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

[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!

[2 many bills not enuf $$]

Well....I ran a budget and realized that I'm not as bad off as I thought I was...but still not where I want to be.

We make enough money to pay for all the regular monthly bills including groceries (on a strict budget), and gas for the vehicles. What we do not make enough money for is the extras.....lunch money (I try to make sure everyone packs a lunch), extra medical bills, car repair, upkeep of house, etc...... So what I did (tell me if I'm wrong!!) was set up an account to pay the regular monthly bills only. Nothing else gets written out of that account. I will deposit enough money per month to pay those bills. Then I am rounding up everything I can possibly sell and am going to list those items on Ebay. The extra money will go towards the extra expenses that come in and hopefully towards paying off one of the monthly bills. My husband is also looking to supplement the income by doing odd jobs for people. He paints, remodels houses, can fix anything, etc....

I like all the ideas each of you gave me. I plan on checking out what employee discounts Wal*Mart and Meijer offer. I have always been interested in the medical field so I will look into taking a few classes (to start). I've actually been pushing my kids towards the medical field due to insurance coverage and demand. My daughter is planning on being a ultra-sound tech....possibly majoring in pediatric echocardiograms. My son is planning on being a Physical Therapists. I only know office work so with a few classes in medical terminology and insurance billing, I may be able to get a better paying job at the hospital or doctor's office. Thanks for making me think about that.

As for the budget.....it includes mortgage, cable/internet (which I plan on shutting off which will save me $89/month), cell phones (we don't have a home phone and with one kid driving and the other one diabetic, I'm having issues with getting rid of them), insurance, electric, heat, water, trash, car payment, credit card debt (I've destroyed these and turned them over to credit solutions), orthodontist, groceries and gas for vehicles. I don't have my list in front of me so I'm sure I'm forgetting something. But that's the bulk of it. The big bills are the mortgage, cc debt and car payment. I've thought about getting rid of the car but I'm not sure (haven't researched it) if I could get enough money out of the car to buy another one (for cash).

Thank you to each of you that responded to my pleas for help. You've each given me some great insight.

Feel free to let me know what you think about my budget...do you need more info? We bring home $885/week. The monthly bills (including gas and groceries and saving $50/month) came to about $860/week. Like I said....it leaves nothing for the extras. I am behind on 3 bills and have one doctor bill left that I have not included in the monthly budget. I am hoping to make enough extra money to cover those items.

Please let me know if I'm on the wrong track!!!!

Thank you!!!!!!!!!!!!!!

[tinapbeana]

2manybills:

it sounds like you're off to a great start, congrats!

i just wanted to point out a few things. one, i know you might not be comfortable with the thought of selling some of the things you own, but i promise you that once you start it starts to feel almost freeing in a way. you realize just how much money you've spent on 'stuff' over the years, and it makes you really think about the money you spend going forwards. and if you're anything like me, chances are really good you won't even notice most things once they're gone. it's nice to be able to clear our some stuff even when you aren't doing it for the money. with spring coming *which means yard sales and outdoor markets!), you might be able to move a lot of merchandise over the next few months.

i also like the fact that you've worked your budget down to the week. you said you have 885 in income and 860 in bills, right? save that extra $15 per week for now, that's $780 per year! cutting the cable sounds like that'll be another $1068 per year. suddenly, those savings don't look too small, do they?

also, i didn't see in your post if you are saving $ for your homeowner's insurance and property taxes (if applicable) or if they're included in your mortgage payment. if they're included, then no worries. if not, you'll likely want to add them as a monthly line item.

and now for the "if i were you" part

having the expenses covered is half the battle, so again congrats. you said you're no longer going to use the credit cards, right? in that case, some sort of emergency funds are realy important, so you might want to decide with your husband what you'd be comfortable with. take into consideration the unemployment laws in your area, etc. you might want to start small, a couple hundred dollars, or you might want to start for a whole month's worth of expenses. whatever you decide on, save your monthly surplus AND the money you bring in selling items towards that goal. it'll add up, i promise!

you also might want to consider things you can do to add some income quick, just to meet the goals you're setting. a part-time job like you discussed is always an option, or something like baby-sitting, running errands, delivering newspapers in the morning, etc. it'll make creating that month's worth of emergency fund that much easier.

then, when you have a bit of money stashed for a rainy day (woohoo!), tackle your first debt. it could be the lowest balance, the highest interest rate, or the highest monthly payment. highest interest rate usually makes the most 'cents', but it might not bring the feeling of satisfaction and accomplishment that a easily paid off bill could bring, so decide in your household which one to tackle.

once you're at this point, the whole thing starts to snowball! good luck!!!

[2 many bills not enuf $$]

Thank you....I really like the idea of saving up an emergency fund first and then tackling the extra bills. Since you never know what life is going to hand you, that definately makes sense.

I did include insurance in my budget. I grouped it altogether but it includes house, car and life insurance. The taxes are included in the mortgage payment.

Thank you for the advice. I am taking everyone's advice into consideration and making new plans. Now I just need to determine a goal date for when I'll no longer be in debt!!

[Scanner]

I like all the ideas each of you gave me. I plan on checking out what employee discounts Wal*Mart and Meijer offer. I have always been interested in the medical field so I will look into taking a few classes (to start). I've actually been pushing my kids towards the medical field due to insurance coverage and demand. My daughter is planning on being a ultra-sound tech....possibly majoring in pediatric echocardiograms. My son is planning on being a Physical Therapists. I only know office work so with a few classes in medical terminology and insurance billing, I may be able to get a better paying job at the hospital or doctor's office. Thanks for making me think about that.

Don't go for a doctor's office - we pay squat - just ask DisneySteve or I.

If you get employed at a hospital, you'll generally have access to matching 403(b)'s (I think they are the non-profit analog of 401(k)'s) and at least you can start to build some wealth vs. just scrape by. Sometimes pensions are still available too. Start thinking long term as well as the good short term ideas here.

If you have an interest in health care, I would take some direction from your kids on that. A PT is a fairly long program (6 to 8 years) and probably beyond your grasp right now. . .but an LPN isn't. An EKG tech. isn't. A phlebotomist isn't. Surgical tech. isn't.

And "getting in" in an entry level health care position allows you to network for further tuition assistance; that's the way the world works. Most people start in patient transport in a hospital and start networking that way. It will pay about the same as you are making now and it's often back-breaking demanding work. . .but every patient transporter I knew was usually enrolled in nursing, rad. tech., or some other program.

Nursing is pretty good because you can start with LPN, go onto RN, get your BS, then your masters (if you really want to go that far). You can even get your Dr. of Nursing but then we all don't know what to call you - doctor or nurse, ha, ha. However, nursing programs can be competitive to get into.

When you take your classes, just be sure to take them from an accredited program like a community college or private college. . .not that the trade schools are bad but they may not transfer credits when and if you decide to declare a formal major at a com. college or university.

I hope you understand I wasn't knocking your career or your husbands or your industry. . .but I do think some industries are more meant to be transitional with the pay and benefits they offer (food service, retail, some industry). There's nothing wrong with doing them - as some money is better than no money and I have done food service and retail while earning my way through school. In fact, I would go as far to say that I think all people SHOULD do them at one time or another in their life and I expect my sons to work, well. . .the hard, crap jobs while he is young, at least somewhat (around here, it's the minimum wage jobs on the Boardwalk).

I just think it's not good to hang a career on mediocre or bad industries. They are "transitional" type of jobs.

Good luck.

I hope I have helped you develop a long term vision and the others have helped you solidify a short term plan. What a pleasure it is to help somebody.