I need all the advice I can get!! In debt and want out!!

[2 many bills not enuf $$]

Hi.

I've finally wised up to the point that I'm ready to make the necessary changes in my life to decrease my debt and increase my moodiness up to an acceptable level. (I've been letting the finances get me down but I'm now ready to fight back.)

A little history first....hubby and I used to have good paying jobs and we were making a pretty good living. Then life hit...his parents both got sick, we had to help them pay bills and then we had funeral costs for both of them, then we both lost our jobs due to downsizing (gotta love Michigan!!), then we had the inevitable medical bills (no insurance but 2 kids...one was in a car accident while riding with a friend...she's ok but the car insurance company nailed me and it wasn't even my car!!! The other child developed Type 1 Diabetes and ended up in PICU for 2 days), made some foolish moves and wahlah....we're drowning. By the way, the kids are now covered with insurance....yea!!!!

So......I would LOVE any advice I can get on what is the BEST way to get out of debt. I need help in budget planning, tips for saving money, ideas for 2nd jobs....there's not much around here. I had a second job for awhile making $9/hour but that was only 6 hours per week. My first job pays a whopping $10/hour but it's better than nothing and it's very close to home. That helps save on gas. My husband works for the same company as I do and makes $15/hour but we're so far in debt that the money we make doesn't seem to go very far. Any ideas?????


If ANYONE could give me some advice on where to start, I'd be forever grateful. (I'm too frustrated to think straight for myself.) I'll keep looking through the forums to find info too.

Thanks so much!!!!!!!!!!!

[jIM_Ohio]

assuming you were connected to auto industry... (I lived in MI for 7 years... and I think everyone there works for automotive something).

Have you considered:

1) relocating there are plants in Ohio, Indiana etc not to far away
2) working for a supplier (such as software) software companies like people with industry experience
3) having one of you increase your education to get better paying jobs?
4) contacted a recruiter? I get calls all the time to relocate back and work for an automotive something
5) considered relocating to a cheaper area

I would list bills and expenses in the meantime
list the CC debts, list the medical debts... list your monthly bills

then list income, job possibilities etc...

[th_tan]

I'm sorry for your losses, hopefully things will work out for the best.

Theres alot of ways to go about this, do you have a budget? If not, I would recommend making one first. It would be helpful to setup a savings account as well and put even $20 a week in it if possible and don't touch it, let it grow.

I'm not sure what you owe money on, but if you owe money on more then one credit card, you should consolidate them so your making 1 monthly payment on them with a lower interest rate.

Most places let you pay $20-$50 a month on bills if you still owe on medical bills, long as you do that they won't report anything to the credit agency.

Lastly, look over your utility bills, cell phone bills very carefully. I'm sure there are things you can take off to reduce your monthly expenses.

[JanH]

Wow, you've been clobbered! Welcome to the forums. Great people here. The first thing I would do is to take it in little steps so that the big picture doesn't overwhelm you right now. Like Jim says, list your bills and your income in two separate lists. Then organize them into fixed things like rent/mortgage, etc. Then groceries, gasoline, clothing, etc. You can see where the money is going. Then keep track of everything you spend for a couple of weeks to see how you spend it. It will give you a picture of your finances. If you list your bills and stuff here, a lot of these people can give you great ideas of what to look for. You will be able to turn it around!

[2 many bills not enuf $$]

Hi...Thank you for the reply. We were in manufacturing but not in automotive...we were in the other big Michigan decline....OFFICE FURNITURE! It has not been good for the office furniture manufacturers since 2001.

I have considered moving to Ohio...I was offered a job there, however, since both of our families are here in Michigan, I am receiving quite a bit of static from EVERYONE including hubby. I'm game for moving....no one else is...but I am the one who has to deal with all the bills so I can understand why I'm ready to run!! Plus, houses are not selling in this area so it would be hard to leave and attempt to get housing in Ohio with a current mortgage in Michigan.

We currently live in a small town which is cheaper than the surrounding cities we live near.

Also considered going back to school but didn't want the added debt due to my daughter starting college this fall.

The only thing I can think to do is get another job but even that's hard because I never know when I'm going to get off work at the first one.

Do I sound like I'm making excuses???? Guess I've been looking for the easy way out.

Thanks for the info!! I do appreciate it!

[2 many bills not enuf $$]

Working on that budget as we speak!!!! Now if I can only stick to it!

