The Christmas Holiday is beyond us and now we are looking toward the New Year.
Christmas can be a very stressful holiday with the financial commitments and the family get togethers.
This year was much more stressful than most for me. My neighbor who has been fighting her battle with cancer died on the day before Christmas. Then my oldest brother was hospitalized with heart problems and was told there was nothing else they could do for him here and they were going to send him to Boston Medical Center. He is still waiting to be transferred and is scared for his life. Even though he is very ill, I'm feeling that he is going to be in the hands of experts in Boston and will do well.
On a lighter note my son is home for the holidays and I'm very happy to see him. He is enjoying the snow and skiing as much as he can before he goes back to his home in Texas. He tells me he really misses the seasons and the snow and can't wait until he is able to move back to an area that has snow. Kids are great and I really miss him when he leaves, it's hard when they grow up and move away, but that is why we educate them and put them through college, so they can be self sufficient.
Regarding my debt settlement, the holidays have been expensive and I've been unable to save much this month. I'm definately getting more aggressive and will be trying to save every dime I can until it's time to negotiate. I'm assuming that April will be the month I start negotiating as my Bank of America will be 120 days past due by then.
I purchased a "Privacy Corp" caller identification machine that I can program in annoying callers so my phone will not ring when they call and will go immediately to the answering machine. I will have to figure out who is calling first and then I can program the number into the machine. With the debt forums that I have read and the information there, some credit card companies call several times a day and I know that would be too stressful for me.
So here is to 2008, I'm hoping to successfully settle my credit cards by the end of next year. This process does take some patience and I must start planning my strategy for settlement soon. I'm trying to decide if I should write the creditors first and explain my situation and then wait a few months before I talk to them? Something to think about, I'm only 11 days late on my BOA, so it's too early to do anything yet, they haven't even emailed me, which surprises me.
Friday, December 28, 2007
Monday, December 17, 2007
Living and Dying
So I'm in debt and trying to find my way out. Is that the worst thing in life? After the year that I have had this year, I'd say that the people in my life and their wellness mean more to me than my dying credit score and digging my way out. I can eventually settle my debts, one way or another, and one day my credit score will improve. What is the worst thing that could happen to me in regard to my debt? I could get sued and eventually end up settling that debt, with a good attorney.
In the last few months I have lost a very dear cousin in an automobile accident. The death was very unexpected and tragic to his parents and family. This was their only son and he was the idol of their eye. My cousin and I have a lot of history together and it was a huge loss.
I also am dealing with a friend of 25 years who has cancer and is terminal. I've been dealing with her cancer off and on for about four years. At one point we thought she was cured and now we are in the final stages; how did that happen? Each morning for the last few weeks I go to her house at 7:00 am for "coffee time"; I bring her coffee and make her eggs and toast just the way she likes them and then we talk for a while. I go back to my home as my day progresses, I do what work I might have (which is very little lately) and then I go back and help her and her disabled son by doing laundry, grocery shopping, cleaning, snowblowing her yard and cooking. She is so sick she can only make it from her bed to a chair and she stays there for the rest of the day.
When you are terminal, they put you on a strong dose of morphine for pain and sometimes I don't think she quite understands what is going on. We have been able to get additional help in the last few weeks and now we have 24 hour care. She has no immediate family here and is dying alone with just friends like myself and a few others. We have solicited the help of hospice and other services available for her and we pray that soon her daughter will come before it's too late.
Today she told me she was afraid to die and thought she would before New Years, I only hope she makes it until after Christmas so her disabled son can have a half way decent Christmas. Her disabled son is in his 30's and is mentally challenged, but not enough so he doesn't know that she is going to die, but I'm not sure he truly knows how final that will be. He is constantly telling her he doesn't want her to suffer anymore and he loves her.
So there are worse things in life. Material things and things of this earth will go away and maybe we make some mistakes that cost us, but what is really important? I choose life and the love of my family, I can fix the rest.
In the last few months I have lost a very dear cousin in an automobile accident. The death was very unexpected and tragic to his parents and family. This was their only son and he was the idol of their eye. My cousin and I have a lot of history together and it was a huge loss.
I also am dealing with a friend of 25 years who has cancer and is terminal. I've been dealing with her cancer off and on for about four years. At one point we thought she was cured and now we are in the final stages; how did that happen? Each morning for the last few weeks I go to her house at 7:00 am for "coffee time"; I bring her coffee and make her eggs and toast just the way she likes them and then we talk for a while. I go back to my home as my day progresses, I do what work I might have (which is very little lately) and then I go back and help her and her disabled son by doing laundry, grocery shopping, cleaning, snowblowing her yard and cooking. She is so sick she can only make it from her bed to a chair and she stays there for the rest of the day.
