freaking out about bills post-BK

[brainless twit]

I'm really hoping that the collective wisdom of this forum can help me find a solution to the crappy situation I'm in.

Due to many circumstances that I won't get into, my husband has switched jobs. His insurance coverage at the new job is horrible (he was a state employee before now and we didn't pay premiums), so I took coverage through my job for my son and myself. With that new expense coming out, combined with a slight loss in pay for him and increased gas prices, we're down nearly $600 a month from what we were a few months ago.

We're able to pay our expenses, but we have next to nothing left over. I was in this situation for 5 years prior to filing Chapter 7, and I'll be darned if I do it again. It makes me absolutely sick to think we're living paycheck to paycheck again, so soon after discharge.

So now I'm trying desperately to figure out a way to cut expenses, and I don't see any good options. These are our bills:

- house payment
- car payment x2
- utilities
- phones (got rid of our home phone and use only cells)
- groceries/household
- my consolidated student loan
- car insurance
- small payment to Dell for our new computer (will be paid off in Sept.)

What in the world can we do differently? We use coupons when we buy groceries, we don't eat out unless it's a special occasion, we keep our thermostat on 78 in the summer and 69 in the winter.... I have taken every step I can think of to avoid this, but it's obviously not enough when I look at my bank account.

The only thing I could think of is the cars, but I'm very upside down on mine (to the tune of $4k). My husband is close to even on his, but his interest rate is MUCH better than anything we could get now and the car gets excellent gas mileage. I actually considered trading my car in for a way cheaper one, so that even with the negative equity the payment would be lower. Then I think about how stupid that would probably be.

I'm just stressing about this. I've been looking for a part-time job on top of my full-time job, but I don't know that I could handle that right now. My husband works twelves so there is no way for him to get another job.

What can we do? Any ideas?

[keepmine]

You have to raise your income. As to the pt job-you just have to handle it.

[twuoo]

Shop around for car insurance. Do it online. It doesn't cost you anything. I just recently switched because the ins company that came back to me, there was a list of 5, the cheapest one for the same coverage is about $600 less a year. No brainer to switch.

Do you have stuff around the house you can sell?

Look at your housing, maybe it's better to sell and downsize.

Get a part time job at McDonalds or something like that.

My thermostat is on 85 for the summer. I have a small window a/c unit so when it's time for bed, the central air goes off completely and just the window one is on.

Can you reconsolidate your student loan? It'll drag it out longer, but the payments will be less. Or apply for a deferrment/foreberance.

Hope this helps

[manglicmot]

I cut my grocery bill by going to a diet mostly of ramen, PBJ and macaroni.

No cable TV

I don't buy newspapers.

I have one magazine subscription and when it lapses I will not renew.

When you are already down to bare bones, there's not a lot left you can do.

[brainless twit]

I'm actually just coming out of a forbearance on my student loans (we applied for the forbearance during the BK), and they are consolidated at a very good interest rate.

Every quote I get for car insurance is more expensive than what we pay now. We are carrying the lowest possible coverage, but our credit stinks so we pay a higher rate. Not to mention we're young, so that doesn't help.

As for the house, we have to stay in it at least 2 more years. We got a grant to cover our closing costs, forgiven every year for five years as long as we don't move. If we sell it before the five years is up, we'll owe more than the house is worth. Also, there are tons of repairs that would have to be done to sell it. We can't possibly downsize more than we already have - this house is less than 1000 square feet! For three people, that's not much space. We should have surrendered it in the BK, but my husband refused.

Deep down, I feel like a PT job is the only logical answer. But if I take on something else, I'll have to pay for daycare for my son, so that's just another expense. Plus I'd never see him! I would leave the house before he wakes up and get home after his bedtime. I can't justify that no matter how hard I try. I just can't imagine leaving my professional job every day to flip burgers for minimum wage - as I said, I wouldn't even make any money after paying for child care. It seems pointless to work so I can pay someone to keep my son for me to work! I wish there was something legitimate I could do from home.

Edited to add: We don't have cable either, manglicmot. It's sad to think that we now make more money than probably 60% of the population and don't have more to show for it than we do.

[Granny]

Can your husband go back to another state job? The insurance premiums can make a major dent in anyone's budget these days.

[Minnymouth]

Did you reaffirm on your home in the bankruptcy........ Do you have equity in it, is your interest rate high where a refinance would be feasible?

Can your family get by on one vehicle? or downsize your vehicle to one with a lower payment?

Its hard to survive these days even with two paychecks coming in....... prices on EVERYTHING has gone up and it makes it very difficult to make ends meet.

