Ok so we sold our home. Money should be here with in a few weeks. Doctor bills, credit cards, and so on. In what order do you pay things off? We got in a hard spot the last year and found ourselves using credit cards, we never did in the past and it has definitely hurt us. Doctor bills have been out of control, from a stay at a hosptital. We have all of our regular monthly livng bills in order, but who should be at the top of our list? People on credit report, people that are going to be on it, or what? Thanks in advance!

I've always been told doctor bills can't go against your credit, if someone can confirm this os correct, pay them last. Any monthly utilities pay first and make minimum payments to credit cards if money is tight

Just sit down and start at the top. Pay the oldest one with more interest rate first and work your way down. I know its hard to think about with a big block of money in front of you (so to speak) I just hope you can keep your head clear and get those oldy ones done first. Good luck with the windfall and stay objective.

Doctor bill are at collections so I know they can go on your credit report. I am thinking we will have enough to pay off a lot, I also wonder if I should pay parts of all of them or get a few of them totally gone and make payments on the rest? Thanks for the reply.

I have been thinking about a book I read by Dave Ramsey, the envelope system after everything is taken care of and we can start fresh again. This will be our only chance to do this at least for a while. Does anyone have any experience using the envelope system?

The envelope system isn't a system at all: so it is said: throw all the envelopes, from all the bill collector who haven't pi$$ed you off, into the air. Those that come down face-up get dealt with. Those that don't... will surely bill you again next month... Do you see where this leads? Tackle the higher interest bearing accounts first, I say. Talk to your creditors about reducing your rates. It may work or it may not. If they don't want to negotiate, consider moving to another card with that so-called introductory rate for balance transfers. Use the short interest free period to catch up and immediately look for another to pick up after the first ones "honeymoon" expires. See where this is going?? Trust me, I'm not a financial advisor ( I can't afford one ) but I learned a lot from friends who have been burned. And above all, try avoiding "late fees" as these are the weights that will bring the best of intentions down.

Ok I get it. I am just trying to make the most of what we will be getting. I also would like to have a little fall-back money in some sort of savings. As this house was pretty much our savings account, bought low, sold high. Anyway, I will get ti all in order, I just want us to be safe from now on and go back to only paying cash, and not going over what we can "actually" afford. My husband and I have stressed too much to let this happen again and I am hoping it all works. Thanks Captain!

Also remember on the doctor bills, they should accept from 1/2 to 3/4 of the amount as payemnt in full. In 5 years I have only found one doctor that would not,

Thanks you. So you are saying I can make deals with these guys? I thought that only worked with interest? I will call everyone before I pay it. Thank you all so much, ohhhh I can't wait to get started!

:)
Thanks you. So you are saying i can make deals with these guys? I thought that only worked with interest? I will call everyone before i pay it. Thank you all so much, ohhhh I can't wait to get started!:) I feel better. Let us know how you progress.

I have been thinking about a book i read by Dave Ramsey, the envelope system after everything is taken care of and we can start fresh again. This will be our only chance to do this at least for a while. Does anyone have any experience using the envelope system?

Get dave ramseys total money makeover book. Free from library or just 10 bucks at

www.davesays.org

It will tell you how to get debt free, or avoid debt... it's got valuable insight in it. Best money book I've read. Easy to understand.

I read his book, I think it might work if you are looking to stay debt free but not get you out of debt. What are your thoughts?

Its working for me. Im getting out of debt by following the baby steps he teaches.

Baby Steps (http://www.daveramsey.com/etc/cms/index.cfm?intContentID=2867)

Tell me, how's your current financial plan working?

The way I did money for 23 years has left me nearly broke... daves way is hard work, I won't lie, and it takes discipline and time... but it has to be better than how most of us do money

I will tell you that we are in debt with no extra money. We sold our house, we will pay off almost everything and go from there. What I am going to have is a fresh start, hence the name startover22. I can't wait and I hope I can stick to a plan with my husbands patience. He doesn't believe in writing things down, he keeps it all "up there". I have been pondering all sorts of things and it is just time to get my ducks in a row. What about money we have left over? What do we do with that? We won't be buying a home ever again because we already have one being handed to us on a silver platter in the up coming years. Sounds nice, but the circumstances aren't. Anyway, my husband has a 401 K but as a stay at home mother of four I have nothing in that aspect. IRA??

