Debt Dumpers - 2016

[Ava]

I work for a utility company but we don't live in the severe cold in Louisiana so I don't have a lot of tips for you other than to say make sure you lower your thermostat before leaving the house and if you have any south facing windows open the blinds during the day that will help warm the house a lot from sunshine (granted if there is sunshine). Also call your utility company and ask about level billing if they offer it where you pay the same each month (so say you normally pay way less in summer you would pay an average throughout the year to make up the difference)
Additionally check to see if you electric meter is electronically read to where they could possibly show you usage graphs of when the most energy is being used. That's actually a lot of what I do at my job is research issues like this and help people look at their usage graphs. If you know when you are using the most energy you can make a plan to save more during those times. Hope that helps I know how yuck it is when you get money and then poof its gone again so soon!

I was going to suggest signing up for a level payment plan if your utility company offers it. It makes it so much easier to budget when your utilities are the same amount every month. And on your bill it will tell you how many months are left on your plan (they reevaluate each year and may adjust your payment based on your actual costs from the previous year) and how much over or under your actual costs you have paid so far. So if your payments are running under your actual costs, you'll know to set aside a little extra money to cover it when your year is up if they bill the difference in a lump sum, or to put towards a higher payment for the next year.

 

[scdak]

Our budget billing can't start for a YEAR after we move! Ugh! We moved in October, so it'll be a while before we get it. We've just been estimating a number each month right now for our budget. Fortunately with a small house it's not too bad anyways, but I'd like to see the same number every month!

But look at it this way, you only have 9 months to go until you can do it

 

[DisneyMandC]

Good news in my job saga! I just got an interview with an office I used to intern for! I went out last week and got lunch with some of the people there, so I'm hoping this will prove to be fruitful. A lot of the people have been there a long time, and this position would allow me to continue with my public service loan forgiveness. Here's hoping! Interview is next Thursday.

 

[Jen and Ashwin]

I pitched a promotion to my boss! The deputy director for our office moved on to another position a few months ago and since then I have taken on a lot of new duties and responsibilities. I have been doing the job of the deputy director, so I decided to ask her to make that official. We will be hiring a new employee soon that would be under me, so I thought this was the perfect time to pitch this, before the new person starts. My boss seemed very receptive to the idea. A promotion would be great to continue to show progression in my career, give me managerial experience and help me develop other new skills. She will be speaking with HR about a raise to go with the promotion, though it might be a bit complicated due to our university's policies. It would be amazing to get another couple thousand a year, but I don't want to get my hopes up too high. We will see.

 

[Dentam]

Wow, we definitely seem to be in a reverse Murphy phase as a group - woohoo!!

 

[dayvewc]

Me too--except it costs me a fortune right now because I make all sorts of things from invitations-treat notes,restaurant invites,coupons, treasure hunts-welcome letters etc,,by the time I'm finished my printing costs are crazy.
I now run the other direction when a fellow staff member starts talking about Disney.
Sewing is out as I was the only one in grade 8 who broke the singer sewing machine once a week every week for a year.
I do love making special gifts in a jar for people.
I love gardening, but I'm not sure how to turn that into a money making craft.
Atleast I have some time to ponder this.
Hugs Mel

Yeah, I tell them about all the extra stuff you can do, but I don't do any of that for other people - unless they pay me. Mostly, when people ask, I just tell them that if they want to go, they need to plan on their trip starting 18 months from now at the soonest.

If you really like gardening, have you considered things like the farmers markets and selling the produce? Or canning and selling it?

I'm also very glad I'm not the only one paying all this out. I love my son and will do almost anything for him (I refuse to watch his you tube stars with him!) but seriously, $85 a month just for his activities???? That's one of my student loan payments! That's my electric bill on a high month! That's dinner and a movie for two paying prime prices and not using a coupon! He better turn into a well-rounded, joyful young man!!!!!!! Haha!

I agree it is like a lot, but ... Some of that amount was an estimate for band costs, and some of it will "go away" after the event - like the DC trip next year. So, you could actually either try to save less each month (I think $65-$70 was the rough figure I had calculated), but do so for the entire time he is in school, or start with the full $85 and reduce it as he finishes different activities (though, with the way that inflation works, when one bill is paid for, the others will have increased to take up the slack).

I do wish I had your electric bill, though. Mine on levelized billing is a touch over $200 each month.

 

[PrincessKymm]

I do wish I had your electric bill, though. Mine on levelized billing is a touch over $200 each month.

Apartment living at its best!!!! My lowest electric bill has been $27!!!!! My highest has been $136 so I do fluctuate but average $85 a month.

I will be sad when I no longer have that type of bill when I purchase.

 

[Eureka]

Snow has been good for the budget here. I did do some food shopping before the storm (23.5 inches in my town) but DH and I both worked from home half of last week, him half of this week and me all of this week (kids finally went back to school Wed but delayed openings yesterday and today) so no parking fees, less gas and less eating out. He gets a bagel and coffee every morning and fast food for lunch most days...spends a lot of money on it but it's a battle I'm just never going to win. And we were home all weekend, no going out to the movies etc. On Tuesday we were all home and did go out to lunch just to get out of the house, but overall I think we spent less money this week than usual.

