Debt Dumpers - 2015

[RainSW6]

I finally just paid off one of my student loans!! So excited to have that off of my back. Unfortunately I still have my Sallie Mae one left (20k ), but at least it's one down, lol.

At least now I can apply that monthly money towards my Sallie Mae loan and pay it off faster!

 

[Angeejoe]

I finally just paid off one of my student loans!! So excited to have that off of my back. Unfortunately I still have my Sallie Mae one left (20k ), but at least it's one down, lol.

At least now I can apply that monthly money towards my Sallie Mae loan and pay it off faster!

Great job!! Congrats

 

[DisneyMandC]

I finally just paid off one of my student loans!! So excited to have that off of my back. Unfortunately I still have my Sallie Mae one left (20k ), but at least it's one down, lol.

At least now I can apply that monthly money towards my Sallie Mae loan and pay it off faster!

so jealous!! 20k is nothing, you'll have that gone in no time. I only wish mine were down to that level already, but law school was not kind! I'm thinking about cashing out $25 from Swagbucks each month into paypal to contribute extra to my 8k student loan. It's amazing how much difference there is if you pay $100/month versus $125!

 

[Angeejoe]

so jealous!! 20k is nothing, you'll have that gone in no time. I only wish mine were down to that level already, but law school was not kind! I'm thinking about cashing out $25 from Swagbucks each month into paypal to contribute extra to my 8k student loan. It's amazing how much difference there is if you pay $100/month versus $125!

I think we need to be careful with statements that "20k is nothing." We don't know everyone's cross to bear, wether they make minimum wage, their family size, their personal situation, cost of living where they live, living expenses, etc. Statements like that can belittle a persons triumphs, but I understand that you meant it in a positive way. Many people on this boards total debt is 20k which is overwhelming to them & have been working years to pay just that. We all have our own personal battles, but if you said this to me (& I'm not the OP & I'm not speaking for OP who may be in total agreement with you that it's "nothing") my feelings would've been hurt. Please know I only say this with love & don't be hurt, ok?

I also think you have a great idea to contribute thru your swag bucks on your student loan!!!

 

[bcwife76]

Way to go @RainSW6 !!! that is a fabulous accomplishment!!

 

[DisneyMandC]

I think we need to be careful with statements that "20k is nothing." We don't know everyone's cross to bear, wether they make minimum wage, their family size, their personal situation, cost of living where they live, living expenses, etc. Statements like that can belittle a persons triumphs, but I understand that you meant it in a positive way. Many people on this boards total debt is 20k which is overwhelming to them & have been working years to pay just that. We all have our own personal battles, but if you said this to me (& I'm not the OP & I'm not speaking for OP who may be in total agreement with you that it's "nothing") my feelings would've been hurt. Please know I only say this with love & don't be hurt, ok?

I also think you have a great idea to contribute thru your swag bucks on your student loan!!!

Point well taken. I did mean it positively out of encouragement though! It sounds like she has good momentum going on paying off one!

 

[Angeejoe]

Point well taken. I did mean it positively out of encouragement though! It sounds like she has good momentum going on paying off one!

Oh good!! I was so worried you were going to hate me!!!! I knew you meant it in a positive way!

 

[DisneyMandC]

Oh good!! I was so worried you were going to hate me!!!! I knew you meant it in a positive way!

Haha not at all! After I posted it and reread it I actually thought to myself that someone might not read that the way I intended it.

 

[momtosam]

I think we need to be careful with statements that "20k is nothing." We don't know everyone's cross to bear, wether they make minimum wage, their family size, their personal situation, cost of living where they live, living expenses, etc. Statements like that can belittle a persons triumphs, but I understand that you meant it in a positive way. Many people on this boards total debt is 20k which is overwhelming to them & have been working years to pay just that. We all have our own personal battles, but if you said this to me (& I'm not the OP & I'm not speaking for OP who may be in total agreement with you that it's "nothing") my feelings would've been hurt. Please know I only say this with love & don't be hurt, ok?

I also think you have a great idea to contribute thru your swag bucks on your student loan!!!

Point well taken. I did mean it positively out of encouragement though! It sounds like she has good momentum going on paying off one!

