Hi, I guess I have never fully introduced myself here and what I am looking to do.

I am a SAHM of 3 children, married 8 years. Since we have had everything new cars, house, credit card debt etc. then I quit to stay home, not planning it out the way we should have. Then comes along an illness which put hubby off work for more than 3 months and we filed BK7 erased all debt etc. We did not reaffirm on our house, but we were able to keep it if we kept making payments. We were also able to keep one vehicle.

So, we were back to square one with 2 children no debt other than making our house payment and vehicle payment. Then after reading what others say about trying to rebuild credit you should get credit cards to re-establish. I will say this to those who are thinking of getting credit cards to restablish don't do it. Our limit was 300, but after fees you are down to 150.00 but, then you have to pay 18-21% interest. Before you know it you are creeping back into a debt sink hole. Anyways, a year later not planned I became pregnant, then here came more dr's bills etc. Since I had gestational Diabetes it became a little expensive even with insurance. Then the 3-yr arm is up on the house and we could not refinance due to low credit scores and our house payment went up by 350.00 we were barely making it, trying to pay for everything else food, electric etc. Not to mention a new baby needs formula, diapers etc. time came again around x-mas that the next hike on our arm was coming and still could not refinance even though a man we found said it was approved etc and then find out after trying to reach him for over a month his wife responded back to us that our appraisal came back to low. So, after much debate etc we decided it was time to give the house back. Thank goodness we did not reaffirm on that loan in the BK7 other wise we would have to pay the balance of the loan and the sheriffs sale. Now, we are renting a twinplex which is better than our house and has a beautiful yard and we do not have to worry about fixing anything that breaks. The basement is finished and his mom is moving into it, so that will give us a little extra money to pay things. and she is only here 6 months out of the year. We also had 2 vehicles, now we have 1 since we decided to give back our jeep since we can't afford the payments and in the long run it will be benefit us.

We have accumulated 35,000 in debt since filing BK7 3 years ago. All of this is 2 auto loans , 1 personal loan, medical bills and 2 credit cards. I am determined to become debt free in 3 years and keep my own money and not have to worry about who I owe. I want to be able to pay cash for everything. I hate being in a place I have no control over and feel kind of ashamed that we have accumlated this much debt already. I swore to myself that we would never get into this kind of position again, which really is nothing compared to what we filed for (200,000) but its still a chunk of money that should be in my bank account not what I owe. We do have money left over each month, but for some reason something always comes up and we need it.

If anyone here can give advice or a good budget plan etc to get me going and stay on course I would appreciate it. I have cut all the corners that I can.

Monthly Income: 3020.00 (includeds MIL's rent)
Rent: 750.00
Van: 323.00
Ins: 70.00
Elec: 200.00 this is estimated
Oil: 25.00 put aside each month since now we have an oil furnace
int/Sat/phone package 120.00--satelite is our entertainment since we don't go out.
Gas: 300.00
Food: 350.00 includes paper/cleaning/diapers/presc
c.c.min payment on both 50.00
total 2188.00

here are the debts--the only payments that are being paid is on the van and c.c.'s
Personal Loan through relative 4000.---need to payback 1st.
c.c 1 300.00
c.c.2 550.00
Med 5000.00
Jeep 10000.
Van 12000.

I use Quicken, but since hubby was off for the past 2 months on short term disability for 2 herniated disc we only got 70% of his pay so that has put us behind, so I am not sure which pay will get us back to 100% pay it may be the first or last pay of August. I guess my question is what should I do first. Start a type of emergency fund, pay off smallest interest, highest interest. My first real priority is paying family member first. So, that is not haunting me anymore.

Anyways, thanks for all the help.


Susan

Try Dave Ramsey, he rocks!

Gee you do you really need two vehicles right now? How about selling the other one and once your debt goes down a little bit you can get a use one. I know its hard. That's what we are doing right now we are paying our debts and hoping to get everything paid by early next year. Yes we don't have that much debt but at the same time its hard because we don't even have emergency money or savings sometimes that's why we are starting off right now. We have to start somewhere right? We are waiting until everything gets paid and saving for the money to get another vehicle. We have a Toyota Sienna van but uses a lot of gas and we can't afford buying gas once a week right now. DH has a small car that's about to get dump because it will only starts when its warm outside Try cutting down in a lot of things. WE cut off our cable and lower our groceries down to $40 every two weeks now. I get lots and lots of coupons, I only go to the store once every two weeks (I walk because its near from us) I put the groceries underneath Ds stroller, anything like that it will be a big help. This website is great the women here gives a lot of tips and advice. Good luck to you. I hope everything will turn up okay.

I'll say paid the highest interest first though, pay the family member last. You can always tell them your situation and they will understand. Work one step at a time.

Well first you need to decide what to do with the remaining 832 per month- keep you mind you need to be setting some aside for vehicle maintanence, an EF, etc. It can't all go to one thing- don't forget medical if you don't have a FSA.

Dave Ramsey's method is to put some in an emergency fund first (500-1000 though he recommend 1000) then start with the debts smallest to highest. Definitely pay off the family member first- just get it out of the way before it starts a fight. They might be understanding now, but down the line they may not be and you will feel guility everytime you make a purchase, even if it's a need.

You need an EF before you start paying off debts. Murphy will happen, it's not a matter of if but when, and the goal is to be able to take care of it while you're paying off debt without racking up more debt.

It can truely suck when first starting out. I know. But if you stay buckled down and keep chugging at it, it does get much easier!

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Devin

Bluesky-- We do only have one vehicle right now. We voluntarily gave back our Jeep. Our payment including insurance and gas each month was almost 500.00 and we just cant afford it, especially if something came up. We gave it alot of thought before doing it, but in the long run we will be better off. I know that we will owe the difference but, it will be way less than what we owe now. But, we really do need a second vehicle by January. I have a daughter that is in sports and they also show horses and hubby works 50 hours a week that is mandatory for his management position. That is why we were planning to just buy a cheap old truck for him to go hunting and back and forth to work.

