Well, I wrote it all down

[GFNancy]

I went through all my bills and figured things out.

The worst part, and the main reason I came here, is that we've basically been using our "savings" account to pad our income. We are overspending past what we're bringing in by about 15-20%.

The main reason we're overspending is that our mortgage is just killing us. We knew what we were getting into coming into it (fell in love with the house), and thought we'd just budget and plan. But then add into that hubby's career going off into a ditch and it just seemed hopeless to even try. We both have engaged in our share of "retail therapy" and denial about the situation. So just cutting back to the point where we're not digging into our savings every month is going to be a feat unto itself.

So, that's my first goal - Spend less than hubby makes, even if it's just $1.00 less.

Next is an Energy bill that I didn't pay right. I set up automatic payments, but hadn't looked at the bills. So we're behind by about a month. Last month and this month combined will be $564.68.

Then our debt -

Med Bill - 242.40
CC#1 - 633.98
CC#2 - 809.72
CC#3 - 1295.75
CC#4 - 9500.00

Total = $12,481.85

The smart thing is that both our cars are paid for. So at least we don't have car payments. Yay! We also live 5 minutes from DH's work and within a 5 mile radius of anywhere I need to go to shop. So there is very little gas cost or wear and tear on either of our vehicles.

I'm not even going to think about paying down our mortgage until we get the CC's taken care of. So I'm not putting that in our debt calculations yet.
So there it is.

Nancy

[Kisobel]

congratulations on taking that first step. and you are very brave to post your numbers. knowing what you owe is the first step out from under the debt burden. take a deep breath. you owe more then some and less than others. you are going to be ok. one thing i use every day(from a very good book)-- when you wake up in the morning- say to yourself today i have a roof over my head, clothes to wear, and food to eat, i am ok. visualize them if you need to. getting out of debt is a one day at a time process. good luck.

kate

[Jenna]

Good job tracking your debts. How are the APR's on those credit cards?

[GFNancy]

Thanks guys. I will remind myself of that every day. It's easy to worry too far out into the future and forget that for today we have everything we need.

The interest rates are horrible.

CC#1 - 28%
CC#2 - 22%
CC#3 - 30%
CC#4 - 26%

I think I'm going to attack CC#1 first. Because it's the smallest balance, and one of the highest interest rates. So at least I could get a running start and pay off and close out one whole entire card. Then I'll go after CC#3, because of it's high interest rate. Then CC#2 - lower balance. Then finally CC#4.

I'm hoping that by this time next year I'll be a good way through paying off our last CC. My DH gets unexpected bonuses every once in a while. We've been using it as an excuse to blow even more money than we already are. But I'll start putting most of it towards paying off our debt. We'll each chose one reasonable thing to get for ourselves, but the rest will go to the CC.

Now that I've sat with this for a bit, and gotten so much inspiration from this site, it totally seems like something we can do.

Nancy

[mikandmari]

I started with a cc list that was similar to yours. I have $1450 left to go to have my cc's paid off. Then I can move on to the 2 home equity loans .

It's amazing how little money it takes to get by... and it's very liberating to walk away from most purchases now because I decide we don't "need" it.

[frugalfarmwife]

You've made it through the hardest part, writing it down and facing the truth, and you're right, now you're ready to attack them and have them gone. Stick around with us, read through here, you'll be amazed all the tips you'll find for getting the debt paid faster.

Oh, and we're a fun bunch too, take a break with us in other areas and have FUN! (it's free!)

kj

[Jenna]

I think I'm going to attack CC#1 first. Because it's the smallest balance, and one of the highest interest rates. So at least I could get a running start and pay off and close out one whole entire card. Then I'll go after CC#3, because of it's high interest rate. Then CC#2 - lower balance. Then finally CC#4.

Once a card is paid off, will they offer a low rate BT? Sometimes there is a BT fee, but I've heard that can be waived at times. Just don't use the card once the money is transferred.

Bankrate.com often has information on credit cards, and offers.

Good luck.

[Buckeye5]

I have had many set backs but I am still determined to be the true owner of our money!! It is going to take some time, but it is doable. You can do it too. At times it can be frustrating, and seem hopeless, that is why it is important to come here vent, get ideas, or just for support. It will keep you focussed and hopeful. You are already in the right direction by admitting to your debt, and beginning to do something about it. You can do it!!

[sdrjeolsen]

Great first step, sitting down and looking at it all on paper. Sounds like you have a good plan and have realized where you are and what it will take to get where you want to be. I would call the CC companies and see if you could g thtem to lower the rates. Often timse they will, especially if you mention you will transer the funds to another better rate card and cancel theirs. If they drop the rates, that will save you a bundle too. Good luck!

[Cricketlegs]

http://www.whatsthecost.com/snowball.aspx?country=us

The official pay'em off web site of the frugal boards!