B.:
We were in your shoes in 2006. We didn't use a credit counselor.
You need to cut back on your spending in-house.
1. Make a weekly menu for your meals.
a. Use coupons - RELIGOUSLY.
b. Ensure you have a list when you go shopping and stick to it.
c. Eat prior to going shopping. If you can go by yourself - do this will avoid the kids saying "Mommy can I have?"
d. Buy store/house items - places like Harris Teeter offer a money back policy if you buy their brand and don't like it.
3. Make your husband's lunch EVERY DAY. This save about $200 per month.
4. If you have access to public transportation - use it.
5. If you have more than two cars - dump one - the one you can get the most money for.
Now comes the hard part - dealing with your money issues on a daily basis. Money is the one thing that tears most couples apart.
Sit down and combine all your debt together. How did you get to this place - medical bills, education? Or was it the "see it, want it, buy it"? That's how we got into our mess and we were is serious debt (we had a credit card with a $30K limit because we had been with them so long). This isn't a blame session - you need to find out how you got here so you can learn from this experience. Just paying your debt off isn't going to work for you if you can't figure out HOW you got there in the first place.
Ask yourself these questions:
1. Where can I cut back?
a. Can I lower my cell minutes or get rid of it entirely?
b. Can I remove features from the phone and cable?
c. Can I set up a plan with our gas and electric company?
Now that you've figured out how you got here. Figure out what you can afford to pay, etc.
Step 3 - TALK with the creditors. Don't assume they know anything and certainly don't assume they won't work with you - they WANT their money. Tell them what you can afford to pay - most likely they will work with you. If not - ask for their supervisor.
If you are working outside the home right now - put all that you can afford to towards your debt. It's not an easy process - trust me. I know how hard it is when you see that maternity dress that you want/need - being pregnant is a short-term thing. If you can find things on ebay or at garage sales - do it. You can turn around and sell it again when you are done with it.
Get money flowing from the house - most American's live in excess - if you haven't used it in 3 months - set it in a pile and have a garage sale or start an ebay account. Then get selling. Kids toys usually sell VERY well on ebay. Garage sales - they sale, but for cheap. Although it does add up.
My husband and I went on a "CASH ONLY" basis. It was the hardest thing we EVER did - no kidding. It took us about 2 years to pay it all off - we now have about 6 months of my husband's salary in savings and no debt except for our home. Our cars have been paid for. Everything like mortgage, cable, cell phone, etc. are on autopay so we don't have to worry about it.
Please feel free to contact me privately. You don't need to spend money on a book when this is something you can do yourself.
God Bless you.
Best regards.
Cheryl