I need of major MM help.

[fayeelle]

I feel completely overwhelmed financially. We live paycheck to paycheck, have no efund and have $40 in savings.

DH has 2 children from a prev relationship (50/50 custody) and I am expecting my first in Feb.
We are curently barely keeping our heads above water (as you can see) and everytime we get even the slightest bit ahead something inevitably happens. I'm starting to have small panic attacks about next year.

Approx budget:
Bring home - ~$3600
Mort/rent - $1000
Car payments (2) - $615
Elect - $330
Water - $175
Ins. (3 vehicles) -$145
Phone - $200
Tv - $40
Internet $70
CCs (2) -$100
SLs (2) - $250
TaeKwonDo- $100
Med bill - $75
The rest goes to gas and food

DH also has medical debt totalling around $4k (in collections) and we got a loan from his dad for our wedding that we still owe around $4k on. And were about to start getting bills for this pregnancy any day now.



My employer did not have enough employees interested in STD and the 2 individual policies I found did not cover mat. leave. I am be able to use all of my PTO early which gives me 3 wks pay but thats it. I'm hoping to discuss working from home during some of that time if possible just to keep some cash flow coming. But thats up to our newly hired, not yet started manager.

I see what we can do long term to help....1. Get this one stupid part for one of the cars (we have been on a waitlist for a used part and sill waiting-$140 used part or $350 new) and then sell the car. DH expects $10k but I thnk it will realistically be around $8k. With that we can use $3k to fix car number 2 which gives us around $5k to pay that loan off which frees up $220/mth.

2. We want to sell the house and buy something better suited to us. With the equity we can pay off car 3 and student loans which frees up $630/mth and still put 20% down and keep the same payments.

In the short term I'm seriously considering a refi on my car. I really, really don't want to but I can't see another way to help us right now. The intrest rate is lower than my current one for sure, but most of my payments have gone towards intrest and not principle. My payments would be almost cut in half and I woud have no penalty for early payoff.

After reading all this any and all advice is appriciated. Am I just making things worse by doing the refi? How can I make this better?

[doobeedoo]

first of all, hugs. It sucks to be worrying about money at the same time as you are bringing a new life into the world. Give yourself permission to wallow and then do some hard work.

First, why 3 cars?
Second, when are you due?

You have a debt issue, for sure, and I will let other mmers weigh in on the best ways to cut expenses (I am not particularly good at that). It doesn't seem like you have much left for necessities like gas and food, let alone extras, so I would also focus on getting more income somehow. Can one or both of you get a part time, even if it is occasional, to get your heads above water before the baby comes? Things like babysitting, pet or house sitting are really flexible and tend to pay pretty well. Something longer term, on a PT basis or a better paying FT job would also be helpful but I know that is much easier said than done.

[karinothing]

You should be able to lower the phone payment. That sticks out to me. Tmobile offers unlimited for like $50 or something. You can also go with pre-paid phones or something like cricket or ting for less expensive service. You can even cancel data and just use flip phones.

Is the Taekwando for the kids? If not, I would cancel. Talk to your SL company and see if you qualify for income based or pay as you earn to see if you can reduce that at all.

I would try to reduce that electric? Is that for the summer? Hopefully it will be lower now that it is cooling off. But I would adjust your thermostat to get that under control.

What about childcare after the baby comes? How long are you taking off?

[Velvetshady]

Sept 19, 2014 11:26:19 GMT -5 fayeelle said:

Approx budget:
Bring home - ~$3600
Mort/rent - $1000
Car payments (2) - $615--what are the interest rates and balances?
Elect - $330 -- this seems high
Water - $175
Ins. (3 vehicles) -$145
Phone - $200 -- how many phones is this and can you cut down to a lower plan?
Tv - $40 -- you know the MM response here
Internet $70
CCs (2) -$100 -- what are balances and interest rates? Are you still using them? If so, how much per month is being added to these?
SLs (2) - $250
TaeKwonDo- $100 -- assuming this is for the kids? If not, cut for now.
Med bill - $75
The rest goes to gas and food --what do you *need* to spend in these categories each month? You really shouldn't be lumping budget for "needs" into whatever is left. Food is far more important than a cell phone. And so is the ability to get to work.

