A real slap in the face!

**Peaches** · 01-01-2007, 03:25 AM

Hubs and I sat down and worked out our debt on Friday. We knew we had a lot, but it was a wake-up-and-smell-the-coffee-slap-in-the-face-when we got to the grand total. I'm asking myself how we got here and shaking my head in disbelief. Now it's time to take action!

I calculated how long it would take to pay off the debt if we snowballed, and it will take around 18 months. I want to do it much sooner than that and so I am willing to cut back where I can. Hubs and I talked about goals and I realized that we are nowhere NEAR being on the same page. I want to get our debts paid off and save money for a bigger house in the right part of town so our daughter can get into a particular high school. We have to do this in 18 months, because that's when she's due to start high school. When I asked him if he had any financial goals for us, he said:

"I just want my family to be happy. I don't think about money."

And that's how we got to be £12,000 ($24,000) in debt mate!

Now, I'm not blaming my husband for our debt, because God knows that I had my part to play too. But I realise that if we can't find a common goal, we're not going to commit to this reduction plan I've formulated and we'll get nowhere fast. It has to be OUR plan and OUR goals.

I've transferred the balance of our credit cards to a 0% card, so we don't have to pay interest until July 2007. I work full time during the week, and hubs works part time on the weekends, so we don't have to pay for childcare during the week for our 9 month old son and 9 year old daughter. My budget calculator tells me that we have around £700/month to give to debt, but I'd like to up this to around £750. Also, we don't have an emergency fund. Should I leave the debt contribution at £700 and try to give that £50 that I can find elsewhere to the EF? Or should I do it the other way around for a couple of months and put the £700 in the EF and pay the minimum payment on the debt since we're not paying interest?

I'd appreciate anyone's thoughts on this. Thanks!

**Michelle** · 01-01-2007, 08:58 AM

It sounds like you're taking steps to reduce your debt, and it can only get better from here

I used to believe that paying off the CC's should be done first and then save for an EF afterwards. Now my thinking has changed a bit on that because of all the emergencies we had the last 2 yrs that could have been paid for using the EF vs. our CC's. Now we are putting away some to our EF every month AND paying down debt. Our current budget for this year (which still needs a bit of tweaking) has us putting $300/mo. away for our EF. We already have $2K in the one we started last year.

I think people need to do what works best for their families. Good luck--you can do this!

**Chef4You** · 01-01-2007, 09:23 AM

I thought only my DH said things like that when I asked what his goals are!!
It is hard when your the ONE willing to sacrifice and he just wants to be happy because if he doesn't THINK about money he will spend it more willingly on things that you don't necessarily agree with as a "need".
If you find a way to work out a goal with him PLEASE post it as there are others here that are in that boat with you!
Trying to get DH to decide on a time/day to put a FOR SALE sign in our yard gets the same response here at my house! Selling our house has to happen for "us" to move forward this year.
good luck.

**nuisance26** · 01-01-2007, 09:50 AM

~I'd fund your emergency fund first. Take advantage of your 0% 'grace period' and pay yourself! JMO. Good luck on all your goals this year!~

**suzysaver** · 01-01-2007, 12:01 PM

I agree the EF, you need something to fall back on..just in case. You have the right attitude and good luck to you.

**Buckeye5** · 01-01-2007, 12:28 PM

Go with the Ef first, then start on the smallest debt. I still am going to try to put a bit in the EF fund every month while paying off debt because it makes me feel better.

**dcompton** · 01-01-2007, 01:16 PM

Emergency fund first. I agree -- take advantage of that 0%.

**Bethany** · 01-01-2007, 08:31 PM

Just think of how much you will accomplish in 6 months if you stick with your plan! My family has come so far in a very short amount of time (about a year) since I've gained some insight into living in a more frugal manner and axing the credit cards TOTALLY! We still owe about 8 grand in credit cards but at one time we owed over 17K!!! We should have our cc paid off in six months! By the end of the year both our vehicles will be paid off! Wow, in just twelve months look at what you can do!!! Keep your eyes on the prize and if need be just put old hubs on an allowance! That's what I do and as long as my hubs doesn't have a cc in hand, he can only spend what cash he gets on payday, then he knows it's gone and he knows I mean business!!! Best of luck to you. YOU CAN DO IT! Baby steps if need be, but you can do it.