Women in Red Racers - South Region

[suzwantstobefree]

Crafty, there is also something about a new year and the motivation to make changes. I think that helped me with a good paydown (well, good for me anyway). I am looking forward to February though to, it seems like it should be good.

[cleanslate09]

Evening all! I am really hoping someone has some advice because I really need a financial shoulder to cry on. I am at the point honestly where I need to consider bankruptcy and just don't know where to turn or what to do.

The past year has been rough and probably would help to retrace. I originally thought I had got set up with a credit counseling service to help me start digging out of this mess. Almost every card I had, except for the store cards, jumped the interest to 29.99%. I couldn't even put a dent in the minimums they wanted.

Well, at the end of the day, I was dumb and was with a debt settlement company and royally screwed myself. I got out but the damage had been done. I think all but three credit cards I have that have zero balances are closed. My credit score is in the tank at 456. Y'all know what I am up against with total debt. I was able to salvage all but three of the cards against collections. I have looked into a true Credit Counseling service and really that can't do much else for me from what I have already established.

So, then comes Target. A little over a year ago I called and told them I wanted to close my account and just pay off the card because I couldn't afford the new 29.99% rate they were proposing. Well, the lady said, we don't want to lose you as a customer, blah, blah, blah and said we could put you on a temporary 6 month plan, drop your rate to 9.99%. I went in because I honestly thought in six months I would be in a better place. I wasn't and so they gave me another six months.

Well, here is my dagger in the mail today. I fell off the promotion in December and because of how the pay cycles worked, I didn't get the new interest rate until today - it is back at 29.99% with a minimum payment of $170.

What no one mentioned at Target was that by putting me on these two six month plans, they were shaving off a year that they could do any extended payment. So now they want over $120 for four years.

Of course, I have already mentioned that my company switched to bi-weekly pay checks so I had to skim $250 off of my monthly budget. I just don't know where I can shave another $100 a month to make the current payment or even come up with another $50 for the four year plan. The monthly interest charges are almost as much as what I budget for food in a month! How did I let myself get to this point?

The only things I could cut would be my cable which is $60 a month and honestly, I work two jobs so being able to come home and watch a dvr show is a slice of sanity for me. Plus, it wouldn't be enough anyway. I can't get rid of the internet at home because I wouldn't be able to pay bills. Plus, my Student Loan is in hardship and they will want at least $200 a month come July.

I absolutely hate the prospect of bankruptcy because I wanted to be accountable for the mess. But, I just don't know what to do anymore and feel like I will never get my life back. I am almost 37 and work two jobs and feel like I keep getting deeper. I have my house and my mortgage was cheaper than what I was paying for an apartment. But, I don't even know if bankruptcy is even an option because my parents name is on the papers for the house. Ugggh.

Not sure anyone has advice but I just don't know what else to do. I have spent an hour on the phone with Target trying to talk to someone that could help with no luck and just crying. Sorry this is so long. Thank you for being my shoulder.

[cleanslate09]

I did start a bankruptcy thread to get feed back from others as well. I included on that thread some debts I am not currently racing as well as what my budget is.

[suzwantstobefree]

Clean - I am so sorry you are going through this when you are working so hard and making such a great effort.

I don't know where you live, but in Florida if your house is homesteaded and you can make the monthly mortgage payments it cannot be taken away in a BK.

Is there anyone that can help you out by paying off your debt and then making one reasonable payment per month at a reasonable interest rate?

I don't know what else to recommend but I can say that I don't believe that you should take away the one thing that brings you enjoyment (cable tv) but perhaps someone else has a suggestion.

Hugs to you - I hope it gets better for you.

[nasagreen]

craftysarah - you sure are right about that, my husband gets paid the last working days of the month and december (as a teacher) that was the 17th and then we have to wait till the 31st. It is brutal every year and I never manage to do very well. I LOVE LOVE LOVE FEBRUARY!!

[nasagreen]

CleanSlate - oh man, you've been at this for so long! it is such a hard time for you, just remember that it will improve at some point. i would suggest just biting the bullet and eliminating cable. you can keep the internet though and watch a ton of tv for free with hulu. i would also check into what happens if you declare BK and your parents are on the papers to the house. I don't think they can then take the house, since they are on the papers, and you aren't behind in that aspect. i would ask a BK lawyer those questions. Its such a shame that they can't work with you, I would keep calling and keep asking for a new person just go through the rigamarole and you WILL find someone who can see that you are trying your best. Then when things start looking up, you could make more strides to get back to $0 balances.

