planning for lean times

**itlw8** · 02-19-2009, 12:46 PM

I will be closing my business for 5 weeks this summer ( self employed) and there is a worry dh may be laid off. If he is he could run my business but parents have already arranged care.

I will have a hard time getting new clients now with closeing for June

Dh is looking for p/t work but has not found anything yet.

so to the question.I have been working very hard to pay off all debt and we are close. so close I can feel it.

one of the cards is at 2.99 until paid off but only has $800 left

Would you continue socking all extra money on the credit cards or hold back and pay minimum on that one. and build up 2 months mortage and car payment.

Freezer and panty is stocked and not doing childcare for 5 weeks will cut grocery bill by 2/3 eating from freezer more for the next 3 months would give me maybe $200 a month extra.

If ds hands over a chunk of his tax return to pay on what he owes us it would cover 1 months bills.. but he has a huge amount of dental work to be done. so I am not banking on it.

dh says keep on paying the credit cards off ,stop the extra $100 on the mortage, and use his boat fun/second emergency fund meaning we would still have a barely funded baby emergency fund

I was thinking cut back on the credit card. the interest is hardly anything and then kill it after I start working again.

house payment is 470 but I usually pay $600
car payment is $358 I usually pay $400

There is enough in his boat fund to cover it for 1 month.

so is he right kill the $800 credit card so we do not have to worry about it? Or me pay other bills ahead and save like crazy

Granted if he finds p/t work we can do both any opinions?

but if he gets laid off we are in trouble ( ins will continue and will still pay for surgery.)

**Pianolady** · 02-20-2009, 11:13 AM

We pay bills ahead and save like crazy. Cash flow is necessary to keep the house payments going, and you don't want to be doing anything like an expensive cash advance to cover a bill later. But that's just me....cash flow comes first. Now if you get a nice EF going, go ahead and pay it off.

**peanut** · 02-20-2009, 11:31 AM

I would kill the $800 credit card because it seems to be a big psychological millstone around your DH's neck. Once it's paid off, you free up 'x' amount of dollars to go towards mortgage and car payments.

I would cut back the mortgage payment for sure at this point...just till the situation stabilizes. I would use that extra money for your cc first, and then the EF. In fact, anything extra you can put aside is a good idea...but you already know this.

**itlw8** · 02-20-2009, 05:04 PM

thanks that does make sence as he is on board keep the ball rolling so we do not break the habit. I have 3 months until my surgery so means just by not adding an extra $100 to my housepayment I will have $300 saved for that. one advantage of staying in your starter home is low house payment.

So all extra money made or save will go to saving house and car payment and I continue paying CC as I have been

not sure why posting helps get things straight in your mind but it does. Thanks

**Dancing Lotus** · 02-20-2009, 06:14 PM

IF you really think your dh may get laid off I would start saving cash!
Keep paying the credit card but I wouldn't use my extra cash to pay it off just yet. IF things got bad you cant' get that cash back but you can always opt to not pay the credit card ( in an extream case )