what debt are you tackling now? how's it going?

Discussion in 'Budget Board' started by abmitch01, May 18, 2010.

  1. abmitch01

    abmitch01 DIS Veteran

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    I'm working on paying off my car that I bought last June. not used to having a car payment, usually save and pay cash plus a trade-in. This Jan, I started paying a month or two ahead with the car and the mortgage so when we went to WDW in May, I could use the money that normally went to these payments. Now, however, I'm ready to start paying down the principal in earnest. I'd like to pay it off by Jan and max out my Roth this year, too and continue aiming for maxing out 401k contributions. I've been stashing cash and will pay a chunk of the car principal this month. The 401k saving comes out of my paycheck automatically. the Roth is more challenging, I'm hoping to have at least 2 stockpile garage sales this summer to help fund it.

    Think these goals are a little unrealistic, though, lol. What's your goal, feel like you can reach it? any secrets for squirreling away more cash without feeling too much pain?
     
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  3. Aisling

    Aisling <font color=darkorchid>Where your mind goes, your

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    Giving your thread a bump and hoping for replies!:thumbsup2
     
  4. thebigkahuna

    thebigkahuna DIS Veteran

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    good plan! I say go for it - even if you don't reach all of your goals, you will still be ahead of the game.

    I just finished paying for the car, and now I'm all over 3 things - 1 is my credit card, 2 is another credit card, and the 3rd is an old debt that I honestly thought was paid, but, well, I was wrong. :confused3:laughing:
    I'm doing well, 98% of the time I'm paying at least double (if not more) of my monthly credit card payments.

    I'm totally doing my best to stay positive. I just keep paying them down, and extra if I can. Turns out life is expensive & sometimes other things take priority. (hence the reason for my credit card bills!)

    I'm also working on a Disney trip in the fall. A "cash only" trip. As important as that is, my debt goals come 1st.
     
  5. rszdtrvl

    rszdtrvl DIS Veteran

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    We are doing the "one step forward, two steps back" thing right now.

    We paid off DH's credit card, then charged our vacation for Jan 2011 on it. However, his credit card gives us points, so we did so on purpose. Anything over $500 is charged on that card. I love me some Amazon.com gift certificates!

    Right now, we will have his card 100% paid off again, and don't plan on charging anything on it any time soon.

    We just paid off DH's credit card, and now will work towards mine. It is going to take a while - I believe my balance is around $3,000 or so.

    We are taking a lot of stuff to the local auction house that is cluttering up our house and that money will be automatically put into checking and a check will be written for that entire amount towards our credit card.

    No clutter + extra $$ = :goodvibes
     
  6. scard192

    scard192 DIS Veteran

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    I'm thinking of paying off my mortgage 8 years early. I have enough money in the bank (small inheritance) to do so and still have an 12 month emergency fund. I've been maxing out my 401K contributions with this inheritance but started thinking about paying off the mortgage. If I pay it off now I will save $5400 over what I would have paid over the next 8 years. Turbo Tax had me file a 1040A the past 2 years because that was better than itemizing my mortgage interest and property taxes.Things holding me back are what if I might benefit in the future from itemizing? Also, property assessments have dropped in the last 2 years, what happens if/when they go back up? Not sure I am ready yet to give up the possibility that itemizing in the future could be better for me than using the Short form. On the other hand $5400 divided by 8 = $675, itemizing would never increase my tax refund by that much per year.
     
  7. summersalt

    summersalt DIS Veteran

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    On Feb 12, my DH and I decided to start living from a budget and paying off debit. So far we have paid off 8,072.00 in debt!!! :thumbsup2:thumbsup2

    We are currently working on cash flowing our DD's braces to the tune of $5100. :eek: and paying off the credit union Visa. We've got it down from $4300 to $2500.

    Not to shabby, huh?
     
  8. 1-disneyfan

    1-disneyfan Earning My Ears

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    Wonderful thread.....Thank you!

    My husband and I have so far this year, paid off 25,000 in CC debt :scared1: ya, we had a couple really rough years with my parents getting sick and out of town and out of state hospital stays. Anyway, as wonderful as it is to have paid that much off we still have more. We have one more CC it's our Disney card, which we still owe 5,000 on. Our plan is to have it all paid off by Sept. we have a Disneyland trip planned in November knowing we will not be using the CC for it :cool1: For me to keep focused on our finances, I have been watching Dave Ramsey and Til Debt do us Part. It just shows me we're not alone in this debt battle.

