argh Dave Ramsey

[ObsessedwiththeMouse]

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[0hmyheck]

I just finished paying off the first of 4 CC debts today The plan works if you commit to it and really are ready to make the changes. I am still far in debt but I know that if I can pay off one CC debt the rest are just next in line to be paid off in full.

It has really given me the hope and inspiration to keep going and never get into debt again.

We have been tempted to go back to Disney but after just paying off this card, I have the strength to say NO! We don't go back until we are paying cash.

Good luck, it really does work, but it is work

 

[Chicago526]

I love that quote from Dr. Phil!

Looking back on my "charging history" I really wish I could go back and take the credit card out of my hands, but I can't change it. It is what it is. I have to look forward and change my future.

I refuse to ever have another credit card in this house...EVER. (unless it's secured with a $300 or $500 limit...but only ONE)

I just read the OP and thought that I wish someone had warned me about the trouble of credit card debt. Although, I'm sure if they had, I wouldn't have listened anyways.

The other day, we gathered up our cc's (about 25 of them) and put them in a pile. I looked at the pile and thought "This controlled my life in the past...it will NOT control my future anymore!"

I want my family to have a financially secure, stable future.

I am sorry to the OP to hijack your thread, I really didn't mean it.

To me it sounds like you are blaming both the salary cut AND your spending habits. Which is exactly right! Even debt free, most people would have a hard time taking a 50% cut in pay, so don't let some of the posters here get you down. While bankruptcy should of course be avoided when possible, I'm not one of those that looks down my nose at people who need to take that course. Its perfectly legal, and I find nothing morally wrong with it as long as the person tried their best to avoid it. Creditors know there is a risk in lending people money, and sometimes people default. It's just buisness.

As long as you've learned your lesson and go forward in life paying cash and saving for a rainey day, I've certainly got no problem it, and it sounds like that's your plan.

 

[nowellsl]

Can you explain this, please? By that definiation, you would be bouncing checks/payments every month...

credit cards, home equity, there are lots of ways people figure out how to spend money they don't have!

 

[Jennifer823]

Can you all recommend a website or something that would help me figure out a budget? (One that isn't going to cost me money!) I'd like to know what you use. Thanks!

 

[Sansa]

credit cards, home equity, there are lots of ways people figure out how to spend money they don't have!

Oh, okay. I was thinking monthly expenses, like what comes out of your band account. I read the initial statement and thought "Then I guess I must not be in debt!"

 

[delmar411]

I love that quote from Dr. Phil!

Looking back on my "charging history" I really wish I could go back and take the credit card out of my hands, but I can't change it. It is what it is. I have to look forward and change my future.

I refuse to ever have another credit card in this house...EVER. (unless it's secured with a $300 or $500 limit...but only ONE)

I just read the OP and thought that I wish someone had warned me about the trouble of credit card debt. Although, I'm sure if they had, I wouldn't have listened anyways.

The other day, we gathered up our cc's (about 25 of them) and put them in a pile. I looked at the pile and thought "This controlled my life in the past...it will NOT control my future anymore!"

I want my family to have a financially secure, stable future.

I am sorry to the OP to hijack your thread, I really didn't mean it.

Really this isn't meant to be rude but are you serious? There are rules for filing BK and if your case gets tossed you will be considered ineligible for filing again just as if you had been discharged. Which in plain English means you will lose everything unless you figure a way to pay it all back.

Either you have a terrible attorney who just cares about taking your money or you weren't really listening to them when you had the consult. Your Dec trip to WDW would probably be considered abuse and that alone would have your case tossed. Anything you charged at least a month and up to 3months before filing isn't even covered in the BK. They get all your bank records for the 6mths previous to filing and then again when you go to your creditor meeting all the current months bank accts. All your assets have to be listed and if they are worth anything, they are taken and sold off. You even have to list out who holds security deposits and how much (utilities, etc).

And they take into account if your income might go up in the future. Which you claim it might.

Maybe you have an appt to fill out all the paperwork next tuesday but I would seriously sit down and ensure you are getting good solid legal advice before going forward.

That is of course assuming you are being 100% truthful here on the Dis.

 

[Lynn CC]

Well, the faster you get it paid off the faster you will get back to Disney. We paid off all our debt 5 years ago including mortgage. Just in time to get DS through Private College (he's in his 3rd year) dept free.
We used to go to Disney EVERY year until DS went to high school, we haven't been since Feb.2001. You get used to it. Our next big trip will be to Japan around X-Mas time to visit DS who will be there for graduate studies. We plan to stop at DisneyLand and go to Disney in Tokyo.... Paid in Full. It is fun to be able to pay for everything without having to worry how your going to pay for it afterwards. I think you will enjoy life a little more! Good Luck

A lot of us are in the same situation having to give up vacation time, so don't feel that your alone.

