Nomorecredit's Personal Finance Blog

So Merry Christmas to everyone, happy holidays, blah, blah, blah. (I'm such a Scrooge)

This has been the first year we've done NO presents, and told everyone NOT to buy presents for us. Of course my parents didn't listen and gave us some $$$ last night (they said buy what you'd like, but it's going to the emergency fund!) and $150 in mall gift certificates. I'm happy for the gift certificates, but I'd rather have the cash. There is nothing we need at the mall, but since our two-year anniversary is in a few days, we can each take one and go shopping and buy the other an anniversary gift, which otherwise we wouldn't have been able to do, so that makes me a little happy : )

I thought I would be sad for Christmas morning to come and not have any presents to open, but it's been sooooo nice not having to fight the crowds and buy gifts for people and worry about how to pay for them. This girl I work with and her husband are in the exact same position as we are as far as money goes, the only difference being that we're trying hard to get out of this mess while it seems she's getting further in. She opened a new credit card at Sam's Club in order to buy her husband an iPod for Christmas!! Eek! I'm sure that's on top of the million other gifts she bought, as her family is gift/spending crazy when it comes to Christmas. Too bad. I've tried to tell her about Dave Ramsey's book, but she really didn't care.

So yeah, I'm now all for no gift Christmas every year. Not having the added expense and stress of Christmas was just fabulous. It's going to be SO nice to go into the New Year without NEW extra credit card debt (what we have is enough, thankyouverymuch) and our teensy little emergency fund still intact.

I have a such a positive outlook for 2008 (can't wait for January to see about a raise at work....*crosses fingers*) I am going to work as hard as I possibly can to get this debt erased!!

Dear Emergency Fund,

I know we didn't get to know each other too well, being that you were around for about a WEEK, but I just wanted to let you know it was really nice having you around, just knowing that you were there for me in my time of need. I just really appreciated your company a lot.
I know things went fast so between us. You came and left so quickly. I don't want you to think I was pushing you away, but let's be honest; you are an "emergency fund" and as far as I'm concerned, it's considered an emergency when dental surgery is involved. I'm sorry, Emergency Fund, that I chose to have a root canal instead of you. Please don't take it personally! It's not you, it's me. I chose my own selfish needs of having a front tooth and not being in pain instead of you.
Don't fret. There will be a day very soon when we will be together again. I promise. I'm going to do everything in my power to make sure that we will be reunited swiftly so that you and I together can set out on our mission to do all the things that we dreamed of togehter.
And let's look on the bright side. It's not like I used you for something friviolus to satisfy my own wants. You wenre't replaced with Guitar Hero, a new computer, a nice pair of boots. I didn't cast you aside to go on vacation or grocery shopping or Christmas gifts or to pay bills. I hope you take some comfort in that.
Well, I bid you farewell for now. I still have a very small piece of you with me ($256.50) and will work on rebuilding you back up to the $1000 emergency fund you once were! I promise. And thanks again for being there when I needed you, because I don't know what I would have done without you!!!

Much Love,
Me
--------
(p.s. for anyone who is wondering, our foster dog is officially home now! She's 20 lbs. underweight and needs much TLC to get back on her feet. She got spayed this week [the shelter pays for it] and is recovering from that, and she seems to have a few behavior issues that we'll need to work on, but I'm so glad she didn't get PTS as this girl will make a wonderful pet for a loving family one day!)

Well, looks like baby step one is *almost* complete! I got an x-mas bonus check and cashed it, so I have my $1000 emergency fund sitting right in front of me. I have $750 here, about $256 in the savings account, which I think I'm going to just take the money out and close it, being that if you don't have $200 in there, they charge you like $5 a month. Being that I'm going to keep the emergency $$$ here in the house (hmm, gotta find a good hiding spot)

Wait second! 750 + 256 is $1006!! OMG, I've got my emergency fund!!! YAY!! Wow, I only started reading the book less than a week ago : ) I thought this was going to be the hardest step for me, as I've never just had a thousand bucks that wasn't going for something. Yeah, it's mostly from the x-mas bonus, but still.... good thing we're not doing gifts this year : ) I'm so excited : ) I've got to go finish the book now and make my gazelle-like intensity plan of attack : )

On an off-topic note, my husband and I have decided to foster a dog for the local shelter. Food and vet bills and medication are paid for through them, so it's only our time and love that's required. Shelters are full right now, so now a poor dog that wouldn't thrive in a shelter environment or has special needs will get a chance to be the awesome dog they can be. : ) We're going down there Tuesday to meet the dog and our dog is going to meet her to make sure they get along. I already know it will be hard to let a dog go after fostering it, but knowing they're going to their "forever home" eventually is wonderful. Being that I don't have the $$$ to donate, this is perfect and probably better than donating money or toys : )

Well, off to go get some work done, read more of Total Money Makeover, close my savings account and HIDE the emergency fund!

