Discover Card:
Citi Forward:
I called the vet this morning and she quoted me $250 for the dog's procedure. This is money we do not have or saved for so this will probably end up on the Citi Forward credit card. The cycle never seems to end, I pay back money to the credit card but then I don't have money to cover unexpected expenses.
Also, wife spending out of control again! Lately she needs something for school, something for the house, new clothes etc. I need to find a way to calm her spending, can I blame it on hormones?
HS
9 comments:
HS - making as much as you do, there is NO reason you shouldn't have a savings/emergency fund to draw on. To not have money saved for these things - the birthdays, the vet expenses, the back to school expenses - well, it's stupid. ;)
Open a savings account NOW (I like ING since it takes 2 days or so to transfer money to my main checking account) and set up your direct deposit to put 10% of your paycheck in it every payday. Do it that way and it's "invisible" savings. You won't even notice that it's gone.
The only way you're going to break this credit card cycle is to start setting aside money in advance instead of relying on credit to pay your bills.
As far as your wife's spending, my suggestion is cash allowance. Actually that's my suggestion for both of you. Take the cards out of your wallet, give yourselves a set amount of cash each week and once it's spent, it's gone. No more.
Hey Girl!
I have like 5 savings accounts... close to 1,500 in savings which I call my emergency fund. I've had this for 3 years, at one point it was close to 10,000 all for emergencies but I refuse to touch that money! I don't know why I rather add to debt than to draw money from the fund ?
There's no cash allowance with the wife... she's got a Macy's card LOL Good luck trying to take that thing away from her.
HS
Your wife sounds like my BF. Always an excuse to spend instead of save.
Yup we love them for who they are not for their spending habits LOL
HS
Maybe your wife needs a gentle reminder about that talk you two had a little while ago? Sounds like she (and maybe you) needs to take another look at the big picture.
I also struggled with spending funds I had saved for "emergencies," but I realized that it's there for a reason. For me, my debt is an emergency situation. I'm so anxious to eliminate it completely and the last thing I want to do is add to it.
You might try three savings accounts:
emergency
long term future
and
for stuff that will come up but is not part of monthly budget (like car repairs and birthday gifts)
The third account I have it is called a freedom account. Take all money you spend in one year on gifts, car stuff, anything not in regular monthly budget, add it all up and divide by 12. Each month put that amount in account. You have to budget for gifts and car stuff, these are not emergencies.
The actual emergency fund should be for job loss or illness.
And forget rewards you guys have to stop using credit cards or they will never get paid off.
I've been a longtime reader of this blog. It seems like a big problem is that you're unrealistic about how much you can put towards your debt at any given time. Maybe you have a surplus of 1k, but that doesn't mean immediately sink all that into your debt.
Like frugalforties said, you need to work in increments, percentages. If you put all your money on the card, of course you'll have to use it again because you'll have nothing saved.
I know I know, you have rewards to be gained, and you already have three savings accounts and a big problem is your wife's spending and maintaining a lifestyle. And not getting the jobs your applying for, and paying off those SUV's, all the way to putting IVF treatments on your card(like I said, longtime reader). Urgency, desperation and depression are the themes of every post.
Everything on here, for as long as I've read is so immediate. Well paying off that debt, in a way that will keep it off for good, requires time. But you know that.
I mean, you say that you don't have the 250 for your dog and that you'll have to charge it, but in the comments here, you say you have 1500 saved for an emergency. ??? This is what that money is for.
And since I'm on a rant, stop spending hundreds or thousands because you want the "rewards." Those companies can offer those rewards because annually they make three or four times what the "reward" cost off you in interest and fees in a few months. I know you have a thousand reasons why it's actually a good thing. Or maybe it's more of a "Well, if I'm going to be in debt then I might as well get the gift card." But the point is, YOUR GOAL IS TO GET OUT OF DEBT!
As far as the wife goes...Look, I really relate because I've been there. And all I can say is that this is going to ruin your marriage and bankrupt you if you don't start making those hard choices. Those deliberate, slow changes.
In marriage, managing money like this, just leads to alienation and bitterness. I'm no finance guru, but I do know about that. The strain that this debt will put on those who love you can weaken or destroy your relationships.
Don't make the mistakes I did. Don't wait till it's too late. Because you will have to deal with these problems sooner or later. The only difference is if you wait too long you might find yourself sorting through it alone.
This is armchair psychology, but I really think you should see a therapist. Maybe even someone who specializes in gambling or addiction. And I really hope you understand that is coming from a place of empathy and not meant to be hurtful.
I really sincerely, honestly and with all my heart wish you the best.
I would just like to see you succeed.
Wow! Guy, that's the most insightful analysis I've ever seen on a PF blog.
My husband and I got ourselves in serious trouble with debit over first five years of our marriage.
It almost ended our marriage.
Currently we are at $18000 and slowly chipping away at our debt. I've very leery of credit cards and avoid using them at all cost. I cant wait until we have the balance paid on all of them so we can close them all and start fresh.
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