Un-Happy Halloween...

So here it is - Halloween. I received my last credit card statement and went to update my ticker. To my unfortunate suprise, not only did my debt balance go up - but it was $713 dollars more then when I started this whole crusade.

I was completely dumbfounded. From further investigation it appears that the majority of the problem is that my interest charges are eating too much of a chunk into my monthly payments, the aforementioned car repairs, and my husband's continuous spending on his business card.

Something has got to give here as I am really discouraged right now! I know I just have to keep plugging away, but I am not even sure how. I guess I'm just a whole lotta talk!

Maximizing Christmas...

I know it is barely Halloween, but once the candy has been collected people's minds turn to Christmas. My thought is, with a bit of forethought and proactive discussion, one can truly make Christmas work without blowing your budget or increasing debt by reducing your expenditures and planning what gifts you will receive.

Yes, I am sure this post will be rubbing some people the wrong way, but the fact is many people like help with their Christmas shopping, and just because it is better to give than receive really doesn't mean that you won't be receiving in reality. Taking advantage of this fact could help with your debt issues.

Giving - I love Christmas! My favorite part is shopping (especially for kids), but let's be honest this racks up huge dollars. If you have the guts to be honest with your family and friends, let them know of your position and let them know you will need to scale back this year. If your family is receptive, some scale back options could be; pulling names to reduce the amount of gifts to buy, setting spending limits, agreeing to only homemade gifts (needs some creativity, but can be huge savings while still being thoughtful), or maybe do some volunteering as a family instead of gifts.

Receiving - Here is the touchy part. No one should ever expect gifts, or be able to dictate what people buy them, but sometimes providing some input could help you out instead of getting yet another reindeer sweatshirt. If people ask for your input, give it!! I can guarantee that almost everyone you know and love would rather spend money on something you really want then to find out that you don't really like their gifts. If they haven't asked for input, be up front and make suggestions, just remember they may not necessarily follow your suggestions, and if you have asked to scale back Christmas (as in above) don't expect much in return (if anything).

However, if you have a project you are working on and can't really afford, your kids need items for school or new clothes, or there are things that you need from around the home, why not take advantage of this opportunity to keep your life at an even keel and avoid further debt.

Here are some tips to make it easy on everyone:

Know your audience: I don't know your Grandma, but you do. Make sure you know if they would be receptive to "suggestions." Sometimes you just have to deal with a new pair of footie pyjamas because the tradition is more important to that person. Some people may also be offended by you making suggestions on your own gifts. Determine whether your audience will be more welcoming to more generalized comments (ie. they think they came up with the idea themselves) or more directed conversation.

Know their limit: Granted circumstances change from year to year, but we can generally gauge what people's spending limits are based on the gifts we have received in the past. Obviously, don't ask for a new water heater from Auntie Beatrice if she generally only spends $25. Make suggestions based on the limit, or indicate that contributing towards a bigger project may be the most beneficial for your life right now.

Remember that you may not be the only one in financial crisis: Just because your parents normally drop a mint on you at Christmas time does not mean that they can or are willing to do it every year. The economy is rocky and their retirement may not be as stable as once thought. Bear in mind that they may be pinching those pennnies just as hard as you are, even if it doesn't show.

Remember and Communicate your reasons: Don't forget why you are trying to plan your Christmas- Debt. This is not a kid in the candy store type mission, it is to try and keep your life in order. Be honest with your family and friends and they will be far more likely to be receptive then coming off like a greedy little child.

Good luck! I'm asking for drywall this year.

Auction Update...

As indicated before my auctions ended this week and I made a whopping $114.00

This amount has since been transferred from my Paypal account and when it finally comes through, off to my debt.

One more month down...33 to go.

November off to a great start...

Yes, I know there is still one more week in October, but November is already shaping up better already.

I did a little more cleaning and posted a bunch more stuff on eBay. Provided I sell pretty much everything, I will just squeak by the $100 mark for the month.

