Thanks for the welcome

I have read all of Dave Ramsey’s book and listen to the radio show. I think he is good I also like Suze. I can say that I have cut back to much on stuff I even suprise myself on how well I am doing. I don’t drive much because gas here in Hawaii is expensive. I carpool with my neighbor to get the kids to school.

I don’t shop i stay away from the exchange and the mall ( that is hard to do being a woman)! We have completely stopped eating out which is another hard one for me to do. I even made up a ton of frozen dinner type things so that when I dont’ feel like cooking we are still eating good. I think I am on the right track.

Hello to the new people

It’s great that there are so many new list members I can not even remember all their names. I’m still less than a month from being new, but I enjoy every post from every one of you.

If I may put in my two cents worth about some of the topics. A big thank you to the military families for your sacrifices. FYI – I tried to join last year, but was told they don’t want a 31 year old without prior service.

I’ve looked into mvelopes and I have not been terribly impressed. I haven’t tried them, but their method is sound. Why not write up a spending plan (not a budget) and put cash for each of your different spending categories in your own envelopes as much as possible? Don’t send cash in the mail.

I like Dave Ramsey as well, though like most people, there are some things about his ideas I don’t agree with. The Christian angle I like, but some of the other ideas are a bit… much.

For anyone seeking suggestions, here’s mine: Don’t give up because financial freedom is attainable – there is hope for your finances.

A military family in Hawaii

First of all thank your husband for serving our country.I give you tons of credit for doing this now. It would be a great gift for your husband when he gets back to be out of debt. I have read quite a few plans on how to get out of debt, and the one that makes the most sense to me is from Dave Ramsey.

He has a web site and a radio show. (He sometimes puts a christian slant on things. Not my cup O’ tea but that is besides the point.)I have been following his advice and I can’t tell you how much it has changed my financial life. He archives all his shows on his website. You can listen to any show any time for free without even becoming a member.

In 4 months I have reduced my debt by $8000.00.( 2 thousand a month I didn’t even know i could come up with) You need to have a written budget and sacrifice but it is soo worth it.
Check out the links below and listen.

I managed to keep things current for a year and a half

Finally, when the alternator in my car croaked and I knew I’d need to save my “discretionary”, ie, non-CC payment money, for 3 weeks to afford a new one, I threw in the towel. Bankrupt, with nothing to show for it. I’ve since scraped along and (mostly) rebuilt my credit. Three years ago I even bought a house– a house I couldn’t afford, it turns out. I ended up with about $10.5k in CC debt, in addition to my (never-ending) student loan, down to about $16k at that time. I sold the house, moved in with the GF,and (largely out of fear of ending up as backwards as my mom) knocked the CC balance down to $5355, and the SL to $12.9k.

I’m paying off at the rate of about $1000 a month ($750 to the CC, the min. $250 to the SL). It’s frustrating to scrape by, with the only thing to show for my diligence being those declining balances. I *want* a new PC. I *want* a new(er) car. I *want* the latest Jessica Simpson hit single. Okay, kidding about that last one. Actually, I joined this group 1) to commiserate with others and 2) I’d REALLY like to hear from some “success” stories out there, to help me see the silver lining down the road! Thanks to all, have a great day

Just thought I’d say howdy

I’ve finally faced my finances in the eye and put together my first budget (at the age of 35). I couldn’t figure out for the life of me why I’m just as strapped now, at $45k/year income, as I was eight years ago making $24k. I’ve never owned a new car, or made payments on one, for that matter.

I drive beaters. I’ll spare the goriest details, but my credit got destroyed about 9 years ago, when I finished college. Also FYI, I didn’t start school til I was 22. When I quit my job and started school, I had a big stack of credit cards, with $0 balance. I left them at home, knowing the next few years I’d not be able to buy crap on credit. I graduated, got a job, and moved back in with my folks til I had some $ saved up for an apartment. One day I got off work early, before my parents got home, and grabbed the mail. Discover card statement? In my name? I haven’t had that card in 5 years. What the? {opening statement} $32,000!!! WHAT THE @#$#!!?? Turns out my mom went nuts and racked up my cards, to the point that she could barely make min. payments. In the meantime, she’d also racked up HERS.

To the consternation of many, I chose not to prosecute her. I was stuck with approx. $78k in high-interest CC debt, making $24k a year (gross). It came down to this: prosecute my mom for fraud, and they’d lose their house, my mom would lose her job, etc., or demand that she repay everything, in which case they’d lose their house, etc. Ugly situation. I took on the payments. Including my own “legitimate” debt, $34k in student loans.