Oh good!! I was so worried you were going to hate me!!!! I knew you meant it in a positive way!

Haha not at all! After I posted it and reread it I actually thought to myself that someone might not read that the way I intended it.

THIS is why this is such a great thread! It can be hard to find threads without flaming on these boards sometimes.

 

[Angeejoe]

Haha not at all! After I posted it and reread it I actually thought to myself that someone might not read that the way I intended it.

I'm so glad!! It's the social worker in me talking...

THIS is why this is such a great thread! It can be hard to find threads without flaming on these boards sometimes.

Thanks! It's true, this is the best thread on the DIS. Everyone's so supportive & caring.

 

[NinaBella]

I

 

[DisneyMandC]

THIS is why this is such a great thread! It can be hard to find threads without flaming on these boards sometimes.

Agreed, but even this whole forum in general is sooooo much better than others. For example, the Disney gift card thread. It doesn't matter how often someone comes on there and says "can someone explain using Target Redcards and gift cards for me?" there is ALWAYS someone willing to answer. I was a member of a wedding forum and the girls on it were AWFUL. I mean granted I guess all brides are nuts, but it was crazy mean and judgmental at times.

 

[dayvewc]

I am seriously consider going off my debt dumping plan for a few months and do a home project. I had an estimate to get pavers put along both sides of my driveway and pavers up the front walkway and around flower bed. Estimate also includes extending my patio out an additional 10 feet and add pavers. Since DH and I are both retired from the military now this is going to be our permanent home, so I think we are overdue for some curb appeal. The estimate is 5K, but I can pay cash instead of dumping it on credit cards. What would you do? My front area is in need of some upgrade as we have neglected our flower bed for about 4 years now, it now just has a large queen palm, a pigmy date palm, and another one that should be a pigmy date palm but never grew over a foot tall. LOL. We also need rain gutters because our roof lines just dump the water right front of the door too. Not sure how much those cost but we have needed those for the 12 years we have lived her and keep putting it off.

Since you asked my opinion ...

Me myself would consider the situation thusly: since this is your permanent home, upkeep is required. A little money spent on repairs now is cheaper than full replacements later, and even talking about improvements such as the pavers and the patio the cost of supplies and labor will probably increase over the next years so it will be cheaper to do it now. And, if you have enough cash money set aside to pay for it AND still have an "emergency fund" I'd go for it. IMO it can still be classified as "debt dumping" because you are not adding to the debt even if you aren't reducing. That is my $0.02 worth.

 

[Angeejoe]

I am seriously consider going off my debt dumping plan for a few months and do a home project. I had an estimate to get pavers put along both sides of my driveway and pavers up the front walkway and around flower bed. Estimate also includes extending my patio out an additional 10 feet and add pavers. Since DH and I are both retired from the military now this is going to be our permanent home, so I think we are overdue for some curb appeal. The estimate is 5K, but I can pay cash instead of dumping it on credit cards. What would you do? My front area is in need of some upgrade as we have neglected our flower bed for about 4 years now, it now just has a large queen palm, a pigmy date palm, and another one that should be a pigmy date palm but never grew over a foot tall. LOL. We also need rain gutters because our roof lines just dump the water right front of the door too. Not sure how much those cost but we have needed those for the 12 years we have lived her and keep putting it off.

Since you asked my opinion ...

Me myself would consider the situation thusly: since this is your permanent home, upkeep is required. A little money spent on repairs now is cheaper than full replacements later, and even talking about improvements such as the pavers and the patio the cost of supplies and labor will probably increase over the next years so it will be cheaper to do it now. And, if you have enough cash money set aside to pay for it AND still have an "emergency fund" I'd go for it. IMO it can still be classified as "debt dumping" because you are not adding to the debt even if you aren't reducing. That is my $0.02 worth.

Plus you're adding the value of your home. So if something were to happen or you needed to sell this may add value or that curb appeal to sell.

 

[mrsabbott]

Okay, I am jumping in here. We haven't dumped any debt this year YET.. but we have a plan. We are a family of 6. At one point in time, I had paid off all our debt except our car payment and my student loan. We had NO credit cards. We decided to buy our house and they said we needed more "revolving debt" and suggested we get a credit card. So we did. Fast forward a little bit. Hubs got a couple more small credit cards, but we kept the balances fairly low. We had our own home and were doing okay. Had a savings. Lived comfortably.