When you are terminal, they put you on a strong dose of morphine for pain and sometimes I don't think she quite understands what is going on. We have been able to get additional help in the last few weeks and now we have 24 hour care. She has no immediate family here and is dying alone with just friends like myself and a few others. We have solicited the help of hospice and other services available for her and we pray that soon her daughter will come before it's too late.
Today she told me she was afraid to die and thought she would before New Years, I only hope she makes it until after Christmas so her disabled son can have a half way decent Christmas. Her disabled son is in his 30's and is mentally challenged, but not enough so he doesn't know that she is going to die, but I'm not sure he truly knows how final that will be. He is constantly telling her he doesn't want her to suffer anymore and he loves her.
So there are worse things in life. Material things and things of this earth will go away and maybe we make some mistakes that cost us, but what is really important? I choose life and the love of my family, I can fix the rest.
Wednesday, December 12, 2007
Lost In Debt
I've been debating with myself as to whether or not I want to blog about my debt. There is embarrassment and shame associated with having $134,000 in credit card debt, but I'm hoping that maybe writing about this situation and trying to resolve it will make me somehow feel better and that it may help others in this situation.
How I got to this point comes from at least nine years of being a single parent, making a good income and thinking that I could just keep spending. I put two kids through college, bailed out a failing business and have helped numerous friends and family members through some financial problems. I've been more than generous with my children and have charged on my credit cards like there is no tomorrow, thinking there would be no problem paying it back. Then the inevitable, the housing market slowed to a crawl and my income is commission and it is connected to the housing market and real estate. This year alone my income dropped about 45%, when you have two houses with mortgages to the tune of $280,000 and $134,000 in credit card debt, something has to give.
I have charged my credit cards to the max in 2007, because I have been unable to keep up with my expenses without borrowing from my cards. Both of my cars broke down with repairs of $6,000, and one was involved in an accident, another $4,000, my house needed some serious repairs to the septic system and I needed to paint it to get it ready for sale, and my income declined. So here I am, I've maxed out my credit cards, I don't have enough money coming in from my job to pay all my monthly bills and I have to find an alternative to bankruptcy, before I cash in all my assets just to make monthly payments. I don't know when this market will turn around and my income will be more stable, but is commission ever stable?
I've researched it all and I've decided that debt settlement will be the best option for me. I've talked to three debt settlement companies and with their fees, it will take me longer to get out of debt. Also, I really think creditors want to talk to their consumers and I can do anything a debt negotiator can do. However, they do have more experience and they settle large amounts at once, which probably makes them more of an expert, but I need to do this myself because, as it is, I don't have all the money I need to be swift and successful with this and with a debt negotiator it would take me longer to settle and the longer it takes, the more chance I have of being sued. Although I want to avoid being sued, there are worse things in life, but publically it would be very embarrassing.
I have consulted with a bankruptcy attorney and I could file Chapter 13, but that process would take five years and I really want this over in one year and I don't want to live with that on my public record for the next 10 years. It could affect my future employment opportunites because I believe that if you have had a bankruptcy you can never get bonded?
How do I plan on taking care of this in one year? Right now I'm thinking I will have to borrow against my 401k - I think I will have about $35,000 available by April in a loan and a hardship withdrawal. I've been able to borrow $22,000 and I am going to try to sell my second car and some personal belongings for about $10,000 in the spring. I'm thinking I will get a tax refund of about $3,000. That still isn't enough money, I'm figuring I'll need about $75,000 and that only totals $70,000 so I'll have to try to save the additional $5,000 by June. I tried to get a home equity but was denied because of a low appraisal. I figure waiting and negotiating will take a total of six to eight months so I have some time to do the things I need to do and hopefully the car will sell and etc. It's pretty much up in the air right now. My goal is to have this credit card debt behind me by the end of 2008.
Regarding the houses, I've been able to rent one house and that pretty much covers the mortgage payment, taxes and insurance. The house I'm currently living in is going up for sale next year. If the housing market doesn't turn around, I will not be able to sell it and I will have to live here another year. My mortgage is an adjustable rate mortgage, interest only and that scares me. I took out a five year ARM about a year ago thinking I was selling the property and needed some breathing room until it sold, but with the housing market falling, I can't get what I need to get right now, if worse comes to worse I may have to "take my bath while the water is warm" and sell for what I owe on it, we'll see.
