Advice on Finanaces

i know quite a few people who've gotten lots of help from Debtor's Anonymous. you can get the number for meetings near you out of the phone book i believe. people there have been through what you're going through and offer lots of good suggestions for how to get through it! money issues are hard on a relationship - good luck!

Wow, you received a lot of advice! I just recently sold a bunch of items on craig's list. Then I went through my closet and took clothing to Avalon Exchange to be sold. It put some extra cash in my pocket and I know every bit helps. Hang in there!

We were in the same spot 3 years ago. Pick up the phone and call me right now...

A. Cotter
###-###-####
www.WorkAtHomeUnited.com/A.
____@____.com

This economy is just terrible! My husband & I have been going thru similar financial difficulties. My biggest increase (other than gas) has been our food bill. I have been menu planning for the entire month & coordinating it with what's on sale that week at the local grocery stores (Acme, Shopright, Pathmark) as well as coupons. Other than milk, bread, eggs & produce, we don't step foot in a grocery store for an entire month. Those little weekly trips to Acme were costing us $30-$60. We also go to Produce Junction for most of our produce & split it with a neighbor or my family as it's usually in bulk and too much for one family (but cheap!)
Hope this helps a little!

K.,
*****THIS IS IMPORTANT*****
FIRST: RUN, don't walk, to your library & get The Total Money Makeover by Dave Ramsay. It is sound, simple financial advice with clear cut steps for what to do now, later and in the future. It works---fast! This book will help you and it will not cost you a cent.

SECOND: Although it may be tempting, do NOT use a consumer credit counseling service. It counts as a strike against your future credit.

THIRD: Do NOT get a consolidation loan--ever!

I urge you to try the free, clear, step-by-step directions by Dave Ramsay. It will cost you NOTHING and it will improve your financial position. My husband & I are in our early 40's and we have NO debt and our home is paid for.
Right now, focus on your mortgage, food and basic clothing. That's it. The other stuff will wait until you get on track with your budget.
*CANCEL and cut up ALL credit cards immediately. Credit is largely an Americn Myth. If you don't have the cash for it--you don't need it that bad or you can get it in a way that is cheaper.
*Cut out cable
*cell phone or land line--pick O. & cancel the other, etc.
*If at ALL possible, add to your income (you or your husband) with another PT job. I know he is already doing extra but there's ALWAYS time for someone to fit in more! As they say "a job is a proven cure for lack of money"!
This sacrifice will be temporary and worth it for you to dig out of the hole that YOU have created and now YOU will have to clean up. I'm not judging, but be aware there is no "magic" way to get out of debt. Do not fall into the temptation of a CONsolidation loan that will take you 10 years to pay off as you accrue more debt in the meantime. It will be financial suicide. Feel free to pm me if you want to talk more....
Good luck and hang in there. With this plan, there WILL be light at the end of the tunnel!

K.,
We were in your shoes. We started reading the Dave Ramsey books (you can get them at your librar & BOTH of you can read the book together). Suddenly, everything seemed to fall into place & we really started paying off a lot of our debt.

There are some yahoogroups that are great, as well. The best one is FinancialBootCamp & they follow the guidelines of Dave Ramsey. Go to Yahoogroups.com & plug in FinancialBootCamp to search for a group. You'll be welcomed with open arms & the info that you will receive, trust me, will be astounding! You'll both be so happy to pay down your bills without accumulating more debt, & be debt free before you know it.

Another idea is to do what we call a Pantry Challenge, where you try to make a meal out of what's in your pantry. It's fun & helps get rid of everything, thereby keepign your food bill in check. We had a couple yard sales of our old stuff & really made a fortune. That cash was changed into a money order & put to the lowest bill with the highest interest rate & it almost paid it off.

One thing that was very helpful was to be sure to turn off lots of lights & get flourescent bulbs, which were amazing in helping us to save more than $50 the first month. We don't put heat on for quite some time & choose to put on a sweater or sweatshirt to keep the thermostat down a bit.