    Best of luck to you!

    Kris
     
  9. Tinkerbelle9980

    Tinkerbelle9980 Mouseketeer

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    Currently we are working on a couple of credit cards. One of them was supposed to be paid off this month but we have been hit with too many unexpected expenses. I guess I should just be glad that we had the money instead of dipping into savings.:)
     
  10. daleswife

    daleswife DIS Veteran

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    my truck!!! Its got 133000 miles on it and we owe way too much on it. We have started paying $50 more a month on it, which is not a lot compaired to what Ive seen above, but we are proud of it. Then its our House. Our house pmt now is only 320 so once we get the truck paid off we should be able to put that extra $500 toward the house almost tripling our payment and we should have it paid off in 6 years or so....Im excited.....But we only have one income and its tough.

    Its like the PP said, One step forward and two steps back.....
     
  11. disykat

    disykat DIS Veteran

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    Wow - people are doing great! The only debt we have is our house and our goal was to have it paid off by the time our kids went to college. It looks like we'll have it paid off next April, right before our son graduates from high school. :cool1:

    As long as the cars last until they get through school, the roof lasts, etc. we'll be looking good!;):eek:
     
  12. aduck126

    aduck126 DIS Veteran

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    we are working on paying off school loans, about 20K for both of us.
    we just paid off my car.
    earlier this year we paid off all credit cards. we bought a house that didnt have appliances so we charged them all. so now we have no credit card debt.
    so pretty much all we have are school loans and our mortgage, we are doing pretty good for a young couple. time to plan a disney trip!
     
  13. abmitch01

    abmitch01 DIS Veteran

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    it is very motivating to hear other people's stories, thank you!

    today I started thinking about some serious destashing to add to my garage sales. the kids and I have just way too much stuff. We shoul start a two items out for every new item in rule.
     
  14. AmongMadPeople

    AmongMadPeople We're all mad here...

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    By the end of the summer our CC debt will be paid off - only 3000 left. In the fall my student loan will come out of forbearance so all of our extra money will go toward that. It's small though, only 3000, so it will be paid off by late winter. Around the same time my car will be paid off, so I don't know what we'll do after that!

    Oh, it feels good to type that! I can't wait until next year!
     
  15. rszdtrvl

    rszdtrvl DIS Veteran

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    Our vet bill today was only $75, and we budgeted $140, so the rest of the budgeted amount will be stuck onto our credit card too.

    I am going to need to buy more stamps, just to keep making these weekly payments!

    I made up a word perfect paper that has : Cardholder name, account #, and payment amount. And pre-addressed envelopes with the credit card company address. That makes it so much easier and convenient to get a payment in the mail!
     
  16. Nebraska_Disney

    Nebraska_Disney Mouseketeer

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    My wife and I are both in our mid 30's and have two kids (5 and 8) and both work full time outside the home. The only debt we have is our house (12 years left at 4.75% interest) and one car (48 months at 5%) and a home improvement loan ($8000 left at 5% interest). Last fall we also bought 60 acres of land and paid cash for all but $25,000, which we borrowed from my parents and are paying back with just 2% interest. We have no credit card debt and pay cash for all vacations. We put $250 a month into our college plans for each child and both have Roth IRA's that we fund fully each year as well. When I did our taxes last year, we ended up saving (in some way, shape, or form) close to 20% of every dollar we made. With the market being down the last few years, we have doubled up what we have put in, hoping to reap the returns as the market rebounds. We will have our car, land and home improvement loans all paid in the next 5 years and will take most of this money and put it into our retirement accounts. We live by a budget and never want to be hit where we are struggling with "bad" debt.

    For those with "extra" money in the bank. Right now, savings rates are at 1% or less....so paying off those debts that are much higher is like earning the difference, as you are paying off the debt earlier instead of earning 1%...that is a no brainer if you ask me.

    Good luck folks
     
  17. MommyJack

    MommyJack Crazy for Disney

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    One way to figure out if it is a good idea is by looking at what you're paying in interest on your mortgage. If you think you can make more by investing the money than you're paying in interest, don't pay it off, and invest the money. Otherwise go ahead and pay it off.
     
