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12-20-2012 at 7:48 AM
cincychick...
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Help Cleaning Up Past Due Bills

My DH has been out of work for 2 months.  He just went back to work, although not making what he once was. I have also recently started a second part time job in the evenings/weekends.

We are about 2 months behind on most of our bills.  I am finding it hard to come up with a plan of attack and thought this would be the best place to ask for suggestions.

So, Ladies any suggestions for where I can start getting back on track would be appreciated!  Thanks. 

 
12-20-2012 at 8:18 AM
hesakeeper
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Write everything down. How much you owe to where. Definitely paying something  to each bill is good so it's still an active account. Do any of the bills have grace periods? The ones that don't are more of a priority, IMO. 

Would you like to post everything here? How much you owe and how much you are bringing in? 
 
12-20-2012 at 9:20 AM
Sisugal
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Fund necessities first, (housing, car loans, utilities etc) then cut all non essential spendingn(eating out, clothes, cable etc) until you are back on track.  Meanwhile track spending - EVERY DOLLAR and make a budget.  Read Smart Couples FInish Rich by David Bach - for establishing a budget with your DH that works for you both and also read Total Money Makeover by Dave Ramsey - for assistance in getting out of debt.

Meal plan and shop with a list - do not buy it if it is not on the list.  No shopping for entertainment. If you get gift money, bonuses or tax retruns,apply to your debt.

Start and emergency savings fund " life" happens and you NEED one! Aim to save 6 month's basic expenses.

 
12-20-2012 at 10:09 AM
cincychick...
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I am in the process of reading TMM, I just don't know how to implement the debt snowball when I have all these past due bills.  Here is the breakdown:

DH: $1,800

Me: $2955


Mortgage: $817 which is 30 days past due

My car: $525

Cell phone: $600 (past due)

Cable/internet/phone: $120

Energy: $200

Gas/Groceries/Misc: $800

Car Insurance: $120

Credit Cards: (all past due)

Kohls - $171

Walmart - $67

Lane Bryant - $65

Kay Jewelers - $560

Capital One - $140

Student Loans: $100

It never used to be this tight, but DH went from making $3500 a month to $1800...it is culture shock.

Thanks ladies for your help, I appreciate it! 


 
12-20-2012 at 11:34 AM
hesakeeper
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I just calculated that to $3468 (I did it fast, so I could have been wrong).

Mortgage is the first thing that should be paid. 
You should pay your cell phone, and at least the minimum on call credit cards if possible. 

Before paying everything off, however, look at the due date for everything else and budget if you'll have enough to pay the future bills on time. 

How often do you and YH get paid? Do you have consistent hours/paychecks? 

Start a budget. I don't know how far you and YH drive for work, but (hopefully) you can cut back on the grocery/gas spending but making a grocery list and sticking to it. Shop the sales, and meal plan around what is on sale. Also, try to limit your gas. It's not cheap. 
 
12-20-2012 at 11:45 AM
cincychick...
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hesakeeper:
I just calculated that to $3468 (I did it fast, so I could have been wrong).

Mortgage is the first thing that should be paid. 
You should pay your cell phone, and at least the minimum on call credit cards if possible. 

Before paying everything off, however, look at the due date for everything else and budget if you'll have enough to pay the future bills on time. 

How often do you and YH get paid? Do you have consistent hours/paychecks? 

Start a budget. I don't know how far you and YH drive for work, but (hopefully) you can cut back on the grocery/gas spending but making a grocery list and sticking to it. Shop the sales, and meal plan around what is on sale. Also, try to limit your gas. It's not cheap. 

Thank you!

DH gets paid weekly and I get paid on the 15th and 30/31st of the month.  DH works very close to home. I, however drive about 80 miles a day.  I may be overestimating gas I figured $20 a week for him and $80 for me.

I also estimated $100 a week for groceries, perhaps I can cut that down a little bit now that DH and I are working different shifts - no reason to cook a big dinner -  we just grab something to eat.  We don't eat out at all, except for birthdays and anniversaries.