Hubs got out of the army (medical retirement) and started his own business. I was only working part time at our church and spending the rest of the time at the business. We had a far drive back and forth each day = high gas costs. We took out a loan to start the business ($10,000). We got another credit card for business expenses. Our savings and food storage started to deplete. By the time we paid rent on the business property, utilities, etc.. our take home pay wasn't much to live off of. Some months, we barely broke even. Groceries and gas started going on credit cards. My vehicle was paid off, but then we had some major repairs over the past couple of years (engine work, transmission, alternator, and a few other smaller things). They went on a credit card. Hubs eventually had to close the business.. which cost us money.. credit cards. He went through this deep depression and didn't work for awhile. I got a full time job making minimum wage and put my son in childcare. More things on credit cards. Hubs then got a decent paying job but I was out of work (actively job seeking) for a few months. Our A/C broke down completely and we had to get a new one. Guess what? Yep. We had to finance it. I just got a decent paying job that is part time, BUT I will be starting full time here soon. Between my pay, my husband's pay, and his retirement from the Army, we make decent money but we just accrued SO MUCH DEBT!! My husband was also not very frugal and spent frivolously, although I am happy to say he isn't doing that anymore.

So, here is where we are now. I am in school and, yes, I am racking up some more student loans ( also have some scholarships).. but my degree that I'm working towards helped land me a job going from minimum wage and no benefits to nearly $11/hr starting pay plus benefits. It's a big step up, believe me, and there is potential to make more money in the future! Other than that, we are on a VERY strict budget. Our budget is based upon my husband's income and retirement. We are squeaking by. My paycheck is going to go towards paying things off and towards things our insurance doesn't cover (glasses for the kids, etc..). When we get our taxes, we are going to pay off the A/C since it is 12 months at 0 interest. We want to pay it off before the interest hits. We will also pay off the last of the business loan and what is left on my husband's motorcycle. That will free up over $400 a month in payments. I will roll all that over towards credit cards next. My income (I get paid monthly, btw) and that extra we free up will go towards the debt snowball. We will pay off the smallest first and work towards paying off the largest credit cards.

If all goes according to plan, I hope to pay off at least $13,000 in debt this year. By the following year, I hope to be debt free except our mortgage and maybe one of the student loans. By year 3, I would like to have no student loan debt and a very cushy savings account! Not including utilities, insurance, and mortgage.. we pay approximately $1700 towards debt EACH MONTH!!! That is over $20,000 a year!! It is ridiculous! That is TWO Florida vacations for us!! That is new paint and flooring for our entire house! That is college tuition!!!

We are making a change. Hubs is on board. We are ready to do this and are SICK AND TIRED of living paycheck to paycheck! I love reading people's stories of going debt free and I am looking forward to sharing our own success stories! *deep breath* Here we go!!

 

[Angeejoe]

Okay, I am jumping in here. We haven't dumped any debt this year YET.. but we have a plan. We are a family of 6. At one point in time, I had paid off all our debt except our car payment and my student loan. We had NO credit cards. We decided to buy our house and they said we needed more "revolving debt" and suggested we get a credit card. So we did. Fast forward a little bit. Hubs got a couple more small credit cards, but we kept the balances fairly low. We had our own home and were doing okay. Had a savings. Lived comfortably.

Hubs got out of the army (medical retirement) and started his own business. I was only working part time at our church and spending the rest of the time at the business. We had a far drive back and forth each day = high gas costs. We took out a loan to start the business ($10,000). We got another credit card for business expenses. Our savings and food storage started to deplete. By the time we paid rent on the business property, utilities, etc.. our take home pay wasn't much to live off of. Some months, we barely broke even. Groceries and gas started going on credit cards. My vehicle was paid off, but then we had some major repairs over the past couple of years (engine work, transmission, alternator, and a few other smaller things). They went on a credit card. Hubs eventually had to close the business.. which cost us money.. credit cards. He went through this deep depression and didn't work for awhile. I got a full time job making minimum wage and put my son in childcare. More things on credit cards. Hubs then got a decent paying job but I was out of work (actively job seeking) for a few months. Our A/C broke down completely and we had to get a new one. Guess what? Yep. We had to finance it. I just got a decent paying job that is part time, BUT I will be starting full time here soon. Between my pay, my husband's pay, and his retirement from the Army, we make decent money but we just accrued SO MUCH DEBT!! My husband was also not very frugal and spent frivolously, although I am happy to say he isn't doing that anymore.

