Hi, I’ve never posted here before but have done some reading of others’ experiences….. and I need some help.
We had $50k in credit card debt. Several months ago I bagged all pride and asked family members for loans to pay it off. I am very lucky that my family had the means and the trust in me to loan us the money, and we paid off ALL credit cards. What a dream!!!! As I paid them off I SWORE that I would not use the cards any more except as necessary for travel overseas which other family members reimburse.
Since December we have gotten ourselves into a HUGE hole again. I still haven’t paid the February mortgage–$2k. We’ve got another $1k on a credit card–never mind how but I admit to serious irresponsibility by myself and my husband.
The trouble is that we don’t make enough money to support our expenses. We don’t see where we can trim. We have refinances our cars to the point where our car payments total $700/month, and we owe more than they’re worth. We don’t have much equity in the house and it would need repairs before we sell, and frankly in our area we probably wouldn’t reduce our monthly payments by much. We owe $1600 to a private religious school which my husband insists upon for our three kids–and that’s after financial aid. Plus of course there’s all the utilities, food, gas, clothing, all those daily expenses.
And when my husband calculated our taxes he found that we owe the IRS $2k for 2015!!!! I’ll be reviewing that because it seems crazy…..
We both have relatively good paying, secure jobs. My husband has been trying to find something that pays more with no luck.
So all in all we dug ourselves out and in a few months we have gotten ourselves back in. And I don’t even know how to pay this month’s mortgage.
What do we do? There MUST be hope somewhere……
I appreciate any help!
I am going to give you the answer that my family and a couple of our friends have decided to take. Second job. I know this is a hard choice to make especially when you have children but a few months of not seeing each other as much will seem like nothing when you get to live your life not burried under all this mess.
My hubby worked nights as a stocker at Wal-mart to help us fund Christmas since we couldn’t squeeze any money out our budget for it. One of our friends picked up a weekend job delivering pizza’s. The tip money helped them start paying cash for eating out and gas so they wouldn’t charge anything else. His paycheck went against thier credit cards.
Might also try selling stuff on ebay or having a yardsale. Its just stuff, it can be replaced when you get out of the hole. Nice things don’t bring much pleasure if you can’t afford the home to put them in.
Just some ideas for ya. It was the hardest thing to do, changing our lifestyle and our ideas about money and stuff. I just remind myself that I want to retire and live comfortable. there are others here that will give you some really sound advice but it all boils down to the fact that you will need to make some major changes and they will be very tough to do.
If you listed your expenses and income you might get more specific advice as to where to cut. You mentioned that you don’t see where you can trim so if you are up to some honest input then I would suggest posting your expenses.
An obvious reduction would be the school. I understand your husband insisting but you can’t afford it and unless you are willing to make changes in other areas you are going to have to cut somewhere.
There’s also the idea to really purge the excess from your house and have a garage sale to bring in some extra dollars and then there’s always the thought of getting a second/weekend job for both of you.
It’s tough and I am certainly not the best person to offer advice but there are lots of people that can really give some honest opinions that will be very helpful.