pay your mortgage off earlier and for far less. Do your budget based on every two weeks. It takes a bit to get into the grove of it, but trust me it will save you money.
Pay your mortgage the payday closest to the first. An example: is our next payday is the 26th and our payment isn’t due until the fifth. But we go ahead and pay it on th3 26th and save 10 days of a higher average daily balance. Most mortgages the interest is calculated on the average daily balance. So if you lower that average by paying early you pay less interest. Less interest to be compounded into the over all debt (raising the average daily balance) over the life of a mortgage this can save 100’s/1,000’s depending on the length of your mortgage and your interest rate. (see my post on my blog about average daily balances—link below).
Another advantage of an every two weeks budget instead of a monthly budget is you set it up so that you are actually paying more often on debts in the long run. That’s how I ended up paying that BOA early last month because of the every two weeks payments I was able to pay the final payment earlier because I was paying on the bill every two weeks rather than twice a month (26 payments rather than 24 payments).
1)aim to not take money out of any savings, except for earmarked items from the sinking funds
2)all the normal bills come from DH’s steady paycheck
3)farm projects and extra farm costs along the line come from farm earnings
4)if we get through the month and successfully cover gotta-pay items without spending our full allocated amounts, then we can start to get wantta-buy items with the leftovers. OR, those leftovers go into sinking funds.
He had pulled into a minor emergency place with dh because dh was having trouble breathing and extreme pain. Minor ER wouldn’t take him and ordered him to go to regular ER. Ds is driving like crazy for there right now. I have been ordered by dh to stay here in case they need info on dh’s meds and stuff, plus I’m having serious vision problems and dh is worried I’d have trouble driving.. As soon as we are past that meds hurdle I’ll be heading for ER one way or another, I have a neighbor who will drive me as soon as they get home.
I have felt debt free for a while since we had no personal credit card debt, but the car was our oldest business debt.
We started keeping track in 2006 when we had 22 items on our list. It took us 5 1/2 years to payoff all 22 items ($102,477). The car was the last one from the 2008 list! So nice to have that done.
Unfortunately, we are not perfect and the business has taken on some hardware debt, taxes, and other items due to our loss of our biggest client last year. I’m getting GAZELLE again about getting all past due bills caught up and working on paying off some things again.
The home account is still doing well and we are not using credit cards. I do have a car payment, but that is a compromise I have to make with DH. He’s not at all agreeable to beaters. So I did all I could to make the term as short as possible and the loan and interest rate as low as possible.
So nice to be down to one car payment!!!!
What a blessing that you are close to such good medical help. I am relieved to hear that you are on your way to full recovery. Thankful that the doctors were able to give you the care you required.
I am dealing with own medical issues (chemo) and ended up in the hospital a few weeks ago – the whole process is scary and overwhelming.
Relieved that you are in a good place with your finances to be able to pay the bills. The care is most important, by having the funds certainly relieves the stress. I spent many hours this week untangling out medical bills and figuring out our deductible, etc. I understand the headache that it can all cause!
Anyway, glad you are home and feeling better!
I would have been terrified? So glad that you are now home (ar)resting! Mind if I inquire as to the cyst’s location? Did you know about having the cyst before all of this happened? I ask because the doctor for the past 3 years has told me I have a cyst, but I can’t feel it, doesn’t affect me negatively and frankly its out of sight, out of mind. I’ve been warned about a rupture, but I’m hardheaded. You’ve scared me now.
I knew a lot of you knew what was going on from facebook. We planned our date night at home. Saturday morning I was feeling cruddy. So we spent the day being lazy. Hubby picked up kids that evening from babysitter. They weren’t home two hours and I felt light headed. Hubby got kids to babysitter and was only gone 10 minutes. By the time be got back I couldn’t even walk. We got to the nearest hospital 10 minutes later. My heart rate was 186 and my bp was way too low. I started to majorly hemorrhage . I had a cyst rupture and it took them three hours to stabilize me for surgery. I ended up having emergency surgery and two blood transfusions at midnight. I lost a huge amount of blood to the point I could have died.I was lucky enough to have been in the hospital where they had access to things to help. I am home now and on couch arrest for two weeks . I am doing way better. It just takes time to heal and build blood volume. Our emergency fund will cover the 20% we will owe on the bill. I hope anyway. If not we make payments. I also asked for a cash discount. We just have to wait for the bill to come and go from there. I am just glad to be alive and with my kiddos. 😉
But there is so much buried “railroad” barbed wire it sings too often. The only neat thing we have found was a very interesting rock that we let dgn have. Her science teacher told her it was a dino “dropping.” And then kept it and wouldn’t let dgn have it back.
This was Creek Nation Reservation land for a long time. So no telling what we could find. I’m sure if all the legends were to believed Frank and Jesse, and Pretty Boy Floyd probably visited the area more than once
I know it can be frustrating and very hard but you have to start somewhere and get a determined mind to work your way free.
Generally your bills are sold to collectors a few times before you are sued or garnished. That process can very well take years. All time to work your plan and get some of your credit debt into your snowball.
I am going to have to encourage you to take the first step of opening your bills and determine how much you owe. Also, you must make your budget, determine how much you have incoming and where it goes.
Truthfully, you have more power in this situation than you think. Yes, they want their money. But all their yelling, threatening, name-calling, etc. won’t get you do give them money that you DON’T HAVE… Go open the latest letter from each of the creditors. That one will have updated info, so you can throw the older ones away. Have you actually gotten notice of a court date from ANY of your creditors?
I’m assuming that you can’t even make your minimum payments. How far short are you per month? Can you get a part-time job to make up the shortfall? Sell some stuff to get caught up?
