someone please help me asap

**bjl584** · 02-14-2007, 03:27 PM

Re: someone please help me asap

Well, you've recognized that you have a problem, admitted to it, and now you are asking for help, so that is a good start. Can you give some more info about yourself. Such as, your annual income, the percentage rates and balances on each of your cards, just some specific info so we can give some specific advice. Without knowing anything else, I would say that your credit cards are top priority paying down the ones with the highest interest rates first.

**PrincessPerky** · 02-14-2007, 04:08 PM

Re: someone please help me asap

Well you already took the first step be asking for help.

I think the first thing I would do is try to see what you owe each month (not the old debt, but actual bills) Like phone, car, rent?, whatever.

Then if you have a guess what you spend on food use that to start (you can practice reducing it later)

once you know what you owe, you also need to know what you can count on for income, even if you have to guess low, write it down. go by old checks if you have them, deposit slips or anything..its ok if you do it wrong the first time, just try.

Then you have to decide each pay how much to leave for bills and how much to use for food, gas, debt and for fun.

once you know what MUST spend for bills you can get a number on what you can spend on fun...I agree paying off CCs is top priority, but do budget a bit of fun along the way...andlearn how to really enjoy treats, not just take them.

**moneymom** · 02-14-2007, 04:37 PM

Re: someone please help me asap

on my visa the percentage rate is 29.99%the balance owed is 388.07 that is including a late
payment and fee. the master card percentage rate is also 29.99% that is also including a late
payment and fee the master card is due on the 15th each month and the visa is due on the
26th of each month. The outstanding credit card that are in collection for a very long time to
the point of calls every minute to my house from the collection agency my emerge master card
from collection balance is 2,420.94 and another i think it was a visa balance from the collection
agency 1,127.35 i don't know what the percentage rate was on those bills they have been in collection since last year or the year before. now i also owe $458.31 on a old at&t bill and
also i owe money to t-mobile $658.43 these are both very old bills in collection also. I had a
sears card that i owe money to but the balance is over $800.00 with a high percentage rate
now form job#1 i bring home around 345.00 that is the job in retail depending on the hrs
each week. Job #2 is paid bi-weekly and the amount is around 333.00 the cents on both
amounts chg sometimes. I have direct deposit for both and sometimes i can go to the atm
machine every day sometimes 2-3 a day. i want to get it together and stop the collecters
calling me every second of the day upsetting my household. please help me.

**PrincessPerky** · 02-14-2007, 04:42 PM

Re: someone please help me asap

Well stop going to that bloody ATM machine!

Figure out how to pay something on those bills.....and pay it as soon as the check comes in your bank, that way you can't go to the ATM there wont be anything to take out.

and cut up those CCs you do not need access to money till you have the willpower (and dont feel bad for not having it, in many ways I don't)

You didn't list any regular bills, do you live with family? if so great! you can pay almost all your checks to the debt till it is gone!

**PrincessPerky** · 02-14-2007, 04:43 PM

Re: someone please help me asap

oh and if paying hte bills is scary, or you just don't know how, try to find someone to do it with you, ask a local church if you need to..really they can help with all sorts of odd jobs many times.

**Scanner** · 02-14-2007, 06:58 PM

Re: someone please help me asap

2,420.94
1,127.35 i
$458.31 on a old at&t bill
$658.43
$800.00

job#1 i bring home around 345.00 that is the job in retail depending on the hrs
each week.
Job #2 is paid bi-weekly and the amount is around 333.00 the cents on bothamounts chg sometimes

I totaled this up for you:

$5463 in consumer debt.

$345 x 4 weeks/month + $666 = $2046/month

Here's what I would do - I'll give you two steps.

Step 1: Forget the interest rates and which one is higher and which one is lower - there ought to be a law about how much they are raping you on interest but the Bush Administration instead made bankruptcy harder, anwway.

Work on the smallest balance first while paying the minimums on the other. Then the next smallest balance, then the next until all the debts are satisfied. On $2046/month, you should be able to put $100/month extra towards a balance.

Step 2: FInd a "Debt roommate." I know it's a bummer to think you may have to get a roommate but this is a way to control your cost of living and get ahead.