[changedname]

Pay for the new part for the car and sell it asap. You need the $ now and the different between the new and used isn't that much.

Your electric and water bill is very high. I'm in Canada so use both heat and AC throughout the year and my bill for water and electric combined is about $100 a month. (1700 sq ft house). Start unplugging all the phantoms etc.

[Deleted]

I'm assuming your electric is high due to the summer ending but if not I'd look to get that down. Also, the water seems high to me is that monthly?

Does your DH have to pay child support? That's not listed in your budget, also try making a budget for gas and food as they shouldn't just be labled was the extra pay.

Also, your phone is high are you able to talk to the carrier about cutting the bill? I have 2 iphones, one with a higher data limit that I pay around $95 a month for. Check with your work or with DH's work to see if they offer any discounts on cell phones.

If you have 3 cars are you able to sell one and just keep the other two? This will also bring your insurance down.

[fayeelle]

Thank you all for chiming in!

As to why we have 3 cars.....where do I start? We have mine and DH has 2. DH found an suv for a steal earlier this year and we needed a car with more seating so he jumped on it. He put $2k down and was selling his car for the difference. The "quick fix" to his car wasn't which is why we are waiting on another part. 1 month in the effing engine blew. So now I am left paying insurance (put both cars in "storage" for a cheaper rate) and 1 car payment for shit that isn't running. Its a sore spot for me.

Mu due date is 2/1 but this monster measures big so I could easily go end of Jan.

I can for sure try to lower the phone. We are with Verizon and they charge out the nose for everything. Our current plan is for 700 mon shared (lowest avail) and unlimited text. DH has 2g data and I have 6(but charged the same price as 2). We are under contract for another year at least which is why I haven't looked into another company.

[mich1]

Are any of the cars upside down? Between your car payments, insurance and maintenance/gas, that's taking up 25% of your income. Since one of the cars is paid off, you've got one that is not costing you much. You need to sell the other 2 that have loans on them (hopefully not at a loss) and buy something cheaper, with a payment less than $200.

How much of the $3600 you take home is your salary? You have 3 weeks of PTO, so you need to figure the worst case scenario about your pregnancy, assuming your new manager's not going to let you work from home. And in reality, why should he/she? You will have a new infant and will very likely not be putting in the time at work that you would on the job. How are you going to pay for daycare? There is nothing in your budget there and you need to count on needing at least $1000/mo (if not more). That's just not there.

[karinothing]

Sept 19, 2014 12:14:29 GMT -5 fayeelle said:

Thank you all for chiming in!

As to why we have 3 cars.....where do I start? We have mine and DH has 2. DH found an suv for a steal earlier this year and we needed a car with more seating so he jumped on it. He put $2k down and was selling his car for the difference. The "quick fix" to his car wasn't which is why we are waiting on another part. 1 month in the effing engine blew. So now I am left paying insurance (put both cars in "storage" for a cheaper rate) and 1 car payment for shit that isn't running. Its a sore spot for me.

Mu due date is 2/1 but this monster measures big so I could easily go end of Jan.

I can for sure try to lower the phone. We are with Verizon and they charge out the nose for everything. Our current plan is for 700 mon shared (lowest avail) and unlimited text. DH has 2g data and I have 6(but charged the same price as 2). We are under contract for another year at least which is why I haven't looked into another company.

Most companies will buy out your cell phone contract now.

Do you have to have insurance on the cars that aren't running? You should be able to cancel or freeze that.

[fayeelle]

Hit post too soon!

Back to the phone. We can certainly take off data but its really our only reliable internet source and I use my phone to pay all bills. Our computer barely works and won't even turn on some days.

Taekwondo is for SS2 and I really don't want to cut it esp. with a new sib on the way. SS1 does soccor which we also pay for but it was a one time $150 fee.

Our electric is stuck where it is. We were on a payment plan for a year and they never checked our meter. At the beginning of the year we had $1k in late fees so they rolled those into our bill putting us at $250ish. Somewhere along the line they applied our payment to only one part of the bill which made us late again resulting in an immediate payment of $650 and a bill for over $300. I tried for over a month to fight it. They took responsibility for the mix up but will not work with us at all. They are the only company we can use so we are stuck.