I got Dave Ramsey's book from the library and read a good chunk of it yesterday... I feel so optimistic : ) I'm going to read a ton tonight. I figure the faster I read it, the faster I can get started.

Of course, I already gave myself a little pat on the back today. I was downtown at work at had some time to kill before this job I had to go to at 2:00, and I thought, hmm, I'd LOVE a sandwich from a certain sandwich place that is to *die* for. Just thinking about it is making my mouth water. But I knew that a drink and the sandwich would cost $6.01... it was really hard to fight to keep my $6.01! But I thought to myself "What's going to make me happier? Paying of debt or this sandwich [that's also going to make me fat]" So I went about my merry way and didn't get said delicious sandwich. Even though it's only $6, It's still MY $6 in MY pocket. Because of my new outlook on things, I'm already $6 closer to paying off my debt : ) *pat pat*

I signed up for online bill pay though my bank. Although I'm not sure how I'm going to pay off the cc's as far as order, I know there's one in particular that is a giant monster looming in front of me. There's a few smaller ones I might tackle first, but in the meantime, any extra $$$ I htink I can spare I'm going to throw on the big monster debt. I figure even if I only do $10 here a week, $10 there a week, it's going to add up fast. I don't know though, because I haven't finished Total Money Makeover yet.

Guess I should be doing that now. I have a feeling I'll be writing a LOT more lately!

Can anyone tell me if there's a website that lists reputable and non-reputable reviews of credit counseling agencies, like who to avoid, who is a scam, etc.?

Also, is it true that if you do debt consolidation that it's the same on your credit report as filing bankruptcy? I mean, is there info tnat someone can point me to more about this? My credit report as it stands now isn't great, being that I owe so much, but I have never made a late payment on anything, so at *least* I have that.

Any info and websites would be very helpful!

Well, I'm still fighting the fight. Things have been even more difficult as my husband lost his job about two weeks ago. He's sick on a near-daily basis (not celiac disease, gluten intolerance, food allergies, Chrone's disease or any of the million other "regular" things.. the doctors have ruled so much out that they're starting to get stumped) so I don't even know if it's going to be possible for him to get a job. Maybe something part time, if he can manage it. His health comes first. As long as I can manage to pay the bills and we can get by, I'm not going to beat him up about finding another job, although we need the money and it would be great to have...... hard times, I tell 'ya.

Hard, but not impossible. i've been watching literally every single penny and where it goes. I've stopped buying anything that's not a necessity, pretty much. We've actually SAVED money with him being unemployed, because I'm so nervous about not having money down the road for things, as winter is coming and gas bills will be high.

Oh yeah, we need a new furnace. Actually two, since it's a duplex and both the furnaces are older than me. I don't have the $$$ for it as it was an unexpected thing, but the blower motor broke. We had three different companies come out and say we need a new furnace, that even with fixing the blower motor that it won't last throug the winter, which is NOT good in this part of NY. They are running a 6 months no payments, no interest. I really don't want to do it (if I'd even get approved) beacuse I know if it's NOT paid off in time they will retroactivly add the interest, and who knows what's going to happen in th next six months. Then again, with a new furnace we might save so much on heating bills that it would be worth it. I could always put my christmas bonus towards the furnace cost and that might almost pay for it. I don't know...

Also, I've been thinking of getting a tax guy. I think we really need help and could probably save a lot of money with a professional helping us and having things work out to our benefit, as we own a duplex and I don't know if things we do to the house for our tenant are tax write offs... plus with the rent money, I know we'll have to pay tax on that, so I'm a little worried. I guess it would be a matter of finding a good tax guy who doesn't mind answering a hundred dumb questions from someone that knows nothing about taxes. I just think if we do it now when we're younger, I'd be glad in the long run that I did it...

Well, gotta go figure some stuff out, pay some bills, keep looking to a better tomorrow... I know deep down inside it's coming.

I'm getting discouraged. Really, really discouraged.

As if getting out of debt and budgeting money and trying to get as much bang for my buck, so to speak, isn't enough, there's new hurdles to overcome that seem to be throwing a wrench in my plans.

Food shopping was one thing that was easy to spend as little as possible, being thatI'm all too happy with sandwiches and cereal for dinner and my husband is happy with just about anything. I could spend a few bucks at Aldi's or Save-A-Lot and we'd be good for two or more weeks.