Now, there are two philosophies on this - you could find someone in similiar circumstances, befriend them, and make this a way of you helping each other get on their feet - a common goal. The problem with that is - do you really want someone in debt rooming with you making it risky for you?

THe other philosophy is to find someone who is frugal and you learn from them.

Think of it as an Odd Couple, Oscar and Felix type of adventure.

I see too many people living in 2 or 3 bdr. apt's. all by themselves - it doesn't make any sense to not share common areas.

By the way, if you have an impulsive spending problem ( you are going to the ATM machine 2-3x/day), I think you need to become a regular poster in the frugal forum. This sounds more behavioral and what you value, an immediate gratification vs. long term security.

I wish you all the luck in the world.

**barbara L** · 02-14-2007, 09:26 PM

Re: someone please help me asap

Hi,

I organize my bills and pay them as follows.

Mortgage
Health Insurance
Groceries
Gasoline
Kids Allowance (they do not get one penny more for anything between pay days)
Car insurance
Utilities (monthly utilities)
Secured loans
Unsecured loans **See below
Credit Cards ** see below
Non monthly expenses (trash, DMV, etc)

My credit cards and unsecured loan were at 19.99 % and I was incurring a $35 late charge each month. They refused to work with me on a payment plan. I was referred to a debt counseling service and my payments were lowered and my accounts will be re-aged (made current) after I pay for 3 months. This may be an option for you. You may want to research this as an option. I was referred by the credit card company to this debt management company (So I feel safe with them).

I feed a family of 4. I budget $300, but many times it turns out to be less. I buy meat in bulk. I try to stay at $5 for dinner. Kids get allowance or they can take their lunch. I take salad and tuna for lunch almost every day. I drink water and have a piece of fruit or non fat homemade pudding. I eat quick oatmeal almost every day for breakfast. I also buy bulk cereal for the kids. I buy the ham in a can, and the butcher will slice it. For $7.00 it will last almost all month. I also buy frozen buritoes (tons) and I shop at a discount grocery for canned soup. I stock up on sales. I cook a lot of soups, chilis, etc in the crock pot. It keeps me from stopping somewhere on the way home because I'm tired. Each month I have between $36 and $130 extra. I have been spending this on irregular bills, and maybe one night out for fast food per month. I have virtually no savings. I am not loyal to any stores. I go where they have the best price.

I have not bought any new clothes in a very long time. I shop at the Salvation Army.

I pay all my bills before I get the check deposited, by using a web bill pay system. My bank is far away. I take out the kids' allowance when I get paid by driving to a free ATM. I absolutely refuse to pay more than I have to in Fees. (Did I mention that if my kids miss school that they are fined? Most people do not get paid if they do not work. My kids get fined if they do not go to school.)

I shop around for gas on the internet and yes I will drive to a cheaper gas station if it is within 2 miles of where I am.

Every time I get a mail flyer with a discounted service, I call my internet or cable provider and tell them that I will leave them if they can't beat the deal I have. I changed cable companies one time. I have never changed my internet service yet. With my last cable company I got the introduction rate for 9 months. Then they refused and I switched. I am working on 6 months with my current provider.

I do not try to catch up. I've looked through all the money books I could find and I can't find a single one that says to pay yourself back for all the mistakes you made in the past before you even try to start a money management program (I hope that makes sense.) Start out fresh tomorrow.

I recommend that you make a list of what you think is important. I would try to stick with home, health, groceries, transportation and utilities. Everything else is just everything else. Stop trying to pay off those old bills and credit cards. Pay the minimum if you can. If not pay what you can. Send those collection agencies a letter and tell them you will only discuss matters with them through the mail. Send them a copy of your budget and tell them what you can pay to them. I actually changed my phone number at home. At work you can tell them that you are at work. State firmly that they are no longer to contact you there and hang up the phone. Bankruptcy was never an option for me. Maybe it is an option for you.

Lastly and most importantly, some of that money you earn is yours to spend on yourself without feeling guilty about it. Even if it is just a few pennies a day. I like starbucks and sometimes I will stop and get one of their herb teas. I'll sit outside next to the fireplace and just relax. It is my time. I don't do it alot, but when I was behind on my bills even this small thing would cause me to stay up all night chastizing myself.

Take care and we will all keep you in our thoughts.