Auctions all end next week. Wish me luck!!

Abort mission...

So after a long talk with the hubby last night we have decided to put off our quest for a consol loan for about 6 months or so. Some of you are probably confused as to why we would choose to do this, but there are three very good reasons why.

1.) The economy. Yes, I am sure everyone is sick of hearing about it, but while banks are on the defensive we are likely to get less than we desire, if anything at all. Plus, unless they simply give us a straight up "No," we are looking at a senseless credit check on our credit report (which we don't need if it will not be fruitful), and we might send up some flares about our mortgage (which we are fine with, but hey why call attention to ourselves). In this respect, we have decided to wait until some of the panic has subsided and the bank may be more likely to "play ball," so to speak.

2.) We will have a little less debt to come to the table with. Yeah, I know 6 months is not going to be a huge difference, but if we are already waiting, it is a benefit.

3.) My hubby's new job does not start until the new year, and with no way to substantiate the potential income until he starts making some, it will not be a good bargaining tool. If we can have a track record of his income (even for just the first quarter of the year), it will be a stronger argument as to why we should be granted the loan. Based on projections, this could be a major factor in how much we get.

I love FREE STUFF...

I happened across some information that may be useful to some. Quicken Online has is now being offered FREE. Pretty cool, huh?

After a personal finance seminar that I attended I had heard many people rave about Mvelopes for their personal finance needs, which I did look into but was turned off a little by the price. I am definitely considering looking into the Quicken Online platform now, as any homebased versions I have seen of Quicken have been more than helpful.

The entire concept is to be able to better amalgamate and track all of your accounts, thus giving you better control and better planning with your money. It also has the capability of being able to check all account balances in one place online, or even to your mobile phone! Could be handy next time you are in the supermarket.

I want to do a little more research, but I'll let you know how it goes if I decided to go for the account.

You may have a point...

I received a comment the other day in regards to my post on my dismal attempt at getting my credit card interest rates lowered. The comment indicated as to whether the economy may be to blame for my lack of success. My response: probably.

This is one of the reasons I have not completely given up on this idea. As I indicated in my post I will likely try again once I have paid off more debt. Part of this is due to fact that hopefully the economy will turn around and my credit card people will trust me again.

However, one of the reasons I decided to call was because of the economic situation. I thought, just maybe, that the companies might be willing to toss me a few token percentage points as an incentive for me not to default on the entire balance (not that I would, but they don't know that). I guess I was wrong.

Thanks for the comment.

October 20th Update...

As most of you will already know, the 20th is the end of the month for my "Extra $100" challenge, as my credit cards bills cut off on this date.

I am happy to report - as mentioned in an earlier post. That I have succeeded for the current month. As you would have read in earlier posts I managed to sell my cell phone plan and accumulate my $100 in one go.

2 months down - 34 months to go. Also please remember to provide suggestions for this challenge. It's only going to get harder from here.

Trying to shed some extra pounds...

I decided that since I didn't receive a balance transfer offer this month that maybe I could try to reduce my credit card interest rates by calling the companies and simply asking.

Although many debt smarties recommend this as an alternative, it did not work for me! First off I asked. No dice.

Then I threatened to move my debt to another provider. I was told to go ahead.

Then I asked to speak to a manager and I was told they could give me a "payment holiday" for a month, or lower my minimum monthly payment, but no reduction in interest! AHHHHHH!

This is frustrating as I have had one of these cards for 10 years with not one late or missed payment.

Oh well. I guess it is back to the drawing board. Can't say I didn't try. Maybe after I pay some of the debt down I can try again.

The Perils of Being "Too Good"...

I have learned a thing or two over the years about debt repayment, and one of the key lessons, which is sometimes hard to fathom, is the concept of being too aggressive with debt repayment.

