Debt Dumpers - 2013

[Cinderelly5507]

Thanks everyone. We are on a budget to have the CCs and medical bills paid in a year or less. The student loans are another issue that I will tackle after everything else. I'm going to text DH and tell him to put it back up. We can make it. In 40 years I'll be glad we did! Lol

 

[StitchesGr8Fan]

Just got a text from DH that 2 of our 4 CC's will be paid off by march 1 if all goes according to plan! And that is purely by sticking to a budget, not touching savings or our tax refund. We can all do this!

 

[disneycrazi]

Just got a text from DH that 2 of our 4 CC's will be paid off by march 1 if all goes according to plan! And that is purely by sticking to a budget, not touching savings or our tax refund. We can all do this!

Wahoooooo happy dance! Great job!

 

[Cinderelly5507]

Just got a text from DH that 2 of our 4 CC's will be paid off by march 1 if all goes according to plan! And that is purely by sticking to a budget, not touching savings or our tax refund. We can all do this!

Yay!!!!

 

[richmond282]

I just transferred $325 out of paypal (from selling on ebay) today. That $ will go directly on the CC. My goal was to make $200/month so I'm tickled pink that I have done better than that.

 

[ajh88]

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?

I'm just curious about your calculated prescription savings - are you actually switching medications? I may have misunderstood, but even if a doctor writes the generic name, if a drug only comes as brand name, that is what will be used to fill it and it will be at the brand name co-pay.

I agree with others about the 401K - 12% is a huge match. I guess you could mess with it a little and see how much it really affects his take home pay, since it is a pre-tax deduction. I would try to do at least 6% and more if you can tolerate it.

As for the DR snowball, for me it would depend on how much I owed on each one. If the bills are relatively small and you could pay them off in 1 or 2 months, I would be tempted just to get rid of them. I guess strictly speaking, you should arrange the debts by balance and go from there. OTOH, if you start going after your interest bearing debts and make minimum payments on the 0% debts, is it possible you would be able to pay them off in a reasonable time, even at minimum payments? I guess I didn't really answer your question! Sorry! In the past, every time I tried to set up a snowball, I always felt compelled to pay off a different debt first, for whatever reason.

Good luck!

 

[Cinderelly5507]

Hi! Thanks for answering. Yes, I am switching medicines. My insurance give you a recommended Rx to switch to, to save the money. I could also save a few more $ if I switched to mail order. I'm not sure I like that though just for a few $.

 

[ajh88]

Hi! Thanks for answering. Yes, I am switching medicines. My insurance give you a recommended Rx to switch to, to save the money. I could also save a few more $ if I switched to mail order. I'm not sure I like that though just for a few $.

That makes much more sense - hope the meds and the savings work out well for you!

 

[scottmel]

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.

Completely agree. That is money you don't pay taxes on nor will it be taxable when you take it out many years down the road. Fully maxing my 401, roths, education iras, are not negoicable here. I would eat beans and cereal before I let away of this not get funded. ESPECIALLY a company match. That is money being thrown out the window......

 

[Cinderelly5507]

Completely agree. That is money you don't pay taxes on nor will it be taxable when you take it out many years down the road. Fully maxing my 401, roths, education iras, are not negoicable here. I would eat beans and cereal before I let away of this not get funded. ESPECIALLY a company match. That is money being thrown out the window......

I am playing around on Sure Payroll right now to see what type of % we should invest, while still having a snowball. We are definitely reinstating it, just not sure at what level yet.

 

[CloveLeaf]

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?

Dropping that 12% 401K is absolutely a BAD BAD BAD idea. You are leaving a 100% return on the table to save some other interest. Even if your other debts have 50% interest rates, your husband should still contribute 12% to get the match.

 

[CloveLeaf]

Completely agree. That is money you don't pay taxes on nor will it be taxable when you take it out many years down the road. Fully maxing my 401, roths, education iras, are not negoicable here. I would eat beans and cereal before I let away of this not get funded. ESPECIALLY a company match. That is money being thrown out the window......