 
12-20-2012 at 12:01 PM
hesakeeper
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cincychick35:

Thank you!

DH gets paid weekly and I get paid on the 15th and 30/31st of the month.  DH works very close to home. I, however drive about 80 miles a day.  I may be overestimating gas I figured $20 a week for him and $80 for me.

I also estimated $100 a week for groceries, perhaps I can cut that down a little bit now that DH and I are working different shifts - no reason to cook a big dinner -  we just grab something to eat.  We don't eat out at all, except for birthdays and anniversaries.



What kind of car do you drive? $80 would fill up my car twice. Hopefully you can cut down just to save money. 

DH and I budget $150 A MONTH for groceries. Granted, that differs by location, and I can get some free food at work, but in the decision to save money, consider cutting back. Sometimes shopping trips may take longer because of price comparison and whatnot, but it's worth it in the long run. Look for specials, save coupons, have a frequent shoppers card if possible, etc. I am no extreme couponer or anything, but when we receive store circulars in the mail we casually browse for items that we would plan on buying any, and clip those specific coupons. 

- Make. A. List. I cannot stress this enough. Extra spending comes from the splurges that happen when you're inside the store (don't shop hungry!)

- Stock up, but keep things simple. -- This means have things available in your home so you don't need to run out to the store for a quick ingredient, but also keep things simple because you don't need 10 boxes of cereal, 3 types of oatmeal, frozen waffles, pancake mix, 2 dozen eggs, etc. if you two barely eat breakfast. Yes, it is nice to have options, but when saving money, it may not be helpful. Change it up, yes, but you don't need a billion options at once.

- Frozen vs. Canned vs. Fresh -- There are various opinions when it comes to buying produce. DH and I buy fresh fruit, but only in small amounts that we know we'll eat before it goes bad. We buy a lot of frozen veggies when they're on sale. And we rarely buy canned food, but that's a personal preference. They're generally cheaper and when I see a great deal on them, I'll snap a couple. 

- Constantly check expiration dates. -- We do this for food AND coupons. If food expires, then it seems like a waste of money, IMO. We rarely have things go bad in our home. 

Lastly, you mentioned that since you work different shifts there's no reason to cook a big dinner. Well, sometimes a big dinner can be cheaper and serve as leftovers. Take leftovers to work for lunch. 
 
12-20-2012 at 12:10 PM
emily1004
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Can you get rid of your cable or do you have a contract with them? If you can, get up to date on your cell phone asap, and cancel the cable and phone. You don't need it. Also, your car payment is really high. I know cars aren't cheap but do you think you can get anything a little less expensive?

Are those minimum payments on your credit cards or is that what you owe?

Don't go into a restaurant or a shopping center unless you're working there. You should be able to find the money books other PPs have suggested at your local library so you don't have to pay for them. 

The most important thing is after you get through this start putting money away in an emergency fund, so if this ever happens again you won't fall behind on bills. At least 6 months worth of expenses. Also pay off all your credit cards and either cut them up or pay them off every month in full. Don't buy anything unless you can afford to pay it off interest free. Good Luck, it will be difficult but you can do it!


12-20-2012 at 12:21 PM
Sisugal
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Well, we all know that your spending has been out of control - prior to the lay off.  Your car is too expensive for your income while you have this amount of debt.  If you cannot afford to pay a car off in 3 years max - then you are buying too much car for your budget.  Consider selling it and buying a used vehicle that is fuel eficient. 

Freeze all credit cards in a block of ice - or cut them up - stop using credit - Kohls, Walmart, Lane Bryant, Capital one. You have been spending too much! Even for when your DH was making more money - that is too much debt and totally not necessary.  Meanwhile you were not saving. When your debt is gone, use credit responsibly by paying in full each month.  You do NOT need to carry a balance to build good credit.

Kay Jewelers - is that your engagement ring??  That is also more than  you can afford as well.

Pay minimums on all debt and extra on the highest interest rate card. Your interest rates may jump to highest rates since you missed payment - be prepared to see that happen. Stick with the extra PT job as long as possible until this is paid off and build an emergency fund.

