“Oh
My God, My God, I’m Broke! What CAN I Possibly do? : Things I Hope Will Help
You Rest And Feel Better”
05/04/12
I think of you so very often, my dear, sweet, and
kind friends, and loyal readers, and I know that too many of us are in such
financial straits, that we worry about our money day and night; it only causes our
current pain levels to rocket, and any psychological conditions we may have
that include anxiety and panic, ‘money worries’ will only make our conditions
worse.
I speak to you from stark experience: I am presently
on SSDI, which is insufficient to my needs, I have nothing in the bank and yet
I have almost maxed-out a major credit card; and still I have routine bills
like utilities to pay, and food, medicines, taxes, and vet bills, like everyone
else.
And I imagine—much like you—I find that financial
worries occupy much of my thinking through the day, and, besides the
nightmares, I find I often lie there, wide-awake, wondering what can I do for
some grateful peace of mind, and growing sense of financial ‘rightness’.
Right now, pretend that you’re a passenger on some
great ocean liner; you’ve fallen overboard, and the alarm has been sounded. By
the time the ship has made full turn to about where you were, you may not be there
now, and it takes a ship that large some hours to come full circle. Can you swim, or stay afloat that long?
This example is valid in two ways, one, your illness
or condition was an unforeseen, unchosen catastrophe: becoming disabled, and
not being able to work; the loss of an established job. Spending habits that—of a sudden—caused you
to realize that you now were in dire distress: a house that may be foreclosed
upon. An illness, or loss of ability; or
having—now—to have to survive on very much less money. Such as SSI, or SSDI.,
or now, one part time job, instead of two full time ones you might have been
used to.
Two, because the situation that you now are in did
not happen overnight; neither will the journey towards recovery happen
overnight.
But is the accumulation of stress and worry worth
it, or even good for you?
You can be certain you’re in deep trouble if:
1)
You have—at each month’s end—NO money in
the bank.
2)
Your ‘combined’ indebtedness (not
counting mortgage or car payments) on ‘store’ or major credit cards is over 30%
of your available limit. It really
should be less, so that you ‘zero balance’ out your accounts every month, with
no debt left to carry over.
3)
You have trouble making house payments,
or car payments.
My situation is not really that different from yours. I’m single, with dog Daisy, living in a
double-wide, mobile home, that while ‘paid for’, still needs repairs, and the
kitchen is slowly falling apart. I’m 58
years old, on oxygen 24/7, and on a boatload of medicine, besides, some of
which I pay co-pays for, and a few that are not covered that I have to pay near
in full myself.
And though I have NO car, and thus no car insurance,
I still must buy groceries, pay utilities, taxes…and a credit card that is a
breath-away from being maxed-out, and whose minimum payment eats me alive. I am disabled, ill, and on SSDI, which is a
third of what I once earned.
And while I cannot presume your exact situations,
I—too—worry inordinately about money, am broke, with nothing in the bank. And so, to help assuage my worries as best I
can, I have had to institute an ‘Austerity’ program of cutting back, or, frankly
doing without, save starving, to bring that giant ocean liner of my finances
back, full circle, to whence it started from.
It is not easy.
Nothing is. Nothing. Even some measure of peace of mind comes with
it a most severe and unforgiving price.
But, my dearest friends, my doing nothing is frankly, driving me nuts
with worry, and despair.
And so, should it may prove to be of some help to
you, I will not presume to tell you what to do, but rather what I’ve begun to
do to save my ass. And, hopefully watch
the tide of suffocating debt turn in my favor.
It is the very least I can do for you, who have so captured and retained
my heart.
1)
My SSDI check. I have arranged direct-deposit for it at my
bank, and further have them automatically deduct—at ‘payday’—a small amount to
savings. While I inevitably have to use
these ‘savings’, especially near month’s end, to put back into checking, that
small amount has often meant the difference between having at least some food
in the house, or finding myself in overdraft.
2)
I was able—at long last—to secure a
major, ‘cash-back’ credit card, that featured o% a.p.r. for one year. After
which the a.p.r. is 18.9% which is high, but then, I had store credit cards at
28.9% a.p.r. that, in addition, levied—each month—a ‘processing fee’ of $15.00,
even if you were able to pay the balance off each month in full. This may not sound like much, but, for those
store cards that I had, that $15.00, monthly, comes out to $180.00 a year! At one time, as I could obtain no major
credit card, I carried differing balances on six, store cards that had such
unbelievable fees.
