Debt Support Group

Hello Everyone;

Well I've gone on here quite a few times so I decided to post. I am 32 single and have racked up 15k in credit card debt which is killing me b/c I can only make the minimum payments b/c they amount for over a paycheck a month. I also have a car payment which is only $266 what killed me is the hikes in the CC's. I have an IRA with about $30k in it. My question is should I take out the needed money to pay the cc's even though I'll have a 10% charge for taking it out? I checked the personal loans and they are higher rates than the charge.  Any help is greatly appreciated.

Dawn 

Hi, glad you are joining us.  I wouldn't take out of an IRA to pay the cc.  You will just lose too much, in regards to future earnings on that $ & also the penalties associated with taking the money out.  Also, doing so can be so easy that you don't feel any sacrifice & end up charging the cc right back up. 

If you give us more info possibly we can help you come up with a plan of attack.  Can you sell anything to make a larger payment on the cc?  Ebay, garage sales etc. might be a way to go in order to do this.  Also, STOP using the cards.  Cut them up & throw them away.  Once you get traction on paying these down you don't want to be tempted to charge them back up!

Good luck & keep us posted.

cindylee

The low down:

Ok here we go. The biggest problem is a card I racked up 11k on the others I was paying down then using b/c I kept having car troubles so much so that its what racked up most of the 11k. I have TOTALLY STOPPED using the cards. I put them away and don't bring them out of the house with me. As for sell anything I don't know, I bake cakes but in CT you must have a seperate kitchen to have a home bakery.  I am very crafty I have done craft fairs and made a few hundred dollars but then I've done some with nothing to show for.  I have no idea where to go from here. I was budgeting things out and realized after all the bills I only have 250 left a month for gas and groceries.

P.S. I take full responsibility for what I did racking them up I blame no one but myself.

Dawn 

I do agree with not taking it out of your IRA. It is too easy. I know someone who took out a 401k loan to pay off cc and within 6 months ran them back up again. If an emergency comes up, you may use the cards if you have no balance or savings to fall back on. Then you're right back where you started.

You said you have $250 left for gas and food for the month. If you are like me, gas is not as flexible if you live a distance from work. But I find that food is quite flexible in my budget. I set aside the gas $ I need from each paycheck (twice a month) so I have that for the month. Then for food, use coupons and plan your menus around what is on sale. Doesn't have to be set in stone, but if you cook something bigger one day you have leftovers for lunch or a quick dinner. I buy chicken when it is on sale, and freeze it. Pork chops, ground beef, whatever buy it on sale and freeze. If you have something to reach for you are less likely to order out, or run to the store at the last minute. Those trips are always costly. Check out various websites for recipes that are inexpensive. I find lots of cheap casserole/skillet ideas at the Campbell's Soup website and at Kraft foods. 

I like the snowflake idea for paying off cc. If you pay off the smallest one first, then add that payment to the next biggest one, and so on, you feel like you have accomplished something as they are paid off. Every little bit of found money can go towards the cards. Since you are crafty, have you ever thought of selling your crafts on ebay or something similar? A woman I work with quilts and sells her items on ebay. She does beautiful work, and is often working on something during her lunch breaks. People will pay for your talent. Plus, less work than trying to do a craft show I would think. Anything extra you make would be snowflake money to put towards the cc bills in addition to what you would normally pay.

You can get rid of that debt. Not using the cards is the best first step.

Any way you can get/take a second job for a few months to get ahead on these cards? Holidays are the best time to find retail work. Most stores have evening hours (if you have a day job) or vice versa. Even if its just temporary this way you might have extra for paying down debt a little quicker or for holiday gifts.

Any expenses you can cut out JUST FOR NOW? I know when people say - cut cable or drop your cell phone packages to the bare minimum - that sounds crazy to some people but if you allow yourself to do that for say 6 months you will have that money saved for credit cards.

What is going on with your car that you are having major car repairs? Sorry to hear that.