[2 many bills not enuf $$]

Thank you for your words of encouragement. I will keep working on the budget and will most likely be back for help. ) )

[JanH]

You've just explained some more of your situation. The fact that you are trying to learn from these folks is not a small thing. You are working on it!

[jIM_Ohio]

Originally Posted by 2 many bills not enuf $$

Hi...Thank you for the reply. We were in manufacturing but not in automotive...we were in the other big Michigan decline....OFFICE FURNITURE! It has not been good for the office furniture manufacturers since 2001.

I have considered moving to Ohio...I was offered a job there, however, since both of our families are here in Michigan, I am receiving quite a bit of static from EVERYONE including hubby. I'm game for moving....no one else is...but I am the one who has to deal with all the bills so I can understand why I'm ready to run!! Plus, houses are not selling in this area so it would be hard to leave and attempt to get housing in Ohio with a current mortgage in Michigan.

We currently live in a small town which is cheaper than the surrounding cities we live near.

Also considered going back to school but didn't want the added debt due to my daughter starting college this fall.

The only thing I can think to do is get another job but even that's hard because I never know when I'm going to get off work at the first one.

Do I sound like I'm making excuses???? Guess I've been looking for the easy way out.

Thanks for the info!! I do appreciate it!

It's admirable to help a child go thru college... how much of the college tuition and costs are you subsidizing? Is a community college an option? Is your child commuting or lving on campus? If you go into debt (even further) to help them thru school, are you sure

a) they will finish
b) there is financial reward for you 4 years from now

I believe you need to clean up your personal financial picture before helping adults kids with theirs.

[2 many bills not enuf $$]

Point well taken. She will be going to a Community College for the first 2 years to get her basics and then on to a University to finish up. She will be living with my dad while going to the Community College; probably living on campus to finish up at the University.

Hopefully, she already has some scholarships and will hopefully receive some financial aid so....I don't know the whole picture yet....but I know you're right. It's time for her to get a job!!

[Ima saver]

I worked full time when in college and it did not kill me. Now, we need a run down of your bills, so work on a budget!!

[creditcardfree]

Congratulations on making a decision to do something about the debt. That is half the battle. Any part job may help. What about a part time job at a grocery store that you shop at, in order to get a discount. Maybe you shop at Target or Walmat often. They offer discounts to employees. My point is that you get two financial benefits this way. Just don't buy more stuff because of the discount.

Is the debt all medical? The first place to start is what and how much your debt is. You also need to know your income and expenses. I know you are working on this and we will all be able to help give some insight once we can see where you are.

You will want to look at everything you spend money on and decide if it is a want or a need. Cable isn't a need. Newspapers, cell phones, caller id are not needs. Needs come first. Wants will need to be reduced, so that money can be used to pay off debt.

Do you have any emergency funds?

I look forward to hearing more.

[Scanner]

Hi,

It's hard to know everything about you on a short post but I'll take a stab at it based on the limited amount of information..

It sounds like you have "cornered" yourselves a bit by both working for the same co. (and in the same industry).

I kinda beleive in "diversfying" your careers as well as your portfolio and your example is a great example of why to the rest of the forum.

WHile others can help you on the expense side, I will help you on the "income side." It sounds like you and/or your husband are "underearners."

I think you need to concentrate on your own education and beef it up. I know it doesn't sound like a wise thing right now with all of your debt but as Warren Buffet said,

"It''s better to be mediocre in a great field than great in a mediocre (or bad) field."

So. . .I am not sure what you could think about changing into or what you may have an aptitude for but I have a health care background so let me point you to a couple of great fields - radiology technology, nursing, sonographer, maybe even an EKG technician or phlebotomist, if you don't want to go for the longer educations. Physical therapy asst.s can do well but sometimes finding work is hard there. You'll never want for benefits by working for a hospital. Plus, given the fact that a hosptial operates 24/7, it makes for a perfect opportunity to moonlight while going for other credentials. That is, you could start as a phlebotomist and work your way into nursing.

If health care isn't your cup of tea. . .

I also live in the shadows of the Atlantic City casinos - not sure if there are any casino's in MI but dealers really do pretty well there - crappy hours and people for sure but they do fairly well for just kind of a high school degree + certficiate.

I would skip the 4 year degree for now and concentrate on a "skill position" at your place in the game (BA/BS's are overrated anyway) and again, a different industry altogether for further safety and diversfication.

