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In a minor financial bind, thoughts?

Discussion in 'The Okie Corral' started by NateHodge, May 30, 2012.

  1. NateHodge

    NateHodge Here too much

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    So my wiife and I are gonna have our first child within the next 6-8 weeks. She has always wanted to be a stay-at-home-mom, and with the amount of money she'd make, vs what we'd have to pay for daycare, she'd only be bringing in about $500 a month to the house. That's before her gas and food that she'd have to buy for working, so we decided it was pretty much the same financially for her to work or stay at home.

    We're not behind on any bills, though we have bottomed out our account a lot recently. All together, we have about $2800 a month in bills, and I've been contemplating the idea of a consolidation loan($2095 in loans) to try and knock back the monthly load. Since the shortest loan matures in 2014 and we could really use the relief rght now, it seems to be the only option.

    What are the thoughts of the guys that have been there?
     
  2. DaneA

    DaneA

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    Honestly I've been there. We made this decision 11 years ago when my oldest was born. It is the best decision we ever made. 3 more kids later (total of 4 boys) it is still the best decision we have made.

    Most of this decision is a lifestyle change. Personally I wouldn't consider the consolidation loan. I get out from under some of the loans. Sell the car or whatever to eliminate the loan rather than shuffle from one pot to another. You might need to take on another job, temporarily, to help eliminate some debt but it will be worth it in the long run. Try to get your total debt (including groceries, gas, etc) below 85% of your income.

    Also you do NOT need the best of everything for the baby. Generic formula works just as well as name brand. Diapers not so much though. By used furniture, etc.

    Finally, being a mom is a CAREER. At no point EVER compare working outside the house to working inside the house. YOU WILL LOSE if you do!!!!
     

  3. Lone_Wolfe

    Lone_Wolfe Sandbox Refugee CLM

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    If the consolidation loan lowers your interest rates, then it's not as bad of a deal as the ones that just lower your payments but not your interest.
     
  4. Gallium

    Gallium CLM

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    Is that a typo on the loan amount? You want a consolidation loan for $2100?
     
  5. fireguy129

    fireguy129

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    If you do the consolidation, you absolutely positively have to have the discipline to not run the debts up again, to the point of having consolidated and new debts equal to your original debt. Me? Id fight like hell to pay off a few debts right now, sell a car, get a paper route whatever to cut a few bills out.
     
  6. robjohn

    robjohn

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    Check out 'Just Between Friends' and similar events that specialize in selling used children's clothing, furniture, bedding, toys, etc. We've been able to save quite a bit doing that.

    Cut back on any non-essentials, drop cable tv or switch to netflix, go with a more basic cell phone plan, reduce eating out, get rid of any storage units you have, have garage sales to purge unwanted items, get rid of excess vehicles, etc.

    Making your own baby food is a hassle but it can be done. Our COSTCO/Sam's Club memberships paid for themselves on diapers alone.

    Get 20 year term-life insurance, will be something on the order of $200ish a year for a fraction of a million payout. It's cheap because it only pays out if you die.

    Congrats!
     
  7. NateHodge

    NateHodge Here too much

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    Dane, I agree that being a SAHM is a career, and a big one. They are caregivers, maids, teachers, cooks, nurses, entertainers, enforcers, and many other things to our kids. I have the utmost respect for them.


    If it was possible for me to get a part-time job, I wouldn't have a problem with that. Problem is, I work for an oilfield service company and am on call most of the time. I also never know my work schedule from day to day.


    As for the baby, we've been very fortunate to not have to buy anything yet. My mother has worked hard to get where she is, and it makes her feel good to be able to help others for a change. She's really going all out and so is my sister. They are considering not even giving my wife everything they got her at the baby shower for fear of making others feel bad. And I couldn't be more grateful for such a loving and helpful family.

    It just seems to me that I don't have a lot of options financially other than to deal with it, or restructure. We only have the basic bills, with the exception of a credit card and a side loan I had to take out to get move out on our land. Those 2 alone account for $450 a month and $6900 total. The rest is Land, trailer, her truck, a mower(we have 10 acres), and the regular monthly bills.



