[USER]

I am struggling with keeping up with bills and can’t find a way to cut back. Would love some advice or input.

Monthly:

Income: $3600
Morgage: $1545 (6.85% need to refinance)
Home insurance: $125
Property taxes: $280
Hoa: $205
Car insurance: $290 (I have a kia in seattle)
Health insurance: $90
Internet: $59
Adt: $65 (have to pay 3k to be able to cancel)
Electric: $60
Gas/food: N/A

I need to refinance, I’m working on my credit, then I need to figure how to refinance.

I have no idea how it works and if I should do a different morgage company.

I’ve called around for car insurance but in seattle kias get stolen often and most insurance companies don’t accept kias.

I also have a couple speeding tickets from the last few years.

I don’t qualify for state health insurance, and my job doesn’t offer it. I’m considering canceling.

I tried canceling ADT but apparently when I reinstalled it in my name from the last owner I also signed a 3 year contract.

So I have to pay $65 a month for 3 years.

This is the one thing I desperately want to cancel but they will not let me.

I’m looking into new home insurances right now as well.

Any advice is welcome. I am very tight with money at the moment.

[Julie]

You need to increase your income. A new job or second job. Refinancing isn’t going to help you right now as those are the current rates.

[Mel]

Could you consider renting out a room in your house to add to income?

[Kate]

You need to talk to ADT again about that cancellation. According to their own website, that’s not how the 3 year contract works.

You would have to pay 75% of the remaining contract.

$65 a month, even if you just signed it the contract, is a total of $2340 over 3 years.

At 75%, that would be a total of $1755, not 3k.

Check on that car insurance too-even with a Kia (I have one), that’s pretty high.

[Stasi]

The bills you provided above total $2,719. You said you make $3,600 a month.

You should easily be able to pay your bills if that really is all your bills.

I understand food and gas aren’t included, and maybe Seattle is really that expensive but I don’t even spend that much to feed my family of 4 a month.

You need to figure out where you are spending the other $881/month because that seems to be your drain.

[Diane]

The biggest problem I see right off the bat is your mortgage is way too high for your income.

It is almost half of your monthly income going to mortgage.

Something needs to drastically change here.

If you need to get roommates or house hack in some way to make that more affordable with your low income.

25-30% max should be the most you pay for housing.

That is paralyzing to have that much of your income going to housing alone.

No room to do anything else. Then taxes, HOA, insurance.

Ouch! Good luck! I don’t know how you can even eat.

Your monthly income needs to be $6K a month minimum to afford that payment.

Pls tell me this is a scam post.

I am scared for you. My stomach is upset just thinking about this.

[Angie]

The fastest, easiest way to increase your income is to get a roommate or two depending on how many bedrooms you have.

Get creative.

Make the master bedroom a studio with a separate entrance to rent for higher or use the studio for yourself and rent out the rest of the rooms (depending on how much you need a full kitchen).

Refinancing will cost thousands and will likely not be worth it.

[Karl]

Housing and insurance have got to be adjusted. Can you take on a roommate?

I live outside of Seattle and people pay $800-1,000/mo for a room it seems.

Sell the Kia and find a Toyota or Honda sedan.

I’d hold on refinancing, all signs point to lower rates by October.

[Sophie]

Where do you see rates significantly better than 6.85% for a refinance? I am under the impression the average is 6.5% currently (assuming an excellent credit score).

Keep in mind there tend to be $1000s in fees so it won’t be worth it unless you get quite a bit of a better rate.

[Leslie]

It will be easier to make more money than change your current bills.
Start selling stuff, door dash, part time job evening s and weekends.

Do whatever it takes to get a buffer

[Dani]

Dump the Kia. They are uninsurable in Milwaukee too, that and Hyundais.

[Brandi]

Housing with mtg, taxes, hoa and ins is ~$2100, over 50% of income. And the expenses listed do not cover electric or maintenance…

Options are to sell house, find a roommate, or make additional income.

[Rhonda]

Your cost for just your housing is over 50% of your income (mortgage, property tax, home insurance, hoa).

It sounds like you need a roommate to share that cost with.

[Ilyssa]

Great price on insurance. I would not lose that. Your housing costs are killing you and refinancing won’t help a ton at all.

I would strongly consider a roommate or a second job.

[Kimberly]

I wouldn’t dump your health insurance. That’s a good price. You never know what could happen.

Your health could change instantly.

It happened to me a few years ago. Healthy to disabled with a snap of the fingers.

Insurance paid more than $200,000, and I’m still left with $50,000 in out of pocket medical costs.

[Jill]

1. Cut expenses by buying cheap food like beans and rice with zero eating out, cut internet (go to the library for free internet and bring home books to read) 2.

Get income (roommate AND second job).

It’s that basic. But DO NOT cancel your health insurance.

[Sheena]

Can you rent out a room in your house, to help supplement income? Or upskill somewhere to land a better/higher-paying job with growth opportunities?

Seattle is an expensive city, but also (for non minimum wage jobs) has pretty decent salaries comparatively speaking, especially considering there’s no state income taxes to be paid.

[Brandon]

Car insurance and increase income some how. I feel youon that interest rate!

Also refinanced the other week the same interest but what I owe now but not worth it just yet.

[Colin]

Refinancing will be a good idea when rates are much lower. Your mortgage is too large a percentage of your income.

Do you need a car?

If you can sell the car that will put cash in your pocket and eliminate a huge ongoing expense.

I am much healthier, happier and wealthier for biking everywhere instead of driving.

I started about 3 years ago.

Aside from that I would look for new jobs that have benefits and higher pay and opportunities for advancement.

[Polly]

You’ve got about $880 left over each month. Consider putting some of that away in a HYSA, some in investing.

Then put a portion to the mortgage. Keep some leftover in your checking.

Go over your finances to see where you’re going wrong

[Author]

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