Personal Loan or Short Sale?

Well the time has come to put our house on the market. The Husband sat with a realtor today and talked about our options. We have two. Neither of them sunny. Our mortgage pay-off is currently $84500 the realtor stated he could move the house for $75000 (eek!) Which leaves a deficit of $9500 ( double eek!), and closing costs of about $6000 (triple eek!). So basically about $16000 remaining.

So here are options.

1. Find $16000 to cover it ... hmm, I'm pretty sure I don't have that kind of change under the sofa.

2. Ask for a short sale, and take a 7 year hit on our credit report.

I think we are going to choose option one. I honestly believe if you spend the money you pay it back, no easy way out.

I think we could probably save $4000 ourselves over the next 6 months (that's how long I think it will take to sell). Which would leave a personal loan of $12000. If we were lucky enough to be approved at 15% for 60 months this would our monthly payment about $300. This would mean us both taking on extra work (insert heavy sigh). But if it has to be done, it has to be done.

But wait! That's not all. We would need to save money also to move into a rental home and moving costs. I'm thinking that's $2000.

Is there any sunny side to this?

All I can think of at this time, is that by selling our house we decrease our debt-to-income-ratio, and closer to my desire of moving back to the UK one day (in the far far distant future). I'll take that for now.

So what would you do in our situation? I'd love any and all advice/opinions ... feel free to leave a comment below. And thanks for listening to my rambles --- again.

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January Budget

I like to use Dave Ramsey's Total Money Makover site to create the family budget. At the beginning of the month my Husband and I sit together to complete this. It's important both of us are involved, otherwise fininacial miscommunication and over-spending occurs. The important thing about this systym is that it forces us to spend ALL our money on paper first.

Here is our overview for 01/01/10 - 01/31/10:

Please take note, we are never normally able to save as much as we have done this month. From January to March we recieve an extra $500 per month  from my Husbands coaching stypen. Coaching and referring are great ways to bring in extra income.

After creating a general budget, we then complete a worksheet from Judy Lawrence's book, The Budget Kit (shh! don't tell Ramsey) that helps divide all expenses up amongst the paychecks. This is especially helpful if your income does not arrive on the same date. It also helps overspending and timely bill payment.

Here is how our money has been divided this month:

From this we then put all expenses in envelopes. The idea behind the envelopes is that you should never take from one enevlope to support another. Any money leftover at the end of the month remains in the envelope.

Our envelopes for this month will be:

Groceries (includes cleaning, paper, health and beauty) - $320
Eating Out - $50
Gasoline - $150
Medical - $26.00
Clothing - $62
Gifts - $50
Entertainment - $40
Daycare Business - $11.50
Car Repairs - $104
House Repairs $60
Newspapers/Coupons - $24

I can already tell that adjustments will need to be made for February's Budget. I think I should have included a seperate envelope for Diapers, Pull-ups and Baby Wipes ($60). Hindsight is 20/20, right?

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Looking back. Looking forward.

I have had so much fun writing my blog. It has provided me a place to "talk-out" my money woes. I have gained so much in the last 12 months. I have learnt to budget with the income we have.

I learnt in 2009:

1. We are not victims of circumstances with finances.
2. Credit Card debt is a no-no.
3. Couponing is not for the nerdy.
4. I have a duty to instill postive money habits in my children.
5. Waste nothing.
6. Do not be brand loyal. It can cost you more.
7. Focusing on needs not wants makes you a "richer" person.

I have achieved in 2009:

1. To halt all credit card spending.
This has meant relatives have gone without gifts, cards.

2. Not to buy clothes.
Until my current ones have no more wear.
Note-to-self: If clothes are tight, this does not mean new clothes. It eans get thin.

3. To extreme coupon.
I stuggled with this in November, and am slowly making my way back.

4. Freecycle.
Reduce-Reuse-Recycle. This has added perks besides

5. I don't keep up with the Jones'. They probably had it all on credit anyway.
The green-eyes-monstor has slowly diminished.

6. We have gone 12 month without a cellphone, of any kind.
And have managed to communicate with everybody!

So what for 2010? What will be of Budget Bella?

I think 2010 will be entirely dedicated to following the Dave Ramsey programme. We need a plan. He has one. Budget Bella will no longer be blogging about coupon deals (even though these will be happening away from the blogosphere). There will be no stock-pile pictures. Nope. I want 2010 to be about getting debt free. Thanks everyone for following. I hope you will continue to support me on my journey.  I want it to be a journey to a better way ....


 

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Last Minute Gift Ideas! Amazon Gift Card!!

It really is that easy! I have friends and family abroad and in the past we have exchanged amazon giftcards via email. Amazon gives you three options to send your giftcard. If your a last minute panic shopper like I am, this is a perfect stress free option. Especially for teenagers, das .. you know all the ones wh are hard to buy for!

Merry Christmas and Happy Holidays!!!

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If she hadn't of mentioned it ...

I had no desire/urge/need to visit CraigsList today ... untl CJ Simes made a comment about her use of it. I am constantly following rabbit trails (eailsly distracted), and so off I went to CraigsList. And boy I am glad I did. I was able to pick-up this afternoon an IKEA storage system for $10!! They are in excellent condition too!

Here is what I got:

Two units worth $61.99 each! I got two! Already assembled!

Two large bins worth $5.50 each!!

Five medium sized bins worth $3 each!!






If I had gone to IKEA today and purchased everything above I would have paid $149.98!! And I would have to assemble the thing myself. So I'm seeing this as a saving of $139.98 --- better than any Black Friday Sale I know of!

Thanks CJ Sime ... for unknowlingly leading me down a rabbit trail ...

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Freecycle ... I'm addicted!

Do you freecycle? Pat yourself on the backs if you do. If you don't, why ever not!? Freecycle for those that do not know is .. and I quote ...

" ... a nonprofit organization and a movement of people interested in keeping good stuff out of the country's landfills. Check out freecycle.org for other cities and information on the movement!"

This week I lucked out and was the lucky reciepent of three offers. I received a Little Tikes Basketball Goal (in good used condition, some fading). A bag full of school supplies (manilla file folders, envelopes, blank sentence strips, index cards and three children's journals). The third item was a Crayola Crayon Maker that has only been used once. The previous owner didn't have the patience for it, so kindly offered it on Freecycle!!

How's that for frugality and budget-makers?! I'm off now to return the good deeds of others and offer some items on freecycle too!!

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IKEA HOUSTON THANKSGIVING DEALS

I was getting worried after seeing all the other sites that were harping on about IKEA deals for everywhere BUT Houston. Panic over I just got the ad in my inbox ... and now here's the link for you!

http://info.ikeahouston.com/

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Apologies

I have not been posting lately. I have been run-down and with birthdays, thanksgiving, christmas (oh and The Husband coaching Lacrosse) all descending I have taken to curling up on my sofa from 7pm. I haven't clipped coupons in two weeks, and with tomorrows inserts that will make three -- eek!

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