Feeling down ..

[Wendy99]

Well here we go again .. back to square one or so it seems. Our EF is down due to car repairs. Our credit card is up due to vacation – we go camping and it’s the cheapest vacation we could do and we are going for just under one week in July and just over one week in August and as far as things stand right now – that’s all we’re doing. Problem is we had to book 5 months in advance or we don’t get a campsite (they are that popular here in Ontario). I have yet to learn to set up a sinking fund for these expenses as I can never seem to get ahead lately to do so. So now I’m stressed we owe just over $500 on our credit card due to camping fees. My instinct is to put everything we have on it and pay it off asap (even if that means going extremely tight) – that is what I have been doing in the past. However I feel that’s not working for us. I just wondered how does everyone decide how much they are going to put on debt? I have an $80 car payment (minimum) each month and then the balance on the credit card (which we never pay just the minimum). I was thinking of doing our numbers (with some leeway) and seeing if we could afford to put $300 on the debt each month which would mean the min car payment of $80, then the rest on the credit card. Right now we don’t get paid for another week and have run out of money for gas and groceries etc because I paid every last cent towards debt. Seems to start a cycle as I need to take from the EF for food and gas. There has to be a happy middle somewhere. I know I was wrong to put it on the credit card and I’m hoping to start saving for next years vacation once the credit card is paid off. Normally we always pay off the balance before any interest is added on, but this time I think it will take a couple months which is stressful – I just need a better plan. I had a budget all beautifully prepared, but it wasn’t put to the test – I’m always good at planning out the numbers and seeing what works, but I seem to fail a lot lately the past couple months.

[Contrary Housewife]

You sound like you have the basics of budgeting down and just need to fine-tune the details so it works every month.

Have you identified where and why it fails? Where did you spend too much or not have money to pay something? (aside from the vacation) Remember, food, rent and utilities come first. After that you pay down debt and other spending.

Meanwhile, pay off the CC camping fees as you can. I'd suggest putting $100 on it each month to pay down the cost of the trip, then putting that $100 every month afterward in a vacation account towards next year's plans.

[Spirit Deer]

Have you considered camping in the US, if you're close to the border? Canadian members on the camping forum I frequent say it's much cheaper to camp here than in Ontario. Gas is cheaper here, too. Just a thought.

[Wendy99]

Actually I have never thought of camping in the US to be honest. We always go north to the rocks, trees and lakes - so beautiful up there. Maybe next year we'll have to look into it for more information.

[Wendy99]

You sound like you have the basics of budgeting down and just need to fine-tune the details so it works every month.

Have you identified where and why it fails? Where did you spend too much or not have money to pay something? (aside from the vacation) Remember, food, rent and utilities come first. After that you pay down debt and other spending.

Meanwhile, pay off the CC camping fees as you can. I'd suggest putting $100 on it each month to pay down the cost of the trip, then putting that $100 every month afterward in a vacation account towards next year's plans.

Thank you. I havent yet identified where it fails exactly. I think what I need to do is track every penny for a couple months and see where the money goes. I'm so tempted to take my EF to pay off the credit card (against DR I know, but it's tempting), but then when what happens when I have an emergency - back to the credit cards again? Such a vicious cycle to be caught in ... ugh!!

[ravenmaniac]

I wish I had some words of wisdom. I don't feel I'm at liberty to give advice when I struggle with my budget sometimes. Hang in there, the wonderful people here will give you good advice.

[TinyDancer]

I was having the same problem you are having right now. When I first starting getting serious about paying off my debt, I sat down and looked at what I was putting on my CC's. Some of the expenses were expenses I knew were coming but didn't have any money to pay them (i.e., JLC dues, hair salon, Christmas gifts, etc.). Others were expenses from shopping, etc.

I decided that I would immediately start saving for my known expenses so that I wouldn't ever put them on the credit card again. For example, I pay $255.00 a year in dues to the JLC. So I divided $255.00 by the number of paychecks I would get before the next time I had to pay dues. Now, every time I get paid, I move that specified amount of money to an online savings account. I also do this for Christmas gifts, vacations and my trips to the salon.