**LuxLiving** · 02-15-2007, 03:22 AM

Re: someone please help me asap

I'm not totally clear on your living situation but I'm going to tell you what worked for me, okay? More specific help is here for you from the folks on the forum when you give them more specifics on your living situation. Do you live on your own, maybe an age range you are in, do you have any savings at all, etc. This is what helped me...

1. Start writing down what you are spending each and every time you spend a penny. Keep a 3x5 with you and jot down every purchase. This is to get you mindful of what you are doing. It is an exercise that works because usually we spend money not knowing what it is doing to our overall financial health. Equate it with just a nibble of cookie here, a bit of mashed potatoes there and suddenly there you are with 35 lbs. extra pounds (debt) and you don't know how you got there! This isn't necessarily fun, but it does work for alot of people to help them make a change in spending patterns.

2. Consider looking at youneedabudget.com or mevelopes.com and their budgeting options. I chose ynab.com. Another helpful item is available at budgetmap.com.

3. What worked for me was getting myself on a spending plan wherein before the checks came in I had a priority list of what was getting paid first. Food, Mortgage, utilities, gasoline for getting to work, insurance, fun and extras were way down on the list. I did give Hubster and myself a SMALL spending allowance to blow so we didn't feel totally deprived.

4. Stop debting. Feed all but one of your CCs to the shredder.

5. Stay out of stores and get all the cash you need out of the bank at one time right after payday. It is to last you until the next pay day. If you run out? Too bad and time to suck it up (of course if the baby is sick and needs meds that's a different story - you know what a true emergency is). Determine that the ATM is off limits for yourself until some point out in the future when you've gotten yourself under control.

6. Do some reading for free from the local library - some suggestions would be Mary Hunt's Debt Free Living, and maybe David Chilton's Wealthy Barber. A favorite of mine is The Richest Man in Babylon. Don't forget to read something by Dave Ramsey - sorry can't think of titles - maybe Money Makover?? Anyway some of these can give you a way to make a turn around.

7. None of this is any fun at first, but it can become a game of sorts to try to beat yourself at spending less than last month, etc. Take a look at the blogs and spend some time reading what people are doing to save or even earn extra. Look on the toolbar above under JOURNALS.

8. Top of each paycheck should be a small amount to savings. Yes, I know it might seem impossible to do, but you have to start somewhere...even $5 or $10. Put it in an online bank or somewhere far away from yourself if you don't trust yourself yet. Determine to see that amount grow by X number of dollars a month and make it happen. This is going to turn into your mini emergency fund that will help you later on. Use the automatic features your bank offers.

9. Make an action plan. This month I'm going to cut my expenses by $X and then get on the horn to your insurance agent, your cable company, telephone company, electric company, whomever and try to get your rates lowered or on the budget pay plan for now. Do the action steps. Turning your situation around is just a bunch of babysteps that you can do. Thing is they have got to be done. You can do this!!

10. Breathe! Don't kick yourself - the system is designed to suck you in. It's just time to get money savy! Stick around here at the forums and folks will help you. Spend some time reading thru the old messages here...there are lots of good smart people here who are more than willing to give you a hand up! Post lots of questions. Nothing is to trivial when it comes to making smart money moves.

I'm glad you're here! You couldn't have landed in a better spot.

**Ima saver** · 02-15-2007, 04:19 AM

Re: someone please help me asap

I have used the old envelope system for over 40 years. It does work, but only if you NEVER NEVER borrow from the envelopes. I agree with starting a small savings, even if it is only $5 a week. Put it in the bank and do not touch it!
Stay away from the ATM machine. I have never used one in my life and I live just fine. Do not buy anything that is not necessary. Clothes at this point, are not necessary, food is.
Chose one credit card at a time to focus on. Pay minimums on the rest and send all you can to the one card you want to pay off. Sell stuff and pay that on the card. When you get #1 paid off, focus all your thoughts and money on credit card #2.

**Scanner** · 02-15-2007, 04:43 AM

Re: someone please help me asap

Everything else is just everything else. Stop trying to pay off those old bills and credit cards. Pay the minimum if you can. If not pay what you can. Send those collection agencies a letter and tell them you will only discuss matters with them through the mail. Send them a copy of your budget and tell them what you can pay to them. I actually changed my phone number at home. At work you can tell them that you are at work. State firmly that they are no longer to contact you there and hang up the phone

I think this is bad advice and I'll tell you why.