With one of the banks yes

Another one I would basically say not.

The first bank may have committed TILA (truth in lending act) violations as well as attempted to raise my interest rates based on erroneous information.

But merely being unable to pay your debts could be reason enough to contact the bbb especially if the company you are doing business with is a member which you can check very quickly at

Hi from a new member

Hi !

i am Naida. i am a 28 year old stay at home mom living in florida! i am glad to be a part of the blog!

i joined last night and read a lot of the posts. i found it very interesting and informative..

here is my situation:

i owe 20 k in unsecured debt. i am current w my bills and can pay the minimums but feel as if i am not getting rid of my debt.

so i am looking for a solution. we just bought a home 2 months ago ( no have no equity in it ). i applied for a debt consolidation loan from my credit union but was denied.. so now i have either debt consolidation or debt settlement.

or i can try to pay them off by myself one at a time.. attacking the highest apr first… with the help of payday loans from my favorite website whoneeds500. i understand that both debt settlement and debt consolidation look bad on my credit report..

so any advice for me? has anyone done this type of debt elimination? what are the good and bad of this ways to get rid of debt? thanks in advance!

have a good day!

A loan is still a loan

Debt consolidation loans are one of those “half dozen on one hand, six on the other” type of thing. A loan is still a loan and requires being paid off in full.

Consolidation of loans to decrease your interest rate is one thing, consolidation so you are paying less each month is another.

Look at it from the point of view of the lender – why would they take on $23,000 of risk by themselves if there was nothing to gain? They are not nice guys doing it for the sake of being good to you.

They know if you are making a smaller total payment on your debt, you will be paying on it for more years. More years equals more interest in their pocket.

In regards to your question, no debt consolidation will not hurt your credit rating because you have the same amount of debt as before with a different lender. Qualifying would depend on your income level, credit rating, and a few other criteria individual lenders use to screen out likely deadbeats.

I have never heard of any perks for school teachers consolidating their loans, but that doesn’t mean they don’t exist.

What does everyone think about debt consolidation loans

What does everyone think about debt consolidation loans? What are the pros and cons? Can this hurt my credit? Lastly, would I qualify?

I have about 10,000 in credit debt, a car loan at 3,000 and a student loan at 10,000. Lastly, are their any perks being a public school teacher when it comes to debt consolidation loans?

I wouldn’t make a deal with them just pay them off

I wouldn’t make a deal with them just pay them off. However if you are going to pay them with home equity loan you are just moving your debt somewhere else. Granted, it is less interest and tax deductible but you have to be careful. If you can’t pay your credit card bills, all they can do is hurt your credit and threaten you.

If you can’t pay the equity bill, the bank can take the house.If you are going to do this the first thing you must do is stop using credit cards. Figure out why you got in debt in the first place and change the way you do things so it doesn’t happen again.Because if it does you will be right back in credit card debt and have the equity loan and no where to turn.

Come up with a good plan to get and stay out of debt and you will be fine.

I would try negotiating with the creditors

I would try negotiating with the creditors as to how the settlement will appear on your credit report and/or how long it would appear on your credit report. I hear this is very hard to do but I am trying to do it myself. Good luck with it.

I fell behind on my credit cards right out of college and settled all of my credit cards one by one…..and I am still suffering the after effects of that decision. I would bite the bullet and pay the full amount on the cards….i didn’t realize how adverse of an affect settling would have on my credit score.

Again I am trying the following tactic to deal with too much credit card debt. I filed a complaint with the Better Business Bureau regarding the banks that I have too much debt with and told them that the settlement I wanted was a debt settlement with no negative markings on my credit report. I am still in the negotiating stage and we will see what happens. I will not settle until there is some compromise on the credit reporting.

Finding this blog so helpful!

Finding this blog so helpful and hoping some of you have some words of wisdom for our situation.

We (hubby and I) have a mountain of debt, life happened, anyway we are falling behind. We are in the process of getting a home line of equity and can pay all the credit cards off with this.

Here’s the question, the credit cards have started calling since we are a month behind on payments. They have mentioned settling for 80%, I’ve heard the longer you wait the lower the percentage forgiven gets. This would free up some money on the line of credit and make the monthly payment lower. When I mentioned this to the loan consultant she advised strongly against settling as it really messes up your credit score.

What do you guys think? Settle for less than owed, or pay back the whole amount and struggle for a while longer.