All other expenses that were put on my credit card, were just cut out. No more shopping sprees for me. I only buy clothing with the money I have set aside for it. This is the hardest part, because I LOVE to shop!

At first, it was really difficult because it means that less money is going towards paying off debt. Anything left over after all bills and savings accounts are funded, goes into my debt snowball. Even though I'm not paying off my debts as quickly as others, it ensures that I'm not incurring any more debt, which to me, is the first step in debt reduction.

Hope this helps!

[Wendy99]

All other expenses that were put on my credit card, were just cut out. No more shopping sprees for me. I only buy clothing with the money I have set aside for it. This is the hardest part, because I LOVE to shop!

At first, it was really difficult because it means that less money is going towards paying off debt. Anything left over after all bills and savings accounts are funded, goes into my debt snowball. Even though I'm not paying off my debts as quickly as others, it ensures that I'm not incurring any more debt, which to me, is the first step in debt reduction.

Hope this helps!

That is exactly one of my problems. I know we go camping each year, I know we have Chritmas each year, but I never set aside money for it ... I always go "gung ho" on the debt and then end up taking from the EF or go into more debt to make ends meet. Maybe I'll have to relax on the debt a bit and start a sinking fund to prevent more debt .. have to get that EF topped up to $1000.00 too. It's just so stressful, not sure why I do that to myself. I started doing a biweekly budget this morning to help and am going to start tracking every penny next week when we get paid and find all the holes. I also think that tonight I'm going to freeze our 2 credit cards (we each have our own) and only use it for things that are planned (ie. camping) .. that way I have to make sure I have enough money left to make it to the next pay .. and leave the EF fund alone. I need groceries out of it this weekend, but then thats it. Got to get my head out of the sand!!!

[TinyDancer]

I just quickly did the math. If you know you have to pay $535.00 in March each year for your campsites, you can start saving $45.00 a month towards next year. I would reduce your debt snowball by this amount each month and set aside the $45 in a special savings account just for your camping expenses.

I know it's hard, but I figure we live and learn right? Keep your chin up! I know you'll get there. I'm pulling for you!

[homesteadmamma]

Have you considered camping in the US, if you're close to the border? Canadian members on the camping forum I frequent say it's much cheaper to camp here than in Ontario. Gas is cheaper here, too. Just a thought.

With our $$ at 77 cents right now to your dollar, it wouldn't be very cheap to camp in the States.


Being stressed over cc isn't fun. The best thing to do is get rid of them and pay cash only. I know you want to go camping, however sometimes we have to give up things in order to get rid of things (debt). It would only mean one summer. Are you close enough where you can do other things besides camping?

[Wendy99]

I just quickly did the math. If you know you have to pay $535.00 in March each year for your campsites, you can start saving $45.00 a month towards next year. I would reduce your debt snowball by this amount each month and set aside the $45 in a special savings account just for your camping expenses.

I know it's hard, but I figure we live and learn right? Keep your chin up! I know you'll get there. I'm pulling for you!

That's a fantastic idea, always thought of it, but never put it into action I'll do that within the next pay or so.

[Wendy99]

With our $$ at 77 cents right now to your dollar, it wouldn't be very cheap to camp in the States.


Being stressed over cc isn't fun. The best thing to do is get rid of them and pay cash only. I know you want to go camping, however sometimes we have to give up things in order to get rid of things (debt). It would only mean one summer. Are you close enough where you can do other things besides camping?