Mail is slow to come this week, and I'm still waiting on a medical bill that was supposed to be reprocessed as in-network. Want to get that one and just pay it off. The increase in health insurance premiums has not started coming out of DH's checks and will be retroactive to Jan 1 so it will be a doozy when it starts. I've been socking that extra away into my medical bill fund this month - the extra I had set aside in the fall knowing that this would be happening, I used to pay our homeowners association dues.

Plus I'm trying to set some aside for my Orlando trip which is quickly approaching. I got a $40 visa gift card as a rebate from when we put tires on the van a couple months ago, so I'm going to save that for treats down there. I decided against buying get Epcot ticket and am just going to see what I feel like doing that free day. It's the day after we arrive and I might just be tired and want to lounge by the pool, but who knows.

 

[Ava]

I scheduled the payment to pay off the smaller of our two CC's. The 0% isn't up until March but I am using my windfall anyway so I just wanted to get it done. The remaining ~$10K is going to stay in the emergency fund until it comes time to pay off the other CC next April, and hopefully I'll be able to pay it down some with regular funds so the majority of the windfall money can stay as emergency fund.

I think, though, that I need to move the emergency fund to a different online bank from my other accounts so I don't see that big chunk of money sitting there every time I log in to my checking account. Its so tempting to use it so we don't have to wait to save up the money for some larger ticket items we want (bunk beds for the kids and at least a new mattress, if not a whole new bed, for us).

Does anyone use Ally Bank? My regular accounts are at Capital One 360 but I was looking for other options and Ally actually offers a slightly higher interest rate right now.

 

[Jen and Ashwin]

I scheduled the payment to pay off the smaller of our two CC's. The 0% isn't up until March but I am using my windfall anyway so I just wanted to get it done. The remaining ~$10K is going to stay in the emergency fund until it comes time to pay off the other CC next April, and hopefully I'll be able to pay it down some with regular funds so the majority of the windfall money can stay as emergency fund.

I think, though, that I need to move the emergency fund to a different online bank from my other accounts so I don't see that big chunk of money sitting there every time I log in to my checking account. Its so tempting to use it so we don't have to wait to save up the money for some larger ticket items we want (bunk beds for the kids and at least a new mattress, if not a whole new bed, for us).

Does anyone use Ally Bank? My regular accounts are at Capital One 360 but I was looking for other options and Ally actually offers a slightly higher interest rate right now.

I have several savings accounts at Ally for my "bucket" funds. It is easy to set up automatic deposits, earns decent interest and I have never had a problem with the site. Good customer service too.

 

[mrsabbott]

I do have all LED light bulbs in the house. Our windows aren't the most energy efficient, but when it was super cold and cloudy, I closed all the blinds and curtains and things. We have a lot of Windows, so I will open all the blinds and turn off all the lights during the day.
I will look into that budget billing option. It certainly would make budgeting so much easier!!

 

[PrincessKymm]

I finally have a paycheck!!!!!!! They paid me through today and the money is already deposited! I haven't seen a stub yet (have to be logged in on work computer) but it's on the higher end of my estimates so I'm thrilled!!!!!

I'm waiting for one more piece of information to finish my taxes but I'm getting a refund from federal and an incredibly small one from the state but I don't owe!

I do have to pay my city taxes Q4 from last year and then make my Q1 estimate and payment so that's going to be a small chunk.

I am excited to finally have income again!! Now I just have to work on a budget!

 

[mrsabbott]

Taxes are officially filed! Just waiting to see if they are accepted and for us to get our returns! Can't wait to jump start our debt snowball!!

On the down side, one of my tires kept slowly losing air and was almost flat this morning. Turns out that I had a nail in it. Thankfully, my husband wasn't that busy at work that early, and his boss gave the okay for him to go ahead and fix it.. and to go ahead and rotate and balance my tires (they needed that also)!! So, thankfully, that saved us some $$! Normally, his boss doesn't like for them to bring their personal cars in to work on without paying for it.. but he made an exception this time. I think he knows we are struggling.. plus I sometimes bring by goodies and things for them!

It was good timing though.. I had already taken a personal day because I had to drop off and pick up the girls for their dress rehearsal and first performance today.. At least it happened while I was already off of work and able to get it fixed!

I had some gift cards that I got for Christmas. Got a few things I needed for work, a new calendar (75% off!!), and some soap and stuff for us. Also got my car washed and vacuumed out! Now, I need to work on getting this house cleaned!! I want to not only get our finances in order.. but our house as well!

 

[Dentam]

TGIF!!

 

[PrincessKymm]

I couldn't get over my paycheck excitement all day! I did some debt dumping!!!!

I worked on my budget during some free time in training. I managed to pay off three small credit cards, two of which were part of the new work clothes I bought. One is some stuff that made it onto a card while I was between jobs but it's gone!!! Total gone $870!!!!! I still have $1,000 in my EF.

