]

Here's a couple ideas.

Originally Posted by atatat

( This is per month......)

Income: 3036 monthly
Expenses:
617.34 Mortgage
430.50 Car (this is the kicker) <-- Only 4 more payments, right?
363.73 truck
94.00 Gas/heat
130.00 Electric
70.00 water <-- You can check for leaks by turning off every water using appliance & checking to see if the meter is moving.
39.00 Cable
42.00 phone <-- Is there any local companies that will combine cable/phone/internet for a discount?
28.90 Internet
174.50 Insurances home/car <-- What is your deductible?
118.00 taxes/property
350.00 gas/vehicle <-- That's a lot of gas. Is it mostly for the truck?
20.00 RX <-- If this is a co-pay, you could ask your doctor for a 90 pill prescription instead of a 30 pill, so that it will last longer.
60.00 Dr.Bills
22.00 Union Dues
_______________

[atatat]

Originally Posted by atatat
( This is per month......)

Income: 3036 monthly
Expenses:

617.34 Mortgage

430.50 Car (this is the kicker) <-- Only 4 more payments, right? Oh...well that is another kicker, I found out it was the last payment..in my payment book...but not the last payment due. I still have another year!(that's how bad it was..I had no idea what I owe)I'm learning now!

363.73 truck

94.00 Gas/heat

130.00 Electric

70.00 water <- You can check for leaks by turning off every water using appliance & checking to see if the meter is moving. I will look into that. TY

39.00 Cable

42.00 phone Is there any local companies that will combine cable/phone/internet for a discount? I am not sure here either. Do I contact my phone company or search using my zip online?I'm thinking I REALLY could combine phone, cable, internet huh?

28.90 Internet

174.50 Insurances home/car <-- What is your deductible? It is $500.00 for home and each vehicle

118.00 taxes/property

350.00 gas/vehicle That's a lot of gas. Is it mostly for the truck? My husband's truck takes $60 week,and I fill up mine once a week average at $30.00(Expedition)

20.00 RX <-- If this is a co-pay, you could ask your doctor for a 90 pill prescription instead of a 30 pill, so that it will last longer. Yes, this is possible...I will do that!

60.00 Dr.Bills

22.00 Union Dues

I really can see how this is going..and I love your advise! I'm going to work on this today! TYTYTY!
_______________

[autoxer]

Originally Posted by atatat

174.50 Insurances home/car <-- What is your deductible? It is $500.00 for home and each vehicle

The reason that I asked, is that after I established an emergency fund of at least $1000, I raised my deductible to $1000. I didn't have to worry about where the deductible money would come from, and raising the deductible lowers the monthly payment. If you go for a couple years without any claims, it is cheaper that way. If your claims are more frequent, then it is probably cheaper to keep the lower deductible.

[LuxLiving]

We did similar - BUT before we had an EF! Controversial (YES I KNOW - VERY DANGEROUS for the undisciplined) but we HAD TO loosen up some cash somewhere...so we raised the deductible to 1000.00. Had no EF to begin with. This change in insurance freed up about 140.00 a month. Ahhh...a breather. Some 40.00 went to the breathing portion...more grocery $$'s and the rest 100.00 to start the EF itself. We have excellent credit and a VERY LARGE credit line so IF we'd of had an accident the 1000.00 was slated to go on the dreaded credit card.

We didn't have an accident, but had worked the scenario out in our heads and for us it was the straw that released the camel's back from the huge strain the budget was under. This was about 3-4 years ago and things are totally different now in the budget. CC's cleared, auto-debts no more, etc.

NOT IDEAL - Far from it in fact - but it worked for us. I had slashed every other expense and still there was no room to move. I'd suggest you try everything else first! Keep this one back for a last resort. What I mean by that is to go ahead and raise the deductible IF you have an emergency fund going w/the other 500.00. Try and scrape up an emergency fund first if you can!

[Elgin526]

It's the cars that are killing you. The rest of your bills really aren't that bad (there's room to cut, but really I've seen worse).