So, here is where we are now. I am in school and, yes, I am racking up some more student loans ( also have some scholarships).. but my degree that I'm working towards helped land me a job going from minimum wage and no benefits to nearly $11/hr starting pay plus benefits. It's a big step up, believe me, and there is potential to make more money in the future! Other than that, we are on a VERY strict budget. Our budget is based upon my husband's income and retirement. We are squeaking by. My paycheck is going to go towards paying things off and towards things our insurance doesn't cover (glasses for the kids, etc..). When we get our taxes, we are going to pay off the A/C since it is 12 months at 0 interest. We want to pay it off before the interest hits. We will also pay off the last of the business loan and what is left on my husband's motorcycle. That will free up over $400 a month in payments. I will roll all that over towards credit cards next. My income (I get paid monthly, btw) and that extra we free up will go towards the debt snowball. We will pay off the smallest first and work towards paying off the largest credit cards.

If all goes according to plan, I hope to pay off at least $13,000 in debt this year. By the following year, I hope to be debt free except our mortgage and maybe one of the student loans. By year 3, I would like to have no student loan debt and a very cushy savings account! Not including utilities, insurance, and mortgage.. we pay approximately $1700 towards debt EACH MONTH!!! That is over $20,000 a year!! It is ridiculous! That is TWO Florida vacations for us!! That is new paint and flooring for our entire house! That is college tuition!!!

We are making a change. Hubs is on board. We are ready to do this and are SICK AND TIRED of living paycheck to paycheck! I love reading people's stories of going debt free and I am looking forward to sharing our own success stories! *deep breath* Here we go!!

Sounds like you've got a great plan worked out, that's awesome!

 

[DisneyMandC]

Okay, I am jumping in here. We haven't dumped any debt this year YET.. but we have a plan. We are a family of 6. At one point in time, I had paid off all our debt except our car payment and my student loan. We had NO credit cards. We decided to buy our house and they said we needed more "revolving debt" and suggested we get a credit card. So we did. Fast forward a little bit. Hubs got a couple more small credit cards, but we kept the balances fairly low. We had our own home and were doing okay. Had a savings. Lived comfortably.

Hubs got out of the army (medical retirement) and started his own business. I was only working part time at our church and spending the rest of the time at the business. We had a far drive back and forth each day = high gas costs. We took out a loan to start the business ($10,000). We got another credit card for business expenses. Our savings and food storage started to deplete. By the time we paid rent on the business property, utilities, etc.. our take home pay wasn't much to live off of. Some months, we barely broke even. Groceries and gas started going on credit cards. My vehicle was paid off, but then we had some major repairs over the past couple of years (engine work, transmission, alternator, and a few other smaller things). They went on a credit card. Hubs eventually had to close the business.. which cost us money.. credit cards. He went through this deep depression and didn't work for awhile. I got a full time job making minimum wage and put my son in childcare. More things on credit cards. Hubs then got a decent paying job but I was out of work (actively job seeking) for a few months. Our A/C broke down completely and we had to get a new one. Guess what? Yep. We had to finance it. I just got a decent paying job that is part time, BUT I will be starting full time here soon. Between my pay, my husband's pay, and his retirement from the Army, we make decent money but we just accrued SO MUCH DEBT!! My husband was also not very frugal and spent frivolously, although I am happy to say he isn't doing that anymore.

