Debt Dumpers - 2013

Discussion in 'Budget Board' started by StitchesGr8Fan, Jan 7, 2013.

  1. dansamy

    dansamy DIS Veteran

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    It is what it is.

    He wants to try to go back to work. His parents and I are trying to tell him that it's probably time to file for SSDI. Stubborn...

    I figure if he makes an attempt to return to work that will just help his case when he does have to file.
     
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  3. gracie1

    gracie1 DIS Veteran

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    You guys are all doing a great job with dumping debt :thumbsup2
     
  4. gracie1

    gracie1 DIS Veteran

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    Bumping thread
     
  5. AuroraRora

    AuroraRora Princess

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    How is everyone doing? I feel like I had so much momentum at the beginning of the month, and then my work was so slow this month that I'm starting to stress about that, never mind putting additional money towards my debt this month :( I'm looking for a second job though - something I can do a few days/nights a week in amongst my regular consulting job, and put all the money from it straight into my debt.

    Is anyone a member of Dave Ramseys TMMO forum? I signed up for the free trial yesterday but I was a bit disappointed - I'd heard all the software/tools were so useful, but really it's nothing new :confused3 I already have my budget and my debt snowball sheets printed and filled out, having them online too won't make much difference and honestly I'm more likely to remember to fill out the paper versions because they're stuck on my wall. That, and it seems a lot of people there are very... um... opinionated? :scratchin
     
  6. gracie1

    gracie1 DIS Veteran

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    You have been doing a great job with dumping your debt!! You should be proud, because honestly it's harder for you than the rest of us (or atleast me) because we get that normal paycheck all the time. You are consulting and for you to have been able to snowball not knowing what the month is going to bring is a huge accomplishment! Don't let it get you down.
    I saw the DR website once, and I have to agree.... there are some very opinionated people! That is one thing I refuse to do, is be opinionated about others that are in debt, because I have been there my whole life and know how it feels.
     
  7. pryncess527

    pryncess527 DIS Veteran

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    Try these forums instead:

    http://forum.youneedabudget.com/

    The people are very nice and helpful. It is for a specific software program (which is awesome btw) but a lot of people also use Dave Ramsey's principles. They also have free webinars going over some basic budgeting techniques
     
  8. AuroraRora

    AuroraRora Princess

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    Thanks so much for the kind words!! I totally agree about this being the last topic anyone needs to be opinionated on - i beat myself up enough about my debt without needing other people to jump in too!

    Pryncess, thanks for the site tip, checking it now out :goodvibes
     
  9. Doodlebug939

    Doodlebug939 DIS Veteran

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    I think that you are doing a great job at working through your debt. I think we all have periods where we get into the knitty gritty and review our numbers to see where we are. And then life takes over and we dont review every day or every week but that doesnt mean you are on the right path. You are just living life. Nothing wrong with that. If I focus too much on the debt that I have left then I tend to stress about it. :scared:

    But at the beginning of each month I review where I am and get my automatic payments going and then forget about it. I realize your case is unique and that is ok and makes you special.princess:

    You should be so proud of yourself and how far you have come. :cheer2:
     
  10. gracie1

    gracie1 DIS Veteran

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    You said this perfectly :thumbsup2
     
  11. AuroraRora

    AuroraRora Princess

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    Thanks so much you guys, you are all so awesome! I'm so glad I can come here and having people that are understanding and just genuinely nice - I have no-one in my life that I can talk to about my debt/money issues and a little support means so much :goodvibes :cheer2:
     
  12. zy144622

    zy144622 Mouseketeer

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    I couldn't agree more! Everyone here has helped me to keep focused on the big picture and not let up.
     
  13. Doodlebug939

    Doodlebug939 DIS Veteran

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    I couldnt agree with you more. I have family and friends and we all have debt so nobody wants to hear more of the same. We are the only ones that are tackling debt one step (baby steps sometimes) to make our debt situation better. Everyone else tends to believe that debt is a part of life and it is what it is. And I know there are times in my life when debt is going to happen and I am ok with it. What I am not ok with is having old debt and then adding more to it. (Credit card debt)

    On here when I am down and feeling bad for myself there is always someone to post a success that turns around my thinking. Instead of whoa is me I think that could be in a few more months and pick myself up and try harder next paycheck. Through this board I am more determined to reach a better financial situation. And I know compared to others mine could be considered worse or better than their own. But it is not ok with me and hubby and that is what matters.

    Some days I feel that we are floating in the water and with every debt we have a shackle that is attached to a heavy chain that is weighing us down. With each payoff a link or two is removed and we are able to keep our head above water a little longer. At the beginning of the year we were under the waters surface and could only bounch up once in a while to get a little sip of air. That is success to me. Keep it up everyone!
     
  14. SpaceGirl

    SpaceGirl DIS Veteran

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    January 20, 2008
    I was reading the DIS Budget Board and opened a thread called “Debt Reducers” I started reading and decided to make a list of all my outstanding debt for everything and everyone I owed money.

    I wasn’t having trouble paying my bills I have/had always paid more than the minimum payments but I wasn’t paying them down either, I just kept charging away paying the interest, my highest interest rate was one card at 12.9%, two cards at 9.9% one card at 3.9%.

    My four credit cards were nowhere near being maxed out because I have very high credit limits. Yet I started reading about the credit card companies going through and cutting customer’s credit limits and raising interest rates for no reason. I started worrying knowing that I was carrying way too much debt; if they raised my interest rates I would never be able to pay everything off.

    On the four credit cards I owed $42,231.20 the highest balance was on the 3.9% card and that rate was good until it was paid-in-full. The next highest was on the 12.9% which was at the higher rate because I had consolidated two smaller cards six months before at 0% when the offer ended they raised my rate from 8.9% to 12.9% so now you know why I was so worried….

    I also still owed $3,500.00 on my second DVC contract and as it was January, so I owed my DVC dues for 2 contracts total $1,700.00 added to my overall debt.

    I was looking at a little over $47,000.00 in debt….I was paying $325.06 in interest each month.

    What did I do….I FREAKED OUT.

    I put everything down on Excel and started my journey to freedom from debt.

    The first thing I did was to stop charging on all but one credit card with great rewards, I never charged anything I couldn’t pay off at the end of the billing cycle for that month. I didn’t stop using my cards I just didn’t want the credit card companies to use me. In fact this cut my spending because I was always checking my balances. I cut every expense I could; I washed dishes by hand, hung laundry to dry, adjusted thermostats, and replaced light bulbs. I tried every money saving tip I read about here on the DIS. It all helped.

    I concentrated on paying off the 12.9% card because of the interest charges and my DVC contract. I paid my DVC contract off in November 2008 and at the end of 2008 I was down to $34,671.54 on my cards.

    I just kept paying and charting my progress through 2009 didn’t make much of a dent the overall balance this year I just wasn’t adding any new debt…long and boring.

    In September 2010 I sent my last payment on the 12.9% card, it took me 33 months but it was $00.00 balance…At the end of 2010 my debt was now down to $12,127.75 and my monthly interest was under $60.00.

    In December 2011 I only had one credit card with a balance the 3.9% card balance $5,216.51. I should have had this paid off earlier in the year but my husband retired and in May we took a month and traveled. Trip was paid for with cash, we did use a credit card put it was paid in full before the monthly bill was posted.

    In February 2012 I paid the last card in full. So after 3 years and 1 month I was completely out of debt.

    Summary:
    If it wasn’t for the DIS thread I’m not sure when/if I would have started working on my personal debt.

    There were months when I really didn’t see much progress. (I just wasn’t adding new debt any longer)

    It took 3 years but it was so worth it.

    I now have to make sure I make purchases on my credit cards every few months to keep them active, I was lucky none of my credit limits were ever cut and none of the credit card companies raised my interest rates.

    You are all doing great; you have acknowledged the debt and are working on becoming DEBT FREE. It might seem to take forever but remember you didn’t get into debt overnight, so just keep chugging along each month.

    You can do this, I did.

    PS: I posted the dollar amounts because they were so high. (My stupidity) I wanted to share because if I hadn't started working on this I'm not sure just how much debt I would have run up.
     
  15. zy144622

    zy144622 Mouseketeer

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    Thank you for sharing your story. You give me hope this will be over with in no time!
     
  16. pryncess527

    pryncess527 DIS Veteran

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    What an inspirational story! That's an amazing amount to pay off in only a few years. It's nice to know it can be done with discipline. Thanks for sharing :-)
     
  17. AuroraRora

    AuroraRora Princess

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    It's SO helpful to hear success stories, thank you so much for posting that! Your story reminds me about how long it takes to build debt and how we shouldn't beat ourselves up for not getting out of it overnight either. The thought of taking on new debt horrifies me, so now it's just all about paying the debt I have. The minimums are always getting paid so its the "anything extra" that I stress about. Its so great to hear that someone else got through it and made their way to Debt Free!!
     
  18. SpaceGirl

    SpaceGirl DIS Veteran

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    Thanks for reading...
    When I said it was stupidity it really was, once I stopped adding any new debt to the balances it was much easier. I just wasn't paying attention.

    I know that watching balances is hard at times, but watching them go down is much better than them going up each month.

    What I did enjoy was the extra Excel column I made for monthly interest charges, each month I would post the amount charged to my bill in RED. I loved watching the amount I paid each month go down. I would always decide how much to pay then I would add the interest on top of that so I wouldn't be paying interest on the interest. Just something I did, it helped me. :confused3

    I also paid my bills just as soon as they posted on-line by paying at the first of the billing cycle the amount of interest would be less, the payment would be deducted early thus balance was lower for the month making the interest lower. (Hope that made since)
     
  19. kim532

    kim532 DIS Veteran

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    :furious: SO mad at myself. Apparently when I did my bills a couple of weeks ago, I logged payments to my credit cards in my register, but then never went to actually make the payments (I do these online). It was 3 different credit cards. So mad at myself right now!

    Don't know what the fall-out will be. I assume late payment fees, but will it also trigger a jack in my interest rates? :(

    Kim
     
  20. ruadisneyfan2

    ruadisneyfan2 DIS Veteran

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    Oh that's an awful feeling. I've been there too. Life can be so hectic & hard to keep it all straight.

    We had a Bank of America card several years ago. My payment was around 30 mins late. Paid on due date but just after midnight so technically the next day. My rate shot up to 32%!!! :sick: I even wrote to them & pleaded to lower it but I think I had missed a payment 6 mos prior so they really stuck it to me. Now I schedule multiple payments in advance in case life gets hectic. Right now all our payments (mortgage, truck, cc, Amazon card) are scheduled through the end of Sept.
     
  21. SpaceGirl

    SpaceGirl DIS Veteran

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    The best thing you can do is call them ASAP tell them you made a mistake...ask them to remove any late payment if they have charged you...I'm assuming that you are only a few days late not over 30 days so hopefully no rate jacks. If they remove the late payment it will be like it never happened either way you should be OK.

    Good Luck
     

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