Do you have any way to make extra money like garage sales or bake sales or something? I would try that, look through all your belongings and see if there is anything you don't need/use to sell. Pianos are always high dollar, for example. But just keep in mind, it will improve and maybe you don't see the way out, but you will live through it. We love you!

[speechchick71]

I just made another huge chunk payment to my debt. Its just about all I can do to NOT raid my EF to pay off my last interest-bearing CC. In fact, I might. And then I can replace the money with next week's paycheck. I'm thinking average daily balance: poof! The other CC I have left is a balance transfer from this CC but it doesn't feel like it because it's 0% until June. I am about 3 weeks away from the end of my race!!!!!

Honestly, right now I feel like crying...

[suzwantstobefree]

Gosh Speech I am so happy for you!!!!! You are my inspiration - no doubt tears of happiness.

[speechchick71]

CleanSlate: I read your messag last night and thought about it quite a bit. I saw your BK thread and your budget. I am close to the end of my race and some have been saying they want to hear about what I did to get to where I am. My situation is very different from most of you because I have a job that is paying me a good salary plus taking care of my living expenses PLUS I get a food allowance. I KNOW that majority of you don't have that situation and I know that I am very fortuate to have all that extra "play" money (that wasn't used for playing, it was used for debt).

BUT, a couple years ago I lived on an island in Paradise. It was very expensive to live there. When gas prices got really high a couple years back I was paying $4.85/gallon at COSTCO! Just before I moved there, I loaned a friend a TON of money that I was supposed to get back right away when he re-fi'd his house....and he wasn't able to do it. So, I went to one of the most expensive places to live in the country, took a pay cut in my job (by about $20k), and I had a LOT of CC debt (the loan was a cash advance from a CC and part of my savings). I found myself going on a downward spiral.

I have learned a lot from living there. I didn't have many options for shopping so I rarely did it. I found clothing that I didn't realize I had and started wearing that. I didn't buy clothing for 6 months at a time and then when I did, I might buy a couple shirts from Costco (cheap), plus I had few options for clothing that was not geared toward the tourist crowd. I didn't have many options for entertainment on my little island so I spent a lot of time at the beach or in the library. I would go to Borders on occasion and read. I did window shopping on occasion. I started realizing that so many of the clothing styles were ugly or cheap or not worth it. I brought my lunch to work every day because buying lunch was expensive. I learned to make soup, using a lot of vegetables (which were still expensive but I didn't need a lot of one kind, just variety), beans, and a couple chicken breasts.....and that pot would last me 2 weeks. I started growing some vegetables too. I joined a farmers co-op and shared a box with a friend. For $15/week I had a ton of fresh veggies that were so delicious, I'll never forget how juicy the carrots were. I also learned to like a whole bunch of new veggies. I drank less soda and beer because not only was it not healthy, it was expensive. I had my cable down to the bare minimum. I dried my clothing on the line. I put a lot of appliances on power strips so that I could turn them off at night and when I was at work (I had an electric bill of $125 and I didn't have a/c...just ceiling fans). I still don't buy clothing much. I make sure to turn off lights, ceiling fans, power strips, etc...I leave very few things plugged in. I don't buy excess food because I know that I will end up throwing it out. I buy what I know for sure I'm going to eat; sometimes I even cook right when I get home from the grocery store just so I KNOW that the perishables that I'm likely to throw away (I've thrown a lot of chicken away in my time) are cooked.

Every little bit helps. Maybe don't buy clothing for a month and put that money toward a bill. I probably spend $90/YEAR on personal products and cleaning products (I use baking soda or vinegar for a lot of my cleaning, buy dryer balls instead of fabric softener,etc)...maybe you can get that toward your $170/month CC bill...that's almost HALF of that bill. There are a lot of ways to put a little dent in your electric bill. Is the $55 for the pet for a month or a year? I don't know what pet you have but that seems a little excessive too: over $600/year. Pets are important but my cat loves to play with a piece of paper rolled up into a ball. I buy food for $12 every 2 months. Litter is about $12 every 2-3 months...yep, I let that one go down to about an inch of litter before I it and add more to it (plus, at one point I had him potty trained...if $ got tight again, I'd put him back on the pot!).

