G.O.O.D. (getting out of debt) March Thread - Page 2 - Mothering Forums
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#31 of 51 Old 03-31-2005, 11:20 AM
 
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Originally Posted by its_our_family

So, new dilema. ..... Or do I work part time and go to school and make monthly payments. Or what?

that would get my vote. Nothing crazy so that you have to be away from your kids too much. But work + loan means your loans will be much less. And then you won't end up borrowing too much from the future.

Kristin -- mom of Erin (11/5/02) and Leah (9/29/05)
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#32 of 51 Old 03-31-2005, 05:15 PM
 
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Originally Posted by kerc
that would get my vote. Nothing crazy so that you have to be away from your kids too much. But work + loan means your loans will be much less. And then you won't end up borrowing too much from the future.

I also thought about working part time and using what I make to pay on my current student loan and taking out a loan for the current schooling. It'll be another 5 or more years before my current loan is gone. SO, do I go to school now for something that will be beneficial for us NOW or wait 5 or 6 years and then go?

I want to go now its just figuring out the best way to do it.

It would be 350 a month to pay while I"m in school.

Single Mom to 2 amazing little men. T(7) and B(5)
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#33 of 51 Old 03-31-2005, 06:18 PM
 
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I've just recently discovered this thread. I hope it can help me stay on track.

My dh and I have just had what I hope is our final "wake up call" regarding our debts and cc useage, when we thought we were going to have to go to a check cashing place (you know those places that charge $20 or more for every $100 you get). Instead we borrowed money from my dd's savings account (the only savings we have) . We've been in debt since before we got married, and have been in much better situations than our current one for getting out of it, but we never really had a plan, and would do ok for awhile and then get bad again. Since our second DD was born last May we've been sinking further and furthere. And we've got a lot of things coming up in the next few months that I feel like we're going to be getting more debt before we can come out of it (an already planned and unrefundable trip to attend my brother's wedding).

Anyway, we're making an appt with a credit counselor and will hopefully get a plan in motion. I'm trying not to think about how many years it will be before we're debt-free. baby steps...

Jennifer
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#34 of 51 Old 04-04-2005, 04:17 PM
 
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i'm so glad i came across this thread. this is just what we need!

last week dh and i came to the realization that we need help with our debt (cc's, personal loan and school loans). we've just got to the point where we couldn't make our min. payments and the interest rate went from 0 to 30! so i called a credit couseling service to sign up and as soon as i got off the phone i got an email from my MIL offering us a loan through a credit card they have for 25k at 4.95% for the life of the loan. we are so blessed to have such great families.

so now, instead of taking 6 years to get out of debt with the consolidation company (and affecting our credit in the mean-time) we'll be out in less than 3 years. and instead of paying 6 different companies we'll just make one payment to MIL. we both feel so relieved.

but now i've got to worry about my job. we're going through a huge merger right now (sears and kmart) and i'm hearing rumors of layoffs being in the 1,000's. cross your fingers for me!
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#35 of 51 Old 04-12-2005, 11:24 AM
 
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Our 1997 car has been making intermitant noises for many months now. After several attempts, my last visit to the mechanic turned up the problem, an expensive one.
arghh. it is going to cost $729 to fix. I am so upset, but the good news is that we are getting $763 back in state taxes. We had orginally allocated that money for paying down cc debt.

The bright side? At least we have the money, so we don't need to go further into debt.
The down side? It is hard for us to make money above DH's salary. We were really looking forward to using that money to make a hefty cc payment.

Children deserve the respect of puzzling it out.
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#36 of 51 Old 04-12-2005, 01:10 PM
 
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that stinks about your car. but the bright side is that you have some cash coming in, so you don't have to charge it.

we live in a reasonably nice house. ok nice house. it is just too small. I don't have high needs. I'd like 1500 square feet for my family of soon to be four + golden retriever. We aren't looking to move. But yesterday we looked at a house around the block from ours, perfect for us long-term. But, gulp, we decided to pass. We might have gone ahead but between being super busy and it needing the bathroom floor rebuilt it seemed like A LOT of work to move this sumer.

I'm hoping that in the next year we can pay off 2 cars + most of one credit card. Putting us in a fabulous position to be looking for houses. Anyhow, I'm posting because thinking about frugality and finances via this thread really helped me to come to terms with the idea that while technically we can afford this bigger house, we'd be a lot more comfortable with the delayed gratification of waiting a year until the shorter term debt is paid off and savings begins to accumulate. And who knows, with a new baby coming our needs could change. So anyhow thanks for being here and willing to talk about finances. Not talking and thinking about them before is what brings me here!