    No sir, that's how much we have in loans monthly. Total loan debt is way higher. haha
     
    Last edited: May 30, 2012
  8. robjohn

    robjohn

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    Have you figured your out of pocket expenses for the birth? We paid a few hundred for our first and a few thousand for our last, just a few years later.

    Here in the U.S. they really seem to push Cesarian births. I'd read up on that if I were you, figure out how to reduce the probability of running into that.

    Since you have high debts, does that also mean you have assets you can liquidate? Say a sports car, boat, motorcycle, etc. that you don't really need?
     
  9. DaneA

    DaneA

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    Ditch every other expense you can and focus on these two. $6900 isn't really that much to get paid off. Dump cable and anything that isn't critical. I have a feeling that if you get the 6900 paid off that bring things back in order for you? Maybe dig through the garage and find a few things you can sell off.
     
  10. NateHodge

    NateHodge Here too much

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    After insurance, my part is about $4800 for the birth. I have a $1500 co-pay, then 20% after that. We are completely against C-section unless the health of the baby of her is in danger. She said she doesn't care how long she's in labor, just as long as there are no medical risks.

    Unfortunately, I don't really have anything to sell off. Land, trailer, her truck, a mower, a credit card, and a side loan make up the $2095 a month.
     
  11. robjohn

    robjohn

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    BTW, if your wife hasn't entered into full-blown nesting instinct, she will very soon. It's a sight to behold. Lord help you if you aren't ready for that train. I'd get the nursery squared away PDQ. Learn from my mistakes. :embarassed:
     
  12. Restless28

    Restless28

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    Seek out Dave Ramsey.

    Take care of the 4 walls and your health before all else while you work through this.
     
  13. NateHodge

    NateHodge Here too much

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    Done!!! Painted, carpet laid, all molding put in, ripped up the carpet in the hall and bathroom and put down a hard floor. Ended up having to replace the plywood around the back door in the process. Built a porch with roof so she doesn't have to stand in the rain to unlock/open the door. Refinished the tub too.

    Yep, a good friend had a baby in november of 2010. His advice was to forget the word "no". It's made life easy as far as her mood goes. She's been a really easy-going pregnant woman.
     
  14. DaneA

    DaneA

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    Well at least now we know WHY you are in a bind. All that home improvement costs $$$$
     
  15. robjohn

    robjohn

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    Sounds like you know what you want, great! We didn't know enough to ask our OB/GYN what drugs would cause an increased possibility of needing to do a C-section. We would have done it differently had we known, but luck was on our side. We should have had more detailed conversations with the OB/GYN.
     
  16. NateHodge

    NateHodge Here too much

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    Total cost for everything done is $1200. $850 was materials for the porch. I did everything so no labor has been paid out.
     
  17. Unk

    Unk

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    +1 Restless 28.

    Getting, and staying, out of debt is the best thing you can do for your family.

    No sermons here but you mortgage your FUTURE way of life with debt.

    Congrats on the new child and stay at home Mom..you are blessed.
     
  18. Rinspeed

    Rinspeed JAFO

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    You might not like my answer but I would suggest it time for you to get a second job 15-20 hours a week. $2800 a month in bills is considerable for most people. Congrats on your first child, I hope everything goes smoothly.
     
  19. robjohn

    robjohn

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    You mentioned she has a truck payment that is part of the large monthly outlay. In order to reduce your debts, could you sell/trade it and get another vehicle that is far cheaper yet still nice enough and safe for a young family?

    You have a lot of land. Is there a good way to get revenue from it to help pay the bills?

    Is there a way you could set up a side business improving other people's homes? You seem to have a knack for it. And contractors never really seem to know when they can work either. hahaha.
     
  20. kalashluvr

    kalashluvr

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    I agree with robjon....what's the truck payment and what's the remaining balance?