Given the state of my husband's health though, that has changed. He has to eat gluten-free foods, which are disgustingly expensive. A loaf of bread is around 6$, which is a far cry from the dollar I was spending before. We have no choice in the matter though. There's no gluten-free discount area of supermarkets. There's a few things I can still pick up cheap that he can eat, but anything with grains of course is out. Ugh. I have to go food shopping tonight and I'm dreading it, being that last time I went I spent over $100 on his food alone, and that only lasted two weeks. This of course is on top of the cost of putting him on my health insurance plan at work which is costing an extra $450 dollars a month. it's SO STUPID that there's the single plan, which my boss pays 100% of, and then the family plan, which she is paying half and I am footing the rest, with no married couple without kids plan. I think it's stupid that if we had 10 kids, the cost of the health insurance would be the same. Ugh. Of course, he needs the health insurance and the gluten-free food, so there's no choice in the matter.

Good thing I really love him : )

I started saving $$$ in one of those water cooler jugs. Every night, whatever money is in my pocket (paper or coin) I just throw in there without thinking about it. I like that I have not even the foggiest of idea how much is in there. I plan on not touching it for a loooong time. Maybe until it's full!

Although I'm trying to stay positive about everything, I am *dreading* the upcoming winter months. This house is old and needs new windows, insulation, etc, therefore I know the gas bills for the cold winter months are going to be murder. last year they were a little high (we keep the heat pretty low, around 62, being that we both can't stand to be the slightest big hot) and it wasn't a big deal to pay them, but we have so many more expenses and debt to pay than we did last winter. Here's to hoping it all works out! *crosses fingers*

Well, off to go food shopping now. Wish me luck!

...I think I'm going to lose it.

After going over ALL our debts, it's disgusting. I keep thinking how did this happen in the first place??? Ugh... the problem of our debt is actually much, much worse than I originally thought, and my original projection was a high estimate of what we owed.

We're going to have to take serious drastic measures soon, I think. I don't know we we will get out of debt by ourselves. I just don't know what to do. I've read many books and been very disciplined with the credit cards and not bought anything on them the past few months, and still we owe and owe and owe. My plan was to take it one at a time, but it still seems so discouraging. I've read quite a few books that all sum up the same things, but being that there's SO MUCH we owe, it's very difficult to have extra money to pay on the credit cards. And with interest rates, even the very low ones, it's still hard.

Ugh. Maybe I should stop whining and lamenting what we're going to do about this mess and start planning how it will be resolved.

There's still my "one thing at a time" plan. I was also thinking about professional help, but I know we'll have to shell out more money that we don't have. I don't even know what kind of professional could help us, but I'm sure there's someone out there. Although I must admit, the thought of going into a financial institution with a million credit card statements and loan documents would be horribly embarassing. Also, we're going to have to start cutting every single little corner financially that we can, and since I work on commission I am going to start hauling ass at the work I do and do as much work as possible for the extra money.

This is overwhelming at this point. *sigh* Gotta go write some checks now...

edit: ok, I just paid off the Macy's card that I owed a mere $155.12 on. I know it's not much, but it's ONE card paid off and one less bill to pay. I feel a little better now : )

I was thinking last night about debt and all that messy stuff, and I was thinking that not ALL of the decisions that I've made have been crummy ones. It was nice to sit down and think of them because it makes me feel like there's hope for the future and that somewhere swishing around in this head is a rational spender with smart choices.

I think the biggest one that I've made that was a big decision that was also smart was to buy the house we're living in. It's an upper/lower apartment with just two units, so we live in one and rent out the other to a guy who's been here forever. It's not the nicest house or best house, sort of on the small side, but it holds all our stuff and is relatively affordable. After the rent check comes in, we come up with just $300 a month to pay the mortgage, which is much, much less than we were paying for rent. It's nice to have that wiggle room. I've decided as of today when I go to the bank later, i'm going to automatically deposit the rent check in the savings account, just to give us a little extra padding (or some padding, as the case may be.) I'm sure if we had bought a single house that cost the same amount (which we almost did) we'd be struggling like crazy to make ends meet and it would be impossible to put money into the savings accout or to make extra payments on things. Let me pat myself on the back for that one. Whenever I get frusterated that it's too small or cramped or we have to go downstiars to take the dog outside (at 3 a.m. that's NOT as easy as simply opening up a door) I just remind myself that it was the right decision, and plus when we are fininaiclly stable enough to save for a down payment on a new house (which I want to do by the time I'm 30) we can keep this house and rent out both the upper and lower, or decide to sell it if we don't want to bother with being landlords. Ok, so there's one good decision.

