My husband and I have hit rock bottom, I don't know what to do. We are about to lose our house and car and I'm afraid then we'll lose my 2 stepsons too. We owe almost 2 house payments and 2 car payments, plus we owe a huge electric bill. My husband works 2 jobs totaling 80 hours a week, and we still can't catch up. We made the mistake of taking out some small personal loans at those little loan places around town and now we have 5 loans to pay on too. We have been trying to get our house financed but its a manufactured home so its impossible with our credit. We luckily have never gotten credit cards. We go to the food pantry each month and we only have 1 car. We have no cell phones and we had the satellite shut off, so now all we have is the basic necessities. I use the internet to manage our accounts and its bundled with our phone, which we need since we live so far out and my husband has the car, so I have to be able to reach someone in an emergency. I'm so scared and worried all the time that I can't sleep or eat. We're trying to trade our car in for something cheaper, but its hard because we are behind on the payment. If anyone has any suggestions or knows anything about getting out of debt, I would appreciate it. I don't want to have to declare bankruptcy because in all we are only about 12000, in debt. I was wondering about the government grants if there are any available. We have tried getting assistance but they say my husband makes to much, which I don't understand since we can't afford to go grocery shopping and use the money only for bills. Please Help!
Check out http://www.daveramsey.com/ and the yahoo group http://finance.groups.yahoo.com/group/Dave_Ramsey_Debt_Beaters/
:)
Consider yourself extremely lucky for not having ANY credit card debt! Keep it that way!
How many cars do you have? If you have 2, could you sell one? Do you have ANY expenses you could cut, like the cable bill or cell phones?
Be SURE to call the mortgage company to ask them what you can do to keep your house. Don't ignore them or neglect them....they are much more understanding than most people think. Also, you don't HAVE to pay your entire electric bill each month, but you should be paying a portion of it.
To save on groceries clip coupons and shop generic. You can also go down to the food pantry in your area for free food if you're hurting really bad.
I hope I could help somehow! Best of luck!
Check out Dave Ramsey (www.daveramsey.com). He is very good with debt resolution. And I know that you can get some of his books on tape at local libraries.
Hi, you didnt say how old your stepsons are, if they are old enough is it possible to have them babysit and you can get a job to help pay toward the debt. Do you have family around that could help babysit so you can get a job to help with the debt. Just a thought, hope you get some relief from your debt soon.
Good Luck
Gale
I have been there before, and I feel so bad for you. Start out by calling the mortgage company and making payment arragements and the same with you lien holder on your car. Next, IGNORE the payday loan companies, they can not eat you! Catch up on everything else before you even begin to deal with them again. Pay only the mortgage, car, insurance and utilites. Cut out all extra expenses, no cell phone, no cable, no internet. Start packing lunches for the kids and hubby, no more eating out or school lunches. Cut out everything that is not necessary. Trading in a vehicle is probably not a good idea, if you are upside down and trade down you could quite possibly have almost the same sized payment and a crappier car! You might also try applying for wic, food program for women infants and children, thier income guidlines are not as strict. If you are a stay at home mom, you could start babysitting at home for other peoples kids, its cash income! Maybe start working a partime job if there is someone to keep the kids, or work when your hubby is home. Lots of department stores are starting to hire christmas help. You could also ebay all of your childrens outgrown clothing and things you just arent using. I know some of these are just unpleasant ideas, but I hope they help! Good Luck!
I believe it's time to go ahead and so something a bit more drastic. You and your husband should look for an agency or program for people in your situation and move into one of those residential facilities where the rent and utilities are free until you get back on your feet. They have credit counseling, will force you to get some savings together and will even pay daycare so you can go to work.
I know you are trying to avoid bankruptsy. But sadly, your credit is probably already shot. Since you are behind on the mortgage and possibly/probably behind on some of those other big payments, things are getting put on your report. You could give the house back in leui (sp?) of forclosure. It will still look bad on your credit report. But as I said it already looks that way.
