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My Journey Towards Freedom From Debt

September 19th, 2006 at 02:04 am


Hello. This is my first blog entry. Currently, I have $50.74 in my savings account and owe about $900 on my credit card. I also have about $4000 in medical bills from mine and my husband's medical emergencies earlier this year. In 2001, we had declared Chapter 13 Bankruptcy, which is a debt management plan. We paid faithfully on our debt for 3 1/2 years and the rest was discharged in July 2004. We were doing great up until March this year when my husband had to go to the hospital 5 different times for 1 medical problem. I also had to have surgery. These expenses ate up what savings we did have set aside for emergencies. The $50.74 is what I have managed to piece together since. I realize this is futile given the interest rate I am paying on my credit card, which I only recently discovered is 18%!

My husband is a disabled army vet and so there are certain kinds of work he can't do, like lifting more than a certain amount of weight or being on his feet a lot. Beginning with my final payment on my truck this Friday, I will be putting my best foot forward to rid myself of this debt for good and go towards financial freedom. My husband posted a question about our situation to a forum he is a member of and was advised to check out work at home opportunities. I found a website for that http://www.wahm.com. He is checking that out to see if there is any way he can make some money that way. There is a Starbucks close to us and he is going to see someone there as soon we get our car back from the mechanic.

I have worked over and worked over our finances trying to pare them down and this is our monthly income and expenses. We are spending a lot on cell phones. I saw something on someone else's blog about skype, which we are investigating as a replacement, but our contract does not run out until December. We have not dined out in about a month, so this is accurate. This internet does seem high, but it is the cheapest internet around here except for dialup, which DH does not want.

$2218 my income
$425 rent
$49.95 internet
$69 cell phones
$240 food (groceries)
$213 electricity
$20 gas bill
$80 gas for truck
$200 truck payments (last 1 is 9/22)
$20 hospital bill #1
$50 hospital bill #2
$20 doctor bill #1
$20 doctor bill #2
$69 truck/car/renter's insurance
$25 Netflix
$40 credit card
$40 regular health care bills

I investigated skype last night on the internet and found it costs about $37 per year, which is next to nothing compared to $69 per month. So that would definitely be a step in the right direction. I hope my husband can find some kind of work soon, any work.

I you have any other ideas about something I could do, please pipe in. I am all ears and will consider any ideas.

10 Responses to “My Journey Towards Freedom From Debt”

  1. JanH Says:
    1158630166

    So sorry about your health this year. My dad was in the air force for a time and works as a civilian for the air force. Many friends are air force "brats." I sincerely appreciate what your husband (and You) have given for the country. I hope that you have a long good stretch and your finances recover. I've just been here a short while and have learned so much. Keep hanging around. These guys will help you.

  2. LuxLiving Says:
    1158630765

    You don't say clearly if there are only the two of you?

    If just the two, I think you might could pare down your grocery a bit if you worked at it...and your electric bill seems a bit high. Is your house total electric? Looks like you have natural gas? Water is included with your rent? Trash service?

  3. story3girl Says:
    1158632202

    Is 2218 your gross income or net? It looks to me like you're doing pretty good, and that after you finish paying on your truck, you will be able to start making some headway on some of the other debts. Unless my math is wrong, if this is actually all the money you are spending, you should have about $600 left at the end of the month, plus 200 more once the truck is paid off. If I were you, I would pay off the debt with a vengeance, starting with the credit cards. You should be able to knock the credit card out in less than 3 months! Once that's gone, you'll have much more breathing room!

    Do you have health insurance? If not, it's probably worth it for you to do a web search and find good, cheap insurance, so that you don't get flooded with more medical debt in the future.

    As for reducing your bills, I agree with LuxLiving that you could probably get the grocery bill down a bit with careful work and a good planning. The electricity also sounds a bit high. You could also call your Internet company and threaten to cancel (or ACTUALLY cancel - DSL is almost as fast and is probably $20 cheaper than cable).

  4. boomeyers Says:
    1158639458

    Just remember to start dumping some in an emergency fund and not all into the debt.
    I agree about the health insurance, even major medical would be good.
    As for jobs for your husband, there are all kinds of places to look. Data entry is easy and a sit down thing. How about setting appointments at an automotive garage or muffler place or jiffy lube? How about the library or an aide at a hospital or nursing home. Working at a storage facility place where you rent storage space to people. If he can drive, how about a driving type job, school bus, taxi, courier service?
    Call your CC company and tell them you want a lower rate. It may not go down much, but anything helps!
    Good luck!

  5. Broken Arrow Says:
    1158676848

    Haha, you have an excellent animated gif for a first entry.

  6. ima saver Says:
    1158678018

    I too, think you should take the truck payment money and put it toward that high interest rate credit card. After you pay it off, put that $200 a month in an emergency fund until you get at least 6 months income in the fund. Do you really need cell phones?

  7. koppur Says:
    1158695296

    Do you get $25 worth of movies each month from Netflix? What about downgrading to one of the $10 or $15 plans. remember, every little bit helps. Electricty does seem high, as does your groceries. Is it just the two of you? I'm sure you can cut down the grocery bill if it is, and most likely the electricity bill, too. And I know you said your hubby doesn't want dial up, but consider this: I have dial up via Wal-Mart and I pay $9.95 a month, unlimited access, and it's almost as fast as cable. Good luck! Smile

  8. debtfreeme Says:
    1158695562

    Welcome to the site! There are lots of good people around who will help you and offer lots of suggestions, take the suggestions that work and throw the others away. We will all have some suggestion or another to offer and we truly wish you all the best. The one good thing to know is that you are on the right path to getting rid of your debt.

    My piece of advice? Check with the military for your husband insurance as far as medical. My mom was in the military only a short time and now she qualifies for all kinds of medical coverage and care, very cheaply. Check out the nearest van vet hospital to you and that might help alleviate any medical problems in the future. It sure has given me piece of mind with my mom and her health!

    Welcome aboard! We hope you are successful!

  9. Aldeya Says:
    1158716927

    Welcome! This is a great site and people are very helpful.

    In your situation I would work on geting food and electricity bills down.

    I would also cancel Netflix (I'm sure you have TV at home?) and this is extra $25 to put towards your medical bills or credit card.

    Good luck!

  10. Fran Says:
    1159478514

    Hi,

    Firstly, I am sorry for all of your medical problems/bills. Oh Boy...can I relate to that! My husband and I both do not have any medical or prescription coverage, and it has been murder. In addition, my husband has been out of work since last Novemeber. During that time, we lived off of some savings, which came from an inheritance from my mom. Well, that's just about gone now. Hopefully, my husband will be returning back to work mid Oct. of this year.

    I'd love to know what state you live in...if you don't mind sharing that? I live on Long Island, New York. I currently pay $1350.00 monthly rent (for a measly "dump" of a 2-bedroom apt. in a private house), and we also have to pay electric hot water....which is ridiculously high. In addition, phone, cable, car insurance, food, etc.

    I symphazie with you in all sincerity. I hope things get better for you and your husband. It sure is rough out there.

    God Bless,

    Fran

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