You know how I
maxed-out my major credit card? First, I transferred to it all my store
outstanding balances, which included a 3% balance, transfer fee. I have my pharmacy bill the card for all my
medications; factor in three or four unbridled trips to the grocery store,
which was stupid. For if you can at all help it, NEVER use a credit card to
grocery shop. It only implied a ‘limitlessness’
as to what I could buy, and I bought treats, or already-prepared meals, that
ran the balance up. There were two,
past-due doctor bills I paid, in addition to a $75.00 co-pay, I was ‘surprised
with’ at my Pain Management Doctor. Its
shocking just how quickly a credit card can be ‘ramped up’, until the minimum
due each month itself becomes a major bill.
3)
And while I do not have a car, I would
still suggest that, barring continued, and expensive repair, to keep the car
you have. Change the oil with synthetic
oil every three months, along with the oil filter, and—if necessary—the air
filter. Keep your tires properly
inflated. And do not use the most expensive gasoline, when a lesser grade will
do.
4)
Since all of you have computers, save
yourself gasoline and maintenance costs, by buying everything, except, of
course, groceries, by shopping online, or by catalogue, I hope that this will
help curb impulse buying. And, although
tax, and shipping are added (though not always), you will have saved extra
driving, time spent in stores, and lousy traffic. Hint: whenever I go online to
shop, say, for underwear, or a new shirt, I only go to the ‘clearance’ section,
and try to couple it with a major discount promo offered there. When—for example—I needed a Winter coat, I
found one in a catalogue, under clearance, already, then at 78% off; this I
paired with a discount catalogue promo of 50% for highest item purchased; it
did not specify how many items you had to purchase. Even including tax and shipping, I got a
$257.99 coat, for less than $40.00.
Brand new. Full length, and all wool!
And, it was delivered to my front door; I didn’t have to go out to shop
at all!
5)
Buy ALL your cleaning supplies, deodorants,
shampoo, etc., at the ‘Dollar Store. Recently, my C.N.A. got all those things
for me, plus a durable shower curtain, hooks, and a new bath mat, for $11.00
plus tax!
6)
I long-ago stopped buying gourmet treats
or colas at the grocery store. Instead,
I buy the cheaper gallons of diet tea, but would save more money by buying the
dried powder in cans, and then mixing it with water. I still can have my morning and evening
coffee, but should I have enough left in the pot before I go to bed, I save it
to have the next day. I’m weaning my
dear Daisy off canned dog food, to larger, much less expensive bags of dried
kibble. I stay away from prepared foods
such as rotisserie chickens, and…sigh, have—for now—eliminated any visits by my
neighbor, or C.N.A. to the bakery for ‘sweets’.
I do buy the “Success Rice”, in the family pack, because there’s no way
I can screw it up, and lunches sometimes consist of rice, over which has been
poured canned soup. With just a little
butter, salt, and pepper, it makes an admirable lunch. I save the plastic
grocery bags for garbage cans at home.
And
for those of you—like me—who hate clipping coupons, I still look at the sale
flyer in the mail, or call my local grocery store for prices on things I
need. For if I cannot get my neighbor or
my C.N.A to shop for me, the delivery fee is $30.00, so if I must, at least I
have a sizable order to give them, and use my debit card.
I
am fortunate that they know me (by voice, and name, anyway) at the grocery
store, and, often THEY will shop for the lower price; and should they have a
BOGO (buy one, get one free) on an item I want, you can be sure I’ll take
advantage of it!
7)
Frankly, no one sees my underwear or
socks, so if my briefs are a little worn, or should I have a tiny hole in one
toe of a sock…who cares? It’s just a
little thing that helps me cut down on costs. I don’t just toss them away, but
pad-around the house in them, whenever my little ‘piddies’ get cold.
8)
Although my electric bill isn’t due
until the middle of the month, I call the month BEFORE, to find out when my
meter will be read; the next day, I can get an estimate of what my bill will
be. I do that with my cable, and my
garbage disposal. All the better to help
me budget my next month’s money.
9)
This is important: about ten days before
the end of every month, I make a budget for the coming month; of course it will
change, and it is not unusual for me to have written five of six ‘tentative
budgets’, for while I am doing this, before any new bills are due, I allot what
certain sums I know will be true and accurate, along with credit card payments
(about which, more later), as I know that on or about every 3rd of
each new month, is when I get a fixed, SSDI check; there is NO other money
coming in. And—where necessary—I can
move figures back and forth to fit my income.
This may seem stupid, but it forces me to try to fit all I’ll think I
need, within very strict parameters. I
think everyone should take some quiet time, before your bills are due, to
prepare yourself; it will also help calm you, from the last-minute income
blues.
10) Since
I am on oxygen, I have to have it cool at night; in Florida, that means 74
degrees. THAT makes the meter spin. So,
during the day, when I can tolerate it better, I move the thermostat to 76 or
77 degrees. You might even be able to
set yours on 80, then, cool it down at night. Don’t forget, my oxygen
compressor runs 24/7, and drives my electric bill up. It is—however—one of those things, as you
will doubtless have such things you cannot change or lower.
