I’m really getting sick of all of the “bailout” talk. First it was the banks and financial institutions, and now it’s the auto industry. I understand that there is some legitimate need for bailing those entities out in some fashion … but $700 billion dollars? If they’re already in so much trouble, how the hell are they going to pay back the loans?

My biggest question is this: What about those people who, like me, lost their jobs due to the shitty economy? Why can’t WE be ‘bailed out’?

I worked for a company that sells automotive accessories online … things like truck bed covers, bed rails, nerf bars, floor mats, etc. It’s no secret that truck sales have been down, due to the high gas prices earlier this year as well as the crappy economy, so sales of the accessories were down. I don’t know if I was the only person laid off or if others were as well. But it doesn’t really matter. I used to think that up here [in North Dakota], the economy wasn’t as bad off as in other parts of the country. Boy was I wrong.

Over the past few weeks, the news has been reporting that companies around the region have been laying off workers. Bobcat is suspending operations for 6 weeks, beginning on Dec. 15th [source]. And now they are asking more individuals to take early retirement [source]. Lund boats in New York Mills, MN laid off 140 people earlier this month [source]. And just today, it was reported that 30 people were laid off at JLG Industries in Oakes [source]. I’m sure there are others around the region, but those are some that have been in the news lately. And you know that this situation is happening all over the country.

Luckily, in my case, I’m the only one affected. I live alone and don’t have any kids. But what about those families where a parent got laid off. They have kids to feed and clothe and mortgages to pay and medical bills to worry about.

Yes, there are unemployment benefits. I don’t know what it’s like in other states, but I can say that in North Dakota, unemployment benefits have gone down hill. And I can say that because this isn’t my first walk around the block. I was unemployed almost 5 years ago. I was unemployed for about 7 months, but that is because I was in a career transition. Back then, there were orientation meetings and appointments with a case worker and classes that could be taken. Now there is absolutely nothing like that. I filed my claim online. I certify my weeks online. You only call the Bismarck office if you have a problem or questions (and we have an office here in Fargo). I know that this is all because of budget cuts that the department has faced. But it really hurts those that the department is supposed to help.

In my case, I’m not even getting unemployment benefits anymore. You have to make 2 job contacts a week, which seems simple enough. But my chosen career path isn’t exactly ‘mainstream’, so there aren’t many open positions around here. A couple of my opportunities involve waiting until the company starts interviewing. And I’m not gonna apply for jobs that I would never take just to get unemployment. So I’m basically screwed. Thank goodness I have savings.

There may be people out there who aren’t even eligible for unemployment benefits, for whatever reason. And even those people who DO get unemployment benefits, it’s not enough to live on while you’re looking for a new job. And in this economy, depending on what sort of work you are looking for, finding a new job is no picnic.

So, why should the banks and financial institutions and auto industry be getting bailed out when we are the ones who are really suffering. Why isn’t the government doing something for those people who have lost their jobs due to the economy. I’m not saying give us $700 billion dollars. But give us something to supplement unemployment benefits. And those people not eligible for unemployment, give us something too. Something to make our lives a little less stressful while we’re looking for a new job. We need to eat. We need to take care of our kids. We need to take care of OURSELVES!!!

I say we start a movement to get the government to bail US out. What do you say?

Well, I doubt it would do any good. But I do wish we could get the government to take a look at the job service agencies around the country and fix the unemployment benefits system. Pump some money into that system so that there can be orientation meetings and appointments with a case worker and classes again. And the number of job contacts would be affected by the individual situations. That would go a long way to helping out lots of people.

To those people who are in the same situation as I am … keep the faith. Times can get tough, but they won’t stay that way forever. I have a tough time remembering that at times, but it really is true. Eventually the economy will recover. I have no idea how long it will take, but it will happen some day. So keep your chin up … things will get better.

As of 12:54 pm CDT this afternoon, I no longer have any credit card debt. Of course, since it’s the weekend and tomorrow is a holiday, the payment won’t clear for a few more days. But for all I care, it’s all gone. Boy does that feel good.

It only took me 13 years to pay it off. LOL I opened both accounts in early 1995 (during first year of college - second half of the year). Of course, those first several years (especially while I was in college) was where the debt got racked up to. It never got completely out of control. But it did grow more than it receded.

Several years ago is when I decided to start sending more than the minimum payment. I tried to get a loan to pay both cards off, but at the time, my debt to income ratio was too high, and I couldn’t get a loan. So I forged ahead sending as much money each month as I could. Over the past few years, I’ve been able to send more and more (thanks to raises). For the past 2 years or so, I’ve been sending from $200 to $350 to get the balances down quicker. I paid off my Discover Card in April of this year. So that meant I could send more to the Visa. And with that payment just before 1pm, the Visa now has a balance of $0. Such a good feeling. Now the only loan that I have is my student loan. And from what I’ve read, that’s a “good” debt to have, if debt can be called good.