There is a text file in our files section called letter to cc.txt.
This is basically a note stating that you can’t afford all your monthly bills, and you’re looking to get some help from creditors in an attempt to avoid bankruptcy. Edit it to suit your situation, and send it to all of your creditors. You may be surprised at how much they may work with you. If you feel comfortable posting your income, expenses, and debt balances, someone here should be able to give you more specific suggestions.
Also, please take care of your ‘4 walls’ first. Food, housing, utilities, transportation. If you can cover all that on your income, you can fight through the rest.
I’ll give more suggestions based on your answers to these questions.
Before replying, I went back to search through the notes you’ve sent previously, because I couldn’t quite remember your situation. It looks like I posted a few times in 2015, then not again until January of this year. It seemed in January that you were newly motivated to grab the bull by the horns and get going on a budget or plan to get your finances squared away. But I didn’t see whether you posted specific budgets or if you got as far as opening bills and adding up the totals. That’s a big scary first step, but that’s gotta happen before anyone can really give you solid assistance.
So I guess before answering what you’ve asked below, I’ll ask you something first: are you willing to open those latest bills and statements, at least see what the current totals are, and post your current specific income/expenses? If so, we can help you wade through some options. If not, then there’s not a lot we can do except give you general support and encouragement, whatever you end up deciding (or whatever is decided for you).
My brother went through bankruptcy years ago basically because he was told that was his only option. At that time I had not yet faced my own financial issues and I’d never heard of LT, so I don’t know if he really had other options or not. I can say that if you choose to do nothing, then your choices will be made by others, and you won’t have much say in the matter.
So if you’re willing and able to start opening some envelopes and writing down totals and at least getting stuff on paper, yea we can help you sort through your options. I also expect we’d be able to see some options that you can’t currently see. I know that was the case with my finances, and that seems to be the case with a lot of folks when they first take that big step of publishing their specific information. I encourage you to set aside a few hours (or the day) to take that step. Find a sitter for the kids, call in sick for the day, and start opening envelopes and scribbling down numbers without a lot of other distractions getting in the way. Let’s see how big this monster really is. Maybe it’s not as big as you think. Without those details, and with just the general information you’ve given so far, there’s not much specific advice we can give. I hope you give it a try.
mortgage is good
maintenace is good – have a coop apartment in NYC.
havent opened bills in months..
has anyone here been in a situation where you are being sued by cc company? or 10% will soon be taken from your pay check through court order .. i think a marshall..
would filing bankrupcy help me at all at this point?
How does one even begin the process of filing bankrupcy..
Help/opinions/ideas expertise from you guys would be appreciated..
But of course you would have already taken care of all that. Silly us! Glad you’re so proactive. But please encourage him to get going on that whole “find buried money out in the yard” project. That sorta fired up my imagination this morning and it sure sounded like a fun time. Only thing we’ve found buried here so far have been old car tires…….
He had a very complete physical in Nov. Then this Monday, when he was diagnosed, he had another complete work up, just to be on the safe side.
His heart is excellent (both physically and emotionally). The doctor did do chest x-rays and he said dh’s heart looked PERFECT and he was looking for heart problems. The pleurisy and some minor scarring on dh’s lung were the only problems they turned up. The scarring did not surprise us. Dh was in Viet Nam and was exposed to Agent Orange he has also worked in oil fields on and off. So scarring was not a surprise at all.
Doc J. said that except for the pleurisy dh was in excellent health. I already an expecting a return call from doc though from where I reported yesterday’s episode.
If you can’t find a lender that would work with you *without* using a FICO score, then it sounds like you’re going to have to get a credit card to keep your score up. I’d suggest using one for monthly expenses and then paying it off as soon as you get the bill, but, I’m not so sure that paying every month actually COUNTS to increase your score. Nobody is, because they won’t TELL us. Plus, you’d have to make sure you don’t get one of those cards that uses ‘average monthly balance’ to screw you out of interest…
We’ve been brewing and stewing about this for several years now. The only new aspect of it is the declining credit score. I didn’t see that part coming. At least not so soon. I knew from FPU that once we’d paid off all our debts and stopped using credit, eventually that score would go down. Didn’t think it would be less than a year in the process.
All I’m trying to do is lay out some kind of reasonable “this is how we could do it, if we decided to” plan. I had a plan like that right up until the whole ‘credit score is going down’ update from Monday. Just trying to come up with a new plan. Or a good revision.
Keep in mind that last September my score was approx 700. As of today, per Experian, my score is 598, my credit risk is rated as “High” (ie, a high risk) and my credit grade is “F”.
While I’m officially very pleased that I’m on the Larry path and that I have only one open account and it’s current, and I’m making payments on my closed credit card and that I’m heading towards a realm of no debt to anyone, frankly I have to admit I have real mixed feelings about the above. No, I have no intention of ever having a credit card again. Yes, we’re getting to where we pay cash for everything. But my insurance premiums, for the farm, the truck and probably my health insurance as well, are all based in part on this number. My ability to rent heavy equipment is based on this number. Apparently my ability to get new utilities is based in part on this number. And yes, if we decide to sell our smallish farm and buy the farm we’ve been working on for the last six years, which is currently appraised at near $1mil, we’d need a mortgage for that. We could possibly talk the current owners (or their family) into a contract for deed with the money going into some kind of escrow, at least for the first few years, but they’d undoubtedly want some kind of balloon payment to finally be done with it and get their money.
I wonder how highly it would rate to try to explain to an underwriter that I want to buy a million dollar farm, and I have no credit, “but it’s Ok, see, because I’m on the Larry’s plan.” Let’s just say my mood today has not improved with this new information.