I am only saying this because you are unable to work and your husband is working 80 hours because you aren't. It's too much to expect him to work 2 full time jobs just because you don't have a car to drive and don't want to pay daycare expenses. You will never climb out of this hole you are in unless you are able to go back to work and pick up your share. And what will you do when your husband drops dead of a heart attack?
If you live in a place you can do daycare, disregard everything I said and start a daycare. I just got the impression you are a ways out in the middle of nowhere, but I'm not sure why I thought that. If you do daycare charge in advance. That will help you start to pay the bills again. But don't treat it like cash money. You MUST claim it on your taxes. There are so many tax breaks for daycare providers you won't pay that much and you can't expect God to protect your family and help you through this if you are doing something wrong morally.
The debt is not really the problem. I'm 50,000 in debt. But I don't have a hard time with the payments. I was panicking last year when a couple of my companies raised my interest rates. But I called them, gave them hell and made them reduce them again. I pay things in advance any time possible and I am forcing myself to put savings aside.
The real problem is making enough money to pay your bills and necessities. Bills ARE a necessity. But, if your credit is already shot, you could move to a place where there are more jobs or more kids to watch. Don't let yourself think you need a house either. I have operated my daycare out of a 2 bedroom apartment and did just as well as I am doing now in a big house. People want and need reliable care and they want to feel safe. If you can make them feel safe you could do daycare anyplace.
If you want to know more about how to get into the assisted living programs for family, email me. I have friends that run a homeless shelter and I know people that have been in the Hillcrest ministries program in Liberty MO. I've learned quite a bit about how people get on these progrms.
Drastic times call for drastic measures.
Is your house large enough to take in a border? If you could rent out a room maybe you could take a deposit and first and last months rent and pay your back mortgage? I'm just trying to think of things that could help. :)
Suzi
Have you gone to see a credit couselor? When we were truly in debt, we saw a credit counselor and they helped consolidate our debts and lower the payments. I hope this helps.
Hi Heather,
I know you probably don't want to but you could try finding a job to help out a little. You could work it around your husbands schedule so you wouldn't have to get daycare for the children.
Our finances were getting tight also so I got lucky and found a job at a gym daycare. I'm able to get a little extra money and bring my kids with me. It's great!@! Plus I get a free gym membership (which could help you relieve some stress). Or you could work the evenings when you hubby is home. I know it's not easy and it's very stressful but it's the only option I can think of.
Good Luck with everything!!
Hi Heather,
We went through bankruptcy about 5 years ago and almost everyone we owed, especially our motgage company, said we should have called them and worked out a smaller payment plan until we got back on our feet. My advice is bite the bullet and make those phone calls. You might be surprised how much they will do to try keeping you out of bankruptcy. The first call to make is your mortage company...we were 4 payments behind and they were willing to reduce our mothly payments until we got back on our feet.
Good luck,
Win Q
Sounds like a very stressful time, been there.
Call mortgage and auto loan comapanies. They'll work with you, they'd rather have some money than no money.
Do you have a budget? Like how much do you spend a month on groceries, exactly what bills do you have, when are they due? I keep a list of all of our bills. My husband has two jobs, so he gets paid a little one week and then more the next. I have a list of each bill and what paycheck we pay it with. If we don't have enough to pay it, we wait, but no more than a week, and it gets paid first the next week. On our expenses I write down everything - groceries, car gas, cell, phone, cable. Including things that come out of checking.
DON'T use those payday loan places again. They're interest is OUTRAGIOUS, and it's only a quick fix, as I'm sure you're learning.
I love the suggestion about working at a fitness facility. I used to work at the Y child watch, I could take the kids, and at the time, we only had one car, but I could walk. If you're living miles from anywhere, that probably won't work for you.
Don't worry about your credit score right now. Honestly, it's not as hard to build back up as you might think.