We have also used some guidelines of the Complete Cheapskate, & Mary Hunt at DebtProofLiving.com or you can check out Dave at DaveRamsey.com & I think you'll be able to start off pretty well. Oh, we did not have to give up cable at all & with three young daughters, that really helped the sanity LOL! I did sell alot of their DVD's, though.

Good luck & the first thing Dave recommends (actually two things) is to cut up your credit cards with the exception of debit cards, & then write down EVERYTHING you spend money on, which is a very enlightening experience!
Best wishes,
G.

shut off unnecessary things that drain utilities. Don't use heat unless house is 65 or below during day.

Combine trips with car, check your car insurance maybe higher deductible or maybe can get better rate.

Switch to generic brands for most things, I use generic tylenol, motrin, etc.

Only buy the basic food you really need, skip all the snacks, etc.

Get 2nd job, etc.

call the credit card companies to lower fees, interest,they rather work with you then cause you to go bankrupt.

do you rent or own? Is it too big, expansive? maybe need to downsize there.

do you have an Angel food ministy in your area???
they give free food

I would also consider selling your car. get rid of it completely or by a used cheaper one.

also the advice about finding a different or additional job yourself that will give you more hours is a great idea.

Plan ahead for christmas, and don't get sucked into buying stuff if you don't have the cash for it. Let your family know the situation you are in and your plan for getting out of debt. If you have to, cancel buying gifts for the adults in your extended family or set a limit that will fit your budget.
Good Luck

Hi K., Everyone is hurting and living pay check to pay check so don't feel alone. You might want to consider a consoladation loan...and use the money to pay off all your high intrest credit cards. But only do this if you can put the credit cards away and not use them. If you don't have the self control then cancel them all but one for emergencies only and make sure that you put it someplace you have to stop and go get it to use it...that will help you think twice before picking it up. If you know you can't do that either then just try to pay a little extra every month on one bill til you get it paid off then pick another and chip away at them. You can also try to negotiate lower intrest rates with your creditors. You can also try to negotiate better cell phone service prices. Look into "deals" that combine services to elimate bills as well, like cable, phone and internet access all in one package. To help with your music studio hook up with the local middle and high schools. Orchestra and Band directors are always looking for teachers to referr to their students for privet lessons. Whatever you do just hang in there and things will ease up sooner or later. Best wishes and Good luck!

I really do not have much advice for you. I just wanted to say I am sorry. I know how hard and depressing this must be for you. Please hang in there. I hope you find the answer you need here. God bless

I second the advice to check out Dave Ramsey. He is the real deal and his plan works wonders if you stick to it! :-)

I'm sorry for what you are going through. I was a single Mom for 10 years and know what its like to worry about every penny.

I would never give up cell phones, for safety sake. I would, however, make sure you have the best plan your carrier can give you. If you have home phones, ask yourself if they are really necessary and if you do just get the lowest local plan for emergencies and local calls only.

The internet is filled with so much information on being more frugal, making food last longer, saving money on food, and cutting spending. I would just bury yourself in internet information on finances, there are so many cost cutting lists out there, just search google.

With regard to your credit cards, make sure you are paying as much as possible to the highest interest rate cards. Also call all of your credit card companies and ask them if they can lower your interest rate. Explain the hard times you are facing, it can't hurt to ask. The worst they can do is say no. There are always offers out there to transfer your credit card balances to lower interest rate cards/programs. Just be sure to read the fine print!

Definitely sell stuff from around your home that you no longer use. Look into Craig's List and Ebay but watch out for the fees that Ebay charges, sometimes they can bite you in the rear. I've been very successful on Ebay and its free to set up an account as well as a PayPal account. You'd be amazed at the stuff people will buy! Another site to watch/join is freecycle.org for your local area. You can post requests for things you need, people are always giving things away. You can set up your email to receive emails for every post on freecycle so you can see what is up for grabs. The key is responding quickly to get dibs on things you need/want.

If you are currently paying for healthcare for your children, look into the PA CHIP program, I've even heard that they are now offering it to adults but I'm not 100% sure about that one. Your family may qualify for low cost or even free coverage! You can apply online.

I wish you much luck. You will get through this.