1. Sooner or later, they will mark the bad debt against your credit rating - that means for 5 to 7 y ears, you won't be able to get any quality credit, just marginal, high interest credit cards - no mortgages, no quality car loans and if you do get a car loan - the salesman will screw you on the price (they always win).

2. Paying the minimum by design means the debt is never paid off - you just pay interest every month.

3. There's a psychological component to this and I apologize if I get "deep" here. I think if you just shrug your bills off, you subliminally say to yourself, "Ah, it's okay to borrow money and not pay it back." You "got away with it." You know what that is in some circles? Yup. A deadbeat.

You got all that money has to offer with the credit cards - eating out, clothes, concerts, but you didn't have to do any of the earning associated with it.

I think paying off the debts (and 5K isn't a whole lot in the scheme of things) is an important behavioral and value change you need to make. You need to go through the exercise of doing without and satisfying your debt to make a long term change.

In the end, you'll say to yourself, "It was hard but I did it."

Other than that, I think the advice was fabulous.

**LuxLiving** · 02-15-2007, 05:23 AM

Re: someone please help me asap

I would have to agree with scanner on this point.

But, work with your creditors and let them know the tight you are in and what the actual plan is. IN WRITING. "I have a budget - here it is - here's what you're going to get and when" and then stick with that plan. Honor your word. If something changes, LET THEM KNOW!

Prioritize for yourself. You HAVE TO have a place to live w/the resulting utilities and you HAVE TO eat and you probably HAVE TO have some form of transportation to and from work. Now, all the prices associated with those have-tos may be negotiable or able to be whittled down or expectations lowered.

Depending on where in the country you live you may be able to walk/bike to work or take a bus instead of having an overpriced vehicle w/what can be high costs. Only you know where you could actually make a cut right now. If you post some of your ongoing expenses here then folks will try to help you pinpoint some areas that are ripe for trimming.

Clothes and shoes are most likely not necessities at the moment. Honoring your word to your creditors is important - for your own self esteem, for their bottom line (you did promise to pay), and your own bright future money picture.

Perhaps you tell them what you are trying to cut out, what you're hoping to sell to apply to the debt and the steps you are taking. They aren't all monsters, but do want to know that you aren't out living the high life while letting your payments to them slide.

Scanner's right...when you get to the end you'll be so very proud of yourself!!

We're pulling for you!!

**barbara L** · 02-15-2007, 05:45 AM

Re: someone please help me asap

Hi

Scanner you are right about paying only the minimum on the bills. She may actually have a higher balance after she pays the minimum payment. Right now she needs to pay what she can after she pays her living expenses. If the minimum makes her payment go down at least her account will remain in good standing. She would also have to pledge not to use the cards.

"i want to get it together and stop the collecters
calling me every second of the day upsetting my household. please help me."

I never meant to be irresponsible. Of course the bills should be paid off. Right now she may need to take a break from the bills and focus on living and taking care of her kids.

Having all of your credit cards frozen is not a bad thing. It definately teaches you how to live with the money you have. I once did not pay a credit card bill for 4 months. I got some breathing room and set up a budget. Then afer the moratorium ended and I realized that I could not pay the minimum amount of the bills, that is when I was in the mental position where I could talk to them. That was after my divorce and I got all the bills.

I honestly don't know what the difference is between having two open collections on your credit report or 10. She already has some open collections and nothing is going to change that. I think they stay on the report for 5 years from their first contact.

I hope this clarified my answer about not paying the bills or just paying the minimum.

**gackle** · 02-15-2007, 05:55 AM

Re: someone please help me asap

Haven't seen this advice yet - sell, sell, sell what you can that's lying around the house. What you think is not valuable may be valuabe to others. Garage sale. Ebay is good, but combined with paypal can take a good chunk of your profits for themselves. Local consignment sales are another option. Put your profits straight to retiring debt.

**Ima saver** · 02-15-2007, 07:56 AM

Re: someone please help me asap

I agree with scanner and gackle. It is important to pay your debt and more important to incure no more new debt. Selling stuff is a great idea too!

someone please help me asap