cc 1: bal. 12857, cr limit: 24700
cc 2: bal. 12266, cr limit: 42400
cc 3: bal. 10469, cr limit: 16500
Who are these CC's with and what are the APR's?
With your credit and income history, you may be able to get a good Balance Transfer rate which would help reduce the payments. For example PenFed credit union is offering 2.99% balance transfers for the life of the transfer.
With your income decreasing, I would not suggest dumping 100% of it. You need the cushion and emergency funds.
If your name is accurate (mom of seven), I would also suggest a good old fashioned Garage Sale and Ebay Fest. It is the perfect time of year.....and we all accumulate "stuff" that we don't need, don't want, don't use, don't remember we have, and luxury items we can do without that are stored in closets, garages, attics or worse yet in a paid storage unit. Most people can raise many hundreds to several thousand dollars this way, which can be put toward paying down the debts without affecting your cash reserves....or if you use part of your cash savings, then this would augment it.
Also, if the overtime has gone down.....I would HIGHLY suggest getting a second part-time job to supplement what you used to make from overtime. This helps to diversify your income streams so that if your main job cuts hours, you can pick some of them back up on the second job. The second job may not pay as much, but it pays something which you can put on debt without killing your savings. When you have large debts, sacrifices need to be made to get in under control before they strangle you. If both spouses can manage an extra part-timer for a few months....it will make a huge difference....it will stink now, but you will never regret the results.
Also, make sure you have a written budget. Know what money is coming in and where it goes. Then kill the unnecessary items for now (eating out, entertainment, impulse buying and CREDIT CARD use). Make it a family goal to get out of debt. Once out of debt all that money can go to your savings and family lifestyle.
Okay, the cc are with Bank of America, 13, apr , Citibank, 16% and US Bank,apr 14%. Yes, I can do some balance transfers and have looked into that. I also should be able to get my rate lowered to 9.5%, says this site.
You mention a lot of great ideas and we will do a lot of those and have done many of them as well...
We don't have anything in storage units, have cut out almost all eating out, are looking at the many things that we can cut out and sell.
Thank you for all of your help.
Thanks for all the help. my seven are under 12, I am the youngest of 7. Crazy and all good. Family is so great especially when there are lots of people. I wouldn't trade any of them for anything.
I just don't want to make more mistakes from this point, but do you always have debt when raising kids or just opt out of all the activities they do...?
I would really like to make that 800 club.
My oldest just turned 13 in January, so we have much in common. And yes, family is the ultimate. What would you trade it for?
I don't think you have to necessarily always be in debt and you don't have to opt out of all they do/want to do. But I do think it is a family issue. It's tough on kids when they see "Suzy" getting everything she wants. So I definitely believe teaching children from a young age the value of a dollar, work ethic and contribution.
Then you just have to seek the balance, which is doing all you can, but not making bad decisions in an attempt to change reality. Sure, we can dump it on a card, but then comes the struggle to pay it back. And while you pay it back, you have to forego things in the future.
Don't let credit lie to you. Certain things are not good use of credit. Just as you don't buy gas, grocery and utilities and then make payments.....you have to choose which investments warrant a payment plan.
Autos are a great example. Many people buy a new car not because they need one, but because they WANT one. We all must decide for ourselves what we will trade our freedom for.....and debt truly is trading freedom.
I admire your courage and ambition. Not many people these days has enough to have a family of your size and gut it out. Keep working at it and ALWAYS keep the end result in mind. Celebrate the goal as though you have achieved it regularly so that you keep your emotional motivation, which is the only thing that can keep you on the path long term!
Take care and good luck!
Wow, that is interesting.
Thanks a lot for all the great words of wisdom and encouragement. And you are right on in regards to your comment protecting our freedoms. Thanks again.