I hear you. This is tough. I was in banking for 20 years, and right now I'm helping to facilitate a course at our church called, "Financial Peace University", by Dave Ramsey. The course itself costs abaout 93.00 to take, I think, but you can buy one of his books at a book store for a whole lot less. Then you just have to work at it. I can help you with your budget, but it takes working the numbers.

We dropped cable completely to save money. We have from time to time grocery shopped with "Angel Food Ministries" where you pay about 30.00 to feed a family of 4 per week. that can help. (I think you can find them at angelfoodministries.com and can find a place in your area if you want to try it) Right now I'm watching the expenses very carefully and am shopping at the grocery store and Wal-Mart. I also shop on either Wed. or Thurs -- which means i know what the sales will be on Thurs., before I decide which day offers the best prices for the food WE eat.

If you've cut everything you can, the big thing is to bring more income in. Why not call the music directors at every school, and see about the possibility of getting referrals for teaching? Perhaps you could even work it out to teach AT THE SCHOOL one day a week at each district. That'd be probably between 3 and 6, and if they have competitive marching band, you wouldn't get many students during band season. But that generally ends at the end of October, so you have time to get something in place.

If there are any private schools in the area, definately talk to them. they don't necessarily need teachers' certificates to hire you, and you might be able to work in their system, teaching private lessons, and/or substitute teach. I think that pays somewhere around 75.00 per day in our area, and it's hard to find people who are capable of teaching in the music dept.

Another option is to call a credit counseling service -- you can find them in the yellow pages. they can often help work out stuff with the credit card companies to help you stay afloat. Or, simply stop by a local neighborhood bank and ask to talk with someone. When I did mortgage lending, I did some budgetting counseling and debt counseling just because people came in and needed it. It depends a whole lot on the person you talk with, but if it's the bank where you do business, you are probably more likely to get help. And that would be free. :-)

Feel free to send me a message if there's anything more specific I can do for you. I know it's tough. I'd really like to be able to sit down with you to help, on line is kind of challenging, esp in a public forum, but don't give up. We all get carried away with credit cards from time to time, so we all end up crawling and clawing our way out of holes of our own doing. I'm sure there are tons of moms out there who read your letter and thought, "been there, done that."

hang in. Let me know if I can be helpful to you.

two things to look at www.crownfinancial.org and the book called The Total Money Makeover.
these two things can help you out consideralbly
V.

Would you want some information on working from home? It is something you can do to supplement your current income, but still see your children. I work from home and can tell you about what i do... there's no obligation if it's not something you woudl like to do. thnaks!
A.

Dave Ramsey Total Money Makeover is all I have to say. It REALLY works if you stick to it.

Good luck!

You could consider a network marketing company......you get good markup and don't have to keep any stock. I have a few people selling the holiday line only to friends and family and they are keeping 35%. If you want to know more e-mail me.......it's tough. Good luck. ____@____.com

Hi K. D,

As Carmen C stated down below "PRAY" and continue to "PUSH" Pray Until Something Happens. The Lord answers prayers but with that must become a personal intimate relationship with him. Tell him all your problems and concerns and allow him to lead, guide and direct your every dollar. He will show you the way just put your faith and trust in him. Both you and your husband, the both of you must walk in agreement. This may seem like a difficult time but it too shall pass. Take it as a learning experience and use that to help others. Your family is in my prayers as you go through this storm. But know it will be alright...it's going to be hard but you can make it through just trust and believe. And seek the LORD.

~T.~

Look at every single bill you pay and see if is something you can eliminate or get rid of frills,for at least a few months.You said your husband is doing lots of things,what about yourself? Sounds like your aren't working many hours,so what about a second job? You are right about finding students for a music studio,it does take time,but worth working on marketing yourself.Keep track of everything you spend,don't buy coffee,water,snacks etc,you can take all that from home much cheaper.