So who are my creditors with the credit card debt; BOA, Chase, Citi, Discover and Sears, five creditors with eight credit cards. BOA is my largest balance to the tune of $59,000, Citi and Discover I owe $50,300, Chase about $18,000 and $6,700 to Sears. I figure by the time I am ready to settle these cards they will be at $150,000 to $160,000 with overlimit fees and late fees and their famous 30% interest. They really try to help you out once you go delinquent! By the way, I haven't had a late payment on anything in over 20 years; I'm really nervous about this whole thing.
Today my payment is due at BOA, the first payment I will not be able to make. Wish me luck!
'
How I got to this point comes from at least nine years of being a single parent, making a good income and thinking that I could just keep spending. I put two kids through college, bailed out a failing business and have helped numerous friends and family members through some financial problems. I've been more than generous with my children and have charged on my credit cards like there is no tomorrow, thinking there would be no problem paying it back. Then the inevitable, the housing market slowed to a crawl and my income is commission and it is connected to the housing market and real estate. This year alone my income dropped about 45%, when you have two houses with mortgages to the tune of $280,000 and $134,000 in credit card debt, something has to give.
I have charged my credit cards to the max in 2007, because I have been unable to keep up with my expenses without borrowing from my cards. Both of my cars broke down with repairs of $6,000, and one was involved in an accident, another $4,000, my house needed some serious repairs to the septic system and I needed to paint it to get it ready for sale, and my income declined. So here I am, I've maxed out my credit cards, I don't have enough money coming in from my job to pay all my monthly bills and I have to find an alternative to bankruptcy, before I cash in all my assets just to make monthly payments. I don't know when this market will turn around and my income will be more stable, but is commission ever stable?
I've researched it all and I've decided that debt settlement will be the best option for me. I've talked to three debt settlement companies and with their fees, it will take me longer to get out of debt. Also, I really think creditors want to talk to their consumers and I can do anything a debt negotiator can do. However, they do have more experience and they settle large amounts at once, which probably makes them more of an expert, but I need to do this myself because, as it is, I don't have all the money I need to be swift and successful with this and with a debt negotiator it would take me longer to settle and the longer it takes, the more chance I have of being sued. Although I want to avoid being sued, there are worse things in life, but publically it would be very embarrassing.
I have consulted with a bankruptcy attorney and I could file Chapter 13, but that process would take five years and I really want this over in one year and I don't want to live with that on my public record for the next 10 years. It could affect my future employment opportunites because I believe that if you have had a bankruptcy you can never get bonded?
How do I plan on taking care of this in one year? Right now I'm thinking I will have to borrow against my 401k - I think I will have about $35,000 available by April in a loan and a hardship withdrawal. I've been able to borrow $22,000 and I am going to try to sell my second car and some personal belongings for about $10,000 in the spring. I'm thinking I will get a tax refund of about $3,000. That still isn't enough money, I'm figuring I'll need about $75,000 and that only totals $70,000 so I'll have to try to save the additional $5,000 by June. I tried to get a home equity but was denied because of a low appraisal. I figure waiting and negotiating will take a total of six to eight months so I have some time to do the things I need to do and hopefully the car will sell and etc. It's pretty much up in the air right now. My goal is to have this credit card debt behind me by the end of 2008.
Regarding the houses, I've been able to rent one house and that pretty much covers the mortgage payment, taxes and insurance. The house I'm currently living in is going up for sale next year. If the housing market doesn't turn around, I will not be able to sell it and I will have to live here another year. My mortgage is an adjustable rate mortgage, interest only and that scares me. I took out a five year ARM about a year ago thinking I was selling the property and needed some breathing room until it sold, but with the housing market falling, I can't get what I need to get right now, if worse comes to worse I may have to "take my bath while the water is warm" and sell for what I owe on it, we'll see.
So who are my creditors with the credit card debt; BOA, Chase, Citi, Discover and Sears, five creditors with eight credit cards. BOA is my largest balance to the tune of $59,000, Citi and Discover I owe $50,300, Chase about $18,000 and $6,700 to Sears. I figure by the time I am ready to settle these cards they will be at $150,000 to $160,000 with overlimit fees and late fees and their famous 30% interest. They really try to help you out once you go delinquent! By the way, I haven't had a late payment on anything in over 20 years; I'm really nervous about this whole thing.
Today my payment is due at BOA, the first payment I will not be able to make. Wish me luck!
'
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