I need help!!! How can I recover from this financial mess I got into?? - Page 2

What happens if you don't pay your rent on time? What happens if you don't pay the payday loan?

If you don't pay your rent, you don't have a place to live. They don't have to just fine you. They could opt to give you a 3-day move out notice. Then where would you be?

The most alarming is that you are in debt and don't know how you got there. Review how you've spent your money - to the penny - over the last three months. Where could you have eliminated unnecessary expenses? Now look at how much you plan on making next month (hey, it is almost the end of the month - good timing!) and PLAN where that is money going to go. Feed the kids first, pay for lights next, make sure you budget for gas to get to work and keep a roof over your head. Since you work, daycare in some form is necessary because the kids have to be safe. Other than that, everything goes - cellphone, cable, clothes, even cleaning supplies. Use what you have and vow not to buy anything unless it is absolutely necessary. Food is Top Ramein, MacNCheese (generic not the pricy Kraft stuff) and rice and beans. Go to a food bank if you have to.

SAVE UP MONEY FIRST. You need an emergency fund. If you don't have an emergency fund, when something comes up - and something WILL come up - you'll be stuck going back to the payday loan company. You can't afford to do that.

Once you have an emergency fund, pay off your debts. You really can't afford to leave the kids MORE. Working a part-time job is just going to cost you money. Instead, sell stuff you already own. Have a garage sale. Take stuff to consignment. List it on Craigslist. Get rid of valuable stuff at a pawn shop.

Then don't go into debt again.

P.S. - Do you get an income tax refund? Don't. You need that money now, not later. If you get a refund, change your withholding at your job TODAY so you get the least withheld from your check. You can calculate what your withholding should be at irs.gov.

If you don't have a child support order, get one. The state can help you get an order with no cost, especially if you apply for state aid (like the free lunch program for the girls while they are at school.) Tell the bio-dad he needs to cough up money for camp so you can work or HE is the one who has to watch the kids.

Quote:

Originally Posted by momof2divas 

as I said before alot of it is not making enough to pay all, so what happens I put one bill off for the next payday and in turn i have to pay something else and it keeps escalating, That is how I found myself with a payday loan to help offset the not enough income. It really sucks and I know I will get out of this debt and be okay eventually.I am not living beyond my means whatsover its just regular standard everyday/month bills.

If you don't earn enough to cover your monthly bills that IS living beyond your means. It's not going to just "be okay", you need to make a change so that your expenses are lower than your income in order to recover (which is what you wanted) and to make it better for the future.

Quote:

Originally Posted by momof2divas 

Hi ladies I haven't posted in a while and been pretty much a lurker lately but I really need some help! .

 

I am behind, I don't know how or when it happened, im stressed, see no outcome of this mess and am going stir crazy..I haven't done any major shopping to cause this and have been paying bills regularly and just dont know how this occured

 

Rent is due on the first. I have 2payday loans that I have to pay off, my car payment is due 7/24, my cable bill is due, the girls summer camp is due end of this week, school starts 8/13, ect...

 

I dont know where to start and what to pay and what not to pay first, i was thinking to pay my rent late to get rid of one of the payday loans...I just dont know what to do...any help will be appreciated..

I can tell you're stressed.  Take a deep breath and evaluate.  Sometimes it helps you feel better just to have a plan.  Here's what I would do:

• Write out the list of all your debts in order of interest rate.  I'm assuming the payday loans are at the top of the list.
• What can you put off paying without consequences?  What are the penalties for late payments? Write that down.  

• What can you eliminate?  Cancel cable, forget about summer camp.  You can't afford them.
• Sell what you are no longer using for quick cash.  Take old clothes to consignment, put old furniture on Craigslist, etc.
• Pay the high-interest loans first, then whatever money you have left or have earned can be applied to your other loans (rent, car payment)

Let us know how it goes!  Remember, nothing that causes the stress of being this far in debt is really worth having.  You may need to evaluate your lifestyle choices to see what major cutbacks you can make.

He isn't working? Guess what he will be doing while you're working.

You wrote: "I am not living beyond my means whatsover its just regular standard everyday/month bills."

By definition anytime spending outstrips your income, that is living beyond ones means. It doesn't matter what that spending is - be it rent or food or entertainment - it is still spending too much. You may have to move to a cheaper place.