Is there anyway to get rid of one of your vehicals? Sell one, take the money to pay off your loan, and buy a $1000 bondo-buggy (ie looks like crud but runs)? If your car is worth $10,0000 and you owe $8,000, you'd sell it for $10,000, pay off the loan and have $2000 left over to buy a reliable used car, say $1000 for the car and $1000 as a car repair fund. That'd free up major money in your monthly budget.

Any way you can possibly get rid of at least one of those loans will really get your heads above water.

[atatat]

Yes, I agree the cars are killing us. I don't know what we were thinking in 2000. However, back in 2000 we only had 1 car payment. So, it didn't seem that bad. Now we are in the second year of 2 car payments and it is very difficult. I have definately considered trying to sell the Expedition. We owe, $7200 on it. It has a Blue Book value around $7500. It is in excellent condition. I actually feel very safe with my 3 kids in it....still have 1 child in a car seat. I also love it for our winter months. living in the country with 4WD is a must here. So, in that aspect I can't really say I'd want to get a "beater", I guess I am looking at safety too. I understand what you mean by selling and buying a car we can afford(no payment)(less gas). I do understand it. I am just thinking of my past situations and wondering if I find a way to pay this car off sooner(yet impossible because OF THE CAR PAYMENT ITSELF...LOL)... it would be perfect. Perfect car, no payments..and an extra $430.00 a month. See, this is the whole reason for my initial forum........
Should I refinance...add everything together? I understand we may not have a 5% interest if we were to refinance and I also know adding a car is so dumb...it's like paying 30 years for a car. I'm just lost. Heck if I could find a job making $400 a month and add all the money to an extra car payment a month..I could really have it payed off sooner.
It is so true. We are just making it. If you add up all the items.. it comes out to leaving us with around $470 a month to pay for food(family of 5), credit card bills...(I pay about 100.oo a month sometimes more), but still don't budget in for items such as piano lessons, baseball/softball fees, school pictures, vehicle registrations/tags/liscense/tires/maintenance, birthdays,parties kids get invited to, christmas......this is where we really struggle. ......
It is sort of a tough situation. I mean I have to look at the larger picture I guess. I am staying home with my kids. Atleast until my youngest (3yr old) goes to school in 2 years. By then I really think we will be ok. Hubby get raises every year, car #1 will be paid off, I'll have a part-time(Iwill not work full time with 3 kids) income, and things hopefully will start to head in the right direction.
I admitt, when my 1st child was born and had all the medical issues, we just really fell into a deep dark place. We didn't look at money as a priority, we looked at life and living. It was one of those things that really took a huge toll on us. When she finally got better and we were back into reality...we looked at our finances and WE WERE SHOCKED! What had we done. We were not out buying things, we were just trying to survive. We had medical bills and medical bills and medical bills, our pay checks were horrible because all the days, 1/2 days missed to be at the hospital, tests, Dr. Appt..etc. , so credit cards were the only was to eat, get meds, and get by. Now, that littl eone is going to be 11 and I feel I am still stuck in this fine line between having a good financial plan and falling back into debt hell. We are so on that line. I mean after filing bankruptcy I made a sure promise to myself I would never live and feel that low again. Don't get me wrong, I owe up to it. I do not look at it as a hand out. I feel I owe it to myself, my chidren and all taxpayers to never go back to that time and place again. I think as for myself I need to get over it too. That is one thing they don't tell you, just how low it makes you feel. It's like a sin, one that you don't ever want to tell. I will say that I am not great with money. I have no idea what it is like to have it. I never have and I guess I just got comfortable with living like I always have. I have never known what it like to have a savings account or to have $ in your home for emergencies...absurd! However, having my kids has changed that for me. I see now just what money can do to you. If you have it or not. It let's you sleep or can keep you up. It can make you lie or tell the truth. It can determine exactly what really matters in your life. Is it that fancy car, or the car that will keep your kids safe in an accident. Do you really want it to make yourself feel better or to make others "think you are better".
So much I am going through, and I will say this has been the BEST Site I have ever been on. Everyone has been nothing but nice and true. 1st time to actually talk to people online too. I'm just finding this to be a great learning experience. I am going to do my best to take back my control and I sear I will have a savings account soon. I might even try (with everyone's help) to someday find out what investments,stocks and all those other things are...lol...hey maybe my kids might just have some cash for college too!
So Sorry for my rambling fingers....just needed a good vent this evening..........So glad tomorrow is Friday! I don't work...but I still love fridays! lol