Cell phone plans - reduce to lower cost plan or a pay as you go plan (TracFone etc)

Track EVERY penny that comes in and goes out - ALL of it. You will see pretty quickly where you can cut back. Your lifestyle needs to be downsized -

 
12-20-2012 at 12:44 PM
cincychick...
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I should have notated that the amounts I have for the credit card payments are the minimum amount due to bring the account current...not the normal monthly payment.

Credit Cards: (all past due)

Kohls - $171 - Normal min payment is $30

Walmart - $67 - Normal min payment is $25

Lane Bryant - $65 - Normal min payment is $25

Kay Jewelers - $560 - Normal min payment is $140

Capital One - $140 - Normal min payment is $50

I can't get rid of the car, I am upside down.

I am just having a hard time catching up...once I am all caught up I am planning on doing the TMM Debt snowball I just don't see how to make it work with all these accounts being past due. 

 
12-20-2012 at 1:34 PM
emily1004
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Do you have a second car that is paid off?  You said you H lives close to work, can he walk, bike or take the bus to work? I would also get on ebay or have a garage sale and just start selling everything I don't need. How much under water are you on your car? What about your house? Are you underwater in it? Last resort you might want to look in to see if you qualify to file for bankruptcy. But like I said, that is a very last resort. It sucks, but it does give you a fresh start.

12-20-2012 at 1:48 PM
cincychick...
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emily1004:
Do you have a second car that is paid off?  You said you H lives close to work, can he walk, bike or take the bus to work? I would also get on ebay or have a garage sale and just start selling everything I don't need. How much under water are you on your car? What about your house? Are you underwater in it? Last resort you might want to look in to see if you qualify to file for bankruptcy. But like I said, that is a very last resort. It sucks, but it does give you a fresh start.

Yes DH's car is paid off but it is a manual transmission that I, for the life of me, cannot get a handle on how to drive.

We just bought our house last year and we are not underwater.

Bankruptcy is not an option, that is a moral thing for me.  I got myself into this mess and I will work to get out of it.

Here is my plan, please let me know if it makes sense.  The end of this month, my DH and I will

Total Income                            2,377.50

Mortgage                                1,634.00

Key Jewelry                              280.00

Cell Phone Expense                 300.00

I can pay these three things to get me up to date on the mortgage, take a chunk out of the Kay and Cell phone bill.  Then I can see what Jan 15th will look like and pay bills like normal and throw any extra towards past due stuff.  By 1/15 I should have my first paycheck from my second job so that will help.

Does that sound like a viable plan? 

 
12-20-2012 at 2:07 PM
pamperedgi...
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Write everything down. How much you owe to where. Definitely paying something  to each bill is good so it's still an active account. Do any of the bills have grace periods? The ones that don't are more of a priority, IMO.

cincychick35:

I am in the process of reading TMM, I just don't know how to implement the debt snowball when I have all these past due bills.  Here is the breakdown:

DH: $1,800

Me: $2955


Mortgage: $817 which is 30 days past due

My car: $525

Cell phone: $600 (past due)

Cable/internet/phone: $120

Energy: $200

Gas/Groceries/Misc: $800

Car Insurance: $120

Credit Cards: (all past due)

Kohls - $171

Walmart - $67

Lane Bryant - $65

Kay Jewelers - $560

Capital One - $140

Student Loans: $100

It never used to be this tight, but DH went from making $3500 a month to $1800...it is culture shock.

Thanks ladies for your help, I appreciate it! 


i would pay:

Mortgage: $817 which is 30 days past due

 My car: $525

 Cell phone: $600 (past due)

Energy: $200

Gas/Groceries/Misc: $800

Car Insurance: $120

Student Loans: $100

make sure you call all the companies and let them know your situation. some companies will work with you to make scheduled payments. in my opinion credit cards are always the least important. but make the cuts that you can to get this taken care of a.s.a.p.