Also be sure to check out options to work from home,I have been doing it for 4 years and add to our family finances monthly,it makes a huge difference.Here is my website if you are interested, www.LiveYourDreamsAtHome.com

One suggestion (a small one) about the cell phone is to ask his job to pay for it. If that is primarily what he uses it for then they may back him on it. I also looked at my taxes that were taken out of my check. I gained $400 by changing exemptions. My ex-husband used to wait for that big return at the end of the year but I found with him gone I needed that money now! That money is the difference between me making it and not! We are trained to look for that big tax return, but at what expence? Just make sure the numbers are right so you dont owe! There is also a lot of help out there for housing depending on the situation. Lastly, if you were promised hours at work, check out your status. If you are concidered a full or part timer, there are a certain amunt of hours they must schedule you or change your status. If you were concidered full time, an employer cannot change your status with out speaking with you because that would effect your benefits. Hope this helps. L.

There is a lot of good advice here. I work in the credit industry so if you have credit card debt management is the way to go. Make sure it is a reputable company and not a debt settlement company. Put together a budget and stick to it.
Also, look at home based business that does not have large investments or inventory to carry. I have been making $500-$1000 per month for several months now marketing for a health and wellness company. I would love to help anyone achieve financial freedom!

____@____.com
www.why.chooseagreatlife.net
www.saferforyourhome.com

I certainly don't have all the answers, but I wanted to remind you of a couple of things. This sounds like a tough situation to be in, but I hope that you will remember to keep your husband and children at the top of your list. The stress can be overwhelming but you have to remember to take care of one another. If you get upset emotionally or let the stress get to you, you won't be able to make the best decisions or you won't have the support of your family.

Some other things to consider... try and pair up with another family who might be struggling, or other family. It is cheaper to cook one dinner for 8, then 2 dinners for 4. It might work out to carpool with neighbors even once or twice a week if you can.

Definitely get rid of cable, cut your cell phone bill down to the basic plan, and yes selling some of your stuff could help. Do you have the best auto insurance plan? Look for the best rate. What is the % of interest on your credit cards? You can always call the company and ask for a lower rate and if they give you a hard time, then ask if you can have a lower rate for only 6 months. Negotiate with them, you'll be surprised that they will help.
Also, consider transferring all your debt to one credit card - but only if that credit card offers 0% interest on the transferred amounts.

Turn the heat off and put on a sweater. Turn off lights in every room you're not using, and hang your clothes up to dry - even in the house if its raining. Shop for all your basic needs (deodorant, toothpaste, etc) at the dollar store. These are all small things, but they will all help a little bit.

Good luck!

*And in addition to all of the above... consider God. He will never put you in a situation that you cannot handle. Have faith in him and you will not be let down. Volunteer with your children. Help those who are in worse situations than yourself and you will see a bigger picture. You will be more rewarded and your stress will be lower. And no good deed goes unnoticed. When you give, others will give to you.

Hi K., it is tough in today's world. one thing you can do is call consumer credit counsiling (it should be in the phone book or look online). you can give them all your credit cards and they will work with the creditors to lower interest rates or drop them completely. you will have to send them a money order every month and they will pay your debt to the creditors. it will still take time to pay them off but since interest rates will be dropped or lowered you may be able to pay less then you are now. also have you tried shopping at aldi's? they have great prices though not named brand but it tastes just the same. also if the kids are in need of clothes try hitting some of the yard sales that are still going on you really can't beat the prices for that. hope this helps and wish you and your family the best!

Try calling a credit counseling service, I did that years ago and they work with your cc companies and give you a monthly payment that will pay all of the cards, it'll take time but it will hopefully help. Good luck, I know the feeling, I am a musician too and am trying to get students in my house for private lessons. I am going to private/parochial schools that don't offer lessons and seeing if I can get students that way.

I know what you mean! At this point, I would say your main mission would be to not accure any more debt. Then, as you get more hours at work, or your music business starts to take off put that income right into paying off the debt.
As for cutting back - I recently shut off my land line phone (I only use my cell phone and have "naked DSL"). As for your cable - I have the Dish (which is cheaper) and a small plan - maybe there is a smaller plan you could get as well.
P.S. I love Suze Orman - maybe the library would have her books for you to read - she also has a website and is on CNBC(?)Good Luck!

Two suggestions: contact Consumer Credit Counseling (Make sure its the non-profit type that just offers help and advice NOT loans!) Then contact your credit cards and negotiate your interest. Given the state of the market and the wording of the new bailout, they are under pressure to cooperate rather than raise rates. This is also true of your mortgage company.

