Getting Out of Debt and Staying Out
Today is another work day for me, back at the hospital, and just another day still in debt up to my eyeballs. Oh well, I guess it is just meant to be, I owe, I owe so off to work I go. I suppose that is the motto for a lot of us these days, who are basically living from paycheck to paycheck. About the only thing redeeming about this week at work is that Monday is a holiday, and for that I am paid time and a half, and will make my paycheck a bit larger on the 13th of June. It really doesn't much matter as it is already spent on monthly bills. At least my wife is now working an average of 25 hours per week, and will receive a decent amount on her paychecks which will help to cover our monthly expenses. We actually may even be able to meet the financial arrangements I made with the bank for my auto loan. However, at this point that will still leave us with a gap between what we owe each month and trying to get ahead.
If I didn't have to watch my grandbaby every week for several hours on my days off, I could actually put in the hours necessary to earn some decent extra money each week, which would certainly make a big difference in our financial situation. My problem is not credit card debt as we have only one credit card, and although we are close to maxing it out, I am still able to make at least the minimum payments each month. The biggest problem is our secured debt of two car loans with combined monthly payments of over $700 each month. I have negotiated with mine to accept partial payments every two weeks until we get caught up, but still have to work out a similar agreement with my wife's car loan. Although I finally filed our taxes after receiving my grandbaby's social security number, and am entitled to a rebate of over $1100, it is doubtful we will see any of that as we owe the IRS for back taxes. I am hopeful however, that between that amount and the $389 refund we are due, it will erase that back debt, and we will no longer have to pay the IRS $100 a month as we have been doing for the past nearly 3 years.
Even with the extra $100 a month that would only make a partial dent in what we owe otherwise, but at least it offers some help. Better to have the extra $100 a month as income, as it will help with paying other more pressing bills, like the two car payments each month. I guess that's at least one thing positive, although I would have rather had the $1100 plus to get both car loans current. Oh well, I guess it took us a while to get into this mess, and it will more than likely take a longer period of time to get out of it. What makes things worse is the continually rising gas and food prices, with no real help in terms of additional income from our employers. Wait I forgot, my wife is scheduled for a dollar an hour raise. That extra dollar an hour will also help, so I guess we might just be in much better shape than I thought by the end of June. Of course that's if we can manage to get through the month of June without incurring any further debt. Did I mention the rising gas and food prices, over which we have no control, or do we. My job at least has me working close to home and using very little gasoline. Unfortunately, although my wife works locally, she has clients who live quite a distance from home, and uses more than $20 in gas per week, and that doesn't even come close to filling her tank.
I guess we can't have everything, but at least I think I can see some light at the end of a very dark tunnel. Rest assured with our luck something will happen over the next few weeks that will likely change all that, as we are used to just that type of thing happening. Unfortunately, the best laid plans always seem to have a bump or dip in the road, and always at the least convenient time. If I sound rather cynical, please forgive me, but the truth is sometimes a bitter pill to swallow. I know that there are others out there who are probably in a lot worse shape than we are, but when it is happening to you, you really feel like you are alone. I think that's why I enjoy this website so much, it lends different perspectives on financial problems people are experiencing, and offers suggestions to help. You just have to find a plan that works for you and your particular situation, and put it into action. Doing something is always better than doing nothing, and once you do get caught up, whether it be through debt counseling, consolidation, bankcruptcy, or some other means, remaining vigilant and proactive is the key to not falling back on bad habits.
Once you are current, or get some of your debt paid off, no matter how hard it may be, you need to work within your budget, and not buy impulsively. Set a budget for yourself, and stick to it, no matter how tough the temptation to spend more then you can afford. Do you really need a new car, or that big screen tv, or a new computer or some other gadget that is going to place you right back into that dreadful financial situation? Put off the temptation to make those big ticket purchases, look for good deals on some of those things if you really need to have them. Check out e-bay, and half.com, Amazon,com and others which often have many of those big ticket items for much less than retail stores. Go to garage sales in your area, and check out some of the items that they are trying to sell. For example, a friend of ours just picked up a practically brand new 42 inch big screen tv at a local garage sale for $200. The set works perfectly and cost them a fraction of what a brand new one would have cost them.
Remember, the whole object of getting out of debt is to stay out, and not repeat the same mistakes of the past. While there are some rising costs that we have no control over, we often get ourselves into this untennable situations and don't even realize it. Then when it comes time to pay the piper, we find reasons to blame others or events that we believe caused our financial woes, when all along it was our own stupid decisions that caused the bulk of it, and were too blind or oblivious to admit our own faults and mistakes.