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12-20-2012 at 2:12 PM
vlagrl29
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sorry I didn't read all comments so this may have already been said.  I would call the companies that you are having a problem paying right now and tell them the situation.  electric and gas companies are flexible with giving you smaller payments for awhile.  as long as you a paying they don't care.  it's better than not paying at all

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12-20-2012 at 2:33 PM
oneplusone...
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I think it is great that you are taking responsibility and you are trying to find your way out of this mess.  However, definitely take some time to think about how you got into this mess (DH losing his job is not the answer).  From what you have posted, it seems that with your income alone, you should have been able to scrape by for 2 months while your DH was out of work (paying your mortgage, car and minimums on the CC's).  Out of the $2,955 you brought in, how come the $817 mortgage was not paid?  I don't get how out of all things, the roof over your head is not the first bill to get paid.  I think you have a hard time prioritizing money/bills, as it seems your normal everyday bills are the ones that didn't get paid...so where did all your money go??

Part of this process will be for you to realize what you did wrong and fix that.  You not only have to get out of this mess, but you have to move forward with the knowledge and will power to not let it happen again.  Cut up all CCs except for one that you will only use in case of a complete emergency.

Best of luck!


TTC#1 since April 2011. BFP#1 6/1/12, mmc discovered 7/17, D&E 7/20/12 BFP#2 3/1/13, EDD 11/15/13 
12-20-2012 at 2:36 PM
cincychick...
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pamperedgirl83:

Write everything down. How much you owe to where. Definitely paying something  to each bill is good so it's still an active account. Do any of the bills have grace periods? The ones that don't are more of a priority, IMO.

cincychick35:

I am in the process of reading TMM, I just don't know how to implement the debt snowball when I have all these past due bills.  Here is the breakdown:

DH: $1,800

Me: $2955


Mortgage: $817 which is 30 days past due

My car: $525

Cell phone: $600 (past due)

Cable/internet/phone: $120

Energy: $200

Gas/Groceries/Misc: $800

Car Insurance: $120

Credit Cards: (all past due)

Kohls - $171

Walmart - $67

Lane Bryant - $65

Kay Jewelers - $560

Capital One - $140

Student Loans: $100

It never used to be this tight, but DH went from making $3500 a month to $1800...it is culture shock.

Thanks ladies for your help, I appreciate it! 


i would pay:

Mortgage: $817 which is 30 days past due

 My car: $525

 Cell phone: $600 (past due)

Energy: $200

Gas/Groceries/Misc: $800

Car Insurance: $120

Student Loans: $100

make sure you call all the companies and let them know your situation. some companies will work with you to make scheduled payments. in my opinion credit cards are always the least important. but make the cuts that you can to get this taken care of a.s.a.p.

Thanks!

Mortgage: $817 which is 30 days past due

I would really like to pay the past due amount and the current amount on 12/31 since this is due Jan 1st 

My car: $525

This is not due until 1/15 so I can pay it next paycheck. 

Cell phone: $600 (past due)

I had planned on paying the 300 past due amount on 12/31 and then paying an additional 300 on 1/15 to bring it current. 

Energy: $200

Gas/Groceries/Misc: $800

I don't need this much for a two week period. 

Car Insurance: $120 

Not due to 1/15 

Student Loans: $100

This is actually paid until 1/31 

 
12-21-2012 at 8:32 AM
Tally879
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I would really consider changing your cell phone plan, how many months behind are you for the bill to be 600?  Smart phones are nice, but they really aren't necessary.  I would also think you can get by on $40 bucks a week for groceries for awhile.  PB&J is cheap, its not fun, but you'll save a couple of hundred a month.

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12-21-2012 at 8:58 AM
cincychick...
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Tally879:
I would really consider changing your cell phone plan, how many months behind are you for the bill to be 600?  Smart phones are nice, but they really aren't necessary.  I would also think you can get by on $40 bucks a week for groceries for awhile.  PB&J is cheap, its not fun, but you'll save a couple of hundred a month.

Our regular cell phone bill is $300.  We have 5 phones on our plan.  I would love to change plans but darn those contracts.  

As the contract terms end we are discontinuing the extra lines. 

