Hi All: I am in deep pit now in finacial matters. I am the only one source for income. My husband just started his business he cannot source in any money and take from me only. As he takes from me as cash I ended up paying bills groceries and everything by credit card. He also uses my credit card for his office purchases. So now it went up too high that i cannot pay anything more than minimum. Even if i dont touch my credit card here after and pay minimum regularly will i be able to clear my credit card balance. I saw in internet even if we dont use the credit card and pay only minimum it will take years to clear. Any advice on effectively repay the credit card will be helpful. Thanks
aamini- I understand how you must be feeling. It's hard to get out of debt and there is no short cut. You've to do your best to not pile up more debt. I remember reading your another post on money matters (thread that Laks started). I 1. assume you've a maid and a cook. Is there a way you can manage to cook yourself or get husband's help? May try some simpler options instead of elaborate meals? That will save you some money. D 2. Do you have a budget or do you write down expenses? if not, try to do that for few months and you'll see a clear pattern where your money is going. Once you identify your problem areas, try to avoid spending on that stuff. 3. Can you sell your jewelry and pay off your debt? You can get more jewelry once you are in good financial health. 4. Can you borrow (I'd try not to do this) from friends/ family to pay off the credit card, CC interest rates are too high compared to borrowed money or if possible, can you borrow fro your PF (better option). 5. Try to put little more than minimum every month towards CC. 6. Ask help from your family. If they buy you presents, be honest and let them know that you'd prefer a cash gift. Yes, you will be able to clear your debt but need to be very careful. Instead of giving all your cash income to your husband, keep what you need for household expenses. Once your husband's business takes off you might not need to count your pennies and may be able to get rid of all the debt. For now make some wise decisions and track every single penny. Have you heard of mint.com, I'd suggest you to start an a/c on mint to track your spending or make an excel sheet. Good luck!
thanks nuss for your detailed advice. As my work is not time bound and i need to work anytime even in the evenings, i defintely need someone for my baby. My husband is also very busy he hardly sleeps for 5-6hours and comes home only for lunch and dinner for 15 minutes. I cannot rely on him. For day care it is minimum 6k till 6PM. Then if i have maid for other cleaning work it will be definitely not less than 2K.For this lady I am paying 8.5k. She stays in my home and take care of all household work including cooking and child care. addition 1.5-2K if we think for her food and other extra expense for her then also it is worth. As i would need to look for other day care after 6PM. So only i reatined her. I am almost like a single mom now taking care of daughter and work. Anyway this lady will be there till only this december. untill then i think it is defintely worth and by december my daughter should be fine to spend in evening even if i take calls. And jewels...there is nothing left now . I have kept all for loan and sad my MIL only kept that and she is paying interests for that once in six months. PF- we withdrew PF only few months ago as i changed my company and i quickly used for downpayment and bought a house. Else that will also go in vanish. My current compay do not pay PF also . So I only have to invest in public PF as compulsory savings for tax saving. Yes, I am tracking my budget. I do not know where to reduce. All I am seeing is basic expense. May be I am wrong... i am still planning to reduce as much as i can. for next three months my goal to reduce atleast 10% less in groceries. 10% less in EB bill. 30% less in phone bills. I cancelled one of my credit card like telling lost.I need to write a leeter to get a new card as my address changed they are not accepting the request on phone. I thought it is for good and not getting the new card. So i will not have choice to use that which has still maximum credit limit of 2 lkhs. Other card is on full credit limit . so cant use that too. only one card now with 30k credit balance. I am keeping it for any urgency. Incase there is any medical emergency I am gone. There is no option. But still i am scared to get the new card also. I am just praying i will keep only this 30K credit limit as for anything urgent and hope i will not need anything more than that for any emergency. Should i get the new card and hide and keep without telling my husband??
The most and Highly punishable guy is who found the card, he made all in the universe as lenders. I have attempted several method to close the card and it is again and again saturated because of unavoidable circumstance. Try to change the credit balance transfer to the new card, they will offer you to close the balance in one or two year with less interest than the current. once you made the balance transfer pl. close the previous bank card. and close the balance in one or two year. otherwise you will pay through out your life. Pl. don't carry the credit card in your wallet, and keep minimum amount for your monthly home expenses and purchase all through cash. With that we can at least escape us from risk. if I explain my credit card stories you will feel seance of your heart is rubbing on road. be bold and confident you will come out easily.
Hi Aamini, 5 years back, I was in the same track as yours. But, luckily I had jewels which I could sell and pay off all my debts. Now, I am the sole bread winner in my family (only me and my hubby) and I too support my Hubby's business. What I do is: 1. Prepare a budget. With this, I am able to find out as to where we are losing money or is there a way to wisely use the money. 100% it helps. You can have your own simple excel sheet 2. My hubby runs a boutique and we need to stock up new things every month. First we check on the earnings from the boutique, less the rent, electricity, petrol, etc. With the remaining money, we also keep an amount aside to buy new stock 3. I buy groceries once in a month and not necessary that we buy everything and stock it. I buy only those which are necessary 4. Vegetables - buy in bulk and store it in the fridge atleast for a week. 5. Have a simple menu which is healthy and filling so that you don't cook elaborate menu everyday 6. Most important, please open a RD account for atleast Rs. 500 every month. This will come I handy for any medical expenses. Also, I read in internet that banks, when you explain your situation and ability to pay, they will give a credit holiday so that you don't end up paying the interest, late charges, etc etc . Try and see if you can opt for this. During this period, save the money that you intend to pay the CC and pay the bank before the credit holiday. This will help you to pay only the real amount and also not lose on your credit score. Hope this helps. Banu
Thanks a lot Banu and Sumanrathi. I am unaware of card balance transfer and also credit holiday. I am not sure if my bank will accept card transfer as recently my application t personal loan for my husband got rejected. But defintely I am going to check that. That will be better to have one card. Else I am running behind three cards minimum closing in three different period and sometime I will miss that too. Credit holiday?? Banu can you send me the link where you found that information. I am not fininding it. I will also call customer care and check about options if any. Exactly sumanrathi, i remember our old days to wait till we save money and buy anything we need. Now it is so difficult to go to that kind of living. I am not telling about expensive lifestyle. I really do not spend much. I am talking only basic living. When i do not have cash for groceries or veggies that "true situation" is not coming to mind. Just check the credit card limit. But as a child we have faced this situation and we easily just have curd rice and moved on. But not now.... we will eat rice,sambar and curries even it is for debt.
Try to find out some source and sort out this issues otherwise it will be never ending in our life. I came across a lady in my life few years back, she will allot 500 dhs per month for cooking. she will buy all the items during first week and keep something for daily expenses One month the Onion is finished early before 3 days she managed cooking without Onion for the rest 3 days. I have shared the flat and i used cook always I told her to take Onion she refused and said " there is no standard rule to cook with Onion, we should habituate to manage ourself at any circumstance" I learn from her. Some people we can't forgot in our life, even the instant is very simple and casual but the lesson will help us in our life. Be bold and strong to face any situation and come out from the Card. I will pray for you. Good luck ( expecting your replay saying that I have closed all the cards and live happily)
Hi Aamini, If u still on paying CC bills , Check for SBI Credit Cards .. I think they have lowest balance xfer rates .. Try to do balance transfer to SBI Cards... n they have so many good options.. Hope it might help you.. read Personal finanace blogs for more clarity..
