Budgeting tutorials | Paying off debt

I’ve never posted here before

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.

Budgeting tutorials

Debt snowball method

It sounds like you are really rocking. Just a little update. My husband is still completely disabled from the strokes but just like this debt recovery- baby steps, baby steps.

Was listening to Ramsey and reading all the posts and took a step of faith and called Barclaycard – now Wash Mutual. Had bal due of 1200.00 and was sending 500. per mo. Called and asked if I could settle- they agreed to the 500 being the settlement. One phone call saved me 700 plus dollars. They did try to get the electronic digits on my checking acct. But I had listened to enuf Ramsey- no soap. Gave me enuf courage to call the dreaded Capitol One owe 7300. They offered to settle for 80& like 5800. I will call again. Anyone have any experience with Cap One?

Since the fall when we started Ramsey my car is completely paid off 3300. Singular is gone. The medical bills are paid- all receipts saved for income tax deductions- and I see an mbna bill for 3900. gone in the next few mos. Still will have about 19000 more to go.

Thank God for Ramsey and you. I had gone to credit counseling seminars and bought every book by Mary Hunt and got more and more mixed up. I kept going off in 10 directions. The key is that gazelle focus- intensity if you will. Also read a great book the other day from the library – The automatic millionaire – very good read.

that was inspirational! I love to hear stories about people winning. It reminds me it can and should be done especially since our situation is not near as tough as yours has been. When it comes to doing a settlement the name of the game is persistence and insistence.

While you’ll have quick wins with some companies others will play hardball. Capital one is one of those companies that will try to get everything they can before they relent.

The further behind in payments and the closer you become to the charge-off date (usually 150 days to 180 days) is where you’l get the sweetest deals with the hardball creditors.

Just keep repeating your message like a broken record. Record everything said, and use the law as reinforcement to get the best settlements.

I wouldn’t settle with Capital One for more than 50 cents on the dollar. If you work it right you can get 35-40 cents on the dollar.

I hope that this helps.

I started making calls tonight and yeah, it didn’t work out.

I received a letter from OSI on behalf of Bank of America stating that there was an intent to sue. It was not a formal certified letter just another statement looking thing. I called them and they were offering a settlement of 80%. When I mentioned that I could not pay that, they then said that they needed $400 a month. Yeah, if we could make that payment then we probably would not be in this situation, right?

So my question to the masses is this.

I haven’t paid on time or the amount required since August. It’s usually been between $15-$45 on balances from $2,500-16,000. I know it’s ridiculously low but it is what it is.

At this point, since I’ve not paid but very small payments since August 2005 does that make me at least 120-180 days past due? At what point will they be willing to settle for the lowest amount? Has anyone had any success in just getting the account closed, the late fees and excess charges removed and then being able to make monthly payments?

I have some money coming in that would allow me to pay off 4 of my largest debts IF they are willing to settle for approximately 22-23% of the balance. What can I say or do to get them to do that? Anything? I’ve been continuing to send in payments based on a pro rata plan but am wondering if this is the best choice. Or should we just save the money to be able to offer larger settlement payments?

I just don’t know what to do. I wish someone would tell me! LOL So any advice, experiences that you could share, I am listening. If you know how long I need to wait to settle, let me know.

I would like to settle with them but need help in knowing what to say, when to say it etc. If you are out there PLEASE offer your advice and experiences. There are others out there that need the info too.