Me and money never seem to have the chance to see each other, when I think everything is just starting to get on track, my insurance for my car goes up, so I take it in and figure out where my money goes to make enough to pay all my bills and insurance. But once I have everything all figured out, something goes wrong with my car (alternator, battery, wheel bearing, gas tank leak, gear selector, signals, clutch, etc.) and everytime something goes wrong with my car I end up needing to borrow more money, which puts me in debt a lot more then I already am. How can I save enough money to be able to pay off my debt and be able to fix my car properly instead of struggling for it?
Update:I just moved back home with my parents, I don't pay for groceries, and I don't pay rent... I just have built up $17,500 in debt... in one year, plus my insurance for my car, my cell phone (contract), and my home phone. And I don't make enough to afford it.
Answers & Comments
Verified answer
Simple. Cut back on unnecessary things first of all.
For one if you have a cell phone, get rid of your home phone. It may not be much but instead of paying towards that you can put that towards you debt.
Second, you should try and take out a signature loan (not a consolidation loan) and payoff all these little debts and just have one monthly payment to pay back, the 17,000.
Also if your employer has it available maybe you should enroll in direct deposit and then if you have a bank account set up a savings and have your employee automatically deposit money into this savings every paycheck. That way you wont even see it. With this money you can either accumulate it and pay a big lump sum towards your debt or save for a newer car. ( not to new but newer than yours) Ideally at this point though you probably don't want to get into more debt with a car that you would have to finance. SO maybe you can save some money to fix and replace stuff on your current car.
If I were you, I would take advantage of not having to pay rent or utilities and put what you would normally pay towards that, towards your debt. Slowly but surely you can pay it off.
Hope this helps.
I know it will be depressing at first, but you need to make a more realistic analysis of what is going on. (I went through the same thing a couple years ago- I always had "great" budgets but things always pushed me over) You will never get it right until the budget is just a matter of facts and not a statement of hope.
List out everything you spend regularly and factor in all the one time things that you end up needing over a year. You will probably see some things you can get rid of. Next increase it by more than you expect to need. It doesnt sound like you spend a ton on much outside your car so give yourself a 3000 cushion for mostly car repairs. Also make sure you take any debt you have and put that as a monthly expense based on the number of months you want it paid off in.
Then line up spending with income. If there is a disparity (and it sounds like there should be) then you need to analyze that.
If it isnt significant, more than 5% a month, cutting back might make a big enough difference. If it is more than that, at that point, you have realized a need. Now you can make an informed decision- you can choose what to do next. Get rid of the clunker and take on a car payment, look for other ways to make money- part time job, better job, go back to school- Take a car equity loan to get the car fixed up and know you will get fixed payments, etc...
Good luck!
EDIT:
I just saw your additional info. That sounds pretty serious. You need to do two things- start with a couple steps-
1. Cut up any credit cards so you dont use them. Youll be templed if you dont.
2. Pay only essential items. Choose home or cell phone and get rid of the other. And it sounds like you only have a couple bills so pay them in this order-
Essentials ONLY
Car Bills (insurance, repairs etc...)\
Cell Phone
Any other essentials, not nice things, essentials
put the rest toward your debt
I wouldnt spend a nickel on any eating out, entertainment, etc... until the debt was gone and I had some savings. Maybe allow yourself one "treat" a month and make it something like a single movie rental or a ice cream or something- just to keep you going.
I'm in a similar situation, I got an additional job every penny goes to my smallest balance, once that ones paid off I'm going for the highest one because I'll be able to shop for a better rate at that time anyway. The other money goes to all bills, and on top of that I try to squeeze what I can into a savings account for the unfortunate circumstances that constantly come up if its not one thing its another, I know when things are on their way out and I try to stay on top of it with better maintenance. I've been reading a lot of Suze Ormand sp? books (FROM THE LIBRARY) lol, she has some awesome tips and I have learned her all time rule of "pay yourself first" you have to fix your car to get to work to pay the bills and the debt. I think a lot of people in the present days are in our boat, just keep working hard. Our local church helps the community and members with financial emergencies, maybe one in your local area does too, also if you qualify for foodstamps etc. that can take a huge chunk out of your food bill for the month and that money can also be used toward the debt or whatever you need.
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1. Look for other things you can cut back on spending.
2. Consider looking for a better job or taking on an additional part-time job.
check here: http://unusualjobs.blogspot.com/