 
12-21-2012 at 12:20 PM
cincychick...
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oneplusoneistwo:

I think it is great that you are taking responsibility and you are trying to find your way out of this mess.  However, definitely take some time to think about how you got into this mess (DH losing his job is not the answer).  From what you have posted, it seems that with your income alone, you should have been able to scrape by for 2 months while your DH was out of work (paying your mortgage, car and minimums on the CC's).  Out of the $2,955 you brought in, how come the $817 mortgage was not paid?  I don't get how out of all things, the roof over your head is not the first bill to get paid.  I think you have a hard time prioritizing money/bills, as it seems your normal everyday bills are the ones that didn't get paid...so where did all your money go??

Part of this process will be for you to realize what you did wrong and fix that.  You not only have to get out of this mess, but you have to move forward with the knowledge and will power to not let it happen again.  Cut up all CCs except for one that you will only use in case of a complete emergency.

Best of luck!

Well my DH was self employed so he did not receive a regular paycheck.   Some months were great and others not so much.  Towards the end of summer into fall his income was almost nonexistent. And yes, we have always been of the mindset that the house payment is priority but in November it was pay the elec bill to maintain service or pay the house payment and be without electric. (Not making excuses - it is just the way it is.  We are well aware we have screwed things up along the way)

I am so glad that DH now will have a regular paycheck, it will make it a ton easier to make an accurate budget. 

 
12-21-2012 at 3:01 PM
oneplusone...
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cincychick35:
oneplusoneistwo:

I think it is great that you are taking responsibility and you are trying to find your way out of this mess.  However, definitely take some time to think about how you got into this mess (DH losing his job is not the answer).  From what you have posted, it seems that with your income alone, you should have been able to scrape by for 2 months while your DH was out of work (paying your mortgage, car and minimums on the CC's).  Out of the $2,955 you brought in, how come the $817 mortgage was not paid?  I don't get how out of all things, the roof over your head is not the first bill to get paid.  I think you have a hard time prioritizing money/bills, as it seems your normal everyday bills are the ones that didn't get paid...so where did all your money go??

Part of this process will be for you to realize what you did wrong and fix that.  You not only have to get out of this mess, but you have to move forward with the knowledge and will power to not let it happen again.  Cut up all CCs except for one that you will only use in case of a complete emergency.

Best of luck!

Well my DH was self employed so he did not receive a regular paycheck.   Some months were great and others not so much.  Towards the end of summer into fall his income was almost nonexistent. And yes, we have always been of the mindset that the house payment is priority but in November it was pay the elec bill to maintain service or pay the house payment and be without electric. (Not making excuses - it is just the way it is.  We are well aware we have screwed things up along the way)

I am so glad that DH now will have a regular paycheck, it will make it a ton easier to make an accurate budget. 

That makes a lot more sense - from your original post it was hard to tell there were issues before the 2 months of unemployment, but self-employment is not easy, that is for sure!  I am really pulling for you to get through this as quickly as possible.  Try not to get discouraged along the way, I sincerely wish you good luck!


TTC#1 since April 2011. BFP#1 6/1/12, mmc discovered 7/17, D&E 7/20/12 BFP#2 3/1/13, EDD 11/15/13 
12-22-2012 at 3:09 PM
MommyLiber...
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Hey. I know your DH just got this new job and you to work different shifts, but could he pick up a few PT shifts per week at a customer service call center? Fast food joint? Or other place that has PT flexibility? Even if he did that for 6 months, making minimum wage, it would help get out of the tough spot.

3, 8 hour shifts per week at $7.85 (2013 Ohio figure for min wage) is $188.40. Over 6 months - that's $4,898 (before taxes, of course). But still, that would be well over $2,500 for you to pocket once taxes were removed.

I know you have contracts on your phone, etc. Do the math. It may actually make sense mathematically to break the contracts (paying a fee to do so) just to be able to cancel cable, downgrade phones, etc. If you have $600 in phone costs and you have to pay $100 in fees to cancel, then you could redo your plan for $200 per month, you'd come out ahead in the long-run since you'd be saving more money...you would recoup that fee in a month or two. It just depends on the numbers.