I think you can do it. Just take a deep breath and get a good cry (I'm sure you have already)....then look at your spending. Maybe sign up for Mint.com . It will track your expenses and make a pie graph of your spending habits. You'll be able to see that you're spending more on a certain category than you think. Currently, I spend over $400 on gas each month but my clothing expense is, most months, $0. I spend on groceries but little on fast food. Look for places to skim $5 here or there...it will add up. Again, you can do this.

Now, after I said all that, if your credit score is that low already, if you choose to go the bankruptcy route, you might as well do it as quickly as possible...if you wait a year, then thats another year of a low credit score. I know many people who have done it. The stress is off in terms of trying to pay the bills but one friend is having to buy a house with CASH because of their bankruptcy. If they could have made it happen by just paying things off, they would have rathered have it that way but they were up against the wall, they had no choice. I don't know if you are at that point yet.

But again, take a deep breath...it will get worked out. Best of luck to you and keep posting. We'll help where we can!

[speechchick71]

Holy crud, that was a long post.....

[cleanslate09]

speechchick71 Thank you for the information. You gave me a lot to think about.

The $55 is for two dogs, Wheaten Terriers. I do all the grooming myself so there is no expense there. The cost is for their food. After spending a lot of money in vet appointments, it was determined to be the food so now I use Dick VanDyke's Limited Ingredient Dog food. I go through Petco so I get a free bag for every ten bags bought. Every savings counts.

Part of my $90 goes towards allergy medicine. I use to be able to use my medical spending account but since Zyrtec is over the counter now, I can't because of the health care changes. The doctors cannot determine what I am specifically allergic to that causes me to break out in hives but Zyrtec is the only thing that stops them. I get a hair cut every four months, sometimes push it longer.

With a little clearer head, I think I am going to take what Target can offer, slow down my EF track and hold on for dear life until I can find other ways to bring in more money. I honestly haven't bought any clothes in two years and now my underwear, shoes and some of slacks are just wearing out. I just feel like if I cut anymore little things like an entertainment, clothing, etc I might as well just give up because what is the point if I can only work and sleep because there is no money left for anything else.

[suzwantstobefree]

I can understand how you feel Clean. I wouldn't want to give up everything either. However, talk to every creditor and see what they can do to help you out. I would start there first because the interest is probably eating you alive

Keep bringing things to the boards too. Plenty of people can help you in areas you may not have thought about.

[speechchick71]

CleanSlate: thanks for more explanation. Its easy for us to look at the numbers and say, "I would cut this and that" but now that you explained more, that $90 for personal stuff is probably difficult to cut. But again, even if you can cut by $5, that's good. I understand the clothing thing too. I'd still think about using Mint to track what you spend. Unless you use cash, it will track every time you swipe your card and say what it was for.

I'm with Suz: talk to your creditors. I'd call the cell phone company too because they may have a plan that suits you better. Even the cable company might be able to work with you. Another idea might be to get your internet usage thru your phone if you have a smart phone. I did it for about 2 months and it worked fine. Plus, I found myself being more productive with my time (paying bills and getting off, not just surfing). I was able to use 2gb of computer time for $20 and I never went over. (You can only do this option with certain phones but you might have one of them...or its an idea for others). Some cell companies (I know Verizon does) has an internet modem that is a one time charge and then $20/month. Just an idea.

Have you talked to your bank about the possiblity of a consolidation loan? I know money is much harder to borrow but if you could borrow, pay the credit cards, and have a lower monthly payment.......but you'd have to be strict about not using the cards again. Again, brainstorming ideas.

[speechchick71]

Suz: I'm getting close to another star!!!!!!

[CarolinaKat]

Clean: I don't have much to offer other than support. Keep us updated on your situation

Speech: I really liked reading the post you made about living in paradise. It really puts a perspective on things. I hope that your new living arrangements are working out well for you.

Nasa: Thanks for getting the smileys back, it makes it seem like 'home' here now

Suz: Green's my fav color, I have Star Envy!!!

[redracerris]

cleanslate I agree with cutting the cable and watching shows on Hulu, it's what DH and I do. Someone on the bankruptcy thread suggested putting the EF and Home repairs towards debt if you have a decent amount saved up already ($1000 seems to be a good number). $111 seems awfully high for insurance, I agree with shopping around too. Selling things would also be a route to go.

