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Worrisome economy, and almost at max of budget

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    Worrisome economy, and almost at max of budget

    This economy is seriously freaking me out!

    I have about $34,000 or so in debt (car loan, student loans, credit cards, personal loans). I take full responsibility for my debt and blame it on no one but myself.

    I will be debt free in a little under 3 years if I keep making my current payments. I admit that the past few months, I have been making the minimums, even when they dropped. I know I need to keep with the same current payments even with the minimum amount due drops due to the decreased interest rate.

    The economy has me so freaked out that I am constantly worried about my job (typing this on my break) and since I do not have emergency savings and only a small amount of 401k, I am stressed!

    I feel tempted to try and do a debt consolidation program if it will allow me to have more money after my paycheck to put towards my savings. Right now, my food budget is $100 a month ( I almost always go over that and 2nd job and tax refund has helped for the extra food expenses), and the minimum payments on my bills leave me with about $60 extra per month for personal spending. This usually ends up being spent primarily on food.

    I know I can get by and live comfortably on my current budget. It is just the overhanging debt and lack of emergency savings that is scaring me. I have worked a part-time job off and on, and it has been hard finding a part time job that doesn't wear me out physically and mentally.

    What to do in this situation?

    #2
    Well the only thing to do is just continue what you are doing. You have a plan, a budget, and a 2nd job- which is what everyone here would tell you to do. If your 2nd job is not steady, just keep your eye out for another one. I know jobs are hard to come by. I have been looking for a PT, 2nd job, for MONTHS with no luck. But just keep looking and maybe something will come along.

    Do you have things you can sell? I have been slowly going through things and selling them on Craigslist with much success.

    Check out angel food ministries dotcom (no spaces). They have cheap food and maybe that can help you keep your food budget.

    Try not to worry about losing your job, because until it happens (hopefully it wont!!!), there is no use worrying about it. Just keep doing a great job.
    And the debt is something you will probably worry about for the next 3 years until it is paid off. But just keep paying it down and maybe watching the numbers dwindle will help ease the stress. Try making small goals so when you succeed, you feel happy.

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      #3
      Without seeing more information, it is hard to give good tailored advice. To get the best advice on this site, you need to post your income, detailed budget (line by line), debts owed with minimum payment, interest rate, and balances, and any savings. People here can help find areas of potential savings and give you more tailored advice.

      I know you said you have only made minimum payments on your debt the last several months, but do you usually pay more than the minimum? If so, how much more? Do you usually get a tax refund? If so, how big a refund? You said you are worried about your job - is that because you have a specific reason to worry (based on some announcement by your company or your company generally doing badly) or is that because of all the doom and gloom in the papers?

      Without more information, one thought would be that you could split any money you are paying above the minimums and instead save some of that money to help build up an EF. Also, if you get a big tax refund each year, adjust your withholding so that you get more in each paycheck. Keep looking for alternative part time jobs. Sell anything you can.

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        #4
        Type out your current monthly income and expenses by line item.

        Comment


          #5
          Originally posted by inneedofhelp View Post
          This economy is seriously freaking me out!

          I have about $34,000 or so in debt (car loan, student loans, credit cards, personal loans). I take full responsibility for my debt and blame it on no one but myself.

          I will be debt free in a little under 3 years if I keep making my current payments.

          The economy has me so freaked out that I am constantly worried about my job (typing this on my break) and since I do not have emergency savings and only a small amount of 401k, I am stressed!

          I feel tempted to try and do a debt consolidation program if it will allow me to have more money after my paycheck to put towards my savings.

          I know I can get by and live comfortably on my current budget. It is just the overhanging debt and lack of emergency savings that is scaring me.
          If you're scared about losing your main job, then make plans so that it won't be as stressful: networking, resume ready, etc.

          If you're scared about not making regular payments: you already are. Not much else to do there. You already have a timetable for being clear of debt provided the current plan sticks. I don't know if any loan consolidation would help with that, except for the student loans (are they federal or private?)

          If you're scared about a low EF and 401k: there's only one way to make yourself less scared about this, and you already know what it is. Save more money, if you're already saving what you can, then talk to people who won't get you more freaked out.

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