 
12-22-2012 at 5:59 PM
vlagrl29
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cincychick35:
oneplusoneistwo:

I think it is great that you are taking responsibility and you are trying to find your way out of this mess.  However, definitely take some time to think about how you got into this mess (DH losing his job is not the answer).  From what you have posted, it seems that with your income alone, you should have been able to scrape by for 2 months while your DH was out of work (paying your mortgage, car and minimums on the CC's).  Out of the $2,955 you brought in, how come the $817 mortgage was not paid?  I don't get how out of all things, the roof over your head is not the first bill to get paid.  I think you have a hard time prioritizing money/bills, as it seems your normal everyday bills are the ones that didn't get paid...so where did all your money go??

Part of this process will be for you to realize what you did wrong and fix that.  You not only have to get out of this mess, but you have to move forward with the knowledge and will power to not let it happen again.  Cut up all CCs except for one that you will only use in case of a complete emergency.

Best of luck!

Well my DH was self employed so he did not receive a regular paycheck.   Some months were great and others not so much.  Towards the end of summer into fall his income was almost nonexistent. And yes, we have always been of the mindset that the house payment is priority but in November it was pay the elec bill to maintain service or pay the house payment and be without electric. (Not making excuses - it is just the way it is.  We are well aware we have screwed things up along the way)

I am so glad that DH now will have a regular paycheck, it will make it a ton easier to make an accurate budget. 

My DH is self employed and so am i.  it was hard to get use to at first.  now that i have our budget fine tuned I tell him "you have to bring home at least x amount of money each month"  that seems to work much better now.  my income is extra.  his slow months are Dec-Feb.  But he saves during the busy months to get us thru the slow ones. 


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12-22-2012 at 9:04 PM
cincychick...
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MommyLiberty5013:

Hey. I know your DH just got this new job and you to work different shifts, but could he pick up a few PT shifts per week at a customer service call center? Fast food joint? Or other place that has PT flexibility? Even if he did that for 6 months, making minimum wage, it would help get out of the tough spot.

3, 8 hour shifts per week at $7.85 (2013 Ohio figure for min wage) is $188.40. Over 6 months - that's $4,898 (before taxes, of course). But still, that would be well over $2,500 for you to pocket once taxes were removed.

I know you have contracts on your phone, etc. Do the math. It may actually make sense mathematically to break the contracts (paying a fee to do so) just to be able to cancel cable, downgrade phones, etc. If you have $600 in phone costs and you have to pay $100 in fees to cancel, then you could redo your plan for $200 per month, you'd come out ahead in the long-run since you'd be saving more money...you would recoup that fee in a month or two. It just depends on the numbers.

Thanks ML.

That would be a viable plan if my DH didn't already work 12 hour shifts and his work is labor intensive.

He is planning on doing side jobs in the field he was laid off from and has one lined up beginning of January. That is better money in one day than a PT job would be in a week.

I just started my PT job today so the figures you mention above will apply to me and will be helpful.  

We just got ourselves in a bind and we will get out.  Both of us are pretty responsible with money (prior to us getting married we both were single parents so you kinda have to be careful of how you spend money) 

Somehow the bill paying thing fell on my shoulders and I hate doing it, DH will now be taking over.  Even though this stinks, it was good because it forced us to talk about money. 

 
12-27-2012 at 10:19 PM
i_b_winkn_...
Not Ranked
Joined on 10-28-2009
SF Bay Area
312 Points
i_b_winkn_at_u is not online. Last active: 05-11-2013, 2:30 PMNewbie
cincychick35:

Tally879:
I would really consider changing your cell phone plan, how many months behind are you for the bill to be 600?  Smart phones are nice, but they really aren't necessary.  I would also think you can get by on $40 bucks a week for groceries for awhile.  PB&J is cheap, its not fun, but you'll save a couple of hundred a month.

Our regular cell phone bill is $300.  We have 5 phones on our plan.  I would love to change plans but darn those contracts.  

As the contract terms end we are discontinuing the extra lines. 

 

Why do you have 5 lines?

 
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