  18. DawnM

    DawnM Dawn

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    Wonderful!

    We only have morgage and honestly, I wish we didn't even have that anymore! I hate owing anything!

    We have a 15 year loan and may sell and downsize to get everything paid off even sooner.

    Dawn
     
  19. mrodgers

    mrodgers DIS Veteran

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    It's so easy to pay off debt...... when you have money!

    I was reading the debt section of a financial forum site quite a bit until I just got tired of reading all the ridiculousness. Someone would post that they are in trouble financially with credit card debt and when asked to post the specifics so folks could help, they post stuff like $30,000 in CC, incomes of $90k and $125k for the husband, 2 $40k cars, $500k homes along with the expensive summer home, private schools, expensive private lessons for this or that for the kids.... It was ridiculous.

    I'm with aduck126. We bought a house, which did have appliances, but they were original to the 1968 built house. The refridgerator didn't have a handle on it, it had a foot pedal to open it. The washing machine instruction manual had "Whirlpool, the appliance of the 70's!" on the cover and used a <gasp> 23 gallons of water or something like that. Not good when my wife grew up with well problems where they all couldn't even take a shower in the mornings or they would run the well dry.

    We also had a baby a month after buying the house. All was good the first couple of years, we did use the CC to buy replacement appliances, but then the beginnings of the economy crash started. The economy crashed in the late 2000's for the well off folks, but for the normal folks, it started much earlier. The early 2000's is where the corporate greed caught up resulting in smaller and smaller income increases for the working folks with higher and higher rising prices. All of a sudden, not only did we need to pay off the appliances we bought, but now could not afford food and heat in the winters, car insurance, car repairs, etc.

    While it seemed that everyone else in the world were sending their kids to be raised in daycare, and buying new cars and cell phones and the latest and greatest of everything, we were falling deeper and deeper. But, we just couldn't fathom waking our toddler children up at 5 am and sending them off to other people so we could both work and "keep up with the Joneses". Then 2008 hit and just the cost of heating oil alone buried us to where we thought we could never dig out. Our 2008 heating bill was $800 per month compared to $200 the previous year.

    Well, now both kids are in school and Mom isn't needed as much at home by the kids. So, my wife went back to work at the same place she left 9 years ago. 1-disneyfan stated they were paying off $25k in CC with a ":scared1:". You're not alone. I have roughly that much as well, but we are just starting to pay it off. We caught up with everything else and thought we could actually go on our first family vacation. Our Disney trip started out with just a trip to the beach, but then it looked like a few days taking the kids to Disneyworld would cost about the same. Of course, the Disney trip has grown a few extra days from our original plans, but we were able to pay for it in cash. (In actuality, the money for the trip was used on a high interest CC and a 0 interest CC was used for the trip, so it is basically like we transfered money from one card to the other and paid for the trip with the cash...)

    Of course, the trip was all planned out months in advance, and once the kids know they are going to Disney, there is no backing out. After everything was booked, more unexpected happened and where we thought we'd be caught up by Thankgiving last year, it wasn't until this past month that we got caught up with bills.

    So, what are we tackling? Well, I just blew a head gasket in the old ancient work runner car, so I tackled replacing that myself this weekend to a tune of saving about $700. I was quoted around $800 to have it repaired and it cost me less than $100 in parts to do it myself.

    We are all caught up on the house payment, oil prices were back to normal for the 2009-10 winter, car payment is caught up, Disney trip is paid for, credit card payments are being made, so now we have some extra and we are using that extra for getting vacation supplies for the 2nd week of June. After our trip, I should be able to take care of all bills and the wife's paycheck should be able to all go towards the CC bills and the non-monthly stuff like the heating oil and car insurance. Thus, I believe we could pay off our CCs in less than 2 years if we stuck to it.
     
  20. RachaelA

    RachaelA DIS Veteran

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    DH and I are working on our student loan ($2700) and car ($10k left). We've paid off $7k on the car since January. I plan on having the car paid off by the end of August and the student loan will then be paid on in September. Then all we will have left is our mortgage (which is brand new! first payment starts in July).
     
  21. scard192

    scard192 DIS Veteran

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    Thanks for the advice!
     

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