[ready4achange]

Update: 1/21/11 $5270.00 (1/14/11 $5627.95; SPT7)

Loan	Starting	Current	Paid Off
Overdraft 18%	$274	$274	$0
LOC 10.8%	$1,821	$1,715	$106
CC#1 10.8%	$3,482	$3,253	$229
CC#2	$48	$28	$20
Totals	$5,625	$5,270	$355

So I thought I was going to look at my budget this week and be very un-happy with myself. But it wasn't as bad as I thought. The LO has been very sick last week. It was soo sad. So money for doctor's visits, missed time at work, and not to mention the extra gas for the car. WHEW! but it wasn't as bad as I thought. I maintained really well. I catch myself when I'm pressed for time (and energy) I just go thru the drive up at a fast food place. So that is the biggest leak in our budget. So I have started calculating the % of money I spend at fast food each week. So previous week I spent 4% of my budget eating out. Well this week was 6% but thats only a 2% increase. Not what my goal had been, my goal was to decrease by 2%. But considering everything that was going on. I'm not too upset. Just settle down and re-figure for this week I'm really excited about going to free coupon class tomorrow. I've been using coupons some but anxious to hear some top secrets about how people save a lot of money w/ coupons ;D Also, I just found out today I didn't owe as much on cc#2 as I orginally thought. So got to make an adjustment to that ;D

CraftySarah: You are right January has proven to be a rough month. But I'm looking forward to Feb. being a great month!

Speechchick: That is awesome that in 3 weeks your race will be over. I can't wait for the day that I can post that! Congrats!

CleanSlate: I'm so sorry to hear about your tough times right now. Alot of people have given you some really great suggestions on ways to possible trim your budget and save a few $$ here and there. I hope you are able to find something that works for you. And if bk is what you have to do then go ahead. I think like others have said, I don't think they can take your house. However, if you've taken any loans out against the house I think that is a different story. It gets more complicated.

[cleanslate09]

Thank you everyone!

I called back Target today and got the best they could offer of $125 payment at 6.9% for 4 years when it will be fully paid. So, that is the good news.

Right now I don't have anything in savings or a house fund so trimming those scares the crap at me since I am teetering on the edge.

As for auto insurance, there is not much cheaper here in Austin. We were third on the most recent list of worst traffic. I have my deductibles set at $1,000. I moved here with a clean record and after shopping around the rate I have is the lowest one I could find that I could get in a discount with when combining with my home insurance. I am afraid to shop around right now because my credit score is so low I am afraid I would be able to get anything else.

[jdnstl]

cleanslate - i responded on your BK thread but i just read that you don't have any savings. since you said that i would not cut out the savings completely but maybe lower it. i think your post on the other thread said you're putting $130 to the EF, & maybe a happy medium would be only $75-100. that way you have something in savings & in 5-6 months you'll have a $500 cushion as a true EF. then you can redirect that savings to debt if your situation is still dire in 6 months.

[Deleted]

Jan 21, 2011 16:35:16 GMT -5 cleanslate09 said:

I called back Target today and got the best they could offer of $125 payment at 6.9% for 4 years when it will be fully paid. So, that is the good news.

So, that's $45 a month you've saved right there - that's great!

I think you are right that you need to save some treats for yourself - that is the only way that we can get through this. But I would take a hard look at the cable bill.

Yes, after working two jobs, you deserve to come home and watch a favorite show. But if most of your favorite shows are on network TV, or available on hulu or via netflix, this may be a do-able cut.

I haven't had cable in over 10 years, so I am used to not having it. If it really brings $60 worth of joy to your life, then keep it.

The other thing I would consider cutting is the internet. If you have access to the internet at work, you may be able to pay bills on your lunch break. The library is another option since you really only need to pay bills once or twice a month.

I'm ashamed to admit this, but I don't have internet at home either. I live in an apartment, so I have steady access to a neighbor with unsecured wireless. I'm happy to watch Grey's Anatomy on an unsecured connection, but I do all of my banking and shopping at work where I am safely and securely plugged into a wall. Maybe you have a neighbor your could *cough* borrow *cough* from?

[speechchick71]

Being that you were successful with Target, why not call ALL your creditors, tell them your problem, and see what they can come up with. I've heard if you tell them what you CAN pay, they usually take it.

[suzwantstobefree]

Jan 21, 2011 18:02:35 GMT -5 speechchick71 said:

Being that you were successful with Target, why not call ALL your creditors, tell them your problem, and see what they can come up with. I've heard if you tell them what you CAN pay, they usually take it.