DH talked to his SL company and this is the best deal they said they can give him.

DH doe pick up PT work and that extra goes to things like the electric bill snafu, his random ticket, school shopping and most recently a large vet bill. Thats what puts us ahead slightly and then goes. My career field sucks pay wise and always will (vet tech/assistant) but I would hate doing anything else. I'm up for review in Jan where I could potentially get a bump in pay but I'm not thinking that is likely until I get back from mat. leave.

Childcare I can't even comprehend right now.

[changedname]

Sept 19, 2014 12:24:49 GMT -5 fayeelle said:

Hit post too soon!

Back to the phone. We can certainly take off data but its really our only reliable internet source and I use my phone to pay all bills. Our computer barely works and won't even turn on some days.

Taekwondo is for SS2 and I really don't want to cut it esp. with a new sib on the way. SS1 does soccor which we also pay for but it was a one time $150 fee.

Our electric is stuck where it is. We were on a payment plan for a year and they never checked our meter. At the beginning of the year we had $1k in late fees so they rolled those into our bill putting us at $250ish. Somewhere along the line they applied our payment to only one part of the bill which made us late again resulting in an immediate payment of $650 and a bill for over $300. I tried for over a month to fight it. They took responsibility for the mix up but will not work with us at all. They are the only company we can use so we are stuck.

DH talked to his SL company and this is the best deal they said they can give him.

DH doe pick up PT work and that extra goes to things like the electric bill snafu, his random ticket, school shopping and most recently a large vet bill. Thats what puts us ahead slightly and then goes. My career field sucks pay wise and always will (vet tech/assistant) but I would hate doing anything else. I'm up for review in Jan where I could potentially get a bump in pay but I'm not thinking that is likely until I get back from mat. leave.

Childcare I can't even comprehend right now.

Can you use free wifi at the library/coffee shop, someone's house? I took the data off my phone for my mat leave (1 yr) and save about $50 a month all said and done. I just hook into wifi everywhere.

[crashgizmo]

Sept 19, 2014 12:24:49 GMT -5 fayeelle said:

Hit post too soon!

Back to the phone. We can certainly take off data but its really our only reliable internet source and I use my phone to pay all bills. Our computer barely works and won't even turn on some days.

Taekwondo is for SS2 and I really don't want to cut it esp. with a new sib on the way. SS1 does soccor which we also pay for but it was a one time $150 fee.

Our electric is stuck where it is. We were on a payment plan for a year and they never checked our meter. At the beginning of the year we had $1k in late fees so they rolled those into our bill putting us at $250ish. Somewhere along the line they applied our payment to only one part of the bill which made us late again resulting in an immediate payment of $650 and a bill for over $300. I tried for over a month to fight it. They took responsibility for the mix up but will not work with us at all. They are the only company we can use so we are stuck.

DH talked to his SL company and this is the best deal they said they can give him.

DH doe pick up PT work and that extra goes to things like the electric bill snafu, his random ticket, school shopping and most recently a large vet bill. Thats what puts us ahead slightly and then goes. My career field sucks pay wise and always will (vet tech/assistant) but I would hate doing anything else. I'm up for review in Jan where I could potentially get a bump in pay but I'm not thinking that is likely until I get back from mat. leave.

Childcare I can't even comprehend right now.

If this is true you should cancel your internet at home. $70/month for a computer that barely works is ridiculous. 

When you say your DH talked to this SL company, did he ask about forebearance? They usually won't just offer that up. I did it years ago when I went through a divorce and it helped tremendously. 

I agree with the others that this is a serious problem that could get worse. Is there any way the loan from his dad could be put off a little while, just to get a little money in savings? I know that's not ideal, but you have limited options. 

[sporky]

I don't know where you live but that water bill is insane. You really need to lower your phone, car, and TaeKwanDo costs. Switch phones/carriers, sell one of the cars that has payment, and stop the TKD for now.
EDIT: I see the TKD is for one of the kids... Time to shop around for free or cheaper classes. 

[delawarejen]

First, I'll give you a hug, because this is really stressful, especially while pregnant.

