Need to get our debt undercontrol... how frustrating...

**hollyhill** · 08-20-2008, 11:40 AM

Some villagers may remember me but I see alot of new names too...

I haven't been as active because life is crazy busy but I still come back regularily just to pop in...
but I need to become VERY serious again to try and wrestle my debt back into oblivion and I need your help...

Some background-
You may remember that my husband lost his job 5 years ago and after using up his EI couldn't find anything in his line of work, and was offered min. wage jobs...
He then went back to school full time to retrain....
I was a stay at home homeschool mom of 3 children aged 6-12 (at the time) and was unable to work full time because of the schooling but did parttime work which I could fit in- Tutoring and gardening for others...
When my Dh lost his job we managed well because I am frugal by nature and we had no debt other than mortgage, we had some savings and a small retirement fund.

We got through the gruelling years of min. income by living bare bones, a few grants, our savings and student loans. It was very hard.......even thinking about makes me feel hungry!

By the time Dh graduated we had no savings, two ancient vehicals (a 1982 honda, and a 1991 honda you could see the road through the floor boards ), $27,000 in student loans and $2,500 in credit card debt, a house that had a rotten deck, leaking roof, etc....

But Dh immediately got an amazing JOB!!!!!! We felt we had it made!!

I started to tackle the debt ( the student loan has a rate of %9.5 !!!), while trying to fix the roof etc...
Soon after both cars had to be put to rest (One tranny went the other mot0r dropped a piston). We bought a used tracker for $7,500 and a new suzuki (0%) for $21,000.

We also put our children back into some extracurricular programs like sprint kayaking....

Fast forward to this summer...

Gas prices have skyrocketed, Canadian dollar is at par with US, and our Manufacturing industry is hit BIG time. Dh is cut back to a 4 day week, but assured he will not be layed off because he is too valuable (yeah for something).
My 16 yr. old daughter has become an amazing provincial level sprint kayak athlete, and her younger brother wants to follow in her foot steps!
She lives an exciting life of travel and because she is a high perforance athlete MOST of her expenses are paid for by foundations, grants, and government. For instance she has just been given her own high performance boat by a sponsor, a week in lake placid was all paid for so was attending US nationals in Oklahoma etc etc.... BUT as expected there are always extra costs that are not covered....
Because she works as a coach for young kids as much as she can... she pays as many of the additional costs that she can....
But we usually end up paying something on top and just feeding both her and her brother (his training costs are not as high yet) costs us a FORTUNE (they train 4 to 6 hours everyday)!
She came in 4th in the 500 m distance in the US nationals, and if she makes the canada national team in a year or two, she will have a year of free University tuition for each year she is on the team and will be paid to train. Pretty good.
She is considered esp. talented because she has only been in the sport for two years (considered a beginner) and is competing against athletes who have been in the sport 4-6 years.

Anyways the combination of Michaels job cut back and the costs of raising these children... our debt reduction has ground to a halt!!! and actually started going up!!! UGH!!!

So I need BIG help and motivation to reverse this or we are going to be in BIG trouble!

Our student loans are at $15,800

Our line of Credit is at $4,900
My Credit card is at $1600

And we are about to go to Nova Scotia to watch our daughter compete at the Canadian Nationals...
I managed to get all our airline tickets using airmiles! and have found a very reasonable cottage, so that I can cook most of our meals. But the rental car is still going to cost us!
We booked everything last spring before we knew Dh's hours would be cut back..

Dh isn't much help....
He says we should just roll it all into our Mortgage and start with a clean slate...
But I am resisting because I don't want to up our mortgage...

Our expenses right now = our take in, with min. payments on loans. Not good.... because it doesn't allow for the unexpected curve balls and visitations by good ol murphy and it
It was the fifth day which we were using for paying down our debt with. UGH!

So please.... I need a pep talk.... I need to set controls.... I need guidance from like minded individuals.... I CAN DO THIS!!! I think.

I need to cut back where ever I can to get thisoing back in the RIGHT direction.

I need the basics, the challenges, the accountability..... I need you again!!!!

**nodmicks** · 08-20-2008, 12:26 PM

Hi Holly! I definately remember you. That is very exciting news about your daughter!!! Congrats.

You've lived bare bones before so I have full faith you can turn this around!!! You can do it!!!! 1st step~ no more debt no matter what! I would not roll it with the mortgage.

**Cricketlegs** · 08-20-2008, 01:28 PM

You can do this. You know how too.

Cut what you can everywhere you can find a penny.

Start the baby EF of $1000.

Then start your debt snowball.

I hope you can get it all back in shape.

Congrats ofn your dd!

**frugalfoster** · 08-20-2008, 02:57 PM

Hey Holly...long time no see!!! It's great to hear about your daughter. You know how to do this...you've done it before, you just need a little inspiration to get it going again. And of course, this is just the place to get it! So hop on the bandwagon, because you're going for a ride with us!!!!

**hollyhill** · 08-20-2008, 05:30 PM

Originally Posted by nodmicks

Hi Holly! I definately remember you. That is very exciting news about your daughter!!! Congrats.

You've lived bare bones before so I have full faith you can turn this around!!! You can do it!!!! 1st step~ no more debt no matter what! I would not roll it with the mortgage.

Thanks....

Yeah, we've lived bare bones before and thankfully it doesn't have to be as bare this time.....

**hollyhill** · 08-20-2008, 05:34 PM

Originally Posted by frugalfoster

Hey Holly...long time no see!!! It's great to hear about your daughter. You know how to do this...you've done it before, you just need a little inspiration to get it going again. And of course, this is just the place to get it! So hop on the bandwagon, because you're going for a ride with us!!!!

HI!!!