 

[tonilea]

Can you all recommend a website or something that would help me figure out a budget? (One that isn't going to cost me money!) I'd like to know what you use. Thanks!

I belong to a yahoo group called Dave_Ramsey_Debt_Beaters

http://finance.groups.yahoo.com/group/Dave_Ramsey_Debt_Beaters/

Also, several times a year Dave Ramsey offers his Total Money Makeover book for ten buck, usually around holidays. It would be money well spent, if you are willing to commit to the plan. www.daveramsey.com

 

[crisi]

Obsessed, I hope you keep posting truthfully. You are a great example of "it can't happen to me."

My outgo bigger than income lowpoint was shortly after college. I've never been a big spender, but I was married to one. He wasn't that much of a spender either, as we didn't make much between us, but he spent enough that the day he lit out I couldn't pay bills on my own income. It worked out (second job, roommate, plus a divorce settlement that left him giving me money to pay his bills), but even with all that there were a lot of beans and rice in the house.

Granted, few of us are independantly wealthy and are going to be able to live with no salary, but when your income takes a hit due to job loss, income loss, divorce, illness, etc., its nice to not have yesterdays extravegence hanging over your head. (Its particularly nice not to have to pay bills your husband incurred taking his girlfriend on vacation - but that is another thread).

To the OP, you have a particularly hard road ahead - you are trying to pay down debt when your income is shriking and I wish you the best of luck. Its like any difficult lifestyle change - its going to be hard, but when you get done you'll understand why the people who did it are such evangelicals about it.

 

[Lintasare]

I for one am NOT a Dave Ramsey fan. I have CC debt AND I am going on vacation by putting it on my Disney Visa. I am paying down my debt which is less than 5K total across 3 CCs. That is the ONLY debt I have and a I paying down a sizeable amount every month. I just personally feel I shouldn't put off doing fun stuff until it is paid. If I do put off the fun stuff like vacations or going out with friends I fee like I am being punished.

Though I will say this...a portion of my debt is medical related and some is car repairs. I am not financially irresponsible and I feel I deserve at least 1 nice vacation a year just to unwind and relax.

 

[tonilea]

I for one am NOT a Dave Ramsey fan. I have CC debt AND I am going on vacation by putting it on my Disney Visa. I am paying down my debt which is less than 5K total across 3 CCs. That is the ONLY debt I have and a I paying down a sizeable amount every month. I just personally feel I shouldn't put off doing fun stuff until it is paid. If I do put off the fun stuff like vacations or going out with friends I fee like I am being punished.

Though I will say this...a portion of my debt is medical related and some is car repairs. I am not financially irresponsible and I feel I deserve at least 1 nice vacation a year just to unwind and relax.

I used to feel like that.

 

[Esmerelda]

We too love Dave Ramsey. He has soooo much common sense and he really makes you think about your money. We have learned a lot from him and his book "Total Money Makeover" is a must read. We have no more credit cards and are paying off our past ones.

In the famous words of DR: "You won't drown by jumping into the water, you drown by staying there..." (that is one of my fav sayings)

He has a great tv show and also you can listen to him on the radio....

best of luck to you!

 

[Lintasare]

I used to feel like that.

Well here is how everything breaks down:

CC #1 (USAA):
Balance: $3100
Interest: 7.75% (prime + 1.75)
Monthly Payment: $200
I do not use this one currently and am just working on paying down the balance. I will however keep the card because I have had it since I started college in 99. I have a long history with this company and want to keep it that way.

CC #2 (Disney Visa):
Balance: Currently less than $100
Interest: 0% till December
Monthly Payment: Varies
I only use this for the points. I owe about $700 still on my vacation and that will go on there and I have 0% so I can take my time in paying it off.

CC #3 (This one I got to finance a medical procedure):
Balance: $550
Interest: 0% till August
Monthly Payment: $50-100
This will be paid off by August and I have no plans of keeping it.

I have no other debt, no house payment since I rent and no car payment. However that may change once I pay off CC #1. My car is 13 years old and I am going to drive it into the ground.

Here is how I see my vacation:

Roundtrip air to Orlando in first class: $0 (frequent flyer miles from my dad courtesy of government travel)

Dining Plan add on to MYW package: $0 (bounceback offer from Sept 07)

Magical Express Service: $0 (no need for a rental car)

My parent's first Disney trip since 02 and their first times on EE, Soarin and Mission Space: Priceless

ETA: Tonilea I am not attacking you. I just thought I would provide more information about my situation.

