I'm in waaaay over my head. We've got issues... DH makes $17/hr, I make $18. Pre-tax, we pay just under $800/mth in health insurance. Neither of us has the option of 401K at work, but I do have a pension plan. Post tax, DH brings home around $425/wk. I get paid twice monthly and bring home around $2300, depending on how many hours are in the pay period. So we actually bring home around 4K/mth

Now for the scary part... Monthly Bills:

Mortgage/Property Taxes/Insurance - $1341
Home Equity Loan - $194
Car #1 - $445
Car #2 - $261
Car Insurance - $141
Student Loans - $70
Day Care - $260
Phone/Cell/Internet - $100
Cable - $40
Water - $35
Electric - $125
Trash - $15

Now for Credit Cards (CL/Balance/Interest Rate/Min Payment)
Home Depot - $4500/$300/0% until May/I haven't paid anything on the original $650 balance in like 3 months
Furniture - $4500/$1025/0% until July & 0% until December - I think I still have to pay it off before July, even though there were two different purchases at 0%/Pay $50-$75 a month
Citi MC - $10400/$9300/0% until 11/1/06/Min is about $150
Juniper MC - Balance is around $1900 - I always pay this off in full every month-but this is a huge balance this month, lots of unexpected expenses...

I also contribute $100 month ($50 for me, $50 for DH) into a T. Rowe Roth IRA's. Up until this week, I had been sending $100/month to an ING account. We each have about $400 in our Roth's, and our ING account has about $3075 in it.

Prior to last summer, we had NOTHING saved. We used all our savings to buy our house 3 years ago, and never built up our savings. I was unemployed for 6 weeks in 2004 and used the credit cards - hence the huge amount on the BT Citi card. New baby a few months ago - took 7 weeks off (waaah!) and only 2 weeks of it was paid. Had to trade in my car - *it was almost paid off - because the fire dept said it was unsafe with the carseat - Hence car payment #1.

DH's truck is on the last limbs of life, had to get ANOTHER new car a few weeks ago - hence car payment #2. Part of the immediate problem - couldn't use the truck as a trade in, we have listed it for sale, but NO buyers. Very little interest for 2WD vehicles in CO (we had bought it when we lived in TX - own it free and clear).

What to do?!?! Our house payment should go down about $60 in May (our payment went up last year because our escrow account got screwed up). We still have about 3 years on the equity loan. Student loans balance at about 5K.

Adding up just the basic numbers in relation to our income - we just don't make enough to make a dent in all this. One option would be for one of us to get a second job... we really don't want to go this route as we hardly see our infant daughter. By the time we get home at night after work, it is already after 5, and she typically goes to bed at 7:30. We both work about 30 minutes from home - not on bus routes, so gas is costing us around $300/mth, sometimes more.

We sell a little bit on eBay to supplement income - have been doing so for years, we maybe make $100-$200 a month doing that.

I would not be opposed to selling our house, but I don't even think we can get what we paid for it, as with our equity loan added in, we owe just under what we bought it for and our RE market is stagnant. We're kind of stuck with the cars...

I suppose we could cut out the cable, but it is really our only luxury. We're home all night, and almost all weekends. We don't eat out and spend very little at the grocery store.

The cost of health care is KILLING us. We have to have it, but $800/mth??! It's ridiculous! The only insurance we have available to us is an HMO, combined with dental & vision. We can't drop part of the coverage or change to high deductible...

What to do?!? I'm sooo stressed out over this.

I can feel the stress from your post. I don't know what I can say other than you will make it some how some way. I don't understand why you can't change to a different medical insurance company with the high deductable. You seem to have disputed the main ideas that are first line of defense in your situation.

A second job would only be temporary. You see the problem but time is of the essence...it's either bring in more income , start selling off stuff or a combination of the two. The main thing is that you want to sell stuff if it gets desperate and not an actioneer from a repo company.

I would say cut the cable, internet and cell phones but you really need to disect something a little bigger than that....like one of the cars. I would immediately STOP ALLS SAVINGS and applying it towards bills/debt. You have savings that will knock out 2 plus put a 1400 dollar dent in Juniper.


Even if you continue saving $200 per month....which at this time I would advise against...that still leaves $800.00 per month. Surely in 3 months you could be down to no cc's but the biggie with CITI by then.

Clark,

Insurance is through DH's work. That is the only plan available. We have some health issues, so personal insurance would actually cost more...

I could cut the cells, but we are in a contract, termination fee is pretty hefty. Guess I'll have to say g-bye to the cable

Maybe DH can deliver papers in the morning... we both have to be at work really early anyway. We just really don't want to work at night or on the weekends - it's the only time we see our daughter!

