D-Day is this Saturday….

Our first meeting with “Lawyer #2″ is Saturday at 10am (#1 was over a year ago).  Still have to get the paperwork filled out, but that isn’t that difficult.  There are still times when I look at things and go “ya know, we can still get out of this hole”, but it is too deep.  With our credit ratings not even coming to a decent number when added together, we have admitted defeat.  I mean, what is the point?  We pay everything in full and have crappy credit ratings OR declare on everything and have crappy ratings?  Don’t know about you, but I am voting for option #2.

It’s also hilarious that we have both received raises at work within the past couple of months.  While we are making more money than ever, it still isn’t enough.  So, as before, what is the point?  Tennessee leads the nation in bankruptcies filed……and is one of the few states that does not have a State Income Tax.  Go figure lol.  Oh well, wish us luck and stay away from the Trudeau book.

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Same song and dance…..we have been scrambling since my wife last got salmonella poisoning while eating salmon at a TGI Fridays. Losing that one entire paycheck hurt. We had actually gotten back to the point where we could almost breathe……then her truck broke down. LOL, figures. We had it towed to a repair shop, they worked on it and we paid $390……..two days later, the SAME EXACT problem crept back up…..had it towed back to the idiots to fix it this time, of course they discover a new problem…..$403 in order for us to drive it home…… Read the rest of this entry »

Life and the CCCS

We had our pow-wow with the CCCS (Credit Card Company Services, ahem, Consumer Credit Counseling Services) today……for a measly $692 per month we can pay off our credit card debt and doctor bills in as little as 46 months. OK, first some background for those that are unaware as to what the CCCS is.

The CCCS is the only US of A accredited pre-bankruptcy counseling service. If you ever want to file Chapter 7 or 13, guess who you MUST see twice? Yep. OK, with that said, who helps maintain the CCCS as a 503-non profit organization. According to the yellow piece of paper that I signed, the CREDIT CARD companies Read the rest of this entry »

There are literally a ton of different ways to help your family curb credit overuse. While this is not an all inclusive list, the list contains the basic steps that my family has used to basically stop using credit. We hope that this list can help to serve others. If you can additional tips to this list, please feel free to add them in the comments!

1) Getting the family on the same page. Talking with family members about reducing or eliminating credit use is the logical first step. All family members must be willing Read the rest of this entry »

You will see it preached on every financial website and the vast majority of blogs: the importance and necessity of creating and maintaining an emergency fund.  Most people agree that a basic emergency fund of $1,000 is a good start.  A thousand dollars will get you through about 75% of the occurrences in life.  Once the 1k fund has been established, then begin building towards a $10,000 reserve fund.  Many people, my family included, have problems getting to the first grand.  My wife and I are living proof of the absolute need of having an emergency fund in place.

Case #1:  2002:  The emergency fund would have helped, but not saved us.  Three months previously we had purchased a 1998 Saturn Coupe.  I had recently left a job and had (very stupidly) cashed in my 401(k).  Cashing my retirement check has been one of the largest mistakes in my life; however, in this case it actually saved us.  The transmission literally fell out of the car.  Of course, we bought it from a clunker lot “As is-Where is”.  Cost of the transmission for a used one?  $4,200 or so.  With our immense foresight, we had not purchased the extended warranty for the vehicle.  Can we all say in unison:  Doh!  We were in debt, no emergency fund, no savings (other than the 401k), no clue, and now no car.  I do not know what we would have done had it not been for the 401(k) check.  We were definitely blessed in that situation.  Had we been debt free and working towards a reserve fund, we would have been ok.  This case shows the importance of a much larger reserve fund.

Case #2:  2004:  Coming home from work, I am involved in a 55 mph head-on collision.  The Saturn mentioned previously is now totaled.  This was my first (and hopefully only!) auto accident in my life and I came very close to dying.  I missed three weeks of work due to the severe concussion, soreness and broken bones.  Once again, we had no savings, no emergency fund, no short term disability, nada.  Three weeks of no pay really hurt.  To make matters worse, I was upside down in the car loan.  I had to make five additional payments towards a car that no longer existed.  If we had an emergency fund in place, we would have been ok.

Case #3:  2008:  I remember it as if it were yesterday……gee, it was yesterday.  My wife wakes up to find the hot water heater spewing water everywhere.  Our bathroom was flooded and everything was drenched.  Apparently, without sending a notice, our water company increased the main line pressure from 70 psi to @ 140 psi.  Most household fixtures and plumbing is rated to withstand up to 75 psi.  Unfortunately, our water heater could not stand the new pressure setting.  The plumber has to install a regulator valve…..there went $365 dollars we did not have.  We have been working towards building an emergency fund and for the second time this month, life popped up and used every penny of it.  So, we are back at square one; however, here is where the difference occurs.  In the past, we would be literally freaking right now.  $365 is 33% of my two weeks pay and now it is suddenly gone.  We know it will be ok.  This is just another bump in the road of life and the sun will still come up tomorrow, our parents will still love us, our dog will not run away, everything will be ok.  We will have to re-double our efforts to achieve a baseline emergency fund, but life happens.  The E-Fund is there to smooth out those little bumps that life causes.