Hi Savvy. I have an excel spreadsheet that you can use to put all of your bills and income on for the month so that you can see exactly where you stand. PM me with your email if you'd like me to send it to you because you cannot attach or anything in the forums. This is what I would do.
#1: Call each of your card companies and ask for a lower interest rate. Even if they give you a promotional rate for 6 or 12 months on your balance, then that is good too.
#2: Stop using your cards
#3: Call NFCU and see if they will refinance your vehicle for a longer term, i.e. another 72 months. See how much that would decrease your payment.
#4: Call your electric company and ask if they have a budget plan that you can go on. That way you will always know what your electric bill will be each month and usually it can help with a lower bill.
#5: Change your thermostat to 68degrees (or lower if possible), and then put on more clothes while at home.
#6: Check your paycheck stub. Is there anything at work that is being taken out of your check that you can stop contributing too (or decrease the contribution too) for a little while.
*** IMPORTANT: If you do not think you can make your payments to NFCU, then you need to change any direct deposits or funds that you have on deposit with NFCU and put it into another bank that you do NOT have loans/credit cards with. NFCU (and most credit unions) have a clause with their deposit accounts (checking/savings) that say if you default on a payment that you owe them, then they will freeze the funds in your deposit account and they will withdraw the money from your deposit account in order to satisfy that obligation. Also, any unsecured debt that you have with NFCU (i.e. your credit cards) is automatically secured by any secured debt (your automobile) that you have with NFCU. Note: This does NOT apply to a home, mortgage, or LOC against a home. Pull out your loan, credit card, and banking paperwork and you will see these clauses. ***
Now, that I gave you the advice I had, I am going to give you my opinion. Don't take this the wrong way, but some things that I've read aren't making sense. I am saying this to you because I have been here. You need to sit down and take a good long hard honest look at your finances and be truthful about what you are spending money on. Now, these are rhetorical questions that I think you need to just consider.
#1: You say your vehicle broke down after you paid it off, so you had to get a new one. I understand having to get a new one, but did you have to get one that was so expensive with month payments?
#2: Your excuse for not getting a 2nd job is because of the 1 hour each way drive that you have to make to your current job. Aren't there other businesses around your current job that you could work at. That way that 1 hour drive will be to and from both jobs.
#3: You were denied credit because your utilization on your cards is high, yet you have been making the minimum payments. Now I know minimum payments don't decrease your cards by much, but are you still using your cards? After you make the call to lower the interest rates on them you need to throw them in a ziplock back and into the sockdrawer.
#4: You say you don't want a roommate because you don't want a "strange" person living in your house around your things. Lock the things you don't want anyone messing with in your room or your personal space, and get a roommate. The majority of people out there are GOOD. Or is it possible for you to sell those things that you don't want people around and get cheaper things (or free things from Craigslist) and use the proceeds to help pay off debt?
And like I said before. I do empathize because I have been there. I have been at rock bottom where the only way for me to get to work was the bus, and I had to get food from a food bank because everything I made went to rent. I found what I really needed was a good slap in the face to make me wakeup and be honest about what I am doing with my money. Anyway, I just hope my blatant honesty helps you as financial honesty helped me in the past. I promise, I'm not a complete jerk, but sometimes it's what we need to hear.
Edit: looks like i was typing my post as you posted about nfcu. that is a step in the right direction, but take a look at my "important" section above.
Current Score: Eq: 823 Tu: 830
@Creditaddict wrote:
@Anonymous wrote:Just a quick question. I' m thinking about just cancelling a couple of my cards so that the CR will show closed by consumer. How would this effect my payments with the CC company? Do I still have the same minimum monthly payment or how does that work exactly? I've never closed a card before with a balance.
NO NO NO, do not close cards... they will no longer work with you on rates, min. etc.
I know personally!
+1: Usually when you close a card, it's with the same rate as what you are currently paying. So, I agree that it would be easier and more beneficial to keep them open, and then try to see if they will just lower the interest rate.
I know you're mainly looking for advice about how to deal with the credit cards and not about expenses, but sometimes there are things we just don't think of. Have you considered a paper route? My father has had to pick them up before when money was tight. You don't make a lot, but you can do it outside normal working hours. Good luck.
@Walt_K wrote:I know you're mainly looking for advice about how to deal with the credit cards and not about expenses, but sometimes there are things we just don't think of. Have you considered a paper route? My father has had to pick them up before when money was tight. You don't make a lot, but you can do it outside normal working hours. Good luck.
+1: That is a good suggestion. I had not even thought about that. I am going to have to add that to my little book of "financial tips".