My plan back when I started the larger payments was to cut up the Visa and cancel the account but keep the Discover for emergencies. But after reading some articles online and hearing advice on a few financial shows on TV, I’ve decided to keep both. I plan to use them every now and again and pay off the balance in full each month … probably putting gas on them. That way my credit report will show that I can manage my credit. Getting rid of one or both cards would damage my credit (at least that’s what I’ve been led to believe), and I don’t want that. Especially since it’s so good right now AND since I’m planning on buying a house within the next 14 months or so (hopefully ).

So, starting next month, that $350 that was going to the credit card will be going into my money market savings account (if not more than that). I’ll be putting money into my regular savings account as well. That way I’ll have some other money to use for furniture/appliances/repairs/etc once I get a house. I’m well on my way to becoming a home owner. Now to do more research so I know exactly what I’ll be getting myself in to.

I started something today that I really shouldn’t have. You see, I’m so sick of apartment living. I’ve been wanting to get into a house for quite some time now. Especially after my friend Robin bought a house a couple years ago (I think it’s been that long now). I thought it would take me forever to be able to get a house.

Even though I didn’t think it would be possible for quite some time, I opened a money market savings account on July 1st. My plan for this account is to earmark it specifically as a housing fund … to have enough in it to cover closing costs (for sure), down payment (if needed), and have money left over for any maintenance needed. As of today, I have $650.53 sitting in that account. I plan to put in another $100 out of my latest paycheck (before the end of this month). My goal is to have about $5000 in there when I start house hunting. Why that amount? Well, that’s what Robin told me she needed for closing costs. That’s all I really have to go off of at this point.

My credit card will be paid off in October. When that is done, my plan is to take the amount I’ve been sending to get it paid off and put that in the money market account. That’s another $350/month, at least. Since I’ve already been sending that amount to the credit card company and been adding at least $100 a month to the account (if not $100 out of each paycheck), I could probably be able to put more than $350/month in there, but that’s the lowest amount. So that’s what I’m basing my figures off of.

I decided to work up a spreadsheet this afternoon to help me figure out when I *might* be able to start house hunting. That’s what I was talking about at the beginning of this post that I shouldn’t have done. LOL If I follow my plan, then I’d hit my $5000 goal in October 2009. That’s only 14 months from now. Is it really possible that I could start house hunting that soon? I really thought it would take me 2 to 3 years before I’d be able to. After looking at the numbers, it really looks like it would be possible to start before that. That would be so awesome. I didn’t want to get my hopes up, but I think it’s already too late. LOL

I know that the housing market isn’t in all that great of shape lately. But I think my credit score is something that will help me out. When I got my free credit report (from AnnualCreditrReport.com) at the beginning of the month, I also got my FICO credit score (it was only $7.95). I was surprised to see the number. I guess it really does pay to pay your bills on time. So I think I would definitely be able to get a loan/mortgage. Just how much I’d be eligible for, I don’t know.

I think I’m going to start researching things now so I know how to plan. I’m sure I can find a ton of info online. And Robin mentioned that it would be a good idea if I took some first time home owners classes (I think that’s what it was). But I’m also wondering if anyone reading this has bought a home in the last year or so or is currently house hunting. Do you have any tips? Is there anything that I should do and anything I shouldn’t do?

I have over a year to plan and save. That seems like a long time away, but I have a feeling (or at least I hope) it’ll go by fast. I just want to have all my “ducks in a row” when the times does come. So any insight I get get would be appreciated.

Thanks to Mace, I know when to expect my money from the IRS. According to the stimulus payment schedule, I should be getting my money around May 9th. And it will be deposited into my account via direct deposit. So I’ll be checking my account online a lot more than I normally do around that time looking for the money. I should be getting $600 since I’m single with no kids. I didn’t expect to get it that early.

What are my plans with that money? Well, I’m gonna put a chunk of it into savings. I’ll probably open the new savings account I’ve been planning to start earmarked specifically for saving for a house. But I’m not gonna put all of it into savings. I’ve been wanting to get a new camera, so I’ll probably take some of it and do that. I can’t be responsible and save ALL of it. LOL I gotta treat myself every now and then.

I’m hoping that my car won’t cause me to change those plans. I’m taking it in for maintenance on Tuesday. Time for an oil change. And last time they told me the transmission fluid needed to be flushed, so I’m getting a ‘total fluid exchange’. He told me that was the better deal right now … I guess it’s on special. And I also need to have the ‘rough idle’ issue looked at. I don’t plan on getting a new car any time soon, so I wanna make sure mine will last me. It’s got over 113,000 miles on it. So there are things that need to get taken care of. I just hope the rough idle issue can be fixed without costing me an arm and a leg (gas prices are taking those, and I only have 2 of each). And hopefully they don’t find anything else wrong with it.

