Debt Dumpers - 2013

[DVCisME]

Just filed our taxes and will be using a good chunk of our refund towards our debt when it comes in!!! Can't wait, LOL.

Congrats!!!!

 

[gracie1]

Just filed our taxes and will be using a good chunk of our refund towards our debt when it comes in!!! Can't wait, LOL.

This is what I plan on doing too! I wish I had all my tax papers so I could file mine. Actually, the whole amount is going towards my debt. Maybe next year it can be fun money

 

[Deffenm]

I hope to break even with our taxes. We try to not owe or get back anything each year. Last year we got back about $400 so if we get anything back this year it will go towards paying off credit card. I think we are only waiting on one more form and we are ready to go.

 

[aclov]

Thank you! I need to still shop around for Internet, but I don't think much is offered in the area other than Comcast. I also know that I can watch my handful of shows online, so I don't think we should keep cable for an extra $70/mo. I really hope I can find high-speed Internet/wifi for cheaper. Even if I can't, I'd be saving!

I finally called AT&T Uverse today and will be switching from Directv. They will be coming out tomorrow! I was paying Directv $140 for all the channels and AT&T internet $38...now I will be paying $95 for all channels (HBO and Cinemax will go away in 3 months or I can keep them for add'l $30) and internet (faster and with wifi) I will be charged a $50 installation fee but getting a $100 visa gc. This is a one year contract and any promotions they have going now are ending 1/27

 

[PrincessKymm]

I'm going to jump in and join. I've got about $1200 in credit cards $6k in medical bills and $7500 car loan plus $17k in student loans. I desperately need to dump some debt! This thread has been so inspiring!

 

[shelwoj]

I hope to break even with our taxes. We try to not owe or get back anything each year. Last year we got back about $400 so if we get anything back this year it will go towards paying off credit card. I think we are only waiting on one more form and we are ready to go.

Every year I try talking DH into doing this but he just won't budge. So the government gets a free loan every year.

 

[AuroraRora]

I'm really excited about my tax refund - I work as an independent contractor and since this is my first year in this job, I've no idea what % to put away for taxes so I've been putting away a hefty chunk each time I get paid. I got to talking about taxes with another girl at my work, everything about our circumstances are very similar aside from her having a child. Even factoring in her kid, she worked out that I've been putting away double what I should have been. I was hoping that once I'd paid my tax bill and claimed my deductions, I'd have some money left over in my "tax account" which would effectively be my refund - now it seems closer to HALF of it maybe be left over. That would be so great!! Whatever I have, I'm putting it towards all of my smaller debts. That way I'll have a variety of minimum payments to add together and snowball into paying off a bigger debt each month.

Since I got rid of my car this month, I cancelled my insurance premium and got a pro-rated refund check in the mail today. I only had a couple of months left of it, but I put it straight towards the credit cards. It feels so good to make extra payments, no matter how small or large!

 

[Cinderelly5507]

I finally called AT&T Uverse today and will be switching from Directv. They will be coming out tomorrow! I was paying Directv $140 for all the channels and AT&T internet $38...now I will be paying $95 for all channels (HBO and Cinemax will go away in 3 months or I can keep them for add'l $30) and internet (faster and with wifi) I will be charged a $50 installation fee but getting a $100 visa gc. This is a one year contract and any promotions they have going now are ending 1/27

That awesome!! I finally got ahold of them today and thy don't offer any Internet for my area. I would have to have a hotspot, and it wouldn't be enough for watching Netflix on TV. So, I think we are just going to dump comcast cable. We'll have to keep Internet and Netflix. I'll still be paying $60-70 a month less-- and that's with a promotion. In August my rates would jump to go knows what!

 

[disneycrazi]

That awesome!! I finally got ahold of them today and thy don't offer any Internet for my area. I would have to have a hotspot, and it wouldn't be enough for watching Netflix on TV. So, I think we are just going to dump comcast cable. We'll have to keep Internet and Netflix. I'll still be paying $60-70 a month less-- and that's with a promotion. In August my rates would jump to go knows what!

We also dumped Comcast a few years ago, best thing ever! We now have no cable, no home phone, no Hulu or Netflix and no standard Internet. We only have cells and they have a hot spot with them. It saves so much money and we just watch movies. We live somewhat near to a larger city so we do get about 40 channels just on our little butterfly antenna that sits flat atop our tv. We watch ABC's Once Upon A Time every Sunday and that's about it. I know our way is not for everyone but it definitely works for us.

 

[*3*Mouseketeers]

I need to join desperately!

