I'm not sure where to start....

[bumplett]

You make a lot of very good points. I will get the baby EF established and put aside the money for the DD's activities, then add an extra $100 a month to the payments, with more when I can.

(The activities are: tuition for a foreign exchange program for DD15 and competitive cheerleading for DD10 - I will be able to pay for the year in full with my tax return, and I am making separate savings accounts for each.)

I'm also looking at my living situation - I believe I can reduce my costs by $200-300 a month by moving to a less expensive place.

Niko - you are right - if you miss 3 months of payments the whole nightmare can start all over again and the proposal is void. Probably good to get that off my back as quickly as possible - I simply cannot go through this again.

Thank you again for the excellent advice.

ohhhh Daisy - I agree with Kemma.

I know how expensive competitive cheerleading is - some things just have to wait.

My 10 yr old niece had to take a break (due to finances) and joined her school cheer squad instead. It's not perfect, but it just has to do for now.

As for the foreign exchange program tuition; that's what FUNDRAISERS are for - She can raise that money for herself!!

YOUR tax refund should pay off debt, not pay for activities.

While I get that your priorities are your kids, you aren't prioritizing the FUTURE with your kids.
JMHO.

I say this all with love. Not to hurt your feelings. :hug:

[kita]

I would say Baby Emergency Fund first.
Mom, next because of emotional he!!
Then one extra month of proposal payment in a savings account.
(so you are not likely to get kicked out of program)
Debt with interest.
Then a savings account for PP until you can pay it off in one fell swoop.

If you say that there is no interest on the debt then there is no reason to cut to the bone and risk an emergency to pay it off early. Since things can be a little umm....eventful...I would rather you be able to take care of any event until you have enough to to pay off PP amount. Of course this requires SERIOUS discipline.

[larabelle]

At 41. Sigh.

Think positive...I did not even start until I was 45...and 78K in debt.
You can do it!!

[Daisygirl]

Debt with interest.
Then a savings account for PP until you can pay it off in one fell swoop.

If you say that there is no interest on the debt then there is no reason to cut to the bone and risk an emergency to pay it off early. Since things can be a little umm....eventful...I would rather you be able to take care of any event until you have enough to to pay off PP amount. Of course this requires SERIOUS discipline.

Kita ~ There is no debt with interest - it is all in the proposal.

During the first year of the consumer proposal you aren't allowed to make additional payments for the exact reason you expressed - the event of an emergency. After the first year you have to show an emergency fund of one month of living expenses before they will allow additional payments.

I do appreciate all of the advice, even when is different than the way I have planned things. Please understand - cheerleading is paid for, including competitions, until the end of the school year. There is no way I will pull DD10 out of something that has already been paid for.

As for the exchange program, I greatly hope that DD15 will be able to supply/earn a great portion of the remainder. I feel that the educational value of this trip outweighs the sacrifices to save the money to send her. I can live without cable, new clothes and little luxuries to provide this for her. If it puts us in a position of using up the emergency fund, she won't go. If it can't be saved in it's own separate account, she won't go.

I'm working hard to pare down my living expenses so my kids can have a few priveleges, as long as they work hard to help out, earn money when they can, and keep their grades high.

I probably sound defensive, and I don't mean to. I know the advice is well-meant, and I appreciate it.