Sunday, September 2, 2012

Scared of Being in Credit Card Debt

We are almost done building our house and we had so many overages.  We are over at least $30,000 and we aren't able to cover all of it.  I don't have final numbers yet but I'm pretty sure that we won't be able to pay it all.  We've been using our credit card to purchase different materials and have always paid it monthly.  Right now it is at $11,000 and we don't have the money to pay it.  We are in over our heads and I just hope we make it out okay. 

I am very uncomfortable with debt and I don't like being in this position.  We knew that we had went over in certain areas but it just kind of seemed to be inevitable.  We do have good cash flow and will have to pay it off as soon as we can.

Another option would be to take out a home equity loan after we close on our final mortgage which is planned for September 12.  The interest rate for the home equity loan would be 4.75% which is far better than any credit card. 

For good news, we locked in our mortgage at 3.375% for a fixed 30 year loan.  I will give more details about our mortgage in a later post. 

How did we get ourselves into this mess?  I'm super stressed about money. 

7 comments:

  1. What's done is done... you have a good head on your shoulders, i'm sure it will all work out in the end. Soldier on and do the best you can!! :)

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  2. Any time you build a house on a budget this will happen. I do beleive that most people go over. But my advice to you would be to finish it properly and borrow or payoff the credit cards asap. If you leave things undone that will also stress you and this is probably your number one asset so finish it. You can do this. I still want to see pictures. Do you have a wind break or did you build in town?

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  3. I was thinking exactly what Carla said as I was reading. You're smart and great with your finances so you will have this sorted out. Don't stress over it, just figure out a plan and stick to it. I'm so excited for you that it's almost done!

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  4. I agree with the others. I'm sure it'll all work out even though it seems stressful will right now.

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  5. I'd be worried if you weren't stressing about it ;) At least if you're stressing about it, you're acknowledging it and that's half the battle in digging yourself out, right?

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  6. don't be stressed! you are smart with money - just keep your chin up and work on it to get out of it. It may take a year, but you will be done with it and be happy you did the upgrades ;)

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  7. If you don't follow the right financial plan and maintain a good budget, then you can easily get stuck with credit card debt. Credit cards are definitely an important business to the banks. There is no doubt about it. Credit card debt is increasing day by day. The main common reason behind that is high living expense. People can’t afford and maintain all their expenses within their low pay scale. As a result no of debt is increasing. In this case you may consolidate multiple credit card bills to merge your multiple bills into a single monthly payment. Try your best and don’t lose hope. Always keep in mind, where there is a will, there is a way.

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