Any other time I have been in debt I have thrown every last cent at my debt. Problem becomes, if you put all of your cash on your debt, where do you get cash for other things/emergencies. Granted you should have an emergency fund, but sometimes that just doesn't cut it. Answer: you put the charge on your credit card. Then you aggressively try to pay that off and something else comes up, and then begins the cycle.

So unless you have the priviledge of having a completely uncomplicated, unpenetrable life you end up in the same boat you are trying to get out of. Using the boat analogy, you are bailing out a boat with a hole in it; you may stay afloat, but you will never be completely free of the water.

This time I am trying to take a more balanced approach by budgeting what is going to be spent on debt in a month, and if I can manage extra I will. It may take a little longer, but hopefully I can keep the debt monkey down for good.

Not time for snow...

So I have received a few questions about why I have not decided to use the tried and true debt repayment scheme of the "The Debt Snowball."

For those of you who do not know this concept, you set aside how much you can put on your debts in a month, pay the minimum on all but one card (either with the highest interest rate, or lowest balance - depending on who you talk to) and you put all of the extra money and any other pennies that you can on that debt until it is paid down. Repeat with next debt in the series until - Voila! no more debt.

Basically, there is one main reason why I have not done the snowball - FEAR! As you can see the balances are quite high, and cards #2 and #3 are close to their limits with reasonably large interest payments. To try and gain control over these cards I want to make sure I am paying more than the minimum for now until I have some wiggle room to decrease the payment and concentrate on card #1. All cards are being paid more than the minimum (as said before, based on a 3 year payoff plan) but I am worried that if I focus all of my energy on one debt too quickly the rest will fall apart because I am not properly prepared for the undertaking.

Don't get me wrong, the snowball is a good system, I just need to be in a more secure place before I go Rambo on card #1.

To those about to blog...

So if I have inspired anyone (or one of the other hundred personal finance/debt blogs out there), I have a little tidbit of advice. I was checking out a site "Blogging Away Debt" and it appears that not only has she sold their website, she is almost out of debt. Which means...she is passing the torch to another unfortunate soul who has buried themselves alive under credit card statements to pick up where she left off.

If you are interested go to her site at http://www.bloggingawaydebt.com/ and apply. She has a post dated October 7th with the details. I might throw my own hat into the ring, but I haven't quite decided. I kinda like my own little place in the 'net right now.

Good luck!

It's not just Halloween that's scary...

So barely into October and it's looking pretty dark and scary. Have spent time so far trying my hardest to only spend cash. Little thing I noticed - cash runs out!! It's true. For some reason ends are not meeting as well as in the past. I think I need to revamp the budget.

Significant speed bumps on my road to sanity:

- the car repairs (still seething!)
- hubby has already overspent on his business travel this month (naughty boy)
- daycare fundraisers (seriously, just send me an invoice so I don't have to buy anything else!)
- general lack of money! Hubby's paycheque was lower than expected and the rest of it just seemed to float through my fingers. Tracked some of our spending, but can't seem to wrap my head around it.

But it will be okay. Say it with me now "November will be better...November will be better...November will be better!"

You've got a friend...

I would like to take this opportunity to thank anyone who reads this blog. I noticed last week that I had both my first AND (get this) second comment. I really appreciate people's advice and like to hear what people have to say.

Thanks for your support so far. I might just have to keep this up.

Big Wedding, small budget…

So I went to a wedding this weekend, and it was beautiful. Every detail was perfect. First thing I thought, “How much did that cost!!!”

