Behind on Mortgage for months?

[boothev]

Re: Behind on Mortgage for months?

Amendment - Emergency Fund is $50/month, I put $25/paycheck in there.

[terry1156]

Re: Behind on Mortgage for months?

I know what I have, my sister and I gave it a name:

"Financial Vagueness"

I know all our bills, but I have no idea what we are TRULY spending.

I have to get rid of Financial Vagueness!

lol...you know exactly what you need to be doing -- you just needed to write it down and get a bit of feedback to get motivated.

I would suggest a specific place where DH empties his pockets with tips each night when he returns home before it disappears in unknown places. Make a pact to not spend any of the tips for a month to see exactly what he brings in.

Another great way to reduce spending is to take a look at the previous month's bill and think of ways you can reduce it. You'll be amazed at what you can accomplish when you have a set number you're trying to be under.

I wouldn't stop your 401K match - that's 100% profit and you aren't going to get a better return than that - even if you pay 28% interest on your credit card, your still coming out ahead. Scrimp and scrape everywhere else, but try not to stop up to the match.

[boothev]

Re: Behind on Mortgage for months?

I wouldn't stop your 401K match - that's 100% profit and you aren't going to get a better return than that - even if you pay 28% interest on your credit card, your still coming out ahead. Scrimp and scrape everywhere else, but try not to stop up to the match.

I know, I consider that saving "12%" of my income. I was amazed that I was adding approx. $400/month to the plan by doing almost nothing! It was growing by $1k every 2 months or so! I would log on every payday and check my balance!

[terry1156]

Re: Behind on Mortgage for months?

I think that needs to be one of your top priorities. There aren't many chances like that. Even if it means scrimping for a few years, you'll be so happy you did later on. And ig you can come up with a plan to max that while not incurring any other debt, you will really have you finances in order. Make you current "fuzzy" numbers more clear and make that a top goal.

You can also think of it this way. If it seems like you can't do it, have DH get another part-time job or do ebaying to make extra money. If that allows you to max out the 401K, it means the salary is actually double whatever he's earning (since it will allow you to get the match - $16 a hour sounds a lot better than $8.

[terry1156]

Re: Behind on Mortgage for months?

oops..almost forgot in all this...first priority is to get that mortgage up to date!

[boothev]

Re: Behind on Mortgage for months?

I know, we really got off track. Mortgage first!

I was just afraid my housing-to-income ratio was too high for our household income. I wondered if not having car debt, allowed someone to take on a higher ratio in house. But I almost spend enough in gas as other people do in car payments!

Mortgage first! Gazelle instensity!

I wondered how other people remain one month behind in mortgage payments for six months at a time. Do mortgage companies have bigger fish to fry than going after these people?

[rdeel2000]

Re: Behind on Mortgage for months?

I have been reading posts here for some time but this is the first time I have been moved to reply. I have never been behind on my mortgage but I can imagine how scary that must be. I do know that it takes great determination and focus to get from where you are to where you want to be. I wanted to offer these suggestions:

1. I agree that you need a cell phone for emergency use. Virgin Mobile has a pre-paid program that costs only $5 a month to keep your phone in service. Use it only for emergencies, chat with friends and family on the land line using pre-paid phone cards. This will require the purchase of a phone but they have a very inexpensive model available or check eBay for a used one. Savings of $55.

http://www.virginmobileusa.com/myvirginmobile/payment-options.do

2. I would pull the kids out of preschool for an immediate savings of $100 month. I know society dictates that this is necessary but with Dad at home it is not. Print age appropriate worksheets from the internet or buy workbooks and let Dad be their teacher.

3. Drop the cable and save another $55 a month. Learn to use your local library for free entetainment, check out books and videos, take the children to storytime.

4. If you know you have a problem with spending, stay out of the stores, you can't spend the money if you aren't in the store. Make a list and send your husband to shop for you.

5. Instead of saving the tip money to eat out, use it to pay toward the mortgage. Use eating out as a once a month reward for staying on track and catching up on the mortgage.

6. Learn the difference between a "need" and a "want" and only spend money on the needs. Live byt the motto "Use it up, wear it out, make it do or do without".

Now take that $210 in savings and add it to whatever you can scrape together and get that mortgage paid up to date. You will then see an immediate increase in income due to not paying late fees and extra interest. As soon as you are there, reinstate the 401K to take advatage of that free money. I wish you the best of luck, I know you can do this.

[Gailete]

Re: Behind on Mortgage for months?

You really do need to know exactly how much is coming in and how much is going out. By your numbers, I'm not sure how you got behind on your mortgage as your income supports the mortgage payment. But since you are behind, if I read things right, your need for gazelle like intensity is right. Cancel that cable, cancel that insurance, except for your long commute I would think about canceling your cell phone, at least look for a cheaper landline carrier, AND at the risk of being blasted into outer space--cancel preschool. You have a stay at home parent who can spend time with the prescooler teaching them what they need to know. Frequent trips to the library will help, plus investigating homeschool resources on the internet.

Your most important needs are keeping a roof over your head, nutritious food in the belly and reasonable clothes on yourselves. Everything else is negotiable.