[Snoopy2645]

have you considered demos & merchandising I do this & make around $600 well I just do the demos but you can do merchandising too if you are good at instructions & tools which I am not I only work sat & suns doing this I also have 3 kids so it was what fit for us because dh has to have a brand new truck at all times!! Also try having some garage sales & stuff in the meantime just to get extra cash going for the time being

I also agree the cars are a killer can your husband get something cheaper??

[atatat]

Well I think my dh and your dh are brothers...lol.. No, I would not dare tell him to trade his in. He actually just got it. It is a new "used" truck. It does have a snow plow so that will be extra $ this winter. I can't ake that away from him. That is his only expense since he really does not have any other..i.e., golf, hunting,poker,...he just coaches the kids ball teams and works...so I can't see telling him that..lol
Well I have NO idea what demos or merchandising are? I am clueless with what both of those are. Do you care to share more info? The only thing that I know people do around here that work from home are, Ebay,some medical transacription(out of the question for me) and then my 2 good friends sell Pampered Chef and Pure Romance Products(not for me). I also know a friend who sells Longaberger( but it is so much to get started and hard to sell), I will not sell tupperware...not when you can buy Gladware for $2.00(I'd feel guilty), Avon/Mary Kay..( I never wear make up..tough sell for me..lol), Candles/Home Interior...(blah,,blah,,blah)...yes, so I have exhausted all the options there I know about around my area that sell products. I mean I actually would not mind getting out a few evenings a week and having some adult interaction and make money..but I still want to be able to set my own schedule...That's the problem. I would go get a job anywhere part time if I could work like 10 hrs a week, when I could, and never be fired for taking off when kids are ill, school functions, etc. I think alot of people would be more productive in the work force if companies allowed people who anly wanted part time to work 3 hrs a day..or 10 hrs as they could. ........I know, I know....I'm dreaming.....

[Snoopy2645]

well I work as a demonstrator the hours are super flexiable I take them as I want them & never get fired for saying no because we work as IC's you can email me at mom23kids2dogs@hotmail.com & I can give you more info thier is one company online too I could hook you up with them you book your own jobs I work about 10 hours a week doing this its awesome also merchandising is pretty flexiable you go to the store when you have time & stock shelves or put shelves together things like that it really does fit my crazy life perfectly

I was gonna go back to ft the job I quit to be a sahm was supposed to go back last week & I couldnt do it I cried & cried I felt so much like I was abondoning my kids especially my 2yr old I couldnt put her in daycare for the life of me so I will continue demos for now

oh ya before I started demos I thought we would have to file BK too which I could never do we were in bad shape so I had to do something dhs truck payment is around 400 a month

[greedy4chips]

Here's my 2 cents...Some may not agree, but it worked for us when money was very tight 7 years ago after our first child.

Suggestion #1 Refinance your Expedition! Take a very well laid out budget with you and talk to the loan manager about refinancing the loan for 4 years. You must be VERY strict with the money you save in payments and always put that money towards other debts. Yes you will pay more interest over time, but if you cannot find any other areas to cut expenses, this suggestion will help...about $250/month worth! You must be disciplined or do not attempt this step. If you can, then refinance DHs truck too...this is a temporary fix and payments should be increased with every extra dime!

Suggestion #2 Can you do in home daycare? If not, try and find another parent in a similar situation and both of you get part time jobs and watch each others kids while each other works. Try the fast food world for very convenient hours to work when other children are in school.