Second look at two web site - don't laugh hillbillyhousewife.com and sufficientself.com both are all about doing more on less and buried under the over the top stuff there is good advice.

Good Luck!

K.,

you need to take a long hard look at where your money is going. If you are using credit cards to get by, why do you have cable? Why are you paying for a cell phone? These are luxury items, not something that you NEED. It is hard sometimes for us to see these things in our heads, so start keeping track of where every penny is going for a month. I bet you will find all kinds of places to save. I totally agree with the advice given here so far-- hang your clothes to dry, no heat above 65 during the day, 55 at night, check your insurance premiums (but for goodness sake, don't get rid of your insurance), take the bus when you can, buy compact florescent bulbs, don't eat out, etc. If everything you really are paying for is housing, car, utilities and debt, then look at downsizing your house or your car-- easier said than done in this market, I know. Maybe you can rent out your basement, or a couple rooms in your house?

As for jobs, lots of places are hiring Christmas help now-- you can often work as much or as little as you want. I don't know where you live, but I was in Shadyside the other day and most of the stores on Walnut are hiring, as are the big stores at most of the malls.

Good luck. Lots of people are in your shoes right now, and we all need to be asking ourselves these questions.

I know how you feel, between the two of us my husband and I work 8 jobs, and can not make ends meet. We were like you relying on credit cards to pay bills and buy food and gas. We entered a debt settlement service to help pay our credit cards down. I did research and found a good one, that has been working. It is hard, we have no credit cards to rely on, which is hard. But we have been on it a year now, and are doing ok, we have no money, and since my husband had a health issue, things have been really bad the past month or so. Clip coupons, find sales, make things last. You can only do what you can. I hope things get better for you. Good luck.

call credit cards see if they can lower the interest just keep plugging away..i am in the same boat ..i started not drying clothes and hanging saves me a ton of propane and hang the clothes of not dirty out to air out..coupons..see if your cell phone co has better plan

Wow K., sounds like you're telling MY story!!! I'm in the same position. Some of the things I've done are eliminating eating out, including lunches, cancelled any extra items such as magazine subscriptions, pay cable, etc. I also joined "the grocery game" (thegrocerygame.com) which is only $5/month but is SO worth it when you learn to clip coupons and use them at the right time. The website tells you what is on sale, and what coupon is available. I have saved SO much on groceries this way!

Another way to save is to get on PECOs budget-billing plan. It averages out your annual expenses so that your monthly bill is the SAME each month, rather than fluctuating.

Good Luck! The economy is surely not helping!

Hi K.,

I can't claim to know exactly what to do as we are also under a very tight budget, but I can give you some pointers that have worked for us. Track your spending for a month to see where your money is going. It might seem that you don't spend on anything other than bills, but there might be areas that you are not counting. Once you know where your money is going try to create a budget for monthly expenses. Pack lunches, make coffee at home and take it with you, take public transportation when possible to cut down on commuter costs, and do not use your credit cards. If you are falling behind on your credit card payments call the company and try to negotiate a deal with them for lowered payments. Make sure you always pay your mortgage or rent (having bad credit is not great, but losing your home is much worse!). Different people have different opinions on how to pay down debt, but try to pick one card and send them anything extra you have even if it is only five bucks--once that one is paid off pay the next one. I started with the lowest balance with the highest interest so that I could feel a sense of accomplishment. When your minimum payments go down, don't pay the lower amount keep paying the most you can so that you can get out of debt sooner. There are some really good books on debt management...check your local library. For the cell phone, check with the company to see if they have a business discount plan--many companies give 10-15% of cell phone charges if your husband works for one of their corporate subscribers, you can also deduct the cell phone bill from your taxes if it is used the majority of the time for work related issues. Good luck...this is not easy, particularly when you have children, but it can be done.