Good luck to you.

[jIM_Ohio]

The number one financial asset every person has is their earning power (the ability to make more money). Once you lose this asset, your options become extremely limited.

I second the advice for "job training" for one of the parents in this situation. There are tax deductions for this as well.

[Scanner]

BTW, I have kind of a theory on this - most "well-to-do" couples I have met usually have diversity in their careers. One person will teach, the other will be a business owner.

One will work healthcare, the other finance. One will work resteraunt/hospitality, the other will work technology.

Usually, one career has "stablity and benefits" and the other has "risk and money."

I think having your career complement your husbands and vice-versa and constructing a "career portfolio" that is diversfitied should be the goal. No. . .it isn't necessarily the path to riches, but I think it's a path to security.

[mom-from-missouri]

Per Dave Ramsey, "spend less, earn more"
I'd drop cable, dish-even the internet. Its not necessary to have to live!! Or ancestors did ok without it-i mean, we are here as a result... Access internet from a library or friends once a week if you feel the need.
Have a garage sale, or list things for free on Craigslist.org. What you make from your sales, use to pay down a bill. If you need something, check under craigslist.org in the free section, before you buy it.
Don't buy something unless you can pay cash for it. Stop all charging.
Per Dave, pay what you have to first: mortgage, food, lites, heat, and insurance....go on down the list in order of importance.
Older kids at home can contribute also--babysit, mow grass. Tell them this is how it is. You can't afford the internet-if they want it-they can pay for it. Same with fuel you spend running them various places, or money spent on their extras.
If one leaves for college, rent out her room.
I sometimes make extra money by babysitting over night or weekends, in my own home. $25 may not seem like much, but its half a water bill.
See what you can save on your insurances. Can you raise the dedutable on your auto, home or health??

[fairy74]

Welcome, lots of good advice already. Sorry that you have had so much to deal with lately---but good for you getting on with life and lessening debt. First, contact all your creditors, explain the situation in detail, offer to pay what you can and then do it scrupulously if they agree (if you can throw on even $1.00 more per month do it!) Get Amy D's books on frugal living and go guerilla frugality for a year or two...do away with everything that is not essential (i.e shelter, food, clothing, water)

[mom-from-missouri]

When I was flat broke after my first husband left us, I went as far as to remove all but one light bulb from each room. We went to bed when it was dark, and got up when it was light. I turned off the dish and unplugged the tv. We lived in town then-we walked. My 2 littlest ones thought it was fun to pull the red wagon to the store to get groceries and to ride in. It was fun, but it also saved fuel.
It was summer-we had a ton of firewood, so we built a little outdoor fire ring to cook over--was free entertainment and saved running the stove in the house that was already warm because I refused to turn on the AC. We also got very creative in planting a garden in a small space, and in containers.
I babysat a nurses daughter 2 nights a week, from 10:30 to 7:30. It was an extra $45 a week--our grocery money. I also did sewing, ironing and mending for people. I put up and ad at the library to tutor kids grades K-5.

[JoyJoy]

2 Bills,

I admire you for coming forward and asking for help. I have walked in your shoes and I know the anguish and trauma that you are experiencing at this moment! I have also lived in Michigan!

You may want to call your creditors and talk about re-aging your accounts/renegotiating the terms of your accounts by asking for an extension in your loan period or a lower rate on your debt.

I found an article at Credit.com on re-aging your debts that I am going to try to post here. If the link doesn't work, please go to Credit.com and type in re-aging and I hope it works! http://www.credit.com/slp/chapter9/r...r-accounts.jsp Type re-aging in the search box at Credit.com. It will take you to the article.

Good luck and again reaching out for help is the first step to a solution.

[Snoopy2645]

ok without knowing all the details first I will say go 1 yr without buying anything no clothes nothing except food & pay off your debts as fast as you can. Then second if you want to go back to school try your employer do they offer a college payment program my dh's employer paid for his tution the whole thing he took out some student loans but that was more for living expenses he didnt work as much OT when in school he did & now make 2 times what he did at the old job.

3rd if you want a second job you pickup working as a sample lady thats what I did I could do them everyday if I wanted & I make $16 an hr thats easy money for us. And I hate to say it but I have never made that much in my life & I had a pretty good job when I worked ft & I was offered to go back but it only paid $10 an hr so I stuck with being a demo lady LOL!