 

[Kickapoo Joie Juice]

My question is how do you get into so much debt in the first place. .

There's this place called Target...

 

[Lintasare]

There's this place called Target...

I could spend my lifes savings and Target and not care a bit.

 

[tonilea]

Well here is how everything breaks down:

CC #1 (USAA):
Balance: $3100
Interest: 7.75% (prime + 1.75)
Monthly Payment: $200
I do not use this one currently and am just working on paying down the balance. I will however keep the card because I have had it since I started college in 99. I have a long history with this company and want to keep it that way.

CC #2 (Disney Visa):
Balance: Currently less than $100
Interest: 0% till December
Monthly Payment: Varies
I only use this for the points. I owe about $700 still on my vacation and that will go on there and I have 0% so I can take my time in paying it off.

CC #3 (This one I got to finance a medical procedure):
Balance: $550
Interest: 0% till August
Monthly Payment: $50-100
This will be paid off by August and I have no plans of keeping it.

I have no other debt, no house payment since I rent and no car payment. However that may change once I pay off CC #1. My car is 13 years old and I am going to drive it into the ground.

Here is how I see my vacation:

Roundtrip air to Orlando in first class: $0 (frequent flyer miles from my dad courtesy of government travel)

Dining Plan add on to MYW package: $0 (bounceback offer from Sept 07)

Magical Express Service: $0 (no need for a rental car)

My parent's first Disney trip since 02 and their first times on EE, Soarin and Mission Space: Priceless

ETA: Tonilea I am not attacking you. I just thought I would provide more information about my situation.

No offense taken.

I was being completely serious when I said we lived like that - it is pretty easy being in a little debt, then things spiraled out of control... job change that turned into a disaster, some medical bills, a lot of poor decisions (not saying you would make them, but we did), depression (me) and a feeling of deservatiude - things were tough - we deserved xyz. It was all those things, coupled with the fact that I just didn't "get" money and had never been taught. My Mom, she "gets" money, she modeled it, but she never actually taught us about money. My Dad freely admits that without my Mom, he wouldn't in his (edited) words, "Have a pot to pee in". I think some people just "get" it and others don't.

But, we can be taught. And for us, that is where Dave Ramsey came in. We used his program and it works.

 

[DisneyAprilFool]

And I have to agree with Tonilea- we had basically no debt and a few credit cards and things just happened. The cards are sooo easy to use and one day, you wake up and DANG- how did I charge up sooo much debt? And yes, you DO deserve a vacation here and there, I don't mean anyone doesn't, BUT it tends to not JUST be vacations. You start justifying charging one thing and then you slowly start justifying charging more and more... It can and DOES add up easily.

 

[mom2twinz3]

You keep talking about your husband's salary. Do you have a job? If not, have you considered getting a job to pay the debt rather than going the bankruptcy route? It would be the honorable, adult thing to do. If you have kids, how about a night job or a weekend job? Personally, I'd do all I could to avoid bankruptcy. It seems to me like the bankruptcy court would say "Well…get a job."

Well, now wait a second here..I certainly agree about the bankruptcy but this person may have small children that she needs to care for. It may not be profitable for her to work after daycare expenses. I don't think it's fair to tell her to get a job when we don't know everything about her circumstances.

Maybe there is something you could do from home to make money?

Mary

 

[Lintasare]

No offense taken.

I was being completely serious when I said we lived like that - it is pretty easy being in a little debt, then things spiraled out of control... job change that turned into a disaster, some medical bills, a lot of poor decisions (not saying you would make them, but we did), depression (me) and a feeling of deservatiude - things were tough - we deserved xyz. It was all those things, coupled with the fact that I just didn't "get" money and had never been taught. My Mom, she "gets" money, she modeled it, but she never actually taught us about money. My Dad freely admits that without my Mom, he wouldn't in his (edited) words, "Have a pot to pee in". I think some people just "get" it and others don't.

But, we can be taught. And for us, that is where Dave Ramsey came in. We used his program and it works.

I can totally see where you are coming from. And I am glad Dave Ramsey worked for you. I guess I am lucky my parents taught me how to manage my money. I lost my job last year and was out of work for 6 weeks. It was tough but I managed. That is where some of my debt came from because I had to pay rent and I had to eat...even if I was eating ramen noodles. I have a job now...even if it is with a temp agency. I have been lucky to get long term well paying assignments. I would love a permanent position though.