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  1. #1

    Need advice on how to pay these debts

    Hello, I am hoping that I have found the right place to get some help. We are literally drowning in our debt. To this day we are struggling so bad but my husband and I are in this together. This is making me physically sick placing all our financial problems out as I type. This makes it very, very real. So here it goes:

    Monthly income: 3100.00, sometimes around 2900.00, depending on overtime.

    Debt: Truck: 130.00/mth owe for 21 more months
    House: 520.00/mth owe 60,000.00, we had our home apprasied and it came in at 99,000.00.
    Sears: 80/mth 3600.00 total 14.99 interest rate
    Discover: 80/mth 1400.00 total unsure of interest rate
    Furniture bill thru Wells fargo: 120.00/mth 1700.00 total, interest 27.99
    Menards bill for new refrigerator: 35.00/mth 1200.00 total, unsure what interest is
    Discover: 75.00/mth 762.00 total 19.99 interest rate 21.99
    Mastercard: 217.00 13,000.00 total unsure of interest rate
    Auto Ins: 450.00/6 mths
    Homeowner Ins: 700.00/year
    Real estate taxes: 175.00/mth 2100.00/year

  2. #2
    Ok, now the bills are there but that does not include the necessity bills: electric 100.00/mth, water35.00/mth, gas bill 70.00/mth, telephone 54.00/mth, clothing which we are just going to resale shops trying to find things, and groceries which is anywhere between 300 to 500 a month. Ugh! Now the other big one that has got us is the gas bill for the cars. We live about 50 mins. round trip from the closest town. This is something that me and my husband cannot figure out which would be better to move closer where we don't spend as much gas? Not sure what to do. We are living in our dream home. We do spend about 600.00 plus a month on gas. However, if gas rises we are crushed. We have been putting things on the Discover cc when there is no money left. Right now we have 20 dollars until Friday. We are drowning. Please advise.

  3. #3
    It is a bad situation to be in. Have you considered selling your home and using the funds to pay for your existing debt? Then starting fresh?

    In any case, you are going to have to work hard to get out of debt or get some professional help. I would suggest contacting a reputable and trusted debt settlement company.

  4. #4
    MetheConfused,

    I know you must be feeling a lot of pressure right now...

    I'm about to tell you some things you may not have heard before.

    As much pressure as you are under... you will be tempted to do one or more of the following:

    1) Sell your house and move somewhere else.
    2) Refinance your house and get cash out to pay your debts
    3) Look into debt settlement
    4) Get a debt consolidation loan
    5) File for bankruptcy

    DO NOT do any of these!

    The number one reason is that, although you might feel some temporary relief, you WILL find yourself back into this situation again at some point in the future, but then the problem will be worse and you'll not be as strong as you are today.

    Right now... the house payment you have is probably the cheapest house payment you'll ever get, so you want to STAY PUT! I don't know how long you've lived in this house... but if it's been more than 10 years... then you are FINALLY starting to put a dent into the principal. Moving or Refinancing at this point will mean that the last 10+ years of mortgage payments will have been a waste. Stay where you are, and at the end of this storm you will have a paid off house and very little to worry about financially.

    In terms of priorities, your #1 priority is having food on hand. Following that you have:

    1)Food
    2)House Payment/Homeowers Ins/Property Taxes
    3)Water
    4)Electricity
    5)Gas Bill
    6)Truck Payment/Auto Ins
    7)Furniture Bill
    8)Fridge Bill
    9)Credit Cards

  5. #5
    I've BEEN in that situation.. and it is NOT the end of the world everyone makes it out to be.

    SO WHAT if your credit rating goes down. You ALREADY have a house, you don't need a perfect credit score. They can't take your house from you. They can't take ANYTHING from you. All they can do is bark at you and annoy the heck out of you.

    You can turn this situation around yourself. Here's my recommendation:

    1. Open a savings account right now.. and put $20-$50 per paycheck into it. Have it automatically funded by direct deposit. If you have to rely on yourself to transfer the money each paycheck then this will not work... you have to make it AUTOMATIC. This is for emergencies only so you don't have to use the Discover card for house/truck repairs. Let it build and forget it's there.

    2. Stop charging on the Discover Cards. Do whatever you can to pay off the $762 balance on the discover card (the one you pay $75 a month) for. Pay as much as you can muster into paying it off. Pay the minimum payments on everything else.

    3. Once that Discover is paid off.. Put the $75 a month towards your truck payment. Pay $205 a month on your truck until it's paid off.

    4. NOW you're getting somewhere. At this point.. you have $205+ more a month. That's some breathing room. If you got behind on one or two credit cards (like Mastercard).. now you can get yourself current.

    I know it's all overwhelming. But again you CAN do this. So your homework assignment is to 1)Open the Emergency Fund and start funding it 2)Do whatever you can to pay off the Discover Card... 3)Do whatever you can to pay off the Truck.

    Stay with us... We're all here to help you.

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