Inspired by this I thought I would impart some words of wisdom I have done and collected regarding wedding money savers:

a.) DIY – One of the biggest money savers is doing things yourself. Can you shave off some cash by making your own favors, programs, etc. This can save you a ton over paying for the service. However, as I personally learned the hard way, make sure you evaluate ALL costs and know what the market would charge to do the same work. I decided to make my own invitations, very pretty, and very simple. After hours (and hours) or work, many botched invitations and wasted supplies, plus tools that I never originally budgeted for, I spent at least 50% more for my invitations then if I would have just paid for them to be done. Make sure you are actually saving money by doing it yourself.

b.) What Matters Most – Figure out what you care/or your guests may care about. If the cake is not a big deal to you, get Auntie Annie to make you one. It might not be perfection, but as long as it is more than presentable you can save a mint! Spend on things that are important to you (ie. Photos).

c.) Costuming – I bought my dress at a beautiful bridal shop, but instead of the $200 shoes and $150 tiara that did look fabulous, I went to the mall, bought $26 strappy white sandals at an end of season sale (which I have won numerous times since) and a $12.95 tiara that I bought at a costume jewelry store in the prom section. No one knew the difference, and they both looked just as lovely as the boutique items. Plus, I didn’t have to worry about losing anything expensive.

d.) Alterations – You might not want to risk the wedding dress, but find out what alterations to a bridesmaid’s dress would be if you paid someone else (other than the bridal store). I have seen people pay hundreds of dollars to have a hem sewn and the top taken in that would have cost half the price at a decent tailor elsewhere.

e.) Package Deals – If you are booking a venue that offers catering/dj services/etc. as part of the package, ask if you can bring in your own and how it will affect the price. In many cases the venue is actually overcharging you for these services, when you could book the same companies personally for a lower price. On a side note (mind you I have never tried this), don’t mention that you are booking services for a wedding until absolutely necessary or after you have received a confirmed price. Some companies will jack up their prices, just because people will pay anything for the wedding of their dreams.

f.) Music – Have your heart set on a string quartet? Call a local music school or university and many students will be willing to work for peanuts to get some playing time. Besides if you are going with traditional standards, most musicians can pull these items off.

g.) Liquor – A few tips here:
1.) Close your bar during dinner and speeches. Wine is generally cheaper and it will keep people from having a glass of wine and three vodka tonics at the table, and drinking none.
2.) Offer only wine, and non-alcoholic punch for cocktail hour. People drink wine slower so they will not be consuming as quickly (or as much). Besides slowing down your guests may keep your 3rd cousin from re-enacting Tom Cruise’s “Risky Business” slide later on in the evening.

h.) Photos – Try to get a photographer who will allow you develop your own photos. This can save a ton of money as you can get the pictures developed by a high end developer, and all of those other photos for family and friends you can go to a lower cost place to have them developed on mass. Besides a photo card developed at Walmart is often significantly cheaper than a traditional stationary thank you card, plus your guests get a professional shot of their very own.

i.) Flowers – This category can be ridiculously expensive for something that may or may not even last until last call. Here are a few cost-effective options:
1.) Remember a few bigger blooms can be just as (if not more) dramatic than a cluster of flowers. In many cases the individual stems may be more expensive, but you will need far less to get the same effect, thus saving money.
2.) Remember your vision and see what you can do yourself. A girlfriend of mine wanted a large cluster of roses for her bouquet, so instead of paying a fortune she went to a discount wholesaler (Costco), bought two dozen roses, pulled them together as tight as possible, wrapped the stems in elastic bands, and then covered the bands in thick craft store ribbon that matched her theme. Bridesmaid bouquets were done the same with only one dozen. She paid about $15 a dozen, much cheaper than a floral shop bouquet, and they were beautiful. (Pre-order your dozens if you are worried about availability)
3.) Is your church/venue having another wedding that day? Talk to the other couple and see if they would like to split on the decoration and/or alter flowers. You can either make this a great savings or get far more flower for your buck by being able to upgrade by staying within your budget. Be ready to compromise though.
4.) Keep your flower choices in season. Tulips in December – a little pricey.

Good luck and happy wedding!

The Balance Transfer Trade Trick...

Okay, so we have all heard that one of the keys to reducing your debt is transferring the balance to a low rate or promotional rate credit card to reduce your monthly interest. Pretty good plan, but sometimes we don't have any credit room, or we can't/don't want to open another credit card to acheive this. Here's a little trick to bring your rate down (after exhausting other options, like just calling the company).