So, here is where we are now. I am in school and, yes, I am racking up some more student loans ( also have some scholarships).. but my degree that I'm working towards helped land me a job going from minimum wage and no benefits to nearly $11/hr starting pay plus benefits. It's a big step up, believe me, and there is potential to make more money in the future! Other than that, we are on a VERY strict budget. Our budget is based upon my husband's income and retirement. We are squeaking by. My paycheck is going to go towards paying things off and towards things our insurance doesn't cover (glasses for the kids, etc..). When we get our taxes, we are going to pay off the A/C since it is 12 months at 0 interest. We want to pay it off before the interest hits. We will also pay off the last of the business loan and what is left on my husband's motorcycle. That will free up over $400 a month in payments. I will roll all that over towards credit cards next. My income (I get paid monthly, btw) and that extra we free up will go towards the debt snowball. We will pay off the smallest first and work towards paying off the largest credit cards.

If all goes according to plan, I hope to pay off at least $13,000 in debt this year. By the following year, I hope to be debt free except our mortgage and maybe one of the student loans. By year 3, I would like to have no student loan debt and a very cushy savings account! Not including utilities, insurance, and mortgage.. we pay approximately $1700 towards debt EACH MONTH!!! That is over $20,000 a year!! It is ridiculous! That is TWO Florida vacations for us!! That is new paint and flooring for our entire house! That is college tuition!!!

We are making a change. Hubs is on board. We are ready to do this and are SICK AND TIRED of living paycheck to paycheck! I love reading people's stories of going debt free and I am looking forward to sharing our own success stories! *deep breath* Here we go!!

I second what Anjee said! Sounds like you've got a plan! I hear you on looking at your debt each month. It drives me nuts! Mine and DH's debt is only on student loans, which I'm thankful for, but I have a mortgage's worth since I went to law school. While the overall number is terrifying, when I see each month how much we pay and how much goes to interest ALONE it's so irritating!

 

[mrsabbott]

Thanks y'all!

I was sitting here today going over all the balances and figuring out which bills to pay off first once we get the snowball rolling.. I was feeling all optimistic and then Hubs comes home and tells me that they hired two new techs at work (he is a mechanic) and to expect his checks to be much lower than before. *sigh* We had expected them to hire ONE new tech, but not TWO!

Well, thankfully I should be starting full time soon and my paycheck will double and that will help make up for some of the difference. I still have my plan, it just looks like it may take a little longer..

 

[dayvewc]

Okay, I am jumping in here. We haven't dumped any debt this year YET.. but we have a plan. We are a family of 6. At one point in time, I had paid off all our debt except our car payment and my student loan. We had NO credit cards. We decided to buy our house and they said we needed more "revolving debt" and suggested we get a credit card. So we did. Fast forward a little bit. Hubs got a couple more small credit cards, but we kept the balances fairly low. We had our own home and were doing okay. Had a savings. Lived comfortably.

Hubs got out of the army (medical retirement) and started his own business. I was only working part time at our church and spending the rest of the time at the business. We had a far drive back and forth each day = high gas costs. We took out a loan to start the business ($10,000). We got another credit card for business expenses. Our savings and food storage started to deplete. By the time we paid rent on the business property, utilities, etc.. our take home pay wasn't much to live off of. Some months, we barely broke even. Groceries and gas started going on credit cards. My vehicle was paid off, but then we had some major repairs over the past couple of years (engine work, transmission, alternator, and a few other smaller things). They went on a credit card. Hubs eventually had to close the business.. which cost us money.. credit cards. He went through this deep depression and didn't work for awhile. I got a full time job making minimum wage and put my son in childcare. More things on credit cards. Hubs then got a decent paying job but I was out of work (actively job seeking) for a few months. Our A/C broke down completely and we had to get a new one. Guess what? Yep. We had to finance it. I just got a decent paying job that is part time, BUT I will be starting full time here soon. Between my pay, my husband's pay, and his retirement from the Army, we make decent money but we just accrued SO MUCH DEBT!! My husband was also not very frugal and spent frivolously, although I am happy to say he isn't doing that anymore.

