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.

Paying off debt

thinking about paying off debt

Hopefully this will be a quick and easy question.

I have aprox. $1700 in debt with a hospital, which was sent into collections a couple years ago. I have tried setting up payment arrangements, but they sent me my bill and said it was due about 2 days after I received the bill. I sent in my bill and lowand behold, my payment was accepted, and I awaited for another bill. Nothing came. About a month later I got a letter from Central Financial Control saying I defaulted on my agreement with them to pay. So I called them up and they gave me the run-around and said they will no longer accept payments because apparently they never got my first payment. Good thing I didn’t send them a huge amount of money. This is the ONLY thing on my credit report. It’s 2 bills equaling up to about $1700.

Now, I talked to a credit counseling guy (free) and said that I could probably set up something where I could settle everything for $1000, if i talked to the right person. This gets to my first question. If I were to pay off the $1000 how should I go about doing it so they don’t rip-me off again? This is A LOT of money to get lost. Should they also report to the credit agency that it’s paid? and would that add a positive note on my report?

thanks in advance.

Before going much further, find out where your last payment went. Did you send a regular check and if so was it cashed? Did you send a money order, cashier’s check,etc? Same question. If it was never cashed, put a stop payment on it before send this company any more money.

Then, once you get a payoff agreement in writing, send the money (after making a xerox copy) either through FedEx or USPS certified so that some human and the company must sign for it. FedEX and UPS can give that info the day it is delivered, USPS will snail mail you back the green post card. Once you have the name of the person signing for the money, you can call the company back and get a verbal agreement they have it.

Then, since you have copies of the check, the payoff agreement and confirmation of their receiving the check, they can not legally do any more.

But again, I would first be fighting to know where the first payment went.

Good Luck.

Auto loan | Paying off debt

We decided what to do

We are going to pay off the large loan and the auto loan.

We will then call the creditors and negotiate with them on lowering the interest rate and removing fees.

Anyone have any success stories to share that will help with our calls?