Thanks.

After adding up your expenses and subtracting that from your income, I see why you are feeling stressed. Your expenses are within $200 of your income, and that doesn't include food or other necessities.

That $700 in car payments is killing you. Any way to downsize either vehicle?

If your employment is stable, I'd consider using most of your savings to start wiping out the furniture loans, etc. That will free up those payments to use towards another debt... and so on.
Once those 0% offers expire, things are only going to get tighter.

Keep $1K or so in savings for an EF, so you won't have to rely on a credit card if you come up short. Perhaps apply the rest judiciously to remove as many other monthly payments as you can.

Is there a "basic" cable package available? Some providers have those for under $20.

Is your Tax Return gonna help you out much this year? The child care expenses can be paid pre-tax and the kid should really lower your tax hit. Perhaps increase your exemptions on your W2s to increase your income a bit?

Beyond that, you need to get rid of those car payments. They are eating you alive.

On the cell phones, you might try calling the 1-800 number for the company and tell them your situation and see if they will (1) let you out of your contract if you give them the phones back. Sometimes, companies will do it although it is rarely advertised or talked about.(2) Also look at the long term costs...say $75 per month vs. $400 for paying the disconnect penalty. Even though the $400.00 seems high, you still might recoup the $$$$ equivalents of several months of service in the long run. You would also have possession of the phones which might can be sold to counter balance the heavy disconnect fee.


Again disecting a car payment especially car#1 could really help you turn this around in a hurry.

Another thought might be getting rid of the landline and keeping the cell. Depending on usage, a cell can sometimes be the less expensive of the two.

I would do something about the vehicles if possible. That alot of money on car payments.

Do you have a land line & cell phones? you may want to decide on having one or the other. I only use my cell, no land line.

Your bills dont really seem to high to me, I think the health insurance and vehicle loan payments are the biggest issues (and you obviously need the health insurance)

Are you getting a big tax refund? If so, you might have your withholding adjusted so that more of that money comes home in the paychecks.

Perhaps there will be more interest in the truck once the snow clears?

Just noticed you don't have heating expenses listed. Is that a separate item?

Copy Cat

I just saw an ad in today's yesterday's paper that Dish Network is now offering a "family package" for $20/mo, and they specifically point out that it is NOT just an introductory rate. The choices will be limited, of course, but it's something.

Are you or DH in a line of work that would allow you to hunt the job market for a job that would offer better insurance benefits? I know you each make a good hourly wage, howver if you work (rounded) 160 hours per month, and the health insurance was $400/month vs. $800/month, you could make $1 / less an hour and still come out way ahead.

She said $125/mo for electric

Wish it cost me $125 a month for heat. My electric is $50/month and my last two monthly gas bills were $305 and $257

Hint - keep the electric heat

:: busted




Hey, good ideas bear repeating, lol.

Do you live in an shed? Err.... got room?

Mine, just in the mail Friday, was down to $275.00. Down to is the operative phrase here. Was higher the month before.
And that does NOT include heat. Electricity only.

MY ELECTRIC IS UNDER $100.00

(heat is GAS)

Wow, maybe I live in a shed...
I budget $30 for my electric, and this month (as most) I have about $6 left over. Bill was $23. Some months I'm as low as $18. Highest I've paid in the last 2.5 years is $28.

That does not include heat, obviously.

I guess I just live simply.
Always using power: refrigerator, answering machine, 1 clock
Power when I'm home: light for the room I'm in, computer (usually laptop sometimes desktop)
Occasional power: microwave a couple times/month. Electric lawnmower about once/week in the summer.
That's about it.

ETA: Oh yeah, in occasional power add washer, dryer, dishwasher roughly once/week each

Electric bill is for gas too. My house is maybe 1600 sq ft and I keep it at 58 degrees during the day, 62 when I'm home. The electric went up a TON this winter. 125 is actually a pretty conservative guess.

We don't have a land line phone - that is two cells and internet only.

We already got our tax refund - it was 1600 fed and 180 state. We are using that to pay the mastercard bill.

I changed my withholding from 0 to 1 last month. This was the first year we got a refund. Don't want to change withholdings too much because we don't want to owe again next year.

Cable - the suggestion on dish network. they charge per tv, plus installation. Base rate once its fixed after a promo rate is more expensive than regular cable. But I would love to have it - the reception is MUCH better than what we currently have. Oh, and as for just "basic" cable - it wouldn't even be worth paying for. It's only like 3 channels more than rabbit ears. I wish I could just pay a few bucks a month for the 5 cable channels I actually watch.