Track your spending-boring I know-and find the leaks in spending habits. If you smoke or drink-quit, If you buy treats for yourselves and kids-quit. Until your mortgage is caught up, anything not needed needs to go. Drive whichever car gets the best mileage.

Gail

[boothev]

Re: Behind on Mortgage for months?

Thanks, I just needed to see this in print. Thanks for saying my income can handle the mortgage, I thought I was in over my head, but the real problem is me. I need to make my dollars behave. I let my budget happen to me and I need to make my budget happen.

The last couple of weeks, I have just stayed at home and "pretended" I was broke. I keep drilling into my head some paraphrase, "A dollar saved in my pocket is worth more than a dollar spent outside the home." Isn't that how it goes?

Last night I made spaghetti and I calculated in my head: "$4 for ground beef, $1 jar of sauce, $1 for noodles, meal = $6. A meal at McD's for a family of four $16." It REALLY made sense and it helped me think of other meals. And the family LOVED it!

Thanks everyone.

[Tree0164]

Re: Behind on Mortgage for months?

It sounds like you are starting to get a plan together. I am glad that you are reading Dave Ramsey and it sounds like you are getting the lingo- gazelle instensity.

I agree with Terry continue with 401K contribuations but really look at what else can be cut. I second getting rid of the cell phone and using a prepaid one. You can get out of the finanical mess-writing it down and becoming aware is so important.

Good luck!

[Gailete]

Re: Behind on Mortgage for months?

Just a thought that might help you keep track of where money is coming and going. Years ago when I was married to exH we were in horrible debt ($40,000+ not including mortgage or car payments ), I was obviously having trouble balancing my budget and prioritizing bills. I found a simple solution that worked for me to keep me on the straight and narrow. I had a large legal sized tablet (now I use a spiral notebook that I got for 10 cents) and mentally divided it into 4 sections as we were paid weekly. I put the date of pay day at the top of each section and then as bills came in, I wrote them down according to when they needed to be sent in to avoid a late charge--say a bill was due on the 10th, it would be written done under the 2nd or 3rd of the month to allow for mailing time. Mortgage, utility bills, etc all got listed. You could tell at a glance how much was needed to pay the bills for that week AND assuming you have a 'light' bill week, you can look ahead to the next week and realize that you have the mortgage to pay so what looks like 'extra' money, really needs left in the bank to pay your mortgage on time.

I have been doing this for about 10 years now and still have all my back tablets and notebooks. Every December I take a calendar for the next year and write all the dates in my notebook and then look through the past year to see when those 'surprise' bills like car insurance, life insurance, etc. comes due. I write those in in the appropriate month even though I don't know how much they will be...I KNOW they are coming!

Even though I am remarried, I receive SSD and my husband is self employed with a sporadic income, this still works for me. I pay the bills in time to avoid late charges but leave the money in the bank till needed to earn interest. I can go back and check on what things costs in previous years and it helps me estimate what our expenses will be.

Oh yes, in the process of getting rid of the ex, the house was sold and 'my' share of the bills were paid off. HE however was already in debt over $60,000 by then! Guess who the spender in the family was?

Hope this is of some help to you and others. Very easy, especially if you set aside one day of the week to bill paying and financial upkeep. I do it on Wednesdays and then run errands, etc. with a fresh idea of what is in the bank.


Gail

[jmjj215]

Re: Behind on Mortgage for months?

I'm glad that spaghetti dinner was loved by all. Liberating (and healthier) isn't it? Way to go on taking the necessary steps, one foot at a time.

[34saving]

Re: Behind on Mortgage for months?

Actually, depending on your tax rate and the like, a dollar saved is worth about $1.33 earned. (To go along with your dollar in the pocketbook . . .)

[boothev]

Re: Behind on Mortgage for months?

Well, my DH made $40 in tips EACH NIGHT the last two nights. I deposited $80 into the bank this morning. No more cash around the house. I want to document what is coming in and it is easier for me to see in while checking online with my bank.

That was $80 in two nights. He works about 4 nights per week and let's it be known to the managers to CALL HIM FIRST if someone calls off of work.

Maybe he makes a lot more in tips than I give him credit for? I thought we could only count on $100 a week, but I will be happy to be wrong!

Thanks everyone! He works tonight as well. Saturday nights can be his best tip night!

[mom-from-missouri]

Re: Behind on Mortgage for months?

I found a simple solution that worked for me to keep me on the straight and narrow. I had a large legal sized tablet (now I use a spiral notebook that I got for 10 cents) and mentally divided it into 4 sections as we were paid weekly. I put the date of pay day at the top of each section and then as bills came in, I wrote them down according to when they needed to be sent in to avoid a late charge--say a bill was due on the 10th, it would be written done under the 2nd or 3rd of the month to allow for mailing time.
Gail

I do the same thing basically, but I use an 18 month calendar that I get from the dollar store. I like the 18 month one, because I can look back and compare bills to previous months. I just write the bill and the amount due on the date, and make sure I mail it several days before. However, the majority of my bills come directly billed to my VISA, which is actually a debit card-but I don't use the pin on it. That way, I earn cash rewards from my bank, it comes right out of my checking, so no late fees, no interest, and if I am out of town, I know its paid.