Signing on the house tomorrow, just a little update, in case you cared...
Monday should be the $$,$$$.$$ day so I can't wait to pay stuff off and "Startover". I am probably talking to myself but who cares it's like writing in a journal and it feels nice to say we will actually be able to pay some stuff. Lot's of weight off the ole shoulders. Wish us luck... to be continued...

All done, stress-b-gone... No one is on here so I am going to go now!

I would call each creditor and explain that you are in a very bad way as far as money goes and might even have to declare bankruptcy. Then ask then what would be the minium that they would accept to settle your debt in full.
I am in business and the main thing that I appreciate from people that owe me money is for them to keep me informed about why they have not paid me. And I would always rather accept something than to know that I was going to get nothing. Plus I didn't mind helping out people that really needed it.

Hi Startover22, Have you contacted your creditors to negotiate a lower interest rate or a reducing the balance? Most times they will work with you.

No, I haven't yet, I will do it though. Thanks for all the great advice.

Ok, here is the update. I have paid many bills, set up payment plans with credit cards, I got all of those down to what I actually owe and no interest with $50.00 a minth until they are paid. All but a couple of doctor bills are paid a few are still left but they are not at collections so I am going with the payments every month. Now comes the budget, I can't seem to put everything together. Remember we live pay check to paycheck but if I could get on a system it doesn't have to be that way. I mean some bill are due later than others and for the first month or two it won't work. Any suggestions? Thanks, Start

Let me first say I'm not a financial planner, but this works for me!

I don't know how you keep your checkbook, but I found that doing it in an Excel spreadsheet was really helpful. I log everything; date, vendor, amount, and also a category (utility, ATM, etc). Then at the end of the month I can see where I've spent what. If you are still charging on credit cards, do the same thing with your credit transactions. Classify each of them so at the end of the month you can see where you can cut back (dining out, shopping, even kids activities).

Make a list of all of your bills and the dates they are due. If they have the same amount each month (like a trash service for example) include that. If you pay about the same every month (like water bills) figure that in. Add it all up and see how much you owe, versus how much you make. Now you know how much you have left to "play' with, whether that's going out, savings, etc. or how much you are in the hole each month and you need to make up. Then get a calendar or day planner, and write down the days you are going to pay bills. I also circle payday with a big red marker for the whole year. If you have 3 bills due before the 15th, pay them all on the 12th; 6 bills due by the end of the month, pay them on the 25th, for example. Of course work it out to when you get paychecks, etc! I know that for me it helps to be able to physically see when bills are due by looking at a calendar, because then there's no forgetting it and paying it late!

It's going to be tough to get a system that works, and the one I described is what works for me. But once you find something that works for you, that you can stick to, hopefully you will be back on track in no time. Good luck!

I am trying to get it all squared away instead of on going, at least the doctor bills. I will not be using my cards any longer, I don't know what steered us in the wrong direction, but our belief was "we can have it if we can pay cash for it"... So much for that. Anyway I want it to be that way again. We do have a truck payment and we aren't willing to give it up so that is the only loan we will have besides the house! Everything else will need to be saved for... Thanks so much, Start!

Is there any way you can pick up a part time job? When I graduated HS I worked in a small retail store, and there were several moms who stayed at home during the week and only worked a few hours on the weekend. If you can work 10 hours a week and make $7/hr, that will give you some extra funds to try and get ahead on things. Of course, this only works if your husband or a relative can take care of your kids while you are gone, as childcare will eat all the extra money. There are also at-home things you can do; Avon has a very low start-up cost (I think it's $10) and if you have a lot of friends you can make some extra money on the side.

Thanks, I do work at home, I do daycare. With four kids I am no longer willing to leave the house and get my usual night job. The last straw was a worn out husband and never seeing him or my oldest that were in school all day. Not worth the extra 4 hundred. I do daycare and make much more now and there is less stress on the whole house with mom always here. Ok, back to the point. I think I am going to use Dave Ramsey's idea first and then go from there. I think I have it down I have been working on it (off and on) since this morning. I just got my filing cabinet and got everything filed last week, I am getting my envelopes and my little worksheets this afternoon. I am really hoping this works. I will have to be very strong as I like to cheat sometimes. I really need to stop that! So thank you so much for the help, I will be keeping this thread going if you have anymore advice, or tips that any of you would like to share. Remember I hardly have anything else to pay off I already did that, now it is to get the bills paid on time and in full! Thanks again.

Thanks Jillianleab... See you around!