When your credit card company offers a balance transfer (even if your card is maxed) do the following:

a.) Take every spare penny that you have (credit line, upcoming mortgage payment, anything!) and make sure you can part with it for about a week.

b.) Put all of this money on the credit card with the low transfer rate.

c.) Wait until the money has been applied. If it is a bank credit card, you can sometimes speed up the process by physically making the payment at a branch.

d.) Write one of the handy dandy cheques that come with the transfer offer to yourself and put in the bank.

e.) Put the money you spent back to where it belongs.

Voila! Whatever money you managed to put on your card is now traded from your high interest rate to a low promotional rate. This may only be short lived (due to length of promotion, or low amount of money that you managed to scrounge up in step a) but even any reprieve in interest costs will help to pay down the amount faster and reduce your interest charges.

After the amount is paid off (or the promotion runs out), try the traditional standbys to reduce your rate, and if all else fails, repeat the above process ensuring that you maximize the amount of money that you put on your card.

I Thought Gas Prices Were Bad...

So everyone is complaining about gas prices - what about car repairs!!!! I got hit today with a ridiculous amount for car repairs. After wiping out my emergency fund, I still have a bill over $1000!! Most of that is labor.

Don't get me wrong, we take good care of our vehicle, but this will definitely be a setback as you can probably guess where the $1000 went. (Credit Card #2)

Feeling pretty bitter right now. This just wiped out a third of my monthly payments!!!

Debt Gets a New Look...

So I decided to update the look of my blog. Loved the dark, but found it a little hard to read (especially the tickers - which is essentially the blog's raison d'etre).

Hope you like it!

What Have You Done With My Husband...

I mentioned yesterday that the hubby has added a new income stream to our little home, but today I thought I was going to pass out.

In an effort to keep him "in the loop" on our finances I was in our home office preparing the monthly report as I had described in an earlier post. After finding out what I was working on he actually decided he wanted to talk about the issue. And I mean actually listen to what I had to say!

The final verdict:

a.) He agreed there was a problem that we needed to fix and agreed to cut out all unnecessary purchases until we had things under control.

b.) We talked about the consolidation loan concept and why I don't really want one right now, and especially why I DO NOT want to add it to our home equity. And he listened!!! However, he did remind me that compared to ourselves a year or so ago, we have actually been getting better with the frivolous spending. A large portion of our debt would likely be gone if we were not paying for landscaping and the final additions (ie. driveway) to our newer home. Considering that he does have a point, we compromised to get a consolidation loan, but only for the amount of the home renovation/completion costs. This will not cover all of our debt, but we can bring our receipts and records to the bank to back up the amount (as opposed to just consumer spending), it will be a more reasonable amount so we are more likely to get approved, and all the good stuff like a lower interest rate. He agreed that everything else was our own misdoings and we will need to deal with that on our own, but the loan should make the whole project just a little more manageable. Besides, if they say no we are in no worse position than we are now. Oh yeah and he agreed - NO HOME EQUITY LOAN!!!

c.) To top it all off, he is going to go to the bank to handle the loan for us! I know we are in this together, but this is a huge step for him. He will singlehandedly need to sit with our banker and own up to our debts and make a plan. Of course, I get final veto, but it means that he is being responsible for our debt and not just putting the problem on me to fix. I am really impressed about this. My little man is growing up!!!!!! Besides, if I don't have to take time off work to do this, my boss will surely be pleased.

d.) We got to talking about our goals A.D. (after debt). We had always chirped about what we want before, but never in a "I would like to put a coupld hundred away every month to do X."

I am really not sure what has gotten into him, and I know it may fade as quickly as it came, but I will take what I can get as long as I can. If he has finally decided to work with me on this, instead of just letting things happen, we may have a shot at our end of August 2011 goal afterall.