July found me hemoraging financially. I spent $240 in overdraft fees, something that I hate bigtime. Still I paid on my debts and decreased to new total of $17,377 owed.
I am currently trying to stop the hemorging as well as find a part time job to earn an extra $100/week or more. If I can find that source for the extra $100/week I can have the credit card paid off and eleminated in about 2 months. Then in another 3 months I could have the home improvement loan paid off and eleminated. After that within a year I would have the car loan in line to eith sale or to get paid off within 2 years.
Well there you have the hard facts of my financial struggle yet still decreasing debt. However, I am going to have to decrease some of that overpayment to the credit card, just to get back within my budget. Once the hemoraging has been patched and overdrafts finally obsorbed by the budget, I will be able again raise those credit card payments.
- Kevin S.
Discussing faith, business, personal finance, news (business and financial related), politics, and pretty much everything else.
I just thought I would give you a little help you may or may not know. If you are having overdraft charges because and are paying minimums, you are behind the eight ball. Call your creditors and try to work out a lower payment (1 - 3 months) or a skipped payment. Either way use this vital time to build a balance in your operating account. If you are not good with the budgeting side - open up another check book (no minimum, no fee) set up credit payments to be withdrawn on due date from this account. When you get paid, if every 2 weeks, put 1/2 of the total payments in there.
ReplyDeleteYou could set it up for all your fixed payments. Then try to live on what is left in your regular account (which should be a no minimum, no fee acct as well).
Once everything is running smoothly and your operating account is starting to grow a balance - hopefully. Then, keep the minimums rolling in the new account, but make an extra payment to debt through your old account once a month or with every check - what ever you feel comfortable with and what makes you see progress.
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ReplyDeleteI pay more then the minimum on all3 payments, I never pay the minimum. The overdrafts were a result of some unbudgeted items, that are now costing way more...I use online bill pay to automatically pay ALL my bills.
Paying more than the minimum is good, if you are not paying fees. I think you would be better served to set up just minimums and make extra payments on a regular basis. This will provide you with the flexability to avoid fees. This will then eliminate your debt faster $240 is a huge chunk of debt repayment.
ReplyDeleteKevin:
ReplyDeleteWhat's going on? I see 2 issues here:
1. We NEVER pay for anything that's not in the budget without taking from another category. You know this...why didn't you apply it?
2. You're doing the Debt Snowball...which means you pay minimums on EVERYTHING but your smallest debt...
I'm holding you accountable, man...these overdraft fees are self-imposed...and it might sound harsh, but I don't feel sorry for you. Because I know you know better...I KNOW YOU DO.
Now you know what needs to be done. Buckle down and do it!
(BTW, friends are people who will risk hurting your feelings for your own good). Take care.