Kristin -- mom of Erin (11/5/02) and Leah (9/29/05)
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#37 of 51 Old 04-12-2005, 01:37 PM
 
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I hope it's okay to crash this thread. I'm wishing I could join as a "guest" as I'm very : about being this ignorant and this bad w/ debt. I simply don't know where to start getting out of debt and I truly feel maybe I've dug a whole that I"m going to be burried in. And now I feel like I"m dragging my dh down w/ me. Before we married he was a little "loose" with his money, but now he too has bad credit. I'm so scared to do ANYTHING regarding finances and we never talk about it as of this issue.

So, my first question is... how do I even find out how much I owe and to who?
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#38 of 51 Old 04-12-2005, 01:45 PM
 
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Kimberley---

Depending on where you live you can already get a free credit report once a year. Everyone in the US will have have the ability by September. *That* is probably where you want to start.

https://www.annualcreditreport.com/cra/index.jsp

Oh, just saw you live in Maine so you can't get it free until September. You could pay for it before then, or if you have applied for credit recently you can ask to *see* it then.

Good luck!

Kay

 

 

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#39 of 51 Old 04-12-2005, 02:06 PM
 
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I thought we were going to get this nice tax credit back after teh adoption goes through. WE've been thinking of ways to raise money and have lots of ideas. But then bam I find out we're probably not getting a dime back after the adoption to put on any loan we might get. So we will totally have to take out a loan for more than my dh makes in a year to finish this adoption. I'm just so sad...I can only pray we'll even qualify for a loan for it. We're going to apply on Fri me and my dh. If you pray please pray for us.

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#40 of 51 Old 04-12-2005, 02:08 PM
 
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Originally Posted by dinade
If you pray please pray for us.
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:Patty :fireman Catholic, intactalactivist, co-sleeping, GDing, HSing, no-vax Mama to .........................:..........hale:
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#41 of 51 Old 04-12-2005, 02:15 PM
 
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Originally Posted by edamommy
I'm so scared to do ANYTHING regarding finances and we never talk about it as of this issue.

So, my first question is... how do I even find out how much I owe and to who?

I feel for you. ALthough I felt like I was mostly responsible with my money most of the time, there were times when I felt anxiety using a debit card at the grocery store (what if I didn't have enough money???), not knowing how many student loans I had, not knowing how much I owed in credit card debt, and not knowing if the moneyin the bank would be needed for paying regular bills, or if I could use it to pay more on a debt.

One thing I would recommend while you are trying to organize yourself is to keep all of your receipts, everything you spend for a month, and when you have the emotional energy organize them into categories. You will be able to see where the money is going.
Also, make a table on the computer or on paper that lists all of your debts, when the bills come in, write down how much you owe, the % rate, and the minimum payment requirements. Do this for an entire month. Once you collected this information you will have a better understanding of where you stand. When you have a handle on things, as the months progress you can update the table and see your progress.

Now that we have control over our money, life has really changed for us. The worry is gone, the panic in the middle fo the night has disappeared and we have better communication. Not having control really drains the life out of me.
As you can see by my above message, I don't have a lot of money, but at least I know where it is going. I have control over it, not the opposite. It is a good place to be.
You can get there also.

I am sure other people will have good ideas too.

Children deserve the respect of puzzling it out.
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#42 of 51 Old 04-13-2005, 11:12 AM
 
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Quote:
Originally Posted by edamommy

I'm so scared to do ANYTHING regarding finances and we never talk about it as of this issue.

So, my first question is... how do I even find out how much I owe and to who?
I second (or third) the idea that knowledge is power. You can begin by paying 10 bucks to one of the major credit monitoring agencies and get your credit report. If you have been turned down for a loan recently you may be able to get it for free.

You could also begin by getting a little notebook and writing down every penny you spend for a month. Not guilting yourself because you spend more than you have, but really just finding out where your money is going. Once you know where you are spending your money it is easier to make decisions about how to begin paying off debt.

A number of us here on this thread have really enjoyed the infromation in the book "your money or your life" and also the information in the financial books by dave ramsey. One note: dave ramsey is a christian and as such his books are preachy. If you aren't so inclined there is still REALLY good information there, you just have to get past the spiritual side of it.

Welcome to the thread. A lot of us have sadly been around for almost a year, but we keep chugging and keep coming back for information and to report successes. We all enjoy a little cyber party when we find out someone has had a small success.

Kristin -- mom of Erin (11/5/02) and Leah (9/29/05)
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#43 of 51 Old 04-13-2005, 11:28 AM
 
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I recently discovered that I have a mutual fund I'd forgotten about- I kept getting the statements in the mail (still addressed to my first married name) and ignoring them- figuring it's "money for sometime in the future" and not even considering it for regular expenses.