You have to pay income tax when you start withdrawing money from 401K.

 

[pianokey]

I think this thread could be helpful for encouraging each other.

I do not think we will be completely out of debt this year, but there are some goals we are hoping to achieve.

1. Pay off Gutter Guard - 800.00 left, hopefully paid off by March 2013
2. Pay off credit card - 2500.00 left, hopefully paid off by May 2013
3. Pay off windows - 5000.00 left, hopefully by May 2014
4. Pay off student loans - 10,000.00 left, hopefully by December 2014
5. Pay off car - I believe the payments are until 2018 at this point, but if the above all gets paid off, this can also be paid off sooner
6. Pay off mortgage - Currently scheduled to paid in full 2026

Thanks for letting me write this out and good luck to everyone in this thread for paying their debts off!

We cut our first bill, gutter guard, in half today!

Only 400.00 left and that one will be gone!

 

[Cinderelly5507]

That makes much more sense - hope the meds and the savings work out well for you!

Thank you! Me too! Good luck to you as well!

 

[Cinderelly5507]

Dropping that 12% 401K is absolutely a BAD BAD BAD idea. You are leaving a 100% return on the table to save some other interest. Even if your other debts have 50% interest rates, your husband should still contribute 12% to get the match.

I understand what you are saying. A 12% match is exceptional, which is why we had a hard time deciding what to do. It takes a good amount out of each check. I am a SAHM so Dh's wages are our only income (well, I make some for babysitting twice a week). Anyways, contributions will be reinstated a soon as I can get DH to sit down to look at finances a bit more. He's been working a lot of OT! Yay!

 

[mrssmith06]

We cut our first bill, gutter guard, in half today!

Only 400.00 left and that one will be gone!

Yay!!!

 

[gracie1]

We cut our first bill, gutter guard, in half today!

Only 400.00 left and that one will be gone!

Yay!! Your halfway there!

 

[gracie1]

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.



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

No vaca for me this year either. Although once my debt is paid off (which I am so determined to have done in May!) then I plan on taking a weekend away in the fall to celebrate

 

[Sagginit]

so just balanced the budget and started paying end of month bills. i was very good this month even with my mini-vaca. i avoided most after holiday sales and will be sending in an extra payment towards my student loans this month. only $200 but i also just got all the papers i need for my taxes so i hope to file those early to get a refund early. the ironic thing is my only deduction is the interest on my student loans which drops every year.

i was also given a laptop for christmas with windows 8 on it. i found a debt tracker app. it's awesome because it tracks actual interest vs real interest when you put extra towards debt. it also shows how long it would have taken you to pay it off. i think i will pay the 1.99 after the trail is over as its great motivation (im a visual person ).

 

[edk35]

so just balanced the budget and started paying end of month bills. i was very good this month even with my mini-vaca. i avoided most after holiday sales and will be sending in an extra payment towards my student loans this month. only $200 but i also just got all the papers i need for my taxes so i hope to file those early to get a refund early. the ironic thing is my only deduction is the interest on my student loans which drops every year.

i was also given a laptop for christmas with windows 8 on it. i found a debt tracker app. it's awesome because it tracks actual interest vs real interest when you put extra towards debt. it also shows how long it would have taken you to pay it off. i think i will pay the 1.99 after the trail is over as its great motivation (im a visual person ).

What is that app? I was telling my brother about snowballing (he and his GF have been in debt FOR FOREVERRRRRRR) and told him about Dave Ramsey. He has a debt snowball trial on his website, but then you either buy a year or buy a month at 10 bucks each month. I told him I would ask you guys about FREE snowballing websites that you can actually log into and stay on track with. He would really like one he doesn't have to pay for. He mentioned a couple that you actually input your bank info and cc info...like LOG IN information for whatever cc/banks you use.. He is leary about using that. Any suggestions I can pass along. TIA