I guess the second (I'm struggling to think of a third) good decision was when it came time for me to get a new car a few months ago (mine needed a new transmission and basically a new engine... I'm a big Volkwagen fan, but putting a transmission and engine in a Jetta that was already old and had tons of miles was not something I wanted to do). I could very easily have went out and bought a brand-new car or a car that was a year old and was $20,000 or something, which is SUPER tempting when you picture yourself cruising around in a shiny new car, but in the end I decided to buy a six-year-old car that had only fifty thousand miles on it, a good body and lots of life left in it. It made the insurance much cheaper (yay) and since I live and work in the city, a new car only would have gotten all scratched and dinged up anyway. Not that I want my car to get dinged up, but it's not as bad when it's already older. Plus it will be paid off in a year instead of four or even five.

Well, I guess that about rounds out my smart decisions I've made. A house and a car are big purchases though, so I'll pat myself on the back just once for managing to not get in too deep with those items : )

I am going to get out of debt. I really am. I've said it before, but now I feel that we have no choice or we're going to wind up owing a million dollars by the time we're 30 and never going to get our dream house.

I am 25 years old. My husband is 28. We probably owe somewhere in the range of $30,000 in loans and credit cards, not counting two car payments (both of those equal roughly $10,000 left, give or take) plus a mortgage (about $80,000 left). That's a lot of debt, being that together we bring in roughly $60,000 a year before taxes.

So where to start getting out of this messy situation? How did this happen? Im obviously far from a financial genuis. The one thing we have going for us is that we have never paid a bill late (ever) and we have no kids to support, unless you count our dog, which I do.

I've already made some steps that I feel are productive. I cut up *every single credit card*. I am going to cancel my Paypal account. I'm going to do it right now. Just a second........ Ok, Paypal won't let me saying that there is something that is outstanding. I know the last thing I bought on Paypal was a ton of books, and that was weeks ago. I really wanted to do this now while I was "in the mood" to do so, because I don't want to think about it any more. I just want to cancel it. I will come back to that later.

So in addition to getting rid of all credit cards, I have taken what some people have said is drastic and unimaginable in this day and age. I have taken the two check/debit cards from my two checking accounts and given them to a family member who I know will not give them back to me until hell freezes over, and even then he might keep them. I trust him enough to not give them back. I've been living like this for roughly a month now, and I have noticed that it changes a lot of things. First of all, when I go to the bank on a Friday, I have already planned out how much money I need for the week for food, gas, parking, etc. Once it's gone, it's gone. God forbid I actually go into a bank to withdrawl money, which I hate, hate, hate actually going into banks, so I haven't done that yet. There is little convinenves that I miss, such as paying at the pump for the gas and stuff, but it's not a huge deal or anything. It's put me more in touch with what I spend. For example, before I could walk into a Walgreens and have in mind that I was only going to buy toothpaste, but then see other little things that I "had" to have and purchased impulsively. Now, however, when I know I only have $30 for the week, I only buy the toothpaste. It's a good thing, but has taken some getting used to, and I do find times when I think "oh, if I only had my bank card on this Sunday I could go and purchase this overpriced crap that I don't need but it's on sale in the Sunday paper and I neeeeeed it!'

It's also helped a lot food shopping. Before I would just throw a bunch of stuff in the cart, go to the checkout late, swipe the debit card and be on my merry way, wondering who I spent $120 on food that's going to last us one week. Now I'll put something in the cart and say to myself "that's $5... now $8... oh, we don't really need this, we'll never eat it, I'll just put it back and spend the money on something that I know we'll eat for sure." So that's how it's been.

I really want to try to make a budget. I've had problems with this forever being that I work solely on commission and paychecks differ from month to month. I might make $200 less or more a week (sometimes as much as $400 les or more) some months. I try to earn as much as possible every month (I'm a work-a-holic, a good thing for someone who is commission-based) but just can't seem to get a budget down. I plan on sitting down and getting all our bills together and all our expnses and figuring out the MINIMUM that we need each month, and then the rest will go into paying off extra debt and making an emergency savings fund (which as of now is a whopping $200).

I just need a plan and stick to it. I have done that in the past, but as soon as I start doing good, I convince myself that we "deserve" something, usually a fairly big purchase. I keep repating to myself over and over "we don't need any more crap. We have enough stuff as it is. We just don't need it and don't have room for it and I'll only wish I had the $$$ later for something necessary or paying on an extra bill."

I've decided to take the credit cards one at a time. I'm going to pay off a little one first that we owe $500 or so on just to get that feeling of fablousness of paying off one. I'm hoping that will movative me to just keep plugging away. After that, I'll do the higher-interest credit cards from highest to lowest.

I'm excited. I'm really serious about this this time. I told my husband that we'll be eating cereal and Ramen noodles every day for the next few years, but it will be worth it.

By the way, I guess I should mention at some point that I handle all the bill paying, banking, etc. Obviously I haven't done a good job of it, but it's sort of the lesser of two evils. I'll get more into that another time.