Just wish I had stayed on the wagon.... I might have been further along by now.

But you know how it is, if there is no money for so long everything goes downhill...... nothing is repaired, replaced or purchased and so it takes sooooooo long to get the ball moving again.

It is so nice to see some longtime frugal friends too!

**missmanny** · 08-20-2008, 06:25 PM

Holly - firstly hi nice to meet you.

It sounds as though you have been through worse situations so I'm sure that you know what to do.

I agree with you not to up the mortgage. It is recipe for disaster and I firmly believe that quick fixes do't teach anyone anything. Better off to pay down the debt and keep your home safe IMHO.

You can do this, you've gotten through som truely rough times before. Firtly sit hubby down again - explain to him why you don't think that the new mortage is the answer and get him on board with a plan - once you have a plan then you will have something to work towards.

Conhratulations on returning to the FV - were're glad to have you back.

**FrugalMomof3** · 08-20-2008, 06:29 PM

We all know you can do this, you've done it before. Living bare bones should be easy since you've been there, done that.

Congrats with your daughter as well.

**hollyhill** · 08-20-2008, 06:36 PM

Originally Posted by missmanny

Holly - firstly hi nice to meet you.

It sounds as though you have been through worse situations so I'm sure that you know what to do.

I agree with you not to up the mortgage. It is recipe for disaster and I firmly believe that quick fixes do't teach anyone anything. Better off to pay down the debt and keep your home safe IMHO.

You can do this, you've gotten through som truely rough times before. Firtly sit hubby down again - explain to him why you don't think that the new mortage is the answer and get him on board with a plan - once you have a plan then you will have something to work towards.

Conhratulations on returning to the FV - were're glad to have you back.

Wow I was admiring your Siggy!!!! You paid down SO much debt. Mind telling me your story? How long did it take you? How did you do it?

And Tracy your Dd looks so like you!

**missmanny** · 08-20-2008, 06:59 PM

Holly, am happy to tell you about my journey.

I will admit that my problems were all caused by me and not by any hardship like sicknesses or job loss. I just liked to buy new things and have incredibly nice stuff no matter the cost or consequences. The problem is that I have a permanet goverment position and in our country (australia) health care if free and you are mandated by legislation to contribute to your retirement (your employer takes it out of your paycheck before you get to spend it and puts it in what is called a super account) So given that I really couldn't get fired, that if I got sick I would be cared for for free and that my future is sort of taken care of there was no emergencies staring me down the throat that would make you nervous enough to change your ways.

I had bill collectors calling because if I saw something new that I wanted then I would get it, the CC could always be paid next month right? (I shiver to think about it now) I have a house full of beautiful furniture and a wardrobe full of lovely clothes, but I had no money and was sinking very fast.

Thankfully for me - all I had to do was adjust my mindset and stop spending and start to pay down the mess that I had gotten myself into. I literally had so much debt that the payments left me after other expenses as well with only $100 a month extra and that was too close to the line.

The first thing I did was to cut back on every non necesity, I started to make averything from scratch and buy our produce at the wholesale butcher and farmers market, I reduced our grocery bill by about $200 a month.

We shopped around and got better deals on insurance, utilities and phone/internet, I changed my cell phone to prepaid and cut out all spending that was not necsessary. And I sold a bucket load of Stuff - spare cell phones, playstations, ball gowns.

It was hard for me but I made myself a promise that everything extra would go towards the debt and nothing would be charged again to a CC. Slowly but surely the balances started comming down and I started to learn more and more about how to live a simple life.

All of sudden, I was so organised, I performed better at work, My house was clean, my relationship was happier and I was healthier, then I managed to land a fantastic job that paid $20K more per year then I was making. I attribute this all to getting my debt under control.

I will send my last payment off next tuesday and that will be me done with debt. It feels so good and it has only been 10 months since I started. I barely recognise myself.

You can do this - trust me if evil missmanny can change her wicked ways then anyone can - especially someone who is a seasoned fighter.

**Mom23boys** · 08-20-2008, 07:23 PM

Welcome back, Holly!!

I remember how you struggled, but made it when your DH was in school and I know you can do it again!

By the way, good luck to your DD on the Canadian Nationals!! That would be awesome if she made the team and was able to get a free education!

**frugalfoster** · 08-20-2008, 10:03 PM

I think i remember that you got to go to disneyland and you were so excited to do that after such a long frugal journey.....well that's going to seem so minor compared to watching your daughter compete.... How exciting for you!!
'

**Ilovesewing** · 08-20-2008, 10:36 PM

Wow - good for your daughter and your family! That is so exciting. Maybe it will be an Olympic sport one day and we'll all see her on tv??

The one thing that struck me in your post was you saying feeding those darling athletes of yours is costing you a fortune. Food is the one place where we tend to lose focus when we don't keep our nose to the grindstone. Start there. I'll bet you can find lots of ways to cut your grocery bill and still keep the athletes going.
Get out your crockpot, scour the grocery ads, start collecting those coupons, and read everything here to get you going again.

I was here and left for a long while....it's amazing how much you 'forget' when you aren't constantly reading about it. Good luck!

**hollyhill** · 08-20-2008, 11:40 PM

Oh my! Ten months! That is amazing.

I see you are able to put more than $1000 a month on debt..... thats AMAZING!
Are Australian dollars compariable to canadian?US?

I am Canadian so we have free health care too but no retirement plan.....

Because our debt is from school and Dh cutback hours, we won't beable to cut back as easily. I don't spend much money on stuff.
Our biggest expenses are supporting our children, mortgage, insurance and food...

When you first started to pay off debt how long was it before you saw an effect? I presume the CC charges kept appearing for awhile.