Devin--I plan to spend the 800 right now kind of split. Saving for my EF goal is 1000 by Mid Sept and then the other half to the family member. Especially, when this family member is all about money and having to pay it back and the fact that one person will never let it go if you don't. God love him though that he will help you out anytime you need him. But, I have to pay him first. Plus is not cash that they loaned, but a part of thier line of credit from the bank but, a cheaper interest rate than I could get. So, I definately have to pay that first. I am glad to see someone else say that its ok to pay them first. Everyone else on a few forums I go to tell me to tell them to wait. I really don't think its fair he is just like another creditor to me since I am paying an interest rate.

Anyways, thanks for everyones input. I also run my own little candle business and sell locally and have dabbled online a little. I make about 75-100 a month so I can use that to set aside as well. But, I don't rely on that to make any payments and never figured it into my income since its not gauranteed.

I can't really cut back my expenses any further. My food bill used to be 500 and I have cut it back to like 300-350 since I am using Angel Food Ministries and I am feeding a growing family and it also covers 4 prescriptions for myself and my hubby who is diabetic so I think that 350 total for food etc is sufficient for us. I do have satelite, if I didn't then we wouldn't have a tv since we only get 1 channel without it and we never go anywhere so it is our entertainment for hubby and I at night. Its included in our AT&T package with our phone and internet we pay 100.00 for it all. The price I put is 120.00 for long distance which will go down once we move to our new place this next week.

Thanks soo much for all your input..

Susan

[quote=slcjward]Bluesky-- We do only have one vehicle right now. We voluntarily gave back our Jeep. Our payment including insurance and gas each month was almost 500.00 and we just cant afford it, especially if something came up. We gave it alot of thought before doing it, but in the long run we will be better off. I know that we will owe the difference but, it will be way less than what we owe now. But, we really do need a second vehicle by January. I have a daughter that is in sports and they also show horses and hubby works 50 hours a week that is mandatory for his management position. That is why we were planning to just buy a cheap old truck for him to go hunting and back and forth to work.



Shop around you can always find a cheaper one. I hear you its hard having one vehicle but it will get better that's why I always tell myself. Those debts will be gone one day. I'm glad you are doing something though even if its just a little. Is your DH works at night or during the day? if you can you can try working at night for maybe few hours that bring a good income too. I don't mean working forever just until the debts are paid off.

Snowball debt calculator - Become debt free at WhatsTheCost.com

The link is a debt snow ball calculator you put in min payments, and what extra money you have for debt and the interest rates and it gives you a payment schedule

These are the areas you can cut back in that I see.
int/Sat/phone package 120.00--satelite is our entertainment since we don't go out. Int (dial up is cheep) /Sat is a want not a need go to the library get a movie even going with an unlimmited movie rental thing would be cheeper, go out there is cheep intertainment available. We have movie theaters around here that do FREE kids movies and $1 late night shows/ Phone if you don't make a lot of long distance a basic lan line phone is like $20. So you could feasibly drop this as low as $60 a month

Gas: 300.00 can you drive less take public transit

Food: 350.00 includes paper/cleaning/diapers/presc not bad but if you can use coupons, buy generics and only buy stuff on sale this might be able to go a little lower.

Good luck!

__________________
Kimberly Proud Mommy to Bethany Rose April 2006 &

Organizer of the Coupon Clippers of Tacoma

Good luck! It sounds like you are really doing what you need to do! Just keep at it!!

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~Happiness is a large family~

Sounds like you have a great plan. I would divide up your remaining money between savings and debt. We use $400 a month to put towards debt and it is really making a difference. Good luck.

Bluesky--hubbys work hours are 9am-7pm he is General Manager of a Restaurant so he leaves for work around 8 and sometimes can not get home until 8 at night. So, it is really hard out where we live to find something after 9 to work. We have tried it before and due to his schedule, work hours an having to be on call it just doesn't work for us. I do own my own candle business which bring about 100.00 a month but its not guaranteed income although that is what I have been averaging. As for finding a cheap veh. I am not sure if you mean a second veh. which we will need since he works about 45min away and if there is an emergency I cant be stuck , but this vehicle we will save and pay cash for. As for the Van we are upside down on the loan and we have already tried to trade it in, but it would not benefit us. Its better for us to keep it until its paid, plus it only has 60,000 and its a 2002.

Ember--Thanks for the link. As for the Sat/phone/Internet this is actually 100.00 it was 120 when we lived at our old place and family was long distance. It is actually 100 now. We do have satelitte because the channels do not come in with just the atennae and we watch alot of educational programs and news. Internet is only because we had dial up and with my mother in law doing business online she needs to have it, which she pitches in and helps pay it.-- I am not by any way making excuses its just that what we have decided we want.
300 in gas is just an estimate, but there is no public transit in the country and hubby also has weekly meetings that he must attend so no cutting back there.
350.00-food is for a family of 5 plus cleaning/diapers and 5 prescriptions that you can not get generic for hubby is diabetic and has 4 different prescriptions, plus mine so that is about 100.00 there.

I am not trying to justify any of it, but we can't really do without it. Plus, my food bill was about 500-600 a month until I found Angel Food Ministries. I feed a family of 5 plus my mother in law who does help out as well. I thought my budget seemed pretty fair. I still have 800-1000 left over after my bills to save and payoff so, I really don't see why I wouldn't be able to enjoy the satelite since I don't really go out unless its out with the kids to play and over to my parents down the road and watch the kids ride the horses etc.

Thanks again for all the advice and encouragement. You guys are great!!!

Susan