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need serious advice about finances

Posted by on Aug. 25, 2009 at 1:36 PM
  • 9 Replies

okay.. trying to make this short.

DH has been out of work since March

We are paying our bills with my full time pay, and his grandmother has been helping us pay our mortgage by giving us $400 a month.

His grandparents are taking out a home equity loan and are giving us $10,000 to do whatever we need/want with, no questions asked.. as a gift.

Okay, so we have about $8,000 in debt with my school loan and everything..that I would love to just take that money and pay it all off.  But at the same time, I don't know if we should just use it to pay our mortgage for 10 months.  Our mortgage payment is around $1000 a month.  Now, paying all the bills would relieve some cash each month, and I could get them paid off pretty quickly, if we just used that money for the mortgage, but I really don't know what to do.. since he's out of work and all. 

So the question is.. do I put it in the bank and use it towards the mortgage each month until it's gone, while I work to pay off all the bills myself.

Or.. do I pay all the bills off now, and try to pay the normal utilities and the mortgage myself?

*Also, with my just paying utilites and the mortgage each month I am still short like $200 in my income. 

So i'm just confused on what I should do.  My head hurts from trying to crunch #s and figure out which would be the best option.

Anyone have any advice? what do i do??

Lilypie 2nd Birthday Ticker


by on Aug. 25, 2009 at 1:36 PM
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Replies (1-9):
smilintoday
by on Aug. 25, 2009 at 1:38 PM

How about you check out Dave Ramsey (you can just google his name). That would be a great place to ask your question. 

sarahbearamommy
by on Aug. 25, 2009 at 1:39 PM

cool thanks, I will definitely try that

Quoting smilintoday:

How about you check out Dave Ramsey (you can just google his name). That would be a great place to ask your question. 


Lilypie 2nd Birthday Ticker


mandalouwhotn
by on Aug. 25, 2009 at 1:40 PM

Hes great!  Hubby and I went through his Finanical Peace University.  The first step with him is always to get an emergency fund.....$1000 in the bank...then you need to have 3-6 months of expensese saved up.  Then you start paying off your debt.  But his website has some great tips.

Quoting smilintoday:

How about you check out Dave Ramsey (you can just google his name). That would be a great place to ask your question. 


fcangel9
by on Aug. 25, 2009 at 1:41 PM

I would pay your mortgage for 10 months and pay off your bills a little at a time.  If you werent getting the money, your debt would still be there not getting paid anyways.  I think your home is more important. 

kgsharber
by Bronze Member on Aug. 25, 2009 at 1:42 PM

According to Suze Orman (she predicted this resession & is a financial specialist) she has just started telling people in this sort of predicament to NOT use all of their emergency funds to pay off credit cards or debt. You should save that $$ until your DH gets a job, then use te remaining on whatever has the higher interest rate, the stdent loans or the mortgage. 

Mily4
by on Aug. 25, 2009 at 1:46 PM

Wow, that's super nice of the Grandparents.  I think I would bank it and try to use it for my mortgage and if I can't make it for the bills...then use some towards that.  It will last you closer to six months-eight months then, but maybe your husband could find a job by then?  I know even McDonald's aren't even hiring right now and I just read a report they expect unemployment to drop another 10% this quarter, which means thinks aren't looking up as much as they keep saying.  I definitely wouldn't put it towards your student loans, as bad as that sounds.  Worst case scenario, you default on the loans...but you keep your home.  Idk, it's a hard choice.  Isn't there some kind of relief grant out there for those loans?  This economy is crazy.  Have you thought about refinancing or wouldn't that help you guys out?  I know for my mom it would make her payment worse, but I don't know how it is other places.  I hope you figure something out.  Good luck.

sarahbearamommy
by on Aug. 25, 2009 at 1:57 PM

yes, they are too kind to us, and they would still probably give us the $ if he wasn't out of work.. I don't know if they would allow us to refinance, since I have the only income right now.. and he's got virtually nothing, but a measly $600 a month form unemployment, that runs out soon, and who knows if he'll qualify for the extension.  I just pray he gets a job soon and We could just bank all the $ and maybe just spend $1000 for new windows on our house or something lol.. this recession is so annoying and almost tore my marriage apart.  Things are okay, because i realize i cannot change the world, and my husband is trying to find something.

Quoting Mily4:

Wow, that's super nice of the Grandparents.  I think I would bank it and try to use it for my mortgage and if I can't make it for the bills...then use some towards that.  It will last you closer to six months-eight months then, but maybe your husband could find a job by then?  I know even McDonald's aren't even hiring right now and I just read a report they expect unemployment to drop another 10% this quarter, which means thinks aren't looking up as much as they keep saying.  I definitely wouldn't put it towards your student loans, as bad as that sounds.  Worst case scenario, you default on the loans...but you keep your home.  Idk, it's a hard choice.  Isn't there some kind of relief grant out there for those loans?  This economy is crazy.  Have you thought about refinancing or wouldn't that help you guys out?  I know for my mom it would make her payment worse, but I don't know how it is other places.  I hope you figure something out.  Good luck.


Lilypie 2nd Birthday Ticker


amommy2a2yrold
by on Aug. 25, 2009 at 2:01 PM

If you pay up the morage and use the extra money for the bills you mentioned you could get them payed off in about 8 months before you spend any of the money write out a plan on a calendar and see which works best for you if you can plan out to the T the amount of extra payments you can make this girft work great for you. I am an accounting major so if you need any more advice PM me

sarahbearamommy
by on Aug. 25, 2009 at 2:08 PM

cool definitely going to try the calendar thing! sounds good

Quoting amommy2a2yrold:

If you pay up the morage and use the extra money for the bills you mentioned you could get them payed off in about 8 months before you spend any of the money write out a plan on a calendar and see which works best for you if you can plan out to the T the amount of extra payments you can make this girft work great for you. I am an accounting major so if you need any more advice PM me


Lilypie 2nd Birthday Ticker


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