indebted2debt

I made my bed, and now I must lie in it!

Archive for the tag “credit cards”

Gah!

So I met with the advisor and have been stressed ever since that meeting. I left there feeling even more down in the dumps than I had felt before. Maybe it’s a “you’re going to feel worse before you feel better” kinda thing but either way it sucked. I got into my car and could literally have cried for days but the tears never came.

What came was PANIC. How the fuck am I gonna do this?

The advisor was amazing! I’m not sure what I thought might happen in there. Maybe judgement? There was none of that at all. There was actually sympathy! She compared 2 scenarios to me, I guess the only 2 that made sense in my situation. Since I had done a lot of research I knew a lot of info before going in, but what I wasn’t sure on what the calculations! Well ladies and gentlemen, now I know! LOL!

She had to compare bankruptcy to consumer proposal since you need to offer more money in a consumer proposal than you would repay in a bankruptcy. I did not know that! So basically, after giving her all my salary and debt info she figured out that I would have to pay around $18,000 (or $360.00/month) for a bankruptcy, and therefore would have to at least offer $20,000.00 for a consumer proposal. (which is $350/month) You repay that monthly amount for 5 years.

The bad news? Each is almost just as bad on your credit score. Bankruptcy is a R9 and a consumer proposal is a R7.

At this point I’m paying $720/month on my debt. If I were to do a consumer proposal (I’ve decided against bankruptcy) that means my debt is cut in half.

Pros? My debt is cut in half!

Cons? I have no credit, and will not have any for 5+ years.

My question to myself is, can I do this myself? If I get a better paying job, I could very well bring in $300.00-$400.00 more a month that could be put on my debt.

I need advice. I need tips. I’ve been reading a lot about Dave Ramsey and actually reserved his book at the library (The Total Money Makeover). A quote I read of his makes perfect sense: “If you will live like no one else, later you can live like no one else.”

It makes perfect sense, and that is my goal!

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Stressed!

So I’m feeling kinda stressed lately with my debt. I mean, I’m always stressed about it but lately it’s been hard. I don’t see the light at the end of the tunnel. We’re barely making ends meet, and that’s us just paying the minimums which is all we can afford to pay. The only way that we’ll be able to pay more is if I work 7 days a week or I get a better paying job. Even then I’ll only be bringing in an extra $300-$400 extra. I’m not sure what to do but I think I need to sit down with a financial advisor and discuss options. It’s not manageable anymore and it seems to be getting worse. The last thing I want is to file bankruptcy and I know there are other options besides that so I need to look into what they are. Most of all, I see how this is affecting my health, stress wise I’m probably at my worst. I mean, it’s almost 3 o’clock in the fucking morning and I’m still awake!

Anyhow, I wish I had an update that was good news, but quite frankly our financial situation is quite grim. My bank account is actually in overdraft until payday which is 2 weeks from now . Lovely!

No news is good news?

So I haven’t heard back from the agency. I even sent them a follow up on Tuesday night so they’d receive it by Wednesday morning. He had mentioned that the company would make up their mind early this week….and well tomorrow is Friday! He has not responded to my e-mail, and I feel like that’s either incredibly rude of him, or that he is under negotiations with the company about me and that he only wants to answer once he knows for sure. I mean, if it was a flat out no, I’d hope he’d have the balls to just come out and say so!

 

In other news, my daughter started kindergarten today. Last year she was on pre-k so this year wasn’t as emotional to me. Although, she is going to an elementary school that I went to when I was her age so it’s very sentimental! She even has the possibility of having my kindergarten teacher who is still there! Unfortunately what isn’t fun about school is the back to school shopping!! This week I had to go through all my daughter’s clothes so I could figure out what she needs. Well she needs quite a bit! Thankfully Old Navy is having a 30% off everything in the store so I picked up a few things there. Anything to save money at this point is a good thing. These are things that I can’t scrimp on though and that just really sucks for my wallet.

 

I kinda fell off the wagon when it came to not using my credit cards. I just had to because of all this stuff she needs but after this I’ll go back to not using them.

 

I just feel like I’m kinda in a rut when it comes to debt repayment, like it’s taking so damn long to see any kind of results. Sure goes by slowly when you’re trying to save and pay off debt but it goes really fast when you’re spending…..