Second, the tough love.

Read Dave Ramsey's The Total Money Makeover (it's free at the library). He considers pregnancy to be a "storm cloud" situation anyway, and you've got a Hurricane coming. If you read that, you will understand why the Tae Kwon Do has to go. You also have to fix the car situation. You mentioned past-due bills in the past. You are standing on the edge of a cliff, and daycare is going to drop you right off the edge next year. I'm worried for you and I don't even know you.

I'm pretty sure there will be second jobs in your future (or your husband's), but you can fix this. Your housing is reasonable, for one thing. Your cars are not.

How much of the income is yours, and how much is your husband's?

[kadams767]

If your internet is not reliable, can you cancel it? You're paying $70/month for a service you claim doesn't work. You really aren't in a position to pay twice for internet service, so if you need to keep the phone data for internet, I'd cancel your actual internet provider.

Also, your water is $175 every MONTH?

[karinothing]

I am not sure where you live, but I always recommend this expecially as the election season is heating up. Look into paid canvassing for candidates. It sucks adn is a lot of walking, but can bring in some extra cash.

[thatgirl2478]

Sept 19, 2014 12:14:29 GMT -5 fayeelle said:

I can for sure try to lower the phone. We are with Verizon and they charge out the nose for everything. Our current plan is for 700 mon shared (lowest avail) and unlimited text. DH has 2g data and I have 6(but charged the same price as 2). We are under contract for another year at least which is why I haven't looked into another company.

We're with VZW, we have unlimited minutes/text and share 2g data between DH and I.  We pay $135 monthly.  Why do you need so much data?  Are you really using it ALL?  Can you use wifi at home and avoid downloading BIG things while you're out of wifi range?  Call them and see if they can do better... even under contract you can change your plan around.

ETA - I see you're using the phones for all internet.

As for the house - you need to think about that realistically before you sell it.  A) how much is it REALISTICALLY worth and how much do you still owe?  B) how much will the closing costs be (we estimated about 10% of sales price and it was pretty close)?  C) how much would it cost to rent something reasonably close to work etc?  D) If you were to consider buying another house, would it really save that much?  Right now we pay $942 for our mortgage on the house that we bought for $135k.  Without moving to a real fixer or WAY out of town we couldn't buy an equal house for that price now.  Remember that when you move to a new place most people want to spend $$ to redecorate to their tastes/make fixes that sneak up etc.

[aurora]

We pay $140/month (including all taxes and fees) on VZW for 2 phones with unlimited minutes, unlimited text, and 2 Gb data. It was a couple of months ago that we started, but it was only $10/month to go up to the next data amount, which was maybe 4 Gb? Anyway, my point is that you should be able to get a lower-priced plan, even with VZW. I'd estimate you could save ~$40 month this way.

If your home internet isn't reliable, drop that to save $70/month.

I know it's cliche here, but you should also cut cable and save an additional $40/month. You can get an antenna for your local broadcast channels.

Taking all 3 of these suggestions will save you $150/month.

Track your spending so you know how much you are actually spending on "the rest" (food etc.). Then, figure out ways to budget and cut back those amounts (e.g., meal planning, eating fewer meats, etc.).

In the long term, you need to budget for all of those unexpected expenses. We have line items in our budget for monthly savings for car maintenance, home maintenance, health care, etc. - all of those things that you know are going to come up, you're just not exactly sure when or why.

Is there anything at all you can sell to get the $ to buy the part new so you can sell the car? That's really killing you, and preventing you from putting anything aside for when your baby arrives.

[flygirl22]

Focus on fixing and selling the cars. Where do you live? Can you get away with having one car and taking public transit otherwise? If not, get rid of one car and make sure you are down to one car loan.

Your phone bill is high. Work with Verizon to get this lowered, you should easily be able to cut this by $50-$70 based on their advertised rates. Are you on a family plan? T-Mobile will buy you out of your current contract, they will be cheaper than Verizon.

Your electric and water bills are crazy high. Why?

You spend twice as much on your cars (Btw gas, insurance, and payments) vs. food. Your priorities are out of whack here.