So, here is where we are now. I am in school and, yes, I am racking up some more student loans ( also have some scholarships).. but my degree that I'm working towards helped land me a job going from minimum wage and no benefits to nearly $11/hr starting pay plus benefits. It's a big step up, believe me, and there is potential to make more money in the future! Other than that, we are on a VERY strict budget. Our budget is based upon my husband's income and retirement. We are squeaking by. My paycheck is going to go towards paying things off and towards things our insurance doesn't cover (glasses for the kids, etc..). When we get our taxes, we are going to pay off the A/C since it is 12 months at 0 interest. We want to pay it off before the interest hits. We will also pay off the last of the business loan and what is left on my husband's motorcycle. That will free up over $400 a month in payments. I will roll all that over towards credit cards next. My income (I get paid monthly, btw) and that extra we free up will go towards the debt snowball. We will pay off the smallest first and work towards paying off the largest credit cards.

If all goes according to plan, I hope to pay off at least $13,000 in debt this year. By the following year, I hope to be debt free except our mortgage and maybe one of the student loans. By year 3, I would like to have no student loan debt and a very cushy savings account! Not including utilities, insurance, and mortgage.. we pay approximately $1700 towards debt EACH MONTH!!! That is over $20,000 a year!! It is ridiculous! That is TWO Florida vacations for us!! That is new paint and flooring for our entire house! That is college tuition!!!

We are making a change. Hubs is on board. We are ready to do this and are SICK AND TIRED of living paycheck to paycheck! I love reading people's stories of going debt free and I am looking forward to sharing our own success stories! *deep breath* Here we go!!

Welcome!!! We're all with you and this is a great thread for support and help (and even the occasional break down whining session ).

Thanks y'all!

I was sitting here today going over all the balances and figuring out which bills to pay off first once we get the snowball rolling.. I was feeling all optimistic and then Hubs comes home and tells me that they hired two new techs at work (he is a mechanic) and to expect his checks to be much lower than before. *sigh* We had expected them to hire ONE new tech, but not TWO!

Well, thankfully I should be starting full time soon and my paycheck will double and that will help make up for some of the difference. I still have my plan, it just looks like it may take a little longer..

Life happens. You still have your plan, you can still work with your plan, and you can still use your plan. It has just been extended a little. This time next year, you will still be a whole lot further ahead than if you did nothing, or just threw your hands in the air from the setback.

 

[LinderInWonderland]

I'm also jumping on the Debt Dumper train - a bit late in 2015, but better late than never!

Our story: Our only debt 6 years ago was an auto loan that we were already 2 years into paying off. Shortly after our first wedding anniversary, my husband was laid off from his job. 4 months later, I was laid off from mine. With both of our unemployment checks, we were able to cover all our expenses, but didn't go into 'emergency mode' and slash those expenses. Over the next two years, either he was unemployed or I was unemployed. We started economizing more, but we also started putting 'emergencies' on credit cards. I started going to school to improve my job hunting prospects, but still only qualified for Stafford loans, no grants or scholarships. In 2012, we both found full-time, permanent jobs. School fell by the wayside as my grandfather, then my father passed. Lots of plane tickets on credit cards to go home to MA. Still, with all of this going on, we paid off the car in 2013 and moved to be closer to my job. The original idea was that DH would find a job closer to our new place to make more money and reduce commute costs. We could afford the difference in rent since we no longer had the car payment, but again, the presumption was that he was leaving his job since he was miserable there. What we didn't plan on? Crazy rental increases. Our old place went up $75/mo over 5 years. This place went up $75/mo after one year. Fortunately, I got a promotion at the same time as the rent increase, so we were able to absorb the difference. The situation at DH's job improved dramatically, so he didn't want to leave. We were now living at the extent of our income, not incurring new debt but unable to really thwack down the old. Then we got the new rental increase at our current place which would be $145/mo more. We can't keep up with increases like that.

SO, to get our mid-five figures debt under control, we're moving back to the old neighborhood. I can live with commuting, since work pays for it, but will eventually be able to transfer closer to home if I want to. With what we will be saving on rent, utilities, gas and insurance each month, it's $700/mo cheaper to live down there than here, which will be added to our current stack method as well as allowing us to start our emergency fund. My SIL is extraordinarily generous and is paying for the three of us to go to WDW, otherwise we would not be taking a vacation like that.

With our current plan, we should be completely out of CC debt (6 cards) within 2 years. I have 8 years left on my student loans and we have 2 years left on a personal loan.