At 5:32 pm, I paid off one of my credit cards … IN FULL. No more balance. All credit is available. And here’s proof …

Click to enlarge

It is such a good feeling to have that thing paid off. I never thought I would. I’ve had it since 1995. In college, I used it more than I should have. But at least it was for college related expenses like books and for food. Gotta eat. But still … I racked up a bit of a balance on that thing.

But that’s all gone now. I’ve made my final payment. I am planning on keeping it, but don’t plan on using it. If I have an emergency, it’s there. But if I have an “I really want that” moment, I’ll just have to deal. LOL

I do have one more credit card. Another that I’ve had since 1995. Again, more college expenses. But I also put other stuff on that one that I shouldn’t have … my couch, my tv. But those were things I needed. The tv wasn’t extravagant … it’s a 19 in that replaced my 13 in. And I needed a couch. I had my first apartment by myself and needed furniture. This one should be paid off by the end of the year, if not sooner.

Since the first one is completely paid off, I have the money I’ve been sending to that one will be split between the second one and savings. Like I mentioned in a previous post, I want to open a second savings account specifically for saving for a house. I’ll probably wait a month or so before opening that second savings account, but I plan to do it before I pay off the second credit card. The sooner I start putting money in it, the sooner I’ll have enough to start house hunting … and THAT can’t come soon enough.

So, other than the second credit card, the only loan I have left is my student loan. And I think I remember reading or hearing somewhere that that is a good kind of debt (if there is such a thing … LOL). So I won’t be sending extra to that. I’ll keep making my payments and slowly whittle that down. My other bills are all monthly bills. Well, except for my car/renters insurance. But I’ve been paying 3 months at a time on that one for a while now. So I feel good about my financial state.

Hopefully I haven’t jinxed myself now by saying that.

A couple years ago, I got my credit report for the first time, thanks to AnnualCreditReport.com. It’s nice to be able to check it out and not have to pay for it. Last year when I got my report, I decided to spread them out, since you can get the report from the 3 spots (TransUnion, Experian, Equifax). No sense in getting all 3 at once. If I spread them out, then I can keep an eye on things all year.

So tonite I got my 3rd one (I got the first one last July). Everything on the report is good. No negative items. All accounts in good standing. After looking over things, I decided to get my credit score as well. After all, it only cost $5.95. I can handle that.

I’m very happy after getting my credit score. My Risk Grade is B. My Credit Category is Prime Plus. My credit rating ranks higher than 70.87% of US consumers. I am “more than likely” to get “good offers” from lenders. That definitely makes me feel good. If I was trying to get a loan to buy a house, I might actually get one.

The credit score report had some things listed that lower your score. This one surprised me: Having low available credit amounts on revolving accounts (like credit cards) has a negative impact on your credit score. A few years ago, I had both of my credit card companies lower my credit limits. I thought that having high limits was a bad thing. I guess I shouldn’t have done that.

I’m working on paying off my credit cards, and I’m almost there. One of my cards will be paid off shortly after the 15th of this month. The other card will be paid off by the end of the year. I only have the 2. I had planned to close the account on the second one once it was paid off but keep the first one open for emergencies. Now I’m not sure if I should. I need to do some more research into what lowers your credit score and what has a positive effect on your credit score.

Once those cards are paid off, I’ll have that money to put in a savings account earmarked specifically for a house. I’m going to start doing that next month since the one card will be paid off. I plan to take the money I was sending to that card and put some toward the other card and the rest into the savings account. I’m hoping that in no more than 3 years, I’ll have enough money saved for a down payment and other closing fees. I’m going to try to put as much money into that housing savings account as I can to try to get to that point sooner than 3 years. But I’m being realistic.

I just know that the sooner I am out of apartment living, the better. But home ownership brings it’s own set of problems. I’ve seen what Robin has had to deal with since she bought her house. Things that need to get fixed. Appliances dying. So I want to make sure I have enough in my housing savings to cover the closing costs and still have money left in it for the unexpected expenses that come up.

So, for now, I just keep paying off those 2 credit cards and keep putting money into savings. I have a Simple IRA now at work, so money is going into that for retirement. So, hopefully my financial future is now more bright than it ever has been in the past. I just hope I haven’t jinxed it by saying that.

Ever since I got out on my own, I’ve basically lived paycheck to paycheck. And it’s not fun. It sucks when it gets down to a few days before payday and you don’t have enough money in your checking account to get groceries.

