CC issues, too tight of a budget, looking for help

[FineByMe]

We are in a bit of a financial bind. I work at a University and am entering my third year as a PhD student. My husband worked part time at a bakery (overnights=no child care $) but it closed in May so he is unemployed. He can not get unemployment; he was told his “hours were not consistent enough to qualify.” DH does not hold a degree and has no interest in earning one. His background is in foodservice, production and management and he has a certificate in construction technology. He is looking/has been looking for work but nothing pays enough to offset the cost of childcare. Our oldest two could go to public school but the schools here are poor, low test scores, over crowed, etc. so they are homeschooled. There is a Montessori starting in the fall of ’11 so we are planning on sending them there next year.

Our mortgage is high. We have owned the house and been remodeling (major systems, ie electrical, plumbing, heating, windows, siding) for two years and are about 95% done. Even if we were to sell the house and break even, rent for a 2/3 bedroom apartment in this college town is the same or more then our mortgage, plus we would lose our mortgage tax credit. I am unwilling to move into an apartment that is unsafe and many of the apartments in town are owned by “slum lords” that are trying to make a quick buck off college students. Moving out of this town is not an option b/c we live in an isolated area with one vehicle and have horrific winters. If you work in this town you have to live in this town.

I have racked up a large cc debt. I am not trying to make excuses, but over the past two years there have been so many things that have “come up” in the areas of medical, dental, large auto repair, etc. My monthly cc payment are huge and I just got off the phone with our local credit union, trying to get a personal loan so I could pay off the credit cards and pay the loan at a lower interest rate, but I was denied. I have already been on the phone with the cc companies and they refuse to lower the interest rates. I have never been in default and I am paying more than the minimum every month.

I have read Dave Ramsey and follow him as best I can. It is not that I want to get out of paying my debt, I just want an easier time managing the interest. We already plan out our meals, use coupons, don’t eat out, buy second hand clothes, make gifts from what we have, no cable, no date nights, I’ve changed my payroll withholding amounts, dh sells plasma, we have a medical pre-tax account…We have three more payments on our van and five more on the furniture so that will ease up some cash but is there anything else I can do?

Take home pay $3821 (Since the loss of Dh'd income)
Mortgage 1500 (includes PMI, home insurance and taxes)
Van 330
Life Insurance 80
Sallie Mae student loans 50
Furniture 88
3 credit cards 700
Cell phones (required for work, includes 2 lines, no text) 90
Natural gas, water, electric 200
Rec Center 40
Internet (required for my PhD program) 25
Groceries 400
Diapers, cleaning supplies, toiletries 50
Gas 100
Left over: 168

For a point of reference, we are a family of 5 with three kiddos , 8, 5, and 2.

[earthmama369]

In terms of small, immediate changes, if you're not locked into a contract, I would drop the rec center. You could probably tighten up the diapers-cleaning supplies-toiletries category a bit, too. I'd make a push toward getting your youngest using the potty so you can drop the diaper costs entirely and make sure you're really getting the minimum in toiletries and cleaning supplies possible. (I make my own cleaning supplies using rags from old t-shirts and vinegar and water, maybe some baking soda. I do buy laundry detergent and dish soap. I would put our average monthly cost for cleaning supplies at about $10, max.) I would throw any extra money I could squeeze out of those categories at the furniture payment, get that off the books, then put that $88/month toward the credit card debt.

In the bigger picture, I think you're at the point where you really need more income. When you've cut just about everything you can cut and you're already following frugal habits, you can't cut much more. You need to add money, instead.

[happysmileylady]

Yep, I agree that long term, you do need more income. Your Dh needs to continue to look for a job or at least look for other ways to bring in some money. He does not need a degree though to make good money

How are you paying for school? I didn't see tuition accounted for in your budget. Are you using more student loans, do you have doctorate grants or funding? Also, who's student loans are you paying for now, yours or his? If they are yours, you should be able to get them in deferrment since you are in school.

Groceries, diapers and toiletries, I think you might be able to cut that down some more, but probably not a lot.

[ChetMC]

Job Ideas

Could your DH do pizza delivery or work in pizza a shop? DH's uncle has done pizza for most of his life in college towns, and he usually works nights.

What about cleaning or delivering newspapers / flyers? The people I know who deliver papers do it at night (3am to 7am).