[mcsangel2]

What is your plan for childcare? If you aren't already on a waiting list for a daycare, then I think you're going to have to leave your job. :-( Most daycares don't accept babies younger than 6 weeks, I think, too.

I think you should consider selling your house asap and moving into the cheapest apartment you can (That your DH can cover with his salary). I'm sorry you're going through this.

[fayeelle]

Sorry if this my replies are all spotty and none of you are tagged...jumping here in beween patients.
Believe me, I feel like I'm in crisis. I'm doing everything possible to not run around like my damn hair is on fire. I really, truly appriciate all the feedback....tough love and all!

To answer some more of your questions:
To clarify my water bill is $175 every 2mths so $88ish a month. I missed adding that, sorry guys. It frees up some funds but not much.

Cars: My car almost has to be upside down. I bought it new with zero down after my other one was totalled and most of my monthly payment goes to interest. I beleive I owe around $9k and pay a shit ton of interest but don't know the exact number, calling them is on my to do list. DH owes $4.5k on his and holds a much lower intrest rate (around 9%). This car also needs an engine which will run close to $3k. The 3rd car is paid off but needs the part. I may ask his dad (as much as I hate to) to front us the money for the new car part. This is where I think of the refi with my car. Selling would put me in a loss or result in breaking even leaving nothing leftover. Last time I checked the refi puts my payments at $190. I know it sounds shitty of me but I'm terrified of buying another used car and having more mechanical problems. The 2 non running vehicles are considered in storage so we are not being charged as much for that.

My take home monthly is $1600. OT is avoided here at all costs. Most I am allowed to get is maybe an hour or so a week. I am currently working 32hrs on weeks we have SS's (their mom has them in an out of district school and I drive them in the mornings thus limiting my availability) and 38 on weeks we don't. The reason I'm hopeful about doing some work from home is because 4 of us will be on mat leave at the same time and relief work is non existent for my position. The hospital owner is concerned about not having enough people and mentioned that he would prefer I get the needed income to ensure work gets done. But there is a lot that needs worked out.

I will have DH call on his SL and ask for a forbearance. Thank you so much for the suggestion! I do feel this is an emergency situation.

DH signed us up on DirectTV which we are contracted with for the next 2yrs...its the cheapest plan and i don't know how to get out of it. I'm cutting internet now, great suggestion. I've been keeping it so DH can use wifi at home. He uses all of his data monthly. I will also be calling VZW to discuss a cheaper plan asap or switch carriers all together.

CC1 has a balance of $650, 14% apr. No new charges on it.
CC2 has a balance of $400, huuuuge apr because I didn't get my charge paid off in 6mths (Care Credit)

Thankfully my FIL has been great about the loan. He is not pressuring us at all and has been very understanding.

Ultimately we would like to keep SS2 in TKD, esp with the new sib. He pledged 2yrs in order to get his black belt and I think its been right at that now. I may talk to the owner and ask about a reduced rate for only 1 class a week instead of unlimited.

[doobeedoo]

So back to making more money, which almost certainly has to be part of the equation. Are there things you can do right now to bring in extra cash? Sounds like your DH is already doing some PT work--can that be increased? What can you do? I would take any/all extra income and save it...to sock away a few hundred dollars or even if you can 1000+ right now would be very helpful for when you are on leave. Also, can the one car be sold "as is" so that you don't have to invest the money just to sell it?

[mich1]

Are you getting a large tax refund each year? If you are, you need to adjust your withholding so that it is as close to 0 as you can get. As you have no wiggle room, I suggest maybe going a little higher than 0 but if you are seeing a tax refund of $2000-3000 each year, that could be another $250 you add each month to your budget.

[fayeelle]

Oh...and housing. I'll do my best to explain that. PDQ this part.
*poof* crazy home situation part gonzo, thanks for the replies!

We can buy a little futher out for around $200k. Last year we were working with a broker for preapproval and rough numbers were a mortgage payment/ins. etc at $1150.

We both work within 15min of home now, 30 min from SS's school. The cheapest apt is $1500. Renting seems like a terrible option

[mich1]

Here's something to consider....