11) With
my major, credit card, I know when my billing cycle ends, and when the bill is
due, and what the minimum payment is. And I telephone it about every other day,
to keep track of accumulated charges, particularly since I am so very close to
the edge (think falling off the ship).
Note: if your bill is due, say, on the 12th, but your billing
cycle is on the 15th, any payment that you make the ‘day after’ your
billing cycle, is automatically applied to the next month’s bill.
In that manner, I was
finally able—by about the 20th of April, to pay the minimum due for
May; thus, I now owe no bill until June, although, since I’m so low, I shall
have to make some kind of payments this next month to help lower my
balance. And, should I again be able to
make a payment after May’s billing cycle, my bill will be paid until July.
Though even if I can over-apply myself, I’m so close to maxing-out that it will
take MONTHS before I am at zero balance.
And, mind you, with the store transfers, and the meds, and grocery trips,
it only took me four months to max-out the card!
If you happen to be
like so many Americans, you may have more than one credit, or store card, whose
balances are high. What to do? One trick
that seems to work is something I’d like to call the,
“Square
Dance Credit Card Game”.
Let us say that you
currently have—for example—five, credit cards, with varying balances, and
minimum payments due each month.
First, you will have to
list ALL of your credit cards, their current balances, and their minimum payments. List them in order, from low balance to high.
On that list of five
cards, pay the required minimum for now; if possible, on four. For the first
card, the one with the lowest balance, pay the minimum, PLUS all the extra you
can apply to the balance. Do this, each
month until card # 1 is paid off.
This leaves you with
four remaining credit cards to pay off.
Make a new list of all
four remaining cards, and on three, continue to pay the minimum; on the second
card, pay the minimum, PLUS, anything else you can pay, PLUS, that amount that
you paid regularly on the first card, which is now paid off.
This accelerates the
payment to credit card # 2, which will be paid off much sooner.
When card # 2 has been
paid off, list the three, remaining cards, and their balances. To card # 3, pay the minimum due, PLUS
anything else you can pay, PLUS, the amount you paid on cards # 1 and 2.
As you can see, in this
fashion, the balance of credit card # 3, will be paid off quickly.
When card # 3 is paid
in full, pay the minimums that had been due on cards # 1 and # 2, and #3, but
on card #4; pay all extra that you can, PLUS, former payments on cards 1 and 2
and 3.
When—at last—only one
credit card, card #5, remains, pay the minimum, PLUS the minimums you used to
pay on cards #1-4, PLUS any extra that you can, PLUS, the monthly payments you
made on cards 1-4.
As the lowest credit
card balance is paid off, that payment is added, monthly to the next highest,
and so on. For some time, this may be painful, as if you are no better
off…however…
Provided you can stick
with this…and it does take a LOT of willpower, you will find that, in general,
your last, and highest-amount card, #5, can be paid off fairly rapidly.
This ‘pay-down’ method
requires discipline; don’t re-ramp up the card balances on any of the paid off
credit cards, but use them only for emergencies. Never count any extra as more discretionary
income, or you will fail. You will only find yourself with ‘extra’, or extra
discretionary income when you have extra in the bank, and can pay for things by
cash or check debit.
However, if you can
stick to it, instead of feeling dread, and a marked sense of powerlessness over
your finances, as each card is paid off, that’s one less cad you have to worry
about; that feeling—alone—is very liberating, knowing that YOU, not the credit
cards, have taken charge (excuse the pun!).
Of course there will be
times when you will have no course BUT to use your credit cards. Do not berate
yourself for having to charge things beyond your control, such as household
repair, or car repair. Or sudden illnesses.
Don’t cancel any paid
off accounts, as that can affect your credit scores; just gather up the paid
off cards, tie them up with a rubber band, and then keep them in a safe place.
12) As
much as I truly do love my friends, for now—at least—there can be no gifts, no
flowers, no presents, just a card, maybe.
13) For
$1.99, each, I bought four boxes of tasteful-enough, blank inside, note cards
by ordering from a catalogue. I like the
design, which is my last initial framed with golden leaves, and in them, I can
write any sentiment I want. Please do
the math: a general greeting card, bought in a store costs maybe $4-5.00. Each box I bought contains twenty cards and
envelopes. With shipping, and minimal tax, each card cost me maybe 15
cents. Besides, a short, hand-written
sentiment means more than an over-cute, silly rhyming card. You’d be surprised how even little savings
add up.
14) Almost
every day, I think of ways I can economize; from buying generic medications, to
hopefully lowering my electric bill as I am able.
