Ways to ease the stress of credit debt...?

Submitted by credit on Thu, 2008-07-17 07:50. credit debt

My husband and I are in over our heads and we both know it. We’ve stopped using credit cards and are living within our means, but it’s too late. We’re at a point now where we will not be able to make a minimum payment on a line of credit b/c we have to pay a large daycare cost. We’ve tried to work around everything to make the budget work, but it won’t!! So, I lie awake at night worrying, not sleeping etc. The future is coming and it worry’s me to death that we can’t afford bills. He seems to be more relaxed about it all but I know deep down it hurts him too. What can I do to ease my stress? There is nothing I can do but I just can’t let it go…. :( Any suggestions to help us?

What percentage of you income is daycare? Have you considered a debt consolidation loan? I did this once when I was in a bind. I went from paying roughly $600 a month to $199. I did it through my bank so the interest rate was decent. A lot lower than my credit cards.

I ask about the daycare because sometimes it’s easier to take a part time job with less daycare than to pay a huge daycare bill

That consolidation loan was a bad move. Do you at least have all those credit cards paid off?

If you still can’t make ends meet, you simply have to cut expenses more. You need to live way below your means. Really go over all your bills with a fine tooth comb. For example, your landline phone bill. Do you really need call waiting and those other extra cost features? Are you paying for line maintenance? Get rid of those and cut your phone bill almost in half. Same goes for cable bills — get rid of all the premium stuff.

Groceries: Plan menus based on the weekly sale ads. Make a list and only buy what’s on the list. Impulse buys double your grocery bill. Don’t buy convenience foods, soda, and junk food.

Think of ways to bring in more cash. Have a garage sale, collect alum cans, get a part time job.

Try the Dave Ramsey system and follow the ’Baby Steps’. It has worked for thousands of folks. In the past 12 months, we have paid down thousand of dollars in debt just by following this common sense plan.

You probably have two car payments that you can’t afford. I would consider selling them to get rid of the payments. A good used car, paid for with cash, will get you to work and around town just as well as a new one that has a payment book. Then sell some stuff, get some extra jobs, or do whatever it takes to pay off this debt CONsolidation loan and never borrow money again.