Suggestion #3 Cancel long distance service with your phone and get a very inexpensive calling card to make long distance calls with. We pay 2.3 cents per min versus 10 cents+ per min. plus save $21 per month by cancelling the long distance service. WARNING...do not accidentally make a long distance call w/o using your calling card, 25 cents/min or more will quickly make it clear why!

Suggestion #4 Sell DHs truck...yes it is his only expense, but you do not deserve to have a $363 expense in your budget at this time. Sure he will make some money plowing snow, but honestly is he going to ever make enough to cover the truck payments, fuel, insurance and the extra stress it is causing you financially? Would waiting 1-2 years more to plow snow be so bad??

Suggestion #5 Follow previous 4 steps and in 10 years you won't need a credit score to pay off the loan. You will save $800/month in vehicles alone for 8 years is $76800 towards your balloon payment!!!! Your house could be paid for in 8 years with a little planning! You only need to find another $170/month and that is if you make no interest on this money you are saving.

I donate/sell plasma and make $200+ per month. Your DH could do it too! Take in 1 child for daycare and you can make $100/wk easily. Have your hubby buy an old lawnmower and mow lawns for extra money. Mowers cost far less than trucks and the lawns always need mowing! Learn website design and make some money from a website (I did it and anyone can!).

Good luck in your adventure! You can do it and I know you can, because I have been there!

[atatat]

Suggestion #1 Refinance your Expedition! Take a very well laid out budget with you and talk to the loan manager about refinancing the loan for 4 years. You must be VERY strict with the money you save in payments and always put that money towards other debts. Yes you will pay more interest over time, but if you cannot find any other areas to cut expenses, this suggestion will help...about $250/month worth! You must be disciplined or do not attempt this step. If you can, then refinance DHs truck too...this is a temporary fix and payments should be increased with every extra dime!

This is what I looked into last year. I just could not justify it. I didn't want 2 car payments longer than I had to. I thought that if I could try to get atleast one car payed off (being mine since we owe $7,200) that I could take 200.00 from the $430 I did pay and add it to dh's payment and pay his off early. This would mean his truck could be paid off in less than 2 years also. Then, we would have $9120 extra a year and in 6 years have $54,720 to make a payment on our home and only have to finance $39,000. In that sense our mortgage payments would be less each month and that means even more savings??

I am no financial expert...or half the time...I have no idea what I am doing, but I laid in bed allnight last night trying to come up with something and this is all I got. I just need to really find a way to get my vehicle paid off fast! It's hard when that actual payment is my reason why I can't come up with extra....hence the "double edge sword".

I also understand your opinion on daycare........

Suggestion #2 Can you do in home daycare? If not, try and find another parent in a similar situation and both of you get part time jobs and watch each others kids while each other works. Try the fast food world for very convenient hours to work when other children are in school.

I have done this in the past, and it does help. I just really need to put my name out there and let people know I am available. Great idea!

I am really going to try to come up with an extra income, i think this is the only true way to help. Yes, it would be easy to do another "quick fix"..but in the past that is where I have regreted decissions and am now "paying" for the easy way out.

The phoine is not really an issue, I do not make long distance calls really. I pay ..5 cents a minutes and make about 5 calls a month. Living in the country, everyone is long distance..... My bill is $35.00 general fee and I pay $5.00 for the long distance plan that gives me unlimited long distance/local and with taxes/verizon fees, I pay no more than $42.00/m. Do you think this is too high? I thought it was ok. We do not have cell phones, and this is the only phone used? Just need opinion and maybe what others pay and if cheaper, how? TY

I do clean a home everyother friday(today) and I usually make $70.00 everyother week. I take that money however, and go to our local farm's meat store and buy our meat for the next 2 weeks. So, to me that saves from my grocery budget out of dh's pay leftovers. It is perfect because I can take my 3yr old with me after the older 2 leave for school. It really is a nice setup.

Ok I gotta go get my dd1 off the couch and into the shower for school.... She's a rough morning person....