I might even say that you are considering bankruptcy because of the large amount of debt you have. Not as a threat, but to really tell them how serious you are about trying to resolve this. If the first person doesn't help you, ask to speak to their supervisor. I really think you can get your minimum payments down and then you can really make your budget work until you get your bonus.

[redracerris]

cleanslate be sure to get all these payment arrangements IN WRITING, otherwise it could get ugly and you'd really have to file BK.

[redracerris]

Congratulations ready4change You're in the 5500 club!

[cleanslate09]

Actually Target was the only one that I was having a hard time with. The three in collections are just there and I will work through but the rest is set at if I pay just minimums, they will be done in 5 years or less.

I think I will stick to my South friends versus posting anywhere else. I had someone tell me on the other that a haircut was not a necessary. Of course, frustrated I spouted and then was told by another with my attitude I will spend my life in debt. Seems like a challenge for me and one I am ready for!

[suzwantstobefree]

This is the nicest and most supportive board.

The thing about debt payment is that it is a personal decision on what you are willing to do and what you are not willing to do. For example - I have a good amount of debt right now but I am working through it. It would be quicker if I gave up some things but if I were to give up some things then I may not like that type of life. Sometimes we have to have splurges because if you are on a "financial" diet too long you may find yourself overdoing it when you spend because you have deprived yourself so much and make your problems worse. I remember one time with my ex that we were so short on money for so many months and I really hated the fact that I could never spend a dime without worrying about whether or not I could pay the mortgage and have groceries. One day I ended up at JC Penny's with a credit app in my hand and within hours I was $500 further in debt. The moral of this story is that you recognize that you have to try to make some cuts, but at the end of the day you still need to have a life that consists of more than work and sleep.

Have you considered "bundling" cell phone, internet and cable? Perhaps that can save you a few dollars.

It doesn't sound like you have a lot of splurges and cutting out the hair cut is not going to make that big of a difference. And as a woman, I understand the importance of small things like a haircut are important to your self-esteem and makes you feel good. Slow and steady wins the race.

[Deleted]

Cleanslate, I saw the haircut exchange on the other thread and it was a little harsh. I agree with what Suz just said about needing to feel good about yourself and have some fun left in your budget.

*but*

I would encourage you to look more critically at where your money could be stretched just a bit more. I don't know what goes into your personal care budget, so it could be that it is stretched all it can be stretched and I won't begrudge you a dime of it.

But, my sister wears a really short hair style that she needs to have cut every 6 weeks so that she doesn't look unkempt. I have longer layers that permit me to go longer between haircuts. Yet the price of a woman's haircut is the same regardless of the style. Personally, every time I go for a haircut, my stylist sends me to the register with advice to rebook in 8 weeks. And every time, I rebook for 10 weeks. I've tried 12 weeks, but there get to be a lot of pony tails and buns to get me through that home stretch.

So, the moral of that story is really take a deep breath, stay away from the YM people (seriously - they're just nasty sometimes), but do try to look at your entire budget with fresh eyes.

Going from 8 haircuts a year to 6 could cover your interest for a month. Or maybe it buys you a new pair of pants for work. Or maybe you only get 6 cuts a year now and I am barking up the wrong tree, but you know, think about it.

[speechchick71]

Are you sitting down?

I did it. I raided my Savings a bit just to get a $0!!!!!!

I could have waited until next week to get that $0 but decided the money would be better spent this week and I can replenish my EF next week. I have another $0! Wahhhoooooo! That means that the only accounts that I have left (I have one that gets paid in full each month and another one for my tires that is 0%) don't gain any interest.

Here it is!

UPDATE: speechchick71 $2347 (joined: 12/31/09 $25,073 SU16 FL)

Loan	14-Jan	21-Jan	Difference
Chase (0%)	$2,347	$2,347	$0
SCSFCU	$1,622	$0	($1,622)
	-	-	-
Savings	$1,287	$665	($622)
	-	-	-
Total debt		$2,347
amt pd this week		$1,622
	-	-	-
Starting balance		$25,073
amt pd from start		$22,726
percentage from start		90.64%

In my head, my race is over but I have to remember that the money in that Chase CC is a balance transfer from my new $0...its what made it happen this soon.

I'm doing the happy dance on my end! I can hardly contain myself!

[speechchick71]

P.S. : I have 2 stars now, too!

[freshnewday]

Today I was told that they wanted someone else to go

suz: Wow, that is so ridiculous! How stupid to treat one of their best employees that way! Grrrrr. I'm so sorry. You have such a great attitude about it.