Oh how I love crossing the border……

into the US of A! It’s always a little dangerous cause I know I’ll be spending some money but the US has so many goodies that us Canucks just don’t! The 1st time I walked into Target I wanted to move in! Your dollar stores are the shit, and don’t even get me started on the FOOD! Gah! It’s like I’ve died and gone to heaven! The fact that some things are so much cheaper is nuts! I once bought eggs, 12 for 99 cents! 99 f’in CENTS! Here the cheapest you can get them for is $1.99 and that’s a good deal! Then there’s the tax difference. HUGE! I also noticed that the tax is different on clothing and shoes! My mom paid 4% tax for underwear! You don’t even WANT to know what the tax is here, you’d die!

Anyhoo…I love going there and saving myself some money. You may think that I’d save some money by not wasting gas and driving there but the drive is like an hour, and gas is cheaper in the states…lol!

So funny story. I know I mentioned in a previous blog post that I use only 1 credit card with a limit of $300.00. Well I broke out this card knowing I had money left on the card that I could use. I like using credit in the states cause the exchange happens on my statement and it’s a lot better rate than when you use CAD money. My card worked at Target. At the next 3 stores it was declined. I was starting to worry that my card has been blocked since I was out of the country and maybe the company thought that my card was being frauded. Thankfully I had another card with me that I didn’t really want to use but I had to use because I had no choice. So I called the company today and apparently the payment of $120.00 I made on July 17th had still not cleared. Ready for the reason why? Sometimes when they’re not sure where the payment is coming from they freeze the payment. It was only supposed to be unfrozen by Aug 2nd. I got slightly frustrated and told the rep that this was unacceptable, especially since my payments always come from my bank account. I always pay the bill online and every other payment has cleared. He said that sometimes this can happen and it may not be the last time! After that I kinda lost my marbles and said a few choice words….lol! Unreal though eh?! My one card with a limit of $300.00 and I gotta worry about this shit now.

Ok, back to business. The business that I have not even started. My budget. I swear I’m going to finish that up by the end of this week. I have to. I want to be all prepped for August. Fun fun! LOL!

Leaving out debts….

So, I may have overlooked some debts. What kind you may ask? Oh, nothing much, just a little thing called a mortgage, a car payment, and some store cards that I have equalized payment plans with that charge zero interest.

 

I decided to leave the mortgage out because I’m in the process of selling. It’s a long horrid story that involves buying a duplex with family, and it all went horribly wrong. I cannot sell fast enough and unfortunately this market sucks big huge hairy monkey balls right now. Boo that!

 

The car payment loan…it’s a biggie that’ll be with me for around 5-6 more years. I can afford the car payments, and I absolutely need a car so this is a must and something I cannot get rid of.

 

The store cards….I bought a fridge when mine broke. Ok, so I didn’t have to buy the Cadillac of all fridges but I did. It’s a monster and will probably never fit into any kitchen when I have to move but whatever. I’m stuck with it now.

 

The other big purchase? A 60 inch flat screen smart TV. The smart part totally sold me, and guess what? I have never used any of those features. The TV is fucking smart and I’m fucking stupid. The end!

SO, if we tally in all that added debt you want to know what my new debt total is? Brace yourselves!

Store card 1 – $1552.24

Store card 2 – $1938.34

Car loan – $23,129.69

Mortgage- $338,193.24

 

TOTAL: $ 364,813.51

 

TOTAL DEBT INCLUDING ALL DEBTS = $398,059.78

THIS is why I did not include the above debts in my debt total, that number is crazy scary.

Hopefully I will have soon sold the duplex and then I won’t have that hanging over my head.

As for my store cards they do not accrue interest and I pay them on time every month and therefore the totals are going down quickly.

As for my car payment, I was lucky enough to get a good interest rate when I applied for the loan so the principle has been going down.

In the meantime I have been paying my minimums on all other debt and trying to decide a plan of action. Every time I think I can pay this all off on my own something gets in the way. I have recently thought about bankruptcy but then I have to live with a really bad credit score for at least 6 years. I don’t know that I can do that.

I’m torn. In the meantime I plan on spending the least amount of money possible and just maintain all my payments. I need to decide soon though because this debt is making me super stressed and has been for some time now.

Any tips, or advice is always appreciated. I find comfort in reading other blogs like mine, it’s encouraging and makes me very hopeful for the future. 🙂

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