[FineByMe]

if you're not locked into a contract, I would drop the rec center

We're under contract until January.

You could probably tighten up the diapers-cleaning supplies-toiletries category a bit, too

I buy generic diapers at a cost of $14 per box and he uses 2 1/2 boxes a month so $35. We are pushing the potty but so far that has just lead to the need for more cleaning supplies.

How are you paying for school

Loans. My salary will jump significantly once I have my PhD so we decided that since I was so closes to paying off my undergrad loans (less than 2K left) that I would pursue my doc work through loans.

[happysmileylady]

Originally Posted by FineByMe

We're under contract until January.


I buy generic diapers at a cost of $14 per box and he uses 2 1/2 boxes a month so $35. We are pushing the potty but so far that has just lead to the need for more cleaning supplies.


Loans. My salary will jump significantly once I have my PhD so we decided that since I was so closes to paying off my undergrad loans (less than 2K left) that I would pursue my doc work through loans.

How much does that diaper number work out per diaper? Do you need wipes with the diapers? I ask because between coupons and sales, I bet you could get stuff for less than that. CVS recently ran a sale where a box of Pampers was regular price, but you get $10 extra care bucks on it. If you already had ECBs to use, plus regular coupons, you could get it for nearly free! Plus, Pampers ran a coupon this month for buy any dipes, get wipes free. Last month, they had one for $2 off wipes, and then various places-Walmart, Meijer, CVS etc, ran sales where the individual tubs of wipes were $1.99 throughout the month. Between the two coupons, when combined with sales etc, I have almost a year's worth of wipes that I paid nearly nothing for (just some of Uncle Sam's portion.) Got a gaggle of the coupons through trading and asking for coupn inserts at recycle bins etc.

I would also like to suggest checking around for other forms of financial aid to either suppliment or decrease your loan load overall. I am sure there are lots of scholarships or grants for graduate work. If you can get some of those, you could use them to either help pay down your other debts, or to replace the loans so you aren't digging yourself a bigger hole. Have you looked into funding through your school? I don't know how your doctorate program works, but I know my sister's doctorate work is being fully funded by school grants and stipends. She's at University of Alabama getting a doctorate in Geology, and she's getting like $20k from the school, for each year, to cover tuition and to live off of. I don't know how she did it, but perhaps look into what graduate funding your school offers.

[redvlagrl]

Honestly, I wouldn't count on your salary being that much higher once you're done. DH has a TT position here in Canada (higher pay than US) and we don't take home all that much more than you do. Many of our friends who have similar positions in the US earn less. I suppose, though, that it might depend on what field you're in, but unless you're in law, business or medicine, I can't imagine it being heaps higher. PLUS DH has had his job for a few years already so has had raises. Starting salary might be similar to what you're earning now. Also, is it definite that you'll be able to get a job or will you continue where you are now?

Sorry to point this out, but I know we though "yay! we're totally loaded now!". Once we finished. We had been living on TAs so it was really tight.

I know this is a dumb question, but is it not normal in your field to have your tuition covered in a PhD program? It is in DH's field - tuition plus TA of around $10-15k.

Do you really require cell phones for work? What do you need them for? Do you use them much? Could you change to a prepaid? Because $90 seems high for something that's just for work, you know? Seeing as your DH isn't working, then surely you could cut this down to one line.

I would try the 3 day potty training thing this summer on your youngest, or at least change to cloth diapers. You can get prefolds second hand - you wouldn't need many since your youngest is almost out of them. If DH isn't working, you can do laudry every day or two if need be.

I would also probably defer paying your student loans and concentrate on your CC. I know this goes against Dave Ramsey, but if you're paying $700 on CCs, then your balance is very high. I would try to put every penny you can into it and worry about the student loans once DH has a job (which hopefully will be soon)

Can you sell off your rec centre membership? Or could you cancel, albeit with a fee?

[VisionaryMom]

You could engage your hubby in working the CVS/Walgreens/Rite-Aid reward bucks programs and also grocery shopping to help you get the cost down. Realistically your income isn't bad for a single-income family, but you need to start viewing your husband's role as saving money since he's at home with the kids.

Defer your student loans. There's no need to continue paying them.

Are 2 bedrooms in a college town really $1500 a month? Is there nowhere that you can look to move that would cost less? I get not wanting to sell the house, but yikes. I never paid near that, and I've lived in 3 college towns of varying sizes.

