Financial difficulty

[chomaju]

Wow! Where do I start? I know my financial promblems are my own. I am resposible of where I am now. Money seems to burn in my hands. I tried to start a new career and / or new business a couple of years ago and this really put me in the hole. I viewed and reviewed my budget and there is just not enough money. I need to find more income to pay off my debts.
I work full time and I am alone with my 15 year old son. I have also started part time at a clinic doing different types of massages. For the past 5 years I was working full time and going to school to learn some holistic medicine techniques. Now working full time and part time and my life with son are all things I love to do, but there still is not enough income. I can't very well work 24 hours a day.
I met with a financial adviser and he told me I had to find more income to get out of debts, and have some spending and /or savings. I can't plan a vacation, there's no money, I can't have any of my appliances break down or I'll really be in trouble without one of them. I do not have a car, I travel by public transport,...etc etc.
We have food on the table and a roof over our head( I rent an upper duplex), but things are getting so tight now I am getting scared and I do not know how to get out of these debts. I would really rather not declare bankrupcy because I do eventually want to start my own business, and I do not want problems with that aspect.

Any suggestions anyone???

Judy (JC)

[AustinJennifer]

Judy,

Make sure your 15 year old son understands where you are with finances but that everything will be ok. Be honest but optimistic when you talk with him.

In my experience, "financial advisors" tend to help people with money to invest. You need to find a debt counselor or debt counselling service. They will have experience working with individuals who are struggling and can help you review your options and stop now before you get deeper in debt.

good luck.

[chomaju]

Thanks will look up to find a debt counsler.

Judy (JC)

[GILLI-B]

I am living in South Africa and possibly in the worst financial situation I have ever been in. Absolutely desperate strates, waking up at 3 in the morning in a cold sweat, not wanting to answer the phone in case it is a creditor. I don't even qualify for a loan cos I am "self employed" have no steady income, no collateral and no assets..........I really am trying to keep the faith here too. I am actually seeing someone next week who I suppose could be termed a "debt counsellor" (a sort of Suzy Orman type) I am hoping that she can help me not only get out of the mess I am in, but help me make the changes that will stop this vicious circle of neve ending penury.

[chomaju]

Thank you for sharing your story with me. I know we are not alone. I have also looked into debts counsling. I have filled out papers, and we will see what wil happen. I have also been told sometimes there are other aspesta of our life we must change and then the money situation will follow. We kind of have to change our relationship with money!!

Good luck to you and if you like I would like to hear more about how things work out for you after you meet this debts counslor.

Keep the faith,..

Judy (JC)

[anna]

how did u find yourself in this place ?You have a valuable knowledge [alternative medecine methods ].Instead of a clinic if i were you i would find a private office of doctors and i ask them to include me in the services they provide ...........
A debt counselor will me ke you feel better and will give you advices that apply to your situation .............If you know this field of alternative techniques why don't you find a college to work as a counselor to students who want to follow this path ?There are many of them and you can guide them with informative tools ................
I don't know about your educational level ,but this period this knowledge is important ............FIND A WAY TO TAKE ADVANTAGE OF THAT ............
good luck

[AustinJennifer]

Way to take action Judy! I'm so proud of you for going to see the debt counsellor already! AWESOME!!!!

Taking action, especially in a difficult situation, shows your strength of character. Things will turn around soon because you will make things happen. Congratulations! You're off to a great start!

jennifer

[RAYOFLIGHT4DI]

I'd appreciate it if anyone could help me come up with the best way to start tackling on my financial mess. on the question of financial advisor vs debt counselor....I think in my situation wold be debt counselor. Here a summary of things:
spouses past due credit cards : I have no credit history
I apply for credit and get denied. spouses pay cut and transfer out of state...equaling past due bills now and double expenses but he refuses to leave job and hang in there until company situation changesfor better. Ok so where/how to I start to take this on? I thought of creating the budget but we have about 2x the expenses of what we make due to the effect the pycut has rippled and used up the savings! sooo, how do I even start to take this on. I am looking for ideas to straigthen out this mess a step at a time but I usuallly get stuck after realizing I dont know whereexacty to start. I want to buy a house in 1 year or less and need a plan to eliminate those credit card past due bills and to begin paying ON TIME for the main bills. I tried getting credit cards for myslef to establish credit but really would it be of help or hinder to my getting us out of debt and into a house???
any ideas, advice, things that have worked for you, do's and don'ts? I need help to push me along my right path:)

[chomaju]

Good for you trying to get back on track. I do not think I can give you any advise, because I am not in a good place to give advise.
I just think you have to look at your things, and decide what you think is right for you to do at this time and when you are ready. No one can make these decisions for us, we are the only ones who can decide for ourselves!

Judy (JC)

[RAYOFLIGHT4DI]

well you did give me somekind of advice: that its essential for me to figure this out. I need to improve in this area, to accept nothing will be perfect and that I need to take some control to change it for just better so I can stop it from stealing my TIME by worrying abot it every minute of the day...it drains me somedays more than others.
I am beginning to think, to realize that I need to keep trying and make my own break. My family and I deserve it!

[AustinJennifer]

It sounds like you're in a very difficult situation. I think you and your husband need to sit down and tackle some tough questions together.

Honestly look at your expenses and make it a priority to pay those bills on time to keep your credit strong (important factor in getting a good interest rate on a house). Also, you'll need to show a good amount of savings, not only for a downpayment, but also so that your debt ratio is not too high.

Establishing your own credit is very important. I think you've got the right idea there. Perhaps if you can scrape together a few hundred dollars extra once you've paid the main bills and credit card bills for a few months you can ask the bank for a secured credit card (meaning one where they keep the money in the bank and give you a card of the same value). Now that may seem silly. Why get a credit card when you already have cash?? Well, sometimes we need to take baby steps to get a good credit history going. And you'll find that if you are responsible (not going over your limit and always, always, always paying that bill on time) that your credit limit will rise and within a year or so you may be eligible for unsecured credit (credit where you don't already show that money available in the bank).

I hope this helps. Email me privately if you would like to speak further offline. I wish you the best.

austinjennifer2003@yahoo.com

[RAYOFLIGHT4DI]

AUSTINJENNIFER:
thanks for your input. I also said the same thing (why?)when I applied for a small loan, I got denied for reason they said have no history.
Now I remembered the credit officer said I could do a secured loan. Now I see that is the way to get established as well.
Dealing with finances is not one of my strong points as I've always left that to my husband and he's in the same boat as I. Honestly, I just balanced the checkbook but now I have had to learn to do the rest. I know that weve made mistakes but tht is inthe past and we've learned and grown older. I realize the importance of the debt ratio and savings. I need to get another car but I am holding off so that I don't have another extra expense showing! Want to focu on geting things better and otcreate anymore debts so we can apply or homeloan. We were on a good path until we used it up and have to build it back up. I know we are capable of doing it and the matter is budgeting and breaking bad habits about paying bills at the last minute. We've talked about our problem in managing money and having learned things the hard way. Let me say, it means so much to us to do this 100% this time to get a house. I've even considered a second job and then it hard becasue I don't want to leave the kids "on their own" for so long periods of time. I feel their at a critical age and if I am not present that may bring in other problems. I think you have a point that I need to seriously talk over with my other half.