Anyway, I opened up the statment that arrived yesterday and discovered that I have a little more in the account than the balance on my credit card. Should I liquidate the account to pay off my credit card and open a savings account? Liquidate just enough to cover the credit card and leave the rest in the mutual fund? Keep the money in the mutual fund and continue to pay off the CC slowly?

Ruth, single mommy to Leah, 19, Hannah, 18, and Jack, 12
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#44 of 51 Old 04-13-2005, 08:32 PM
 
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Quote:
Originally Posted by Ruthla
I recently discovered that I have a mutual fund I'd forgotten about- I kept getting the statements in the mail (still addressed to my first married name) and ignoring them- figuring it's "money for sometime in the future" and not even considering it for regular expenses.

Anyway, I opened up the statment that arrived yesterday and discovered that I have a little more in the account than the balance on my credit card. Should I liquidate the account to pay off my credit card and open a savings account? Liquidate just enough to cover the credit card and leave the rest in the mutual fund? Keep the money in the mutual fund and continue to pay off the CC slowly?
How much intrest are you paying on the cc? If it is over what you can reasonable expect to get from the mutual fund, I would cash it out and pay the cc off. That said, remember to hold back enough money to pay for any taxes (should be long term capitol gains).

 

 

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#45 of 51 Old 04-14-2005, 03:08 PM
 
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Would I have to pay taxes if my total taxable income for the year is about $2,000?

I don't pay tax on child support received and I'm not currently employed. Cashing in this mutual fund would be my only taxable income for the year.

Ruth, single mommy to Leah, 19, Hannah, 18, and Jack, 12
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#46 of 51 Old 04-14-2005, 03:17 PM
 
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If I remember correctly, you have to file and pay taxes on any income over like $1000 or so. The government tax websites are great and really thorough. I'm sure you could get a for sure answer that is up to date on there.
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#47 of 51 Old 04-14-2005, 04:56 PM
 
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wha'cha got as far as savings?

if you've got nothing, and are a single parent, honestly I'd leave it where it is and pay off the cc the hard way. That way in a dire emergency you could dip into the mutual fund.

Kristin -- mom of Erin (11/5/02) and Leah (9/29/05)
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#48 of 51 Old 04-14-2005, 05:03 PM
 
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Savings??? What's that??? I only have a checking account and I pretty much spend it every month.

Thing is, if I payed off the CC, I'd still be able to use the CC for emergencies (and I'd have a higher available balance.)

Ruth, single mommy to Leah, 19, Hannah, 18, and Jack, 12
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#49 of 51 Old 04-15-2005, 09:42 AM
 
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Quote:
Originally Posted by Ruthla
Thing is, if I payed off the CC, I'd still be able to use the CC for emergencies (and I'd have a higher available balance.)

Which ultimately is how I (and a few others here) eneded up in cc debt. Emergency. then use the card. then don't have cash to pay off the card. I'm working (slowly) on building a savings to dip into in the emergency. By putting money into there slowly then I am (a). saving money and (b). not building debt I will struggle to pay off.

Kristin -- mom of Erin (11/5/02) and Leah (9/29/05)
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#50 of 51 Old 04-15-2005, 06:35 PM
 
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Thing is, the mutual fund isn't easily accessable- I'm not even sure how I'd go about liquidating it (probably call or write to my former financial adviser in Baltimore who set this up for me.) Taken from a purely monetary angle, it makes sense to pay off the CC and no longer pay the interest on it.

My primary concern is this: would it be better for me to slowly pay off the CC just for the discipline of paying it off slowly and to help build up my credit rating? There's also something comforting about "having money in the bank" even if I never touch it, just knowing I have *something* saved for the future.

It's not like I was buying tons of unneeded stuff and running up my CC bill. Part of it was investment into a business that never got off the ground, part of it was temporary higher expenses when our basement apartment flooded., I bought a ton of prepared foods because the kitchen wasn't fully functional. During the same time, I ended up buying my kids new clothes rather than sewing them myself or shopping at thrift stores.

Ruth, single mommy to Leah, 19, Hannah, 18, and Jack, 12
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#51 of 51 Old 04-21-2005, 10:45 AM
 
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I'm not sure how you would liquidate an account like that. I do know I would pay off HALF the cc and then keep making payments. Because having it down to half will help your credit score and it'll feel good to have half the balance gone.

Oh, and "emergencies" is how we got into debt. You are better off with savings... we learned the very hard way.

Single Mom to 2 amazing little men. T(7) and B(5)
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