Intangible Benefits / Detriments of CH 13?

[ameangreenbe]

Clearly filing CH 13 changes lifestyles, behaviors, habits and thinking about money. What intangible benefits / detriments have you realized now that you're executing your plan?

I've heard things like "we don't buy as much stuff", "things aren't as important anymore", "we've learned to be more creative in spending and saving money", etc.

What about the the down side? I've heard, "it's tough to learn to live on a budget", "the days of extravagant purchases are over", etc.

What is your experience?

Thanks in advance.

[parsoc48]

Budgeting is very hard, especially since we never did learn to do it; we agree we'll pay bills together, watch the checking account, etc....but we don't follow through! Lots of anxiety about unforseen expenses....we've had car repairs recently from a wreck ($4500..but no injuries)and have had to scramble for the $500 deductible...thank goodness we didn't increase it like we were thinking about! I did change our savings account to a checking (due to no limits on transfers and withdrawals, like in savings)and use it to "park" monies for the trustee and mortgage...then it's there when I do the certified check for payment. I'm trying to change my behaviors toward money and that's the hard part.

As my sister said, we'll be going into retirement with NO DEBTS! I try to think of it like a 5 year car loan..at the end of this period our payments will end and we will own our life.
Yes, we miss the mini-vacations, the bigger Christmas presents, etc (DH more than me)....but I don't miss the stress and anxiety and phone calls....It's all good!

[Flamingo]

The lifestyle change one must do in a Chapter 13 is what is the cause of many Chapter 13's to fail. If you cannot cut your spending and buying habits and learn to live within a budget, it can all come tumbling down. One must go from shopping at high end stores to shopping at discount stores, cutting costs, doing without and getting by without credit. It is an eye opener to say the least and no easy way around it. It's best to buckle down, make do and get through it. In the end, it is all worth it.

[EricaCallaha]

It's hard and scary. But in the end it is all worth it. NO DEBT!!! It is hard to turn down friends and family with extravagant purchases or group vacations. Going out to dinner all the time. But you do learn to be creative. Just try to be positive. You got yourself in this mess with all the bad spending habits....a chapter 13 helps you learn to budget and take control and get yourself out.

Good luck with any decision you make. The first step is the hardest.

[hooloovoo]

I guess I look at it from the opposite side, in that given I'll likely have more free money each month than I have for a while (Like, right now after all bills I have NOTHING and I'm going to likely have nearly $700 a month free) it will be a big help. I guess my big concern is whether I'll have enough free money to handle things that pop up without getting in trouble again, but given that I have no free money now, well, I can't complain.

I also think that it's better to at least pay something back if you are able. After all I did spend all that money. The only real impact for me will be that I'll have more money to budget for food, gas, clothing, medical bills, etc. And I won't be able to make impulse luxury purchases on credit cards. Both of those are good things!

[getmeouttahere]

I try to think of it like a 5 year car loan..at the end of this period our payments will end and we will own our life.

This is EXACTLY how we look at it. Even though our plan has not yet been confirmed, we have made 3 payments, with 57 to go. I am actually enjoying living on a budget, no stress. We know how much money needs to be put aside each month for those unexpected expenses that were usually an afterthought (car insurance, school supplies, etc.) Of course, we are in the early stages of this process and it is definately a learning experience. I'm sure we'll learn more as we go along. Bottom line - If I can't pay cash for it, I don't get it. In fact, I was shopping with my sister today and didn't buy a thing (although it was fun helping her spend her money). Sure, there were many things I would have liked and in the old days, I would have whipped out the plastic and bought them. Did I need them, NO. I now categorize everthing into "wants" and "needs".

[hooloovoo]

This is EXACTLY how we look at it. Even though our plan has not yet been confirmed, we have made 3 payments, with 57 to go. I am actually enjoying living on a budget, no stress. We know how much money needs to be put aside each month for those unexpected expenses that were usually an afterthought (car insurance, school supplies, etc.) Of course, we are in the early stages of this process and it is definately a learning experience. I'm sure we'll learn more as we go along. Bottom line - If I can't pay cash for it, I don't get it. In fact, I was shopping with my sister today and didn't buy a thing (although it was fun helping her spend her money). Sure, there were many things I would have liked and in the old days, I would have whipped out the plastic and bought them. Did I need them, NO. I now categorize everthing into "wants" and "needs".

That explains it pretty well! I'm in the position of not being able to budget due to not having any money, and the prospect of actually having money to budget seems really nice right now...

[krielly]

Well, we are 41 mos into our 60 mos plan. It definitely has its ups and downs, thats for sure.

It is empowering to live without credit, and within our means for a change. When I get discouraged about not having much money left over at the end of the month, I remind myself that even though things are tight, at the end of this, I will be out of the bulk of my debt!!! Additionally, I'm not accumulating NEW debt on top of it all in the process.

That's the best thing! We were strapped for money before we filed, trying to keep up with all the minimum payments, and resorting to using credit cards for basic necessities more often than not. We were making minimum payments, and just eeking by.........all the while, recharging at least the amount we had just made a payment on.

Even if money is short at times now.......it's only temporary, and at the end o the plan, we won't have racked up more debt!!!!!!!!!!

It's a GOOD thing!

[getmeouttahere]

krielly - there is a light at the end of your tunnel. Good job and I am green with envy as we are just beginning.


Your situation sounds alot like ours. We filed early December, right before Christmas, and I'm glad we did. Otherwise, I could have seen us racking up NEW debt. We cut waaaayyy back on gifts and were worried about the kids (youngest is still a "believer"). It brought tears to my eyes Christmas morning when they said it was their best ever. I couldn't believe it.

[krielly]

I know what you mean about xmas. You come to realize (after a credit card free xmas or two) that Christmas comes and goes, no matter HOW much you are able to spend. The world does NOT stop revolving if you can't over spend

I think we have higher expectations of ourselves to "deliver" dollar wise at Xmas than our children do.................

You come to realize that the amount you spend is NOT what makes Xmas joyous!!!!!!!

Good luck to you!
K