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4K views 28 replies 14 participants last post by  melanies 
#1 ·
I have a hugh problem. My huuby may get laid off in three months cause the company he works for(maintance work), the condo they mange is not renewing the contract and his company may not have any place for him. I don't work cause there is no jobs and there is a ton of debt as you can see. He says not to worry cause he can always get another job but I am scared. I need some help cause I have no clue what to do. Thanks for letting me vent and would love any advice. We also have two teens ages 16 &13.
 
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#2 ·
i feel for you. my heart goes out.saddly u have the right to be fearful.and all you can do now is try to prepare and hope he does get another job fast. my saying prepare for worst hope for best. but u are here amoung friends and can say keep posative. the whole economy sucks for us all. much blessings and good luck....:grwave:
 
#3 ·
I would say for you and your kids to try to get jobs. Baby sitting, dog walking, newspapers, washing windows, cleaning houses, Fall is coming so maybe raking leaves in a month or so, when winter comes send your kids out with shovels and go knocking on doors. Anything to help bring in a little extra money and save save save.

Try to get a bit of a stockpile going. If you see a great sale, jump on it now.
I would say to only make miniumum payments on your credit cards and try to save as much as you can. Cut back on EVERYTHING! Think about cutting cable, internet, phone or at least going to cheaper plans. Do everything you can to save as much money now as possible.

Good luck!
 
#5 ·
I would say to only make miniumum payments on your credit cards and try to save as much as you can.
I agree with everything FiF said except this. **** the credit cards. Right now its about survival. They can have a fit if they want, you'll end up owing them more in the long run, but thats NOT important right now.

Later, when you all are back on your feet, you can circle back to these people and make good. Meanwhile, for now, you apologize a lot and say, "no I'm sorry I can't afford to pay you right now - call me in a month". They'll call you in a day, but you just keep saying the same thing. You wanna be a broken record to them, and be warned, they're gonna try to scare you. Don't let them, that's what they want - if you're afraid, they win, cause you'll do something stupid like pay them and starve your kids.
 
#4 ·
First, I'm sorry you're going through this. That said...

Ok - you asked for it - so brace yourself - here it comes. This is going to be cold, hard facts. It won't be easy to hear. I'm warning you now because I'm not pulling any punches. Its not personal, I'm not judging you, I'm simply laying out the facts. If you have the intestinal fortitude to hear the facts and not take it personally but look at them objectively, then you can get through this. If not, denial, excuses, and disaster will follow. Not may. Will.

So please know, what I'm about to say is actually being said in kindness with concern - because if I lied to you right now I'd just be setting you up for worse later.

The first thing you need to do is get on a budget. If you're already on one, review it and make sure it conforms to what follows. I know you need to do this because if you're on one, its broke, and I'll bet you're not on one at all. I know THAT because you've got 10k in consumer debt and an 8k car loan. That means you've been living beyond your means for some time.

Establish priorities for payment. Each month, whatever money comes in gets paid out in PRIORITY order.

You ask yourself - if I only had enough money to pay for ONE budget item this month, what would it be.

I'll help you get started:
#1: FOOD - Food must be your #1 priority item. You want to reduce this # as much as possible but you and yours NEED to eat.
#2: Essential clothing - whatever you can find at the salvation army, thrift stores, etc. Bare minimum but you've gotta have clothes.
#3: Lights/Utilities - you need heat and electricity. You DON'T need multiple cell phones, high speed internet, land lines, etc. You need 1 phone number and possibly dial up internet.
#4: Roof - keep the roof over your head
#5 - #100: Other *essentials*.
#101 and beyond: DEBT payments.

Yep - those urgent phone calls you'll start getting demanding you pay them yesterday are bottom of the list. They'll have a fit. **** em. Pay em when you can - right now you can't.

Ok, a few other things:
- Sell the van. You owe $8,000 on a van. You can't afford it. Find out what its worth to a private buyer (http://www.kbb.com) and sell it. If you owe more than its worth, get a loan for the difference plus another $2,000. Better to owe $4k on unsecured debt than $8k on a van that will just get repo'd leaving you with NO transport.

Take the extra $2,000 and go pay cash for a beater. It needs to run, it needs good tires and a good engine, and thats it. If it's main color is "primer" and the roof leaks, I don't care - getting you from point a to B is all that matters.

Talk to me about the house - what's the house payment? Not the total - the payment.

How much income will you have coming in if he's laid off?

When does he start his second part time job delivering pizza? (YEP, time to start now!)

UNTIL you know for sure if he'll be laid off or not, STOP ALL DEBT PAYMENTS except Car and House. You're selling the car, don't get it repo'd in the process.

You MAY have to sell the house and rent. We'll see.

More to follow when I know more about your situation.
 