Are you in the US? (You mentioned wretched winters, so I thought you may be in Canada.) If you are, then look into state childcare subsidies. I don't know how that works with your income being what it is. I know that a single parent in our state can make about $30K a year and get $5/day childcare. It's worth looking into and seeing if you can get some prelim numbers because that should help your DH know what he really can afford to take, though, to be honest you're covering the bills. Anything he makes above childcare can go to debt unless having both of you work will mean more convenience expense.

[FineByMe]

deleted for double post

[redvlagrl]

This is a really huge thing to consider, but is there another good school nearby that would offer you a better deal? Both DH and I had full tuition (me for my masters, him for PhD) plus TAs at a leading private institution. I know that our school head hunted students and offered them better deals than what they were getting where they were. And this is in music, not the highest funded of areas.

What sort of job are you looking at getting when you finish? I know there is a lot of talk about universities having hiring freezes at the moment. Some recent leavers (after us) have had trouble getting TT jobs and have had to take 1 year contracts due to the lack of jobs, despite being well qualified (one particular person is a Yale grad).

Pls excuse typos - sleeping baby in one arm.

[VisionaryMom]

Originally Posted by FineByMe

School...
It is very easy to say that there are scholarships available until you have looked for them for post-bachelor studies. They seem to be there for the sciences but not in the field of higher education. I work at a state university and attend a different state university (the program in my field was not offered where I work)and have had assistance by finanancial aid officers at both tell me there is simply no money available in my field for post bach. work. I am confident of my salary once a PhD is completed.

In my field, which is the humanities, most places don't accept doctoral student unless they have full funding for them. I think many fields work similarly, which is why most of us are asking about school expenses.

What are you planning to do once you're done with your doctorate? How much longer will that take?

I would not live assuming there's extra money to be had. I have many, many friends who are ABD or completely done who are taking whatever adjunct jobs they can find. Jobs are scarce, so plan to live like you won't be making more money when you're done to help give you a buffer in case that's what happens.

[FineByMe]

As for diapers...
They are the cheapest I have found. We are over 200 miles from a CVS. I know people are constantly talking on this board about their great deals are but we don't have them around every corner here in the West. We also don't have Meijer. I always cut the name brand coupons, take them to the store, calculate the per-diaper cost and end up with the generic. I know diapers are expensive. We have collection of AIOs that I made and they worked for our girls but they make my little guy break out every.single.time. I have done extensive research on stripping them and tried all of the things that have been suggested here at Mothering but nothing has worked, he still breaks out and that just isn't worth it. I have resigned myself to the $35/month for at least a little while longer. I know he will be potty training soon; I am not a novice on this process.

School...
It is very easy to say that there are scholarships available until you have looked for them for post-bachelor studies. They seem to be there for the sciences but not in the field of higher education. I work at a state university and attend a different state university (the program in my field was not offered where I work)and have had assistance by financial aid officers at both tell me there is simply no money available in my field for post bach. work. I am confident of my salary once a PhD is completed.

Cell Phones
As part of my job I am on-call, responsible for responding to student emergencies so yes, my cell phone is required. I get a small stipend to offset this cost. We can't cut to one line because we don't have a home phone. I take my cell to work every day, his is at home or on his person. I am unwilling to cut his line in case of kid-emergencies.

Can you sell off your rec centre membership? Or could you cancel, albeit with a fee?
There is no cancelation fee, we are under contract for the full price. Obviously we couldn't sell it-there would be no advantate to the buyer.

CVS/Walgreens/Rite-Aid reward bucks
No CVS or Rite Aid here. Walgreens is 50 miles away.

I am in the US, Wyoming specifically. I have looked into all sorts of subsidies and I make too much to qualify.

Are 2 bedrooms in a college town really $1500 a month?
It is hard to understand the real estate realities we face if you are not from here. Our home/rent prices are similar to a large city even though we are 2+ hours away from one. The community we live in only has 26K people so houses and apartments are limited (as are jobs) There is no possibility of commuting since the nearest town is 50 miles away and I have seen it snow every month we have lived here except July.

Our children are unvaccinated so no day care in town will take them and we have not been able to find any private providers willing to take school aged children during school hours. So in the past we have relied on in-home sitters at $10/hr. This seems to be the going-rate minimum for 3 kids in this city. The jobs that DH have been offered have been at $10-12 per hour. While that is not a bad wage, once taxes are taken out he would be paying to work and we wouldn't be any further ahead.