Believe me I know...... I rent out two rooms in my home to supplement my income so I don't have to work a 2nd job if I don't want too.....

So far that has worked for me, but a lot of folks it wouldn't..... I've been very lucky with the ones I have rented too....they stay with me 2-4 years each (till they marry or change jobs and move away)..... I'm fondly called "Momma Dee".....

Eventually I will turn my 40ft garage into an apartment also for extra income.... thats in the near future here.... ANYTHING to keep me from working a second job all the time..... getting too old to burn the candle at both ends... retirement is banging on my door and I want to live to enjoy it a little while if possible....

Giving up your home may be real hard to do, but it may solve the problem for you..... lots of folks downsize after their kids are grown....

Personally I would go the cheaper car route first, let hubby try to get back into govt or state work where your insurance is paid.......

Its sad, you dammed if you do, and dammed if you don't...... seems like no way out sometimes....... but there always is, its just that the decision is hard to make...

I like my privacy......... but renting rooms has solved my problem, and been quite enjoyable at the same time..... Most of my renters have been men between 35-45 who are divorced, getting divorced, or single.....

I guess that's why they call me Momma Dee - I'm 59..... but very young at heart, spirit, and mind.......

Good luck, hope you find a solution, I know its hard......

Minny

[SinkingFast]

Been there done that, BT. After Hubby was laid off. Only difference was, any job, at lower pay, with lessor, more expensive benefits, beat no job at all.

One thing that helped us stabilize our monthly payments was budget billing on utilities. Regardless of the month or season, the gas and electric bills are always the same. No scrounging in the summer or winter to pay huge electric or gas bills due to A/C and/or heat.

If your wee one is still getting immunizations, stay on the look out for free immunization clinics. I've done that before. Even tho we had insurance, it did not pay for well child care. That was all out of pocket. And immunizations are not cheap.

Scope out the local Food Pantries. See if you can get some pantry supplies there for free. Maybe then, all you'll need to buy at the grocery is toiletries and some add ins to make meals.

Look for local "Day Old Bread" stores. We've got several here. Where a loaf of bread costs $2 at the grocery, at the Bread Stores, you can get a loaf for 10-25 cents. Buns too.

If you didn't Reaffirm your car loans, give back the one you're upside down on if you can do with one car. That's a payment, possibly some gasoline costs, maintenance and repairs, plus monthly budget for insurance you won't be having to pay.

If you didn't Reaffirm the house, maybe consider letting it go and rent. Generally speaking rent works out cheaper than home ownership. And, apartment utilities are sometimes lots lower too. Many apartments throw in water and trash pick up. Some include gas in the monthly rent.

[manglicmot]

Yes, that's something that I often forget about. I rent an apartment so I don't pay water, gas or trash. I pay electric only.

[brainless twit]

We did reaffirm the house in our bankruptcy. We paid exactly what the house appraised for (would probably be less now due to a roof leak we haven't had the money to fix), so with the grant we got for our closing costs, we owe more than the house is worth. Our interest rate is 5.35%, so refinancing is definitely not something I want to consider.

Both of our cars were purchasing during the BK, so no option to turn them back in, unless we let them repo them, hurting our credit even more. We surrendered the one car we had at the time. We absolutely must have two cars - I drive 35 miles one way to my job, and my husband drives 20 miles the opposite direction for his, PLUS we work different shifts. He has to be at work 30 minutes before I get off work. I thought about trading in my car for a little junker, but with the negative equity rolled into a new loan, I wouldn't save much. And with the drive I make, I like having a reliable car that's still under warranty.

I know it may seem like I'm being difficult and turning my nose at every solution you guys suggest, but I really don't see anything we can do with the house or the cars without hurting our already fragile credit. It's a crappy spot to be in, but different from before in that we're able to pay everything, we just don't have much left over. We have a few credit cards, but so far we have paid them off every month and not used them for much. It's just so frustrating!

[SinkingFast]

Along the lines of a PT job,...........

Do either you or Hubby have a hobby or a knack for crafts?? Is there something you can make to sell at craft shows or flea markets, friends, neighbors, coworkers?? Something that costs next to nothing to produce that you could sell for say $5-$10/item??

If you want to work from home to spend more time with the wee one, there's several legit companies out there. If you live in a local calling area, you can work from home around your existing schedule. Either you or Hubby.

http://www.wahm.com/index1.html

Check out the Message Boards and see what companies people like working for. Things you may be interested in doing.

Just a couple more thoughts for you.