#6 ·
Ok the house pymnt is 717.88 a month. I told him a couple of years ago not to do it cause we couldn't afford it but he wanted us to have a home and not live in an apt for the rest of our lives. We lived in an apt for 15 yrs so he was sick of it. We didn't even know when he transferred to this one condo that it goes yr to yr contract. His big boss said yesterday he shouldn't have anythin to worry about but I am thinking the worst. I am a worrier big time.
we will have nothing coming in except his unemployment if his lay off happens. He has two people looking at hospitals where they work for any jobs for him. The condo board likes him and his boss but not the company he works for so they may keep him or may not.
 
#7 ·
If his boss isn't too worried, then make *minimum* payments on the consumer debt for now, and save as much as you can. No need to set loose the dogs in an over-reaction.

But the van still needs to go.
 
#8 ·
What is your household income, BTW?
 
#10 ·
His bring in about 1,200 every two weeks after taxs.
 
#11 ·
As long as he's working, then, your house payment is 29.8% of his take home, (even less on months he gets paid 3x) and I'm assuming that's including taxes and insurance.

So the house payment is actually reasonable. 25% or less is ideal but anything under 30% is fine.
 
#12 ·
Yea that includes taxes and insurance and all of that We have an escrow that all that gets paid through.
 
#13 ·
So as long as hubby keeps working, I think you're ok - but you NEED to get that consumer debt under control. You are never going to have any lasting security as long as you use plastic to buy things you can't really afford.
 
#15 ·
I am going tonight to apply at Walmart. They have signs that I forgot about that says they are hiring for part time. I just called my hubby to see if their is anything new and he said that the board wants to keep him and his boss but don't know if the new mangement company wants to keep them, so he said we have nothing to worry about until Jan. I know I can have two bills(kohl's & tractor supply) paid off next month. I will nbever get a credit card again in my life. The only ones that belong to me is visa & capital one and the rest are his. But they are all ours together.
 
#16 ·
(( HUGS ))
He may not get laid off.....think positive.
In the meanwhile, start preparing for the worst.
Keep all your bills current.
Pay the minimum on any credit cards. No sense upsetting them if he keeps his job and nothing changes.
If you can pay off those two cards next month, that sounds like a plan.
But then again, someone might say to put the money in a safe place and not spend it and build the EF .
If you don't have a food stockpile, start one. If you have one, increase it.
Start making a list of what you can cut back on.
No eating out. Meals made at home. Make extras for his lunchbox.
If you have personal allowances, cut them out or go smaller amounts.
Use the local library.
Whatever you can cut back on, do so.

Not sure how it is where you are but, where we live we both have to have a vehicle in order for both of us to work. Our hours would not be the same. We only have the one vehicle payment currently and not planning on replacing either one for quite some time.

Just remember all problems have solutions. It may take awhile to get things figured out, but it will happen. Keep thinking positive :)
 
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#17 ·
I have some great news. My hubby boss and him sat down with the board president and talk to him about what was going on and the board pres. said he didn't know nothing about it. He said there was no new management company and they are keeping them cause they like they. He said there were a couple of board members that was mad cause the part owner of hubby's company is leaving cause his wife died of cancer and wanted to start up a foundation in her memory and there is someone else going to be in his place. So it was just all rumors. But I learned my lesson, to get these bills and stuff paid off faster. Thanks everyone for listening and words of encourgement.
 
#18 ·
That is GOOD news :)
Now don't forget to update us with your progress to pay things off faster.
Challenge yourself and the hubby.
 
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#19 ·
ok I will.
 
#20 ·
I am very glad to hear the good news.

Have you read any of Dave Ramsey? Some of the success stories are very motivational and he offers some sound advice on tactics to help pay down the debt.
 
#22 ·
Start saving and cutting back on everything possible. Wishing you the best of luck that he and you will find some other work soon. :hugz:
 
#23 ·
I agree with others on the credit cards. Priority number one is paying the secured debt (house + vehicle). Downsize your car if at all possible. Pay minimum payment on the CC's while he still has work and if he gets a pink slip stop paying them and conserve for necessities.

Getting some income from walmart sounds like a great idea. Good luck and best wishes. Even if management is saying don't worry, you should be working on some cash reserves. We get told there are no more layoffs in the foreseable future all the time. It only stands until the next one which always comes.

Just no more CC purchaces and I would pay minimums until you have a few months worth of expenses built up in an emergency fund.
 
#24 ·
Hope you get that job at Walmart!! Keep plugging away even though you have a reprieve.
 
#25 ·
And if you haven't read Dave Ramsey's "The Total Money Makeover" - please do. You can also listen to his radio show archives at http://www.daveramsey.com/tdrs/
 
#26 ·
I will look for Dave's books at the library of course and thanks for all the support.
 
#27 ·
I have a feeling that this might not be well recieved but here goes my two cents....put the kids to.......... work!!! You have two teenagers. The sixteen year old could get a parttime job and the thirteen year old could babysit, mow loans etc. As I was growing up from twelve on I was babysitting and paying for my own things. When I was sixteen I was working 20-30 hours a week and going to highschool. Just a suggestion....
 
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