One summer without camping would not do in this house, although I completely understand what you are saying - we should have had it saved up prior. Close to 3 weeks vacation for just over $500 is a steal. I mean anyother vacation would cost you airfare, hotel rooms, eating out etc etc. Camping basically is the cost of the campsite and the gas to get there, cost of ice to keep your food good ... the food itself would have had to be eaten at home anyways. All the activities we do at camping are free - hiking, canoeing, campfires (well we have to pay for the wood i suppose), beach, biking etc. We did reduce our camping costs this year though by booking just 2 "longer trips" rather than dividing it up into smaller trips (which would have cost us more in gas etc). We book without hydro etc (thereby reducing the campsite cost as well). The amount owing on my credit card does stress me out - and I will be setting aside money to save for next year asap so we dont have to go through this again. I'm learning - just takes awhile to sink in sometimes lol ... That being said we do give up a lot of other stuff, just not our camping. We have dial up internet, basic cable tv, basic phone service, we have only went out to the movies 2x in the past 9 years (we rent or borrow from the library), we take advantage of most the free activities around town, dh uses a bus so we only need 1 vehicle, 99% of our clothes come from the thrift shop .. take out we are working though and getting better ... but again camping is just that one that we are stubborn on .. it's a good get away for us and the kids learn so much ... that being said if I come on here next year complaining that the caming fees on the credit card are stressing me out - hit me with a rubber mallet !!

[mommy4ever]

There is nothing wrong with taking a vacation while in debt reduction. If there is no positive things, you'd get burned out. No need for guilt there.

We do it too We spend a little more than you, about $1500 but this is for a seasonal site that we go to every weekend and 3 full weeks. Next year we'll have a full month!

But what is $1500 with a family of 6? A weekend in a hotel for 6 is almost 1/2 of that.

So we do save for it. We put aside $125 a month for it. Gail Vaz-Oxlade says that if you save for something and don't need to use credit makes it ok. Every family needs an entertainment budget. During the rest of the year you run a tight ship, setting aside $45-$50 a month for your vacation fund, is a well deserved reward for working hard toward debt free living. This keeps you going on the right track. If there is no fun, there is burnout. That is a step backwards.

So you used the CC this time. You have nearly 5 months to pay it off. It's ok to contribute $100/mo toward it. It might need to come from the snowball. No big deal, just do it.

Now as to running short. You need to sit down and figure out what the irregular payments are, those that come only once a year, or twice, that set you back. It sounds like you really need to set up a sinking fund. Car repairs, house maintenance, school fees, sport fees, pet car, clothing, gifts, etc, things that you pay occasionally should be looked at and saved for. Then you don't end up with a shortfall which you create the cycle of using credit or EF.

It's all a learning process. Your budget is just a starting point, once you start using it and tweaking it, is when you'll find what works and doesn't. It's not written in stone, it's all a process.

It takes time. I'm in this process, dh is in the process. The kids are in the process. We're learning and tweaking. What else can you do? So you need to adjust your snowball to accomodate the regular-irregular payments that need to be made. No big deal! You've learne dthe budget isn't accomodating that, adjust it and move forward.

[mauimagic]

Wendy, It seems as if a lot of people have replied with wise advice - from experience- and a lot of support. It's hard to hear someone getting down on herself when you are doing so much to take care of you and your family. I'm impressed with how much in control you are!!

I feel as if I am back at the starting point - but that's okay. I've been tracking every penny we spend so far in 2009. Now, I need to look at the totals and see where the money is going. I'm still using credit cards when I shouldn't, but I also am using cash more oftern.

Your messages have reminded me that I need to stop using my credit cards. Will that totally happen? Probably not, but I want more control over it and conscious, not unconscious, use of the cc.

Youu made the conscious choice to use your cc for your camping vacation with very solid reasons. Hopefully by now you have created your own plan for paying it off.

Mahalo for sharing because you've helped me address something (ie. cc use) much sooner than I probably would have.

Take care.

[itlw8]

You do know that we all DO understand.. Heck that is way all of us are here. We have made this cycle many time in our lives.

Until we get that savings built up we will continue to do the same thing. All you can do is keep plugging away. And teach your children what you should have been doing.

It is too easy to spend on extras even small when you get out of debt but we fail to take that next step and plan for the future.

so next year you will do better. all you can do is work on now and the future... the past is past.

as you are paying it off think about the other expenses you will have like food, gas, etc and start putting it aside as soon as the $500 is paid so you don't charge that in August.