Hi K.,

I know what you guys are going through. We've been going through something similar as well. My husband is a chef and has been picking up catering on the side, but we are still in a bit of financial trouble. I will say that things are getting better though. My sister recommended that we check out Dave Ramsey (I think you can find him at daveramsey.com) and it has been really helpful. We have been following many of his tips including cutting what we don't need and focusing the bulk of our efforts on one bill at at time. One of the best things he stresses is making sure that your survival needs are met - food, shelter, heat, electricity. The rest can be negotiated. Also, I have taken control of paying our bills and do so at the same time each week, so that I feel more in control of the situation. We have had many fights about our situation, but have finally come to a place where we both own our financial mistakes and have now made a plan as to how to undo them. I wish you luck.

- Mari

My husband and I took Dave Ramsey's Financial Peace University class at the Grove City CMA church last fall and what we learned and applied from that class has made a tremendous difference to our financial situation! I would highly recommend it -- I think that they are still offering the class every few months -- just call the church for more information.

Check out Debtproofliving.com. There is a Rapid Debt Repayment Plan calculator that might give you some hope. It did for me a few months ago. There is all kinds of great advice on the website. good luck!

Check out The Total Money Makeover by Dave Ramsey.
It has a ton of great advice and an easy to understand system for getting out of debt. My husband and I are doing it now and so far we've paid off our cars, credit cards, student loans and now we're working on our mortgage (all since last December). It really works if you commit to it.
Hope this helps you. Good Luck!

You've got a lot of good advice. I skimmed the posts so I apologize if my suggestion is a repeat. We heat our home with natural gas and we recently received a reminder about joining the budget program so our monthly bills would be even amounts throughout the year as opposed to having the really high bills we get during the cold months. Perhaps something like that could help you. Good luck to you.

Have you advertised your music lessons on Craigslist or the Chester County and/or Delaware County's Homeschooling pages blogs? The Chester County Homeschooling group also has a newsletter that you could get your lessons listed on. Best of luck!

Hi K.,

The Better Business Bureau in your area has counsellor to help you with that.

Check them out. Good luck. D.

Check out Dave Ramsey.
You have to be careful with consolidating sometimes because some of those companies promise you a big reduction but take you for a ride. Sometimes you save money by consolidating but in the long run you may pay more in interest. We are paying off large student loans right now and so we feel the headache that debt can be.
Good for you for getting rid of cable! We have to try to cut back on food and I do that by not eating out and making as much as I can from scratch. I also have a monthly menu that I alternate with a different monthly menu so we don't get sick of the same food. I have also gone as far to make a grocery price list in my excel program so I can estimate how much my grocery list is going to cost me each month. I cut back were necessary to make sure it fits. I feed a family of six delicious meals and healthy snacks for $425 a month! Keep positive and don't do any emotional purchasing or justifying. You can do this!!!

K.,
I am sorry for your difficulties right now. You will make it and it will get better. I am not a banker or economist or financial advisor but I do read and I like Suzy Ormand's advice, it often makes sense to me.

One suggestion I have is to sit down with your husband, look at the rate of your mortgage and the rates on your credit card(s). Now look at the equity in your house. Could you possibly re-mortgage for a lower rate? I am NOT recomending a line of credit. I am recommending a fixed rate to consolidate your bills and pay off the high rate credit cards. If you can do this, I strongly recommend it. Then you can cut up your credit cards for now and budget purchases for cash only. And the interest payments of a re-mortgage are often tax deductible. If you have concerns with your bank, look into Credit Unions. Right now in this volitile market, my credit Union FMFCU is very secure and still offering loans to its patrons.

Talk with your husband, check your mortgage rate to the current fixed rates, and if it looks good talk with a financial advisor at a bank.

And don't forget family & friends. No one would fault you for needing some help.

Be strong & be calm. The worst thing to do is panic.

Hi, I don't have any advice on how to save money, but I am looking for a music teacher (piano and/or guitar), and if you wanted to come to my home that would be great!

I live in the East Hills (Churchill/Monroeville) of Pittsburgh, and I have a little 2 1/2 yr old who bangs on the piano and plays the guitar (a real one, he begged for it) all day long. We started music school in Wexford, but it is SO FAR AWAY.

email me at ____@____.com if you are interested.

I am a SAHM, so I am sure we could find a mutually convenient time.

R.