Had an offer on the truck, but it's 2300 less than we're asking... can't afford to take that little of an amount. We can afford to hold onto it for about another 10 days, or else we'll have to start paying insurance on it again...

DH is a plumber - he can probably get another job. He's looked around, but this is a hard time of year to gain employment in that field. It is a slow time of year, what with the frozen ground. He is a foreman at his current job - hasn't gotten a raise in almost 2 years, and they cut out bonuses last year without any notification. He's been there for 4 years. He is pretty unhappy there and would love to get a new job, but there just aren't any openings.

And me... I just do administrative crap that any person with any computer skills could do. I couldn't make any more than what I'm making unless I was able to find an executive position somewhere.

Really I'm just freaking out. I'm sure it will all work out, it always does.

There are probably others here who know more than I do about it, but might you be able to do some work-at-home sort of administrative stuff? That way you could make a little extra, but still be home.
I know I've seen things like data entry and whatnot.

Hopefully someone else could give a better idea what's available, though.

You've been in your house for 3 years.... Have you considered talking to a mortgage broker and ask about a cash-out refi? (then pay-off some of those bills?) I'm not sure what your current rate and term of your loan is, but it's something to think about. Especially with 3 years of appreciation in your home. If anything maybe you could just refi and get a lower rate and reduce your monthy mortgage payment? It sounds like you don't have much left on the equity loan, so I'm betting you have some room to work with if you refi.

Something to think about....

-NineCount

Never swap unsecured debt with secured debt!!! especially when you have over 3k in savings. Earn guaranteed interest on your savings by paying off your debt first!

Yes, we have been in our house 3 years. We can't do a refinance because we have NO equity. Purchase price was 192K. Our current balance is 184K, plus the 7K or so on the HEL. The assessed value of our house has remained the same for the 3 years we've been in our house. Refinancing would be out of pocket expense for closing costs, blah blah blah, PLUS we would have to pay PMI. It wouldn't save us any money at all... I wish it would.

I just got my bill for electric. Just under $75, with the heater running for I think 4-7 days during that period (at 70 degrees) I'm not complainin'

Well, honestly if you're uncomfortable with the way things are, then ya gonna have to change something.

Whether that means downgrading the cars if possible (or just one of 'em), downgrading the internet to dial up, and/or nixing the cable and buying a $20 pair of bunny ears. Depending on where you're at you can get some decent channels in. We do. We get Fox, ABC, NBC, CBS, and Warner Bros.

Also, those unexpected expenses--why didn't you use the savings? Isn't that what your savings are for? Unexpected emergencies (car problems, hospital bills, etc). Much easier to use that then go into debt when ya *do* have the money.

Didn't pull the money out of savings because we got our tax refund in time to pay off the credit card. I'm trying to save the money in savings to pay off the BIG 0% BT so I don't get hit with a lot of interest in October/November.

We'll find something to change... oh, and can't do dial up internet as we don't have a home phone.

I see. That's more than understandable.

Squirrel,

my advice is for the pair of you to check the job market...maybe you sooner than he given the seasonal situation. If you're in Denver area you should be able to get that kind of money as exec admin somewhere, with much better bene's available. I personally think that is your biggest issue. $800 / month is killer. I pay about $150 / month of DW and myself. Last job was $20/month...yes that's right $20 / month, for just DW. Mine was 100% company paid.

If you look out there you never know what you might find. Best of luck to you!

The sad thing about the $800/mth is that DH's is 100% paid! We make too much money for DD to be on a state insurance program, and I have health problems that make individual insurance outrageous. I'd really rather not switch jobs, I love mine! I'll have DH go on a major job hunt in the next few weeks...

that's $800/mo for only you and your daughter????

Does your work offer insurance? If so do they pay 100% for you? Even if not, are the plans comparable, and would it be cheaper to switch you and your DD to your employer's health insurance plan?

that's $800/mo for only you and your daughter????

Does your work offer insurance? If so do they pay 100% for you? Even if not, are the plans comparable, and would it be cheaper to switch you and your DD to your employer's health insurance plan?

My work does offer insurance. Until May they will only pay 20% of my premium. In May they will pay 40%. Out of pocket would be maybe $500 a month, but the plan switches from an HMO to a high deductible. Would maybe in the long run save some money, but still pretty expensive. I've thought about at least switching ME to my work's insurance. And just pray that my past medical things don't come back to haunt me.

wow, its so great how everyone here is pitching in to help you. I think...in my two cents worth that your husband could find a better job. Plumbers are a highly skilled and needed worker. If nothing else he could work partime at a home improvement store with his knowladge. Even if he did this for a year, it would help. On the plus side, your day care costs are so LOW! If you like your daycare person, dont lose them. I pay 125.00 a week for my three year old. When summer comes I will have additional costs for my 8 year old and I only make 12 bucks an hour.