15) I
also try to change the filter on my A/C unit once a month; the last time that I
changed it, I was really surprised at how dirty it had gotten, and an
inefficient filter makes you’re A/C run harder, using up gulps of electricity.
16) I’ve
had to give up junk food and fast food, even though I LOVE Taco Bell, and KFC,
and Burger King. When averaged out, these delicious ‘treats’ cost a fortune,
especially when they are used to substitute a regular, sit-down meal.
17) Washing
machines, dryers, and dishwashers. When using dishwashers, or washing machines,
run them to reasonable capacity, instead of just for several items at a
time. Please understand your dryer does
eat electricity, but when you use it, run a whole load; remove things like
shirts as soon as possible to avoid wrinkling.
If you can, line dry clothes if you can as there’s nothing quite like
that fresh, ‘out-door’ smell of line-dried clothes.
18) Excepting
for my ‘shower day’, I turn my hot water heater on the night before (so I won’t
forget…again…YIKES); as soon as I’m out, I turn the hot water heater off again.
19) I
only turn on as many lights in the house that I will need, and have tried to
reduce the wattage from 100 to 60.
20) Unless
someone is going to cook a giant roast for me, or a twenty-five pound turkey,
rarely do I use my oven as it uses a lot of electricity; instead, I use my
microwave, or, if I must, the stove.
21) And while I know that this sounds so cheap, if
ever I have to break a dollar, I save the change to a large cup I have; when it
is full, it goes to the bank to be counted, AND deposited. You could even make a little game of it;
often we end the day with some spare change in our pockets; empty out your
pockets every night, and put the loose change into something like a large jar,
with a slit cut in the lid. Make the jar
‘off limits’, or reward yourself with a little piece of candy when you
‘contribute’. If you can (which, so far
I can’t do), is to throw in a dollar or two from time to time, especially if
you’ve had occasion to earlier ‘crack’ a twenty.
And, unless you are a
profuse ‘sweater’, try—if possible—to get at least two wearings out of a shirt,
or blouse, three or four for a pair of trousers, before washing them; most of
us sustain a level of hygiene-sufficient to get away with this; of course,
underclothing and socks are single-wear items before having to have to launder
them. Similarly, unless otherwise,
night, or sleepwear can be washed once a week.
Same for bed linens. And towels; for after all, you’re merely drying
yourself of now-clean water.
And, now, while this will win me no brownie points,
should you be in deepest doggie-doo, there are some things that—for now—you are
going to have to forego completely.
1)
Movies in a theater; it costs a fortune
just to huddle in a show box of a theater, to see the ‘latest’ releases. On top
of that, a trip to the concession stand can break the bank tout suite. Have you any idea how much mark-up is the
popcorn? Or the sodas? Or the greasy,
cheese-laden nachos?
This
also means good-bye for now to Starbucks, and your morning latte.
2)Forget
that the word, ‘vacation’ even exists, when a trip for four to Walt-Dismal
World can cost a couple thousand dollars, for parking, tickets, food,
souvenirs, or hotel stays. Opt—instead—for a two, or three day camping trip;
visit a museum. Or a park.
3)Granted I may have
been around during the time of the dinosaurs, but I will never understand
excessive texting, when simply leaving a message would suffice; should your
plan include free texting, its probably time to renegotiate and lower your plan
costs. BTW, should you be disabled, or
on SSI, or SSDI, or receive food stamps, you may qualify for a free cell phone,
with some texting (at a price), but enough minutes to be useable, and these
minutes roll-over.
Although I am now only a month or two in ‘guerilla’
budgeting, already, just that little bit that I was able to add to savings
saved my ass in overdraft fees.
And I’m sure that if you take the time, you will be
able to come up with your own budgeted list.
Do not think of it as a denying, but, rather as a treatment plan that
will promote financial healing; it was either that, or drive myself to have to
take another Klonopin to help steady my nerves.
While perhaps many of my suggestions sound loony, or
make you begin to think that you’re somehow living in a fifth-world nation, it
is, because, for all intents and purposes, you are.
The Economy sucks big-time, and many of us feel as
if we’re on upward treadmills, that roll backwards. There is NO more Middle Class, and I regret
to say I feel the situation will not be any better for our children. The self-indulgent 80’s are an historic
irony; yet it is one we tend to cling to.
How often MUST we have a 72” plasma TeeVee set, and
laptops, stereos, surround sound, while we are drowning in our own debt. Its either become a fighter, or learn Chinese
to welcome our new landlords. I’m totally serious.
And while I am not out of the woods by a long shot,
I do feel that I’m making needed progress.
So can you!
Please
always know I love you dearly!
‘Zahc'/Charles
