Be Intentional About Life

AFRAID: Been Working Plan, but still in pickle!!!

My husband and I went through the Dave Ramsey plan 2011 winter/spring. It was the best thing we could have done. We were behind on the house and had 14 creditors pining for money we didn't have. . . we could barely pay the utilities.

We listened to Dave's advice (and a local financial coach) and quit paying all the creditors to get caught up on the house. I took on a few extra jobs until I found out I was pregnant (in July) and actually finished those jobs out in August -- that made us current with the house (we were 2 months behind and actually caught up)

We have paid off 4 creditors last year totally $2011.52. . . we were really proud of ourselves. . however we still have 10 creditors that we are trying to be current with 3 of which we are fully current. . . 2 we are making $25/mo payments and 2 we are making $50/mo payments and all 4 are not happy with the amounts. .. they want over $200/ mo each -- THERE IS NO WAY WE CAN DO THAT.

We have 3 we have not begun to be current with (we stopped paying a year ago in march). . . one I just got a discovery statement from and if we may any sort of payment arrangement we could not do more than $25 if anything at all . . .

to be quite honest, we the baby coming, we cannot afford to make any of these payments, but I am so sick of the phone calls, that I just want them all to go away -- What is the total debt amount remaining $55,000. It makes my husband and I sick.

We have $3500 in savings to save for when I have the baby and cannot make any income while on the 6-8 week mandatory medical leave (I clean houses and that activity is forbidden after a baby). . .

Oh, and my husband is losing his job in May. . . he hopes to have a new one before this one is over, but What if???

I do a budget every month -- only by the Grace of the Lord can we even make budget each month (barely). . . the numbers barely work out. . . part of me wishes we could just file for bankruptcy and be done with it. . . but we have been working for 3 years to avoid that and have come a long way.

Are we still doing the right thing?? Do you need more information?? (I will be happy to attach it)

Tired of being AFRAID!!

Wendy

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Replies to This Discussion

Permalink Reply by Chris Sutton on January 2, 2012 at 12:41pm

Dave Ramsey says when you have a known big event coming up like a job loss or baby coming you stop paying all non essentials. You stop the debt snowball and begin stockpiling cash.

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Permalink Reply by Wendy Staas on January 2, 2012 at 9:32pm

Chris,

I guess I am just very very fearful about the creditors suing us -- we already have one that has Walter and I both in court. . . it sucks. Wish there was an 'easy' button. . .but, we pushed it when we had more money and still spent more than we had. . . so now we get the 'hard' button :)

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Permalink Reply by Justin Lukasavige on January 3, 2012 at 9:36pm

I feel for you, Wendy. I know it's not a great place to be. Sorry to hear about your husband losing his job. Does he have anything in the works for when that happens?

I wouldn't worry about the credit card companies suing you. You'd have to be pretty far behind and owe a lot of money. Just keep talking with them, tell them the situation and where they are on your list. I'm praying they'll work with you.

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Permalink Reply by Wendy Staas on January 4, 2012 at 12:58am

Justin,

Thanks!! Yeah, we aren't worried about any of the other companies, other than the one company (we each had a card with) and is suing us (we actually have a court date tomorrow). . . it was Discover Card. . . oh the learning from the school of hard Knox. . .. good thing is, we can show our daughter how to live on a 'cash only' basis. . .since we have been doing it for 3 years now. . .

Walter has ideas and a plan on what to do to find a job. . .We both agree that he needs to find something/ anything to help us get by. . .technically we have enough money to get us to August (since his school is going to give him his 'summer' pay in a lump sum check in May) -- we will put that aside and pay the summer bills with it. . . if he doesn't have a job by then he then looks even harder.

Worse case scenario is we cash in his retirement he has accrued with the school pension. . . it isn't much -- but $20,000 -- before taxes. . .is better than losing everything. . .that would get us through almost another year. So, all it not horrible. . . just scary :)

Thanks for your thoughts, comments and prayers. . .they are Very much appreciated!!