I love my day care person - it's my sister

Hey what about having hubby moonlight at Lowe's or Home Depot, couple evening / weekend days, just to get some health insurance out of them?

My g/f works at Lowe's, and while they offer health insurance, she wasn't able to have any pre-existing conditions covered until she had been there for one year.

How big is your home? I am not sure what the median home price is in your area but a smaller home is a smaller payment and smaller utilities. I am not saying to sell your home just look at other avenues besides the smaller monthly payments of cell phone and cable.

Our home is maybe 1500 sq ft. I would love to sell and wouldn't mind living in a smaller place. however, we have no equity, and would probably lose money on the deal once we paid out commission. They are building a ton of new houses near mine, and even though my house is 15 yo and we would ask maybe 60k less than the new houses, people want NEW, not USED.

Would love to sell, but can't for right now.

My g/f works at Lowe's, and while they offer health insurance, she wasn't able to have any pre-existing conditions covered until she had been there for one year.

Got pre-existing conditions up the yin-yang (unfortunately)

Yes, unfortunately, that's why I brought it up. She had to wait 90 days to get the insurance to start with, then pre-existing conditions weren't covered until her one year anniversary.

Wow, that stinks...no wonder they're always hiring. Bet they dont' have any diabetics, etc. working there. That borders on discrimination frankly.

I suppose the upside to that is that if you have no pre-existing conditions, the insurance is great. Most people would have to get coverage elsewhere or pay the ridiculous COBRA prices to keep their pre-existing conditions at bay.

squirrelgirl,

I know this is a bit OT, but I just saw the pics of your baby girl. She's absolutely adorable! She is too cute, and that dress looks just precious on her!

Thanks! She's my little angel!

I know I'm late to the game, but DH working at Home Depot or Lowe's for a year part-time could help the money crunch. Andif it paid better, fulltime might be the best option.

Also, I don't know if it's a state law or what, but here (in KY) the pre-existing condition clause is null if you have proof of having had health insurance within the last 30 days before joining their plan.

Might be worth looking into!

You know that you're in way over your head, but you don't seem all that willing to do anything about it. Re-read this thread. You've rationalized your way out of persuing some solid suggestions. As others have pointed out, there are areas where you can cut costs. Dump or downsize one or both of the two NEW vehicles that you "needed." Cut back or cut out cable, "your only luxury." Cut back on your cell phone (or land line) expenses. The cancellation fee might not be as much as the monthly fee for the remaining months on your contract. Downsize the house, even if you lose money in the deal.

MOST IMPORTANTLY, stop borrowing MORE money. You borrowed money to buy new furniture and to make improvements to your house. You got through a rough patch by using credit cards. You got through "needing" to replace vehicles by financing shiny new ones. And, if you had any home equity, you'd probably get through this by borrowing against that. (You already did it once.)

It's a slippery slope.

Mike

You make several good points, but I don't understand the house one. Seems to me that that could make the problem worse.

Mike, thanks for your "suggestions" - it's not that I am not paying attention to what is being said. DH has started looking for a job that will either pay more or pay more of the insurance. We really wouldn't be in this situation if we would have planned on having children. We were told we would never be able to have children, so my daughter was a BIG suprise. Our insurance costs more than doubled, plus we had to do a 180 on our lifestyle. As soon as I found out I was pregnant, we started putting money away. I wish I would have had paid maternity leave like some companies/states offer. Unfortunately I didn't. I worked up until the day before I delivered. I only took 7 weeks off - which was hard. We're doing the best we can - and we're looking to do more. In two months I'll get a pay increase that will give us at least another 160/mth - that will help a ton.

I know it probably sounds like I'm not willing to do what has been suggested, I'm just looking for creative ways to make more money or to increase cash flow. Any ideas welcome...

thanks

1) How close are you to paying off the 2001 Jeep?

2) You say that basic cable would give you local channels only. Literally? If so, would rabbit ears work? $20 one-time cost, then it's free.

Granted, I'm sitting here with a monthly satelite bill myself, but I still remember the "good old days" when I was a kid and we did fine with just a few over-the-air tv channels. It'd be tough for me to adjust back, sure, but I don't buy into the idea that cable/satelite tv is a necessity.

Ok, I assumed you bought the Jeep brand new, and also assumed that the loan would be near the end. If you said otherwise before, I missed it.

In a nutshell, something's gotta give. Cable is the first place to start.