Need Help - Financial/Stress Issues
#150836 - 02/16/05 01:37 PM
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Vicam
Reged: 02/24/04
Posts: 1955
Loc: Ontario, Canada
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Hey Guys,
I'm looking for some advice from some of you regarding times of financial hardship. Basically, I haven't been out on my own that long (about 2 and half years) and everything was going smoothly until this past summer, but now I'm having a lot of trouble and having a hard time dealing with it. My family was fairly wealthy so I certainly never experienced any hardship at home, but now I've gotten into a bit of a pickle.
In short, I was put in the hospital back in August so I had to take a disability leave from work that last 3 months. During that time I was paid but only 55% of my regular salary...so I incurred a little bit of debt as a result (I have always been debt-free). Halfway through my leave, my bf lost his job altogether, and it took him almost five months to find something else. He doesn't have any credit and because of a large student loan he couldn't qualify for any, so again we had to use my credit to pay the bills. He's finally working again but wont be getting his first paycheque until early March, and the bills just keep mounting and I'm so stressed! He's not going to be making that much where he is (but enough for him to pay his half) but now I've accumulated debt that is making me nervous. I was always taught that debt was bad, and so I don't know how to handle it. Plus, I have to make sure I'm always making my payments, because I work for a large financial institution and you can actually be fired for having credit problems 
So, any advice from someone who's been through a similar situation? Or just general advice, ways to cut-back and save money? Anything?
Thanks guys!
Kelly
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Surprisingly, debt isn't always bad. It's a shame that some of it isn't in your BF's name... debt builds up your credit rating, as long as you keep paying all your bills on time. Which is my best advice, by the way, for keeping your credit clean - despite all my debt, my credit was flawless until I stopped paying things on time.
If you get completely overwhelmed and your credit cards carry high balances and interest, you can look into settlements. Thing is, I'm not sure how that looks on your credit report, so you'd definitely want to look into that before trying it.
Other than that, you can cut everyday living expenses in small ways that add up. Things we tend to view as necessities really aren't. I've lived without cable since 1999, which has saved me $30-$50 a month. When we moved here, we asked for basic phone service with no frills and no long distance plan - we can't call long-distance, but we're only paying $15/month instead of $65/month. In the past, I've opted for dialup internet through Netzero rather than DSL - $10/month vs. $40/month. Stuff like that.
And even an IBSer with special food needs can cut grocery bills. I NEVER buy chicken unless it's on sale - I won't pay more than $1.79/lb for chicken breasts. If we go a couple months and they never go on sale, I just don't eat chicken. That's just an example, though. My meals go heavy on potatoes because they're cheap and filling, and I'm trying to eat more vegetables and legumes now than meat, usually, because those things are cheaper. We also eat a lot of pasta. In addition to buying on sale, we almost always buy store brands rather than expensive name brands, and we NEVER buy junk food or things that I can easily make for cheaper, like cookies and breads.
We're living on a single income, and not a high income at that, so I probably do have some more ideas that I'm just not thinking of because I've been doing it so long that it's instinct now. If I think of anything else, I'll post!
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Well, I have plenty of debit, as I think most Americans do! Not sure if things are different in Cananda?! If you are talking about credit cards, be sure your payment is never late because they can raise your interest rate to an astonimcal amount if you slip up. Also, watch for new credit card offers with balance transfer options. That means that you transfer the balance from one card to another to get a better rate. Its known as the credit card shuffle!! We do it from time to time. a lot of cards will offer a year of no interest for transfers so after the year is up, we transfer the balance again, saves a lot of money in finance charges!!
It will take forever to pay off credit cards unless you can pay more then the minimum amount, as I'm sure you are aware. I always try to pay as much as I can. As far as saving money, I guess I don't have a lot of advice there, sorry! I came from a very poor background so I've always had to struggle!! Lots of love and Big hugs!!
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Taking it one day at a time.....
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I've been there done that and still have to worry about money constantly. The best advice I can give is to take your whole pay and work out what you can afford to pay off each bill. Hypothetically say your gas bill is $40 a month (don't we wish!) you would need to pay at least $10 a week, but if you can afford it try to pay $15 to $20 so that it gets payed off sooner.Also budget in $10-$20 a week or fortnight for fun stuff so you don't feel deprived. Use this to buy a magazine, an ibs safe luna bar, hire a video etc. Then call the companies you owe money to and explain to them that you are in a pickle and can you pay this much per week/fortnight. Most companies are more than happy as long as you make regular payments. Also ask them if you are paying regularly can they waive the late fees. Most companies are also happy to do this.
I don't know about the US but the government here has a program for people in financial trouble. They provide free financial counselling and will even help you pay some bills. The charities (salvation army, st vincent de paul) will also help you out with bills but most often will provide you with a check to take to the supermarket which pays for your groceries so your grocery money can pay the bills. As far as cutting back when I get in trouble I cut back on junk food, things I don't really need (hate to say this but like the internet, pay tv etc) and just try to buy cheaper brands of stuff that the cheaper brands are okay (like homebrand sugar). It really does work. I've gone from being $6000 in debt 4 years ago to having my gas bill $300 AU in credit and most of my bills are the same.
Good luck. I hope I don't sound like I'm lecturing you or anything. Just that I totally know how you feel and there's so many things you can do. Good luck, big hugs and let us know how you're getting on with it all. Hope this is even a tiny bit helpful.
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Amy
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