Debts
$400/month car payment ($10,900)
$75/month 2nd mortgage ($990)
$25/month credit card ($590)
$25/month Fingerhut ($1,000)
$??/month Black Gold Insulation ($180)
$0/month ($3,795)
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Total Monthly Debt $550 / Total Debt $17,455
Utilities
$80/month Electric
$80/month Gas
$70/month cell phone
$30/month Internet (cable)
$60/month Satellite TV
$30/month Water
$15.50/month Trash Service
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Total Monthly Utilities: $351.50
$60/month Auto Fuel
$40/month Groceries
With a monthly income about (from various sources) $1000 (take home) I am to burdened with debt. Not enough cash flow. So if I was a business, I would be leery of investing in myself. I would be concerned that a business as financially burdened as myself, would file bankruptcy.
The simple fact is, I must cut my debt and increase my savings. A plan I have been addressing since March 2006. My current figures are to have the credit card, black gold and 2nd mortgage paid off before the second blog-aversary of this blog in March. A tall order considering my financials, I know, but I think with some gazelle intensity and a lot of fortitude it can be done. I am tired of being a prisoner to my debt and want to have the freedom to have some fun again. This time within a budget.
So what about you? What does your financials look like? Would you invest in You?
I'm surprised you pay so much for phone/internet/t.v. I pay about $60/mo for these things. I'm so cheap! My car is worth about $600. It looks like you could cut some things.
ReplyDeleteJohn -
ReplyDeleteSatellite service has been disconnected now. My phone, I may have to look at to see if I can reduce the plan. I currently have 1000 minutes on the plan, but do I need so many minutes? The plan does have unlimited weekends, no roaming and free long distance though.
Please put that $60 will not be paying to satellite tv towards gas and food.
ReplyDeleteI run an in home daycare and actually do not make any profit, so I know a business would not invest in me. But my motives are to be home with my kids while paying all my bills. Daycare in my area for my 2 kids would be about $1000 a month, so I don't have to pay this. But realistically I make less than $5 an hour working 55 hours per week.
Hi Prince, When I look at your numbers, I think - he can do this! You are so close. Yet, each month, it seems the numbers remain overbearing for you. I feel like I need to fly out to you and take control for a month. :-)
ReplyDeleteWhat I would do:
1. Take all opportunities for blog money I can (and surveys) in December. It should not be impossible to earn $45 a week in the next 4 weeks. I am doing $50, with limited time.
2. Call Cell company and lower package - Verizon has 700 minutes with unlimited text and nights and weekends, by me for $39.99 + tax. But any savings will help.
3. Take online earnings, cell savings and satellite savings and apply to Black Gold Insulation. Say Good Bye to this debt in January. SWEET
4. Continue #1 & #2 # Satelite $ - if you make $30 a week on #1 = $120 a month (earned in Jan rec'd Feb) + save $10 on cell bill + $60 on Satelite = $190 + $25 reg pmt towards Credit Card balance of $590 =$375. This will be gone by April (with $55 to move forward) . SWEET!
5. Move on to Fingerhut. March balance will be $950~ April Pay extra $55+$25 reg = $870~ After which rolling all payments above here $190 +$25 credit card +$25 fingerhut min = $240 a month kiss this baby good-bye in August. Yippee!
6. Then go to 2nd mortgage which you should owe something like $590 or so by then - good bye to this October.
Leaving only Car Payment and that $3795 debt. Plus, some breathing room.
Come on Prince - Your so close - time to be free. YOU CAN DO IT!
Call Cell company and lower package - Verizon has 700 minutes with unlimited text and nights and weekends, by me for $39.99 + tax. But any savings will help.
ReplyDeletethat is my base rate (before taxes, etc etc) for my 1000 minutes at T-mobile.
Come on Prince - Your so close - time to be free. YOU CAN DO IT!
Amen! I believe I can do it. I do have money that I get from my border, that I try to figure into paying all this, but as you can tell I fail to figure in property taxes, insurance or car tags, all of which figure into the equation.
I am hopeful to have several of these paid off by March and everything except the car by October.
i have 450 minutes, i try to stay off the phone before 9pm. i am trying to roll over some for a rainy day. so far i've saved 16. but that's after just one month. minutes are like dollars for me i guess.
ReplyDeletenetflix is pretty inexpensive, if you want a movie now and then.
Unless you suddenly find $690 per month for the next four months, you are not going to get those debts paid off by March. No matter how much wishing you do.
ReplyDeleteAs you know, Dave Ramsey would have you turning off the cell, internet and satellite. Even then, you'd not save enough out of your expenses to pay off the debts you discuss.
He'd also tell you that you have an income problem. Is there really no other line of work you could go into that would pay you more than $12k takehome per year? I was making more than that 25 years ago.
Dedicated has good suggestions. You should set up something like his debt reduction plan so that you have an achievable plan for getting out of debt. Like Dedicated said, I think you can do it. Just not in the time frame you are referencing.