Figure out where your money is going. Your husband is working 80 hours a week. How much is he bringing in? Is this more than you owe on your mothly bills, OR is the money going somewhere else? For me, writing all this stuff down helps, then I can see how we can cut expenses - things like eating out, renting movies, stuff like that adds up quick.
Hope this helps.
Sabrena
Dave Ramsey! There are a number of local churches that offer Financial Peace University or you can find resources on his website.
I suggest getting a job. My husband is the breadwinner in our family but I still work even though most of it goes towards child care that little bit helps out alot.
Im not sure about the government grants but just keep your head up and pray. If god brought you to it, he WILL bring you through it.
Have you ever heard of Suze Orman? She is like a God when it comes to knowing how to get out of debt. She has a website, it may have a charge if you want her specific help but she knows it all and may be able to help you find your way out. At least you should be able to find some tips there. Good luck with everything. I hope it all works out.
Heather:
You need to make sure that your basic/living bills are paid first...home, food, electricity....Cut back everything (no eating out, entertainment...). If you can, sell your car, pay on what you owe, and buy a cheaper car. You may be able to consolidate your loans, into one, with one lower payment. As far as overdue bills, do you belong to a church that could help with that? If not, call the company and see if you can work out a plan. You mentioned that you are a SAHM. If your step-sons are in school, would it be beneficial for you to get a job (meaning, the cost of daycare would be lower than you working)?
Good luck.
Amy L
The Debtor's Anonymous organization can be reached online or by phone. If you're in a rural area, there may be no meetings near you.
I know it feels like the barbarians are at the gate. We are in debt and broke. I feel for you and identify with you. Hope knowing you aren't alone helps. YOU ARE NOT A BAD OR WORTHLESS PERSON JUST BECAUSE YOUR FINANCES ARE MESSED UP!
Katrina
I don't know what to tell you as we are having a tough time too. My situation is not as deep as yours yet, but I feel it coming. You are lucky that you did not get into credit card debt because that is where our problem lies, and it is horrible as well. We are not behind yet, but I really don't know how we are going to eat for the next two or three months, much less the holidays. We are about 23000 in credit card debt and it just keeps piling up, even though we are paying about 600 a month on it. We went to see a CCCS and they told us that since I was a student it would be a good time to file bankruptcy. The only problem is that we really don't believe in doing that. We want to pay our debts, we just don't really know how to survive until I am through with school and have a job again. We have thought about selling our house and moving, but we really don't want to do that as we are surrounded by family and friends. We are going to try to find an AngelFood in our area (which was also one of the suggestions the counselor gave us). I just wanted you to know that you are not alone and there are others out there who understand at least a little of the stress that you are going through. Just keeping praying for God to show you what to do-that is all we know to do right now too. Good luck and keep on posting on here. It helps me I know.
I agree with Amy. Make sure your basic necessities are met first. Cut back on luxuries. This includes buying pre-packaged or prepared foods from the grocery store. Buy wisely and cook homemade meals instead. You will see the difference in how much it makes a dollar stretch. Also, it's the holiday season. Lots of retail shops are hiring seasonally. Like Amy suggested, do you think it might be beneficial for you to look for a seasonal job and put your daughter in daycare to see if it would help out temporarily? It might help. I'm sorry to hear that you're in such a tough situation. We wish you the best!
Dear Heather,
I suggest contact Consumer Credit Counseling in your area. They are a great way to get on top of your debt without paying interest on what you owe. There is a minimal fee each month for their services but it is way cheaper than any small amount of interest you would be paying. Also, while you are with the Consumer Credit Counselors, your creditors will not be able to contact you to bug you about what you owe them. Also when you go with this agency, your credit can essentially improve because you are taking the necessary steps to pay off your credit and bills owed. If you feel that you are too far in debt then you always have the option of filing bankruptcy. With the new laws these days, I am not sure what the details of filing would be so you would need to contact a lawyer regarding bankruptcy. I understand where you are and have used Consumer Credit Counseling in the past. They are usually very understanding of your situation and are helpful. Good luck with your situation! ~Trina