Could your family weather a depression?

[I have WHAT in my yard?]

We're starting to see it around here. People who bought McMansions in the "country". Who were mortgaged to their eyeballs and lost their jobs with the first round of bank collapses. The empty houses are still few, but they exist. WHat is worse is, around here, people lost their life savings to builders that went belly up.

A couple of families we know had invested their savings into the building of their dream house and the builder went under taking their money and leaving them with an unfinished worthless house.... People insist there has got to be "something" you can do. But, when a business goes bankrupt there is no money no matter what you are owed or how deserving you are.

Right now, good people who played by the rules are suffering because of people who gambled with everyone's money...

 

[the1much]

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when the u.s. dollar dies,, we will have NO effect on other money,,, other then making the euro sky rocket,, gold will be worth more when this happens,,,,and im sure its gonna be the other way around,, it will cost the u.s. a bag of gold for that bread.,,, people who already have gold, will be able to get ta heck outta here.

 

[Mojo Chick'n]

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That is why one of the main things to do NOW is to get out of debt. I know it sounds easier than it is, but it can be done, and it can be done without an inheritance or winning the lottery.

Decide which bills are most important (the house, etc...) or if you could get out of the expensive house and go smaller, and re-coup some time/money that way.
Pay off the cars, etc... the credit card bills, and the other loans/payments come next. Well, maybe credit card is a bit higher up - but if you STOP using the card and call the place, they will usually cut a deal with you for less than what you owe - at least they will stop charging interest on it, in most cases. But only if you stop using the card.

Choose one bill and pay double or at least half again the payment every time, until it is paid off - then move on to the next bill and do the same. (all the while paying on other bills, of course) this means you'll have to give up a lot of stuff - usually stuff we THINK we need, but really could live without.

I'm not saying this in a flip manner - I've been there. I've had to decide between toilet paper or gas for the car. I went without cable, phone, other "neccesities", etc... for a long time, just to pay off those bills. it was hard, it sucked sometimes, but it was worth it.

We owed probably about 40,000 in debt - took us about 5 years to pay it all off. (that included the mortgage, which I had had forclosure notices on before.) We had been paying on our house for almost 18 years on a 30 year loan, and it still was just near halfway paid off.

Once you begin the debt reduction - stop using credit card, stop buying on credit (taking loans, etc...) do not buy anything you have to make payments on. Period.
If you cannot pay cash, then don't buy it. Make due with something cheaper or somethign else, or do without.

Granted, we did not have high medical bills, so I cannot comment on those. I know some people have ongoing medical problems, and I would hate to be in that boat.

Also, hubby and I both had a job (I did not work for years, stayed home to raise children, which was partly why we were in that boat to begin with.) However, if trading 5 or 6 years of working for someone else would get me out of debt, I was willing to do it.

I moved here a year ago - I knew no one, but this community is different from where I used to live, the people here are pretty like-minded and willing to pitch in (and barter, and trade, and share tools, etc...). I lived at my old place for 20 years and never belonged to a community - I lived in the second biggest city in the world, but here in the country I have more "neighbors" than I ever did - and my closest neighbor is a good 1/4 mile away from me.

It is all in the mindset of the people you live near - either it is every man for himself, or it is a community.

Attitude is everything, in more ways than one - and the right attitude is what is going to get you out of debt and help you survive whatever comes your way.

Peace -
Meriah

 

[Acre of Blessings]

Well your right, it is the mindset of a person. We have a couple CC's that we intend on paying off within the next 5 months. This will help a lot. Also we have decided that with the tax money we recieve (if any next year

) wea re going to pay that either against the house or the car, probably the house.
I am a stay at home mom trying to sell items that I have around the house that I don't use anymore or things that I make. It would not pay for me to work due to the fact I would have to buy gas and pay a sitter, so with me staying at home its cheaper.
This whole paying off the bills would go faster if the interest rates weren't so high. I mean high

 

[EweSheep]

Well I wish I can pay off my mortgage that fast however we still wanted a house out in the country or with a very large lot of one to two acres of land. We are in our fourth year in our house with a five year contract with the bank that we must live in it (downpayment clause) and after five years, we can move out without paying penalties. We got a 30 year loan.

We have NO credit cards debit, nor have any. No debits owed except for our van payments which we were lucky to pay HALF down on the full price and get a loan for the other half. So its two year loan there.

I would be glad to get them paid off for sure and smell the countryside once more!

 

[werblessd1s]

That's one thing my Mom has never done, is mortgage her home. She said she don't care what she has to give up her home will never be mortgaged. My Dad would have had it mortgaged by now if it wasn't for Mom. She actually told him if he ever mortgaged their home she would divorce him, and they've been married 38 years.
The newest vehicle my parents own is a 2000 model and they paid $3000 for it used.
The only credit card she has other than her bank card has to be paid off every month.

I own my home which is a 24' RV, LOL

. Because my home burnt down 4 years ago, which was also paid for. I refuse to go in debt to get a home. I will live in this RV for ever. It's actually not that bad other than space, utilities are a whole lot cheaper than a house. I own my SUV which is a 1996 Chevrolet Tahoe. I would love to have a new ride, but not bad enough to go in debt for one. I'll drive mine till it falls apart.
If anything I would love to get a bigger RV, if I have to leave at least I can take my home with me

.
When I see people with big nice homes and new rides. I don't envy them at all, because if their not rich or have money smarts, their in debt up to their ears.

 

[the1much]

ehhehe,, i like it when my friend come over to show off their new rides,,,,,look aint it cool, and all mine,,,,,,then i say,,did you pay cash?,, they say NO,,,,,,i say, heh,, then your driving the banks car,not yours.
they dont bring their new toys over any more,,hehe

 

[TanksHill]

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I have been trying to convince my husband to sell our home and take our Fith wheel and move out of state. We actually lived in a travel trailer while building our home. Now 3 kids and 8 years later I would rather go smaller. It's funny how you learn the hard way how much space one really needs. I myself would love to live in a Yurt. That is my ultimate goal. Several in fact all arround a center courtyard. But enough of that....

I am almost debt free.... Oh yeah except for the mortgage.

Oh did you guys catch the news on AIG. Now the government will actually own 80% of the company because of the loan. Hummmm??? How many other compaines does the government actually own? I know that's a whole

Oh I added water to my SS suply yesterday. Yeah one less thing to stress over. Gina

 

[EweSheep]

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You're BAAAAAAD!!!!!!

 

[Mojo Chick'n]

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Pay it onto whichever one has the higher interest rate, and if you have enough to pay one off - or almost pay it off, do that one, even if it is a smaller bill, because then you'll have more money every month to pay on the higher bills.

Hubby and I whittled down our bills one by one just that way. I even - finally - paid off my student loan (from 1984, LOL).

Peace -
Meriah