I've still got a ways to go, I guess I wasn't as tight with my finances as I thought. *gulp*

My goal is to be free from credit cards by next June. I will still owe student loans and I'm hoping to get a new car this year or next. I want to have a nice down payment at least for that. If I can swing it I want to buy a condo and I'll wait to buy a new car. If I can snag this condo I saw for sale I could get a condo for almost half of what I pay for rent currently.

I filed my taxes today so that will pay off my Disney package and half of my next card!!! With my snowball payments I'll be in really good shape over the next few months.

I do like my new job but I'm super tired. I'm still in training so everything is new. Today was tough but I know it will be ok next week. Too much information and not a lot of it makes sense yet. Discouraging but it will get better.

Hope everyone has some good luck these next few weeks!!!

 

[roadtripper]

Chiming in with some good news, since this thread is on a roll. My 1998 car with 200000 miles failed inspection due to a REALLY loud exhaust noise that began just as I was pulling in for the inspection (!). I dropped it off at the mechanic with a note to call me before doing any work--visions of needing a whole new exhaust, etc. When I called this afternoon, they had just finished working on the car. I started to panic, thinking I had been had, when he told me he just went ahead and fixed it because it was one clamp and a couple of lightbulbs! 83 dollars total ! Yay!

 

[edk35]

Despite still paying off other debts, we still use our SWA cc for everything to earn free flights. I am careful to pay it off monthly, usually making 2-3 payments online each week so it doesn't get out of control.
I know what you mean about the security of a cc. I don't feel comfortable carrying cash. I also don't like using our ATM for purchases. I feel that if our cc numbers were ever compomised, someone might make fraudulent charges but we don't have to pay for while being disputed. I don't like the idea of letting someone reaching into my bank account, even for legitimate purposes.
Sorry, I probably should, but I don't do the envelope system. Someone can most likely help you with that.
I do bank with Capital One 360 which is an online bank which you link to an external account, usually a local bank. Once a customer, you can have up to 25 savings accounts under 1 log in. Maybe this is my version of the envelope system. I have multiple accounts with nicknames like Christmas, car insurance, sewer bill (which is quarterly) vacation, emergency, etc.
I find it very convenient.

WOW I have that account but we have ONE account for our vacation fund. I had no idea you can have more accounts under one log in. I have to check this out.

 

[edk35]

Capital One 360!
They used to be ING.com which is when I started with them in 2005. They were taken over by Capital One a few years later.
As long as you're able to link your savings account to another bank to transfer $ in and out you're good.
There are no fees unless you're overdrawn and no minimum balances. Once you're a customer, you can have up to 25 savings accounts with them.
So I have one for Emergency Fund, Car Insurance, quarterly sewer bill, Vacation, College Funds, etc.
They also offer free checking. Again, no fees or minimums as long as you're not overdrawn. Free ATM. This is what I used as a separate checking account when I first started to pay my weekly snowball payment so it didn't blend with our regular checking account. I treat it like it's just another bill.

In the last 2.5 years I've gotten better/stronger with snowballing and now transferring to another account only delays making the payment another 2 days later. Now I just schedule the snowball payment to occur the day before payday and then on payday the money goes in and the payment comes out. Almost instant gratification.

So whatever card/bill is at the top of your snowball, the payment comes out of the Capital One each month (or however often you pay)?? So if you are paying credit card X with the extra snowball money it is paid from the Capital One card acct? Your other debts that you pay min. on are coming out of a different checking acct?? Do you ONLY use the Capital Once card for the bill on the top of your list???

 

[edk35]

I have been using mint.com for years and have found it really helpful as a tool for seeing everything all at once. You link your bank accounts, loans, credit cards and investment accounts and it gives you a full picture of your current state. You can set up budget categories for each month. It will track all of your expenses made on credit.

I would also sit down with pencil and paper and write down all of your outstanding debts with the minimum monthly payments. Then determine which debt you want to tackle first (highest interest rate or lowest balance). You can figure out how much extra beyond the monthly payment you could contribute each month and make a timeline for payoff of that debt. Then once the first debt is paid off, you snowball that money into the next debt payment and so on.

?? So you know how your min. payment goes down as you are paying. Do you change each month's payment to meet that new min. payment or do you just keep the min. in place that you started with so that you are paying the same amt. from the beginning?

 

[Jen and Ashwin]

?? So you know how your min. payment goes down as you are paying. Do you change each month's payment to meet that new min. payment or do you just keep the min. in place that you started with so that you are paying the same amt. from the beginning?

Most credit cards allow you to set up automatic payments for the monthly minimum. I never do automatic payments though because I want to see the balance and set my payments because it keeps me engaged in the process. I also like to set payments so I remember to review my bill to make sure all new charges are legit. Right now all of my cards that have a balance are 0% interest, so I am scheduling payments to ensure I pay off the balance before the 0% expires, rather than a true snowball. But for example, this month I am paying the last $395 on one card that expires next month. I will be taking that $395 after next month and applying it another card that has 0% and will expire at the end of this year. I anticipate to have all of my credit card debt paid off by the end of October. Then I will start applying the extra money to an emergency fund to cover 6 months payments.