[FineByMe]

I am in student affairs...it is not similar at all to faculty tenure/pay/hiring/funding. The field is solid and there are positions available. This is one area of a university that seldom gets frozen. I will be looking to work as a director of student housing/dean of students when I am finished.

I am a year of courses and my dissertation away from my PhD. There is no option to transfer now. The 15 of us in this program are in a cohort model and none of us have funding. That's just not the way things are done on the student affairs side of the house.

[VisionaryMom]

Originally Posted by FineByMe

Obviously we couldn't sell it-there would be no advantate to the buyer.

Some places will let you sell/transfer memberships. I think that's what the poster who made that suggestion meant.

Originally Posted by FineByMe

I am in the US, Wyoming specifically. I have looked into all sorts of subsidies and I make too much to qualify.

If I'm reading this chart correctly, you do qualify. You'd have a $3.15/hour co-pay for daycare. You'd still have the vaccination issue, but what about a religious exemption? I've never done that, but in our state, I'm pretty sure that daycare providers who accept subsidy money are required to take religious non-vaxers. You don't have to share your religion, and I know many mamas who have philosophical opposition who file religious exemption wavers. It's also pretty easy for an individual in our state to get approved as a childcare provider (hubby works on the software program for the system, which is how I know this), and then the state will pay their rate minus your portion. Lots of people are able to have Grandma babysit and get the subsidy sent to her, and that may be something that works for you guys.

Yeah, I get that your husband's income would move you higher, but if you can find a drop-in option, then maybe that will work and he can get 2-3 days of work a week in.

Originally Posted by FineByMe

Are 2 bedrooms in a college town really $1500 a month?
It is hard to understand the real estate realities we face if you are not from here. Our home/rent prices are similar to a large city even though we are 2+ hours away from one. The community we live in only has 26K people so houses and apartments are limited (as are jobs) There is no possibility of commuting since the nearest town is 50 miles away and I have seen it snow every month we have lived here except July.

Our children are unvaccinated so no day care in town will take them and we have not been able to find any private providers willing to take school aged children during school hours. So in the past we have relied on in-home sitters at $10/hr. This seems to be the going-rate minimum for 3 kids in this city. The jobs that DH have been offered have been at $10-12 per hour. While that is not a bad wage, once taxes are taken out he would be paying to work and we wouldn't be any further ahead.

Holy Cow! You seem to be in the worst of everything there. How long are you left there? (I avoided saying "stuck," but honestly that doesn't sound like it's a good place to live and get ahead or have any opportunities.

I'd just start viewing your DH as a SAHP and go from there instead of spinning wheels with applying for jobs that won't help your family. Even if it doesn't help the financial situation, it should be less stress.

[SumnerRain]

If you are not using the CCs, call them and speak to them about closing them. Most have programs (I have dealt with Chase, USAA, and Citi) for people who are having troubles making their payments. One agreed to drop me to 0% for a year if I set up $41 auto drafts (DO NOT DO THIS OUT OF A PRIMARY ACCOUNT, they can clean you out! I set up a second checking account at my bank and did a auto transfer 2 weeks before they could pull their money). Second CC dropped my interest to 1% for 5 years... payment was something like $84. Both these CCs had low balances (3k each) HIGH payments 300+ and HIGH interest (23%+) because I made one late payment (less than 2 days late) to each. I owed $15,000 to to USAA CCs who put me at 0% for 2 years and lowered my payments to something like $75 & $76. The caveat was I could never use these again, my credit score temporarily tanked because it showed the CCs closed with a balance.

Be patient, be persistent, demand everything in writing, call back and speak to someone else if you have to. Do not agree to auto drafts if you don't have to. And then use the money you save to stay afloat, but plan on paying more than the minimums or you will be back to square one when the program is over. Oh, and some will try to re-instate you... don't let them reopen your account if you are trying to be debt free.

Also, you may find with negotiation, you can lower many bills right now. I was able to lower my phone bill for 6 months, my satellite bill for a year, my cell phone for 3 months, and you may be able to get out of your contract. Just look up ideas online on how to secure better rates. Everyone is struggling right now, which works in favor for you as it means people are more willing to work with you.