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URL:  http://boards.fool.com/you-need-a-budget-you-need-to-understand-how-25205232.aspx

Subject:  Re: HERE IT IS - MY MAJOR CC DEBT !!! Date:  2/22/2007  12:14 PM
Author:  llambe Number:  248087 of 308686

You need a budget. You need to understand how much money you have, how much you currently spend on each category, and how much you think you should be spending. Typically, people find out that they're spending more than they think and worse, they're spending it on things they do not deem important at the expense of things that are important or at the expense of spiralling debt. I suspect you're actually in both categories.

This is key I think. Right now it sounds as if you're still partially in denial. You're bleeding $2000+ a month in spiraling CC debt and the response to many suggestions (not all which is GREAT) has been "it would kill me" or "it would kill him". You are considering some cuts, it's just that you're going to have to make a lot bigger cuts. Of course what you choose to cut is up to you but if you decide to keep the Private School for example, then what else are you going to cut? Is TV really more important to you than the School? And you can't just cut TV and keep Private School, if you want to keep the Private School you'll have to cut out pretty much everything else AND eat rice and beans.

This is WHY a budget would help you. List out all income and expenses, prioritize and THEN you can see what you need to do to to keep the MOST important ones and which ones you're willing to give up for now. AJ made a good start on this from your numbers - add the rest in. Find out how much you're past the income you have. A job and selling stuff on ebay are definitely worth spending your time on and any extra money will let you keep more of your highest priority items but by itself they won't fix the problem which is you must be spending LESS than you're bringing in.

mom4boys4, it sounds like you're feeling afraid and that you need to protect your boys and your quality of life, and I'm right there with you on those being important things. Would you be willing to list ALL your outflows and prioritize them?

Lael





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