It hasn’t been that bad for some time now, but I’ve still been living paycheck to paycheck. I have managed to have money for groceries and other necessities, but when it comes to “fun money” … there’s not a lot of that sitting around. My main problem is the credit cards that I had and used during college … for books and food and other things that I didn’t need to use them for. I only have 2, but that’s bad enough.

The past couple years have definitely been better … ever since I started working as a web programmer. I’ve been make larger payments to my credit cards … definitely over the minimum payment. And I’ve gotten really close to getting one of my credit cards paid off. I actually made an extra payment today. My scheduled payment isn’t due until the 18th. I should be able to get that sucker paid off over the next 2 months. That will leave me an extra $200 a month … that’s what I’ve been paying for the past year or so. When that’s done, at least $100 of that will go toward the other credit card … maybe $150 of it. That would mean $300 or $350 payments on that sucker. And according to my calculations, I could get that one paid off in 7 or 8 months … depending on what I decide to send them. When both of those are all paid off, I’m getting rid of the second one but keeping the first for emergencies (and hope to NEVER have to use it).

This month, something has happened that has never happened before. You see, when I started the new job at the beginning of the year, I got a pay increase … a pretty decent one as well. My paycheck for Feb. 15th had 96 hours on it … so it was rather nice. And around that time, I got my tax refund back (not real huge, but still good enough). Those 2 things combined to leave me quite a bit more left in my account at the end of the month than I’m used to. Enough that I’ve been considering getting a new desk. I had thought about getting a new camera, but I’m not sure any more. It’s been so long since I’ve taken pictures. But I have enough in my account after bills to be able to get a desk and a camera.

Now … I’m not gonna get both … not even sure I’ll get one. I’m so used to NOT spending money. I’m always waiting for the other shoe to drop … either my car is gonna completely die or I’ll lose my job or something will happen. Yep … I’m a pessimist.

Where it’s most notable that I don’t spend money is grocery shopping. It’s gotten to the point that I HATE going grocery shopping. I just don’t know what to buy … especially when it comes to meat. Everything seems so expensive. It seems like the only meat I end up getting is hamburger or chicken or the occasional roast if they’re on sale. Now I actually have money available to buy better cuts of meat and better quality produce and other stuff. But I don’t. I look at the prices and leave it on the shelves. But I don’t have to now. How does one break a habit like that? I love to cook. I have money available to buy ingredients to make recipes that I’ve been dying to make. But I don’t. I think I need a financial attitude makeover … LOL.

I do know one thing that I’m going to be doing once the first credit card is paid off. I’m going to open a second savings account that is earmarked specifically for a house. I am so sick and tired of apartment living. I want my own house. I want to be able to paint the walls any color I want. And I want to be able to wash clothes any time I want to and not have to worry about the machines not being available. I want a SEPARATE room for an office since I work from home. I know that I’m probably at least 2 years away from being able to get a house, but at least I’m starting to plan for it. I also need to put more money in my current savings account. Getting my lappy depleted it somewhat. I want to build that back up for emergencies … so I don’t have to use a credit card. The biggest thing for that account would be car repairs. I really need to get my car looked over in the next couple months so that it lasts me a couple more years. I plan on doing that once the weather warms up.

Boy … this post ended up more rambling than I had planned … sorry. I guess I shouldn’t post when there’s NASCAR on tv … LOL.

I filed my taxes on Saturday nite. I got an email on Sunday telling me that my Federal return was accepted. And I got an email today telling me that my State return was accepted. So I was all happy. Just had to wait for my refund to get deposited into my checking account.

Then I got my mail today and completely freaked out. There was a letter from my bank. And not the usual ones that I get (like my statements). I opened it and it was a 1099-INT. Shit!! I completely forgot about my savings account. And I guess the ‘Dime a time’ reward on my checking account is considered interest as well. My first thought … “oh shit”. And probably a few other expletives as well. I immediately went on the IRS website looking for a phone number to call. I called because I wanted to know exactly what I needed to do. I really don’t want to get audited. I only had to wait on hold for a little while. I found out that I needed to file an amended return, but that the amount didn’t change anything. Thank goodness. I managed to stay within the same tax bracket. Good thing my savings account wasn’t that big that I got more interest … LOL.

So, I downloaded the 1040X file that I needed and filled it out. It’s all ready to go. Now I need to check the state’s website to see if I have to do anything for that. I don’t think I will … or at least I hope I don’t.

So see this as a warning … make sure you have ALL of the forms that you are going to get BEFORE you file your taxes. Be careful of those that completely slip your mind. I’ll have to make sure that next year I wait for my 1099-INT as well as whatever I get for the Simple IRA I have through work (my retirement fund).

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