If you just bought a new car that has a high interest rate, and your DH has a used car for 9%, chances are you are not going to be able to even GET a new mortgage, even if you did find a cheaper house.  It sounds like your credit has taken a whopping hit recently, with accounts in collections and needing to pay past utility bills.  Even though utility companies cannot help your credit score, not paying them can hurt it.

Because of this, even refinancing your new car to a lower interest rate may be difficult, if not impossible.

As your housing expenses are less than 1/3 your income, you're good there.  I wouldn't look on moving.  Moving costs money and you are in a good location with regards to work.  So even though your situation is difficult, it makes the most sense to grit it out while you are trying to get the rest of your house in order.

[msmerymac]

I don't see you saving much if you buy a cheaper house. If you sell for what you think you can get, minus what you owe on the house, minus 10% for realtor fees and closing costs, you can walk away with $55k, best case scenario. A 20% down payment on a $200k house, which is less desirable because it seems like it would increase your commute time (more gas) and the property would be worth less, is $40k. (This is, assuming, you will actually own your current house outright one day.) $1125 is also more than you pay now. The extra $15k you'd get from the house sale could easily be spent on closing costs, moving, start up costs, and any little fix or item that comes up in the new house.

I'm assuming the electricity snafu is temporary? Only for this year? How many more months do you have to pay that amount?

Can you get away with 1 car? If the SUV with the blown engine is going to be your best bet, and you aren't totally upside down on your car loan, I would sell your car AND the car that needs the part.

How big is your house? Anyway to rent a room to a friend? How many bedrooms do you need?

[krystee]

How much do you make? Could you make the same if you stay home and take in two other kids and do in-home daycare? Or as a nanny in a position where you can bring the baby? Because I do not see how childcare will fit into your budget unless you are able to get rid of both cars and increase your income. Another option would be to get a FT evening/weekend job like a server or bartender so your H could watch the baby and you wouldn't need child care.

What does he do? Can he make more money by switching companies or applying for a promotion? Can be pick up a newspaper delivery job in the early mornings to bring in a few hundred dollars more?

Your budget is missing a lot of categories ours has--gas, food, gifts, medical, haircuts, life insurance..so I worry you are spending a lot more than appears here.

[Poppy]

If you sell for 250k, you can expect to pay 6%=15k in closing costs. You would then have 65k after paying off the relatives. If you bought a 200k place, you'd need 40k for a 20% DP leaving you 25k to pay off debt. Is that enough to do car 3 and SLs like you initially mentioned?

Let me know if you want me to DD numbers.


ETA: Good points from PPs about other costs. I don't see how you can access to equity for more breathing room without moving, though, because of the weird ownership situation.

[fayeelle]

I agree.....we have got hit quite hard. The house thing would not be immediate by any means. Thats out there a bit and more long term.

To clarify with the car and utilities. .. the car was purchased in 2010 prior to DH and I dating so thats been on my credit for some time now.

With electric we have always, always paid our bill. I hate that it says late because we were given no option to recify that beforehand. We were never notified and the $1200 bill was marked late the first time they saw it. Our electric company allocated our payment incorrectly and applied our full payment to the monthly bill and zero towards the back end and as customers I have no way to distributing it another way. We really, really got screwed. I hate that they have a monopoly. I would be gone in a hot minute.

I just called VZW to ask about our bill. They can lower it $20. Wow. No incentive for a 10yr customer to stay. I will certainly look into other carriers this weekend.

I'm cutting internet at home and using my phone as a hotspot when DH is with me so he can bite off my data since adding to his plan keeps us at the exact payment.

[fayeelle]

Sept 19, 2014 15:34:41 GMT -5 Poppy said:

If you sell for 250k, you can expect to pay 6%=15k in closing costs. You would then have 65k after paying off the relatives. If you bought a 200k place, you'd need 40k for a 20% DP leaving you 25k to pay off debt. Is that enough to do car 3 and SLs like you initially mentioned?

Let me know if you want me to DD numbers.


ETA: Good points from PPs about other costs. I don't see how you can access to equity for more breathing room without moving, though, because of the weird ownership situation.

Thats how I ran numbers too. It would *just* work.
My car is about $9k payoff with some of that still being intrest so less that.
SL total $15k. One is $5k and the other $10k