Debt Dumpers - 2013

[peel]

Even after a couple of months, YNAB has already changed our entire outlook on our finances and getting out of debt. I can't recommend it enough!!

 

[SpaceGirl]

SpaceGirl -
Keep Dancing Girl you are doing GREAT.


hmmm. I was raised in Upper Florida, so Navy Beans and Cornbread...yummm.

Christine

North Florida Girl here just south of Jacksonville in Clay county, we must be Kindred Spirits.

My nephew just went through closing on his new home at the beginning of the month, they had been saving for two years for the down payment and extra for the appliances new refrigerator, washing machine and dryer. Their loan officer said not to charge on their credit cards or spend large amounts from their savings because they would be doing another Credit Check just before the closing.

They needed the new appliances to be ordered so the delivery dates could be scheduled. We used one of my credit cards that he is an authorized user on to purchased them, luckily the card wasn't scheduled to bill/report until after the closing date.

We used the credit card and it posted a few days after they had moved into their beautiful new home, he transferred the full amount to my account so I could pay the bill.

Anyway that's the back store to my post...I haven't had any credit cards carry a large balance in a while, I knew that the credit card companies have to post the "If you only pay the minimum Payment it will cost you this amount" on the bill so I was interested in seeing the information. I was in shock when I received the actual information.

The following is the information they posted:

New Balance..............$3,969.39
Current Payment Due......$39.00

If you make no additional charges using this card and each month you pay:
Only the Total Minimum Payment
You will payoff the balance shown on this statement in about:
16 years
And you will end up paying an estimated total of:
$7,596.03

16 years and the price doubles....

When it's written down in black and white it shows you how bad yet easy minimum payments really are, they give you a false sense that if you make your payments you are being responsible and have control of your finances.

What upsets me the most is I did this for so many years.

 

[jenny105]

Christine
If you make no additional charges using this card and each month you pay:
Only the Total Minimum Payment
You will payoff the balance shown on this statement in about:
16 years
And you will end up paying an estimated total of:
$7,596.03

16 years and the price doubles....

When it's written down in black and white it shows you how bad yet easy minimum payments really are, they give you a false sense that if you make your payments you are being responsible and have control of your finances.

What upsets me the most is I did this for so many years.

It's crazy isn't it?? I aim to pay double what my minimum payment or at the very least pay $10 over. Anything to cut down on the interest and time frame!

 

[SpaceGirl]

I have been lurking on this thread for awhile now but haven't posted because I wanted to be successful at my debt reduction. I can toot my horn now.

Congratulations You deserve to TOOT your own horn. Great Job...

 

[peel]

It's crazy isn't it?? I aim to pay double what my minimum payment or at the very least pay $10 over. Anything to cut down on the interest and time frame!

We're trying to do at least a few bucks over the minimums, really just to make ourselves feel better, while we try to eliminate the lowest cards first and roll the payments into the larger ones once they're paid off.

It really is scary when you see how long