My DH has always been very cautious with money. He believes in saving just about every penny. He has fussed at me through the years about us not saving enough and I just let it roll off my back. We both have decent jobs and have enough to pay all the bills along with a little extra. My husband's nerves in his back and legs are bad and he has trouble walking. The store where he works is not doing very well at all in this economy and he's afraid it won't be open much longer and he's afraid at his age and with his problem walking that he won't be able to find another job. The place where I work deals with government contracts of military uniforms and defense spending was cut so much that we have really been slow. That has scared me. My sweet saving DH made sure that our mortgage was paid off wayyyyyy early. And we paid off the car last year. He sold his truck (he has a company vehicle) and a classic car that he barely drives. I have a credit card that I want to get paid off ASAP (0% interest) Here are our balances:

Discover: $1500 (0% until October)
Son's Saxophone: $800
HP new computer: $930 (0% interest for 1 year)

Other than utilities, cell phone etc. these are the only bills we have. I have also started putting $100 a week into our savings account, $50 a week into a Christmas club (that I will use part of the money to pay land taxes next year) and $50 a week to pay for our house/car insurance. My company has a profit sharing plan but it's not 401K and we are not able to put anything into it, so besides savings that's the only "retirement" we have. Oy. Hopefully I will stay on the right track and pay off the above bills this year and can throw more money into savings.

Whew, glad to get that off my chest!

 

[gracie1]

I need to join desperately!

My DH has always been very cautious with money. He believes in saving just about every penny. He has fussed at me through the years about us not saving enough and I just let it roll off my back. We both have decent jobs and have enough to pay all the bills along with a little extra. My husband's nerves in his back and legs are bad and he has trouble walking. The store where he works is not doing very well at all in this economy and he's afraid it won't be open much longer and he's afraid at his age and with his problem walking that he won't be able to find another job. The place where I work deals with government contracts of military uniforms and defense spending was cut so much that we have really been slow. That has scared me. My sweet saving DH made sure that our mortgage was paid off wayyyyyy early. And we paid off the car last year. He sold his truck (he has a company vehicle) and a classic car that he barely drives. I have a credit card that I want to get paid off ASAP (0% interest) Here are our balances:

Discover: $1500 (0% until October)
Son's Saxophone: $800
HP new computer: $930 (0% interest for 1 year)

Other than utilities, cell phone etc. these are the only bills we have. I have also started putting $100 a week into our savings account, $50 a week into a Christmas club (that I will use part of the money to pay land taxes next year) and $50 a week to pay for our house/car insurance. My company has a profit sharing plan but it's not 401K and we are not able to put anything into it, so besides savings that's the only "retirement" we have. Oy. Hopefully I will stay on the right track and pay off the above bills this year and can throw more money into savings.

Whew, glad to get that off my chest!

That's good that you have 0% on these bills. That is saving you money right there. If you were looking to have the whole year to pay them off, then your looking at putting out $270 a month. That would pay everything off!

 

[Cinderelly5507]

Had to share some GOOD news (for once) hopefully. My insurance raised the copay on my two meds. I since have had my new dr. write new Rx (that not technically generic are generics lol). My total before increase was $80/ month then $140/month after increase. Now, both should be $20-40/month depending on how the insurance actually processes them. I'm not exactly sure yet. Either way, a good savings per month to put into my snowball.

My husband is also calling to cancel Comcast cable and phone. We've been unhappy with their shadiness anyways. We will keep them for Internet though. So, at least another $55/mo savings (even when I add in Netflix).

Our total savings should be at least $95-$115. And as per DR, DH dropped his 12% 401k contribution. It hurt him to do so because his company matches up to 12%. I reminded him that it was only temporary. I know Dave says to do it, but was it the right thing to drop it completely???

Goo luck everyone! I'm enjoying feeling in control of the finances and seeing a light at the end of (a long) tunnel. I hope to get my coupons and shopping list ready today to shop the Kroger Mega sale tomorrow!

ETA: Most of our cc and medical debts are 0% interest. They also have the smallest balances. Should I still follow DR's baby steps and pay them off even though they are interest free?

 

[latmck]

As of today, DH bank loan is paid off. The extra money will be going towards a credit card bill. DH had two interviews on Tuesday. He received a call back from a local college to work part time security. We will have a little extra coming in each month to pay down debt and build our savings back up.

 

[disneycrazi]

I need to join desperately!

My DH has always been very cautious with money. He believes in saving just about every penny. He has fussed at me through the years about us not saving enough and I just let it roll off my back. We both have decent jobs and have enough to pay all the bills along with a little extra. My husband's nerves in his back and legs are bad and he has trouble walking. The store where he works is not doing very well at all in this economy and he's afraid it won't be open much longer and he's afraid at his age and with his problem walking that he won't be able to find another job. The place where I work deals with government contracts of military uniforms and defense spending was cut so much that we have really been slow. That has scared me. My sweet saving DH made sure that our mortgage was paid off wayyyyyy early. And we paid off the car last year. He sold his truck (he has a company vehicle) and a classic car that he barely drives. I have a credit card that I want to get paid off ASAP (0% interest) Here are our balances:

Discover: $1500 (0% until October)
Son's Saxophone: $800
HP new computer: $930 (0% interest for 1 year)

Other than utilities, cell phone etc. these are the only bills we have. I have also started putting $100 a week into our savings account, $50 a week into a Christmas club (that I will use part of the money to pay land taxes next year) and $50 a week to pay for our house/car insurance. My company has a profit sharing plan but it's not 401K and we are not able to put anything into it, so besides savings that's the only "retirement" we have. Oy. Hopefully I will stay on the right track and pay off the above bills this year and can throw more money into savings.

Whew, glad to get that off my chest!

Great job on having that mortgage gone! & you are def doin the right things, also will send up some words for healing for your DH!

 

[minnie1928]

Our total savings should be at least $95-$115. And as per DR, DH dropped his 12% 401k contribution. It hurt him to do so because his company matches up to 12%. I reminded him that it was only temporary. I know Dave says to do it, but was it the right thing to drop it completely???

When I did our modified DR plan several years ago, we only adjusted our 401k contributions down to the company match. In your husband's case...wow, 12% match is huge! I know you're trying to pay down your debt, but you're leaving a 100% return just sit on the table. I would reinstate at least part of his 401k contribution to help minimize lost contributions from his employer.

 

[Cinderelly5507]

When I did our modified DR plan several years ago, we only adjusted our 401k contributions down to the company match. In your husband's case...wow, 12% match is huge! I know you're trying to pay down your debt, but you're leaving a 100% return just sit on the table. I would reinstate at least part of his 401k contribution to help minimize lost contributions from his employer.

This is my hubby's thought too. Maybe we should put it to 6%? I just don't know. Honestly, I was only going to leave it at 0% for a couple paychecks then reinstate at 12%. It's too much $ to pass on! We just got the first paycheck without the contribution. Maybe we'll put the next one or two at 6% and then back to 12%. I'm so confused as to what to do! Lol thank you for the advice! It always helps to hear from others.

 

[Traveliz]

This is my hubby's thought too. Maybe we should put it to 6%? I just don't know. Honestly, I was only going to leave it at 0% for a couple paychecks then reinstate at 12%. It's too much $ to pass on! We just got the first paycheck without the contribution. Maybe we'll put the next one or two at 6% and then back to 12%. I'm so confused as to what to do! Lol thank you for the advice! It always helps to hear from others.

If you don't have debt or 0% interest debt and can pay your bills I would definitely go back to the 12%...when you are my age (about double you) you will be very glad you did. We have always kept up the 401K and as you get older you will not regret that at all.

If you have some debt I guess I would go to the 6% but regardless...you need to be contributing to the 401K.

Liz

 

[KennesawNemo]

This is my hubby's thought too. Maybe we should put it to 6%? I just don't know. Honestly, I was only going to leave it at 0% for a couple paychecks then reinstate at 12%. It's too much $ to pass on! We just got the first paycheck without the contribution. Maybe we'll put the next one or two at 6% and then back to 12%. I'm so confused as to what to do! Lol thank you for the advice! It always helps to hear from others.

I think you should look at the terms of your debt.

If you contribute $100 to 401K, you'll get $100 match. Assuming 8% annual return, in one year, you would have $216 on hand. 8% is a quite conservative number for last year at least.

How much would it cost you to carry $100 debt forward for one year? If $100 debt will grow to more than $216, then pay off the debt for sure. Otherwise, let your money grow in 401K and save from other aspects of your life.

 

[*3*Mouseketeers]

Great job on having that mortgage gone! & you are def doin the right things, also will send up some words for healing for your DH!

Thanks! All the accolades goes to him, he keeps me on the straight and narrow, except when I veer off that path. LOL

He started having the pain around 2000 and went to the doctor. They ran all sorts of tests on him and really didn't do anything. He got disgusted with them and wouldn't go back to any doctor because they didn't do him any good except give him pain meds and tell him to take off a week. Finally, 8 years later in 2008 he had enough of the pain and went to the doctor. They did an MRI and X-rays and showed him that his spinal cord was almost pinched in half! They told him that he would be in a wheelchair if something wasn't done about it. They did surgery and relieved some of his pain but the nerve damage is permanent. He keeps such a positive attitude about it. Never misses a day of work and never touches a pain pill. I don't know how he does it.

That's good that you have 0% on these bills. That is saving you money right there. If you were looking to have the whole year to pay them off, then your looking at putting out $270 a month. That would pay everything off!

I'm actually hoping for about 6 or 7 months...if I can stand it. No Disney vacay for us this year.

 

[StitchesGr8Fan]

Be careful about not saving for retirement. Even DR says if you are going to be doing the snowball for more than a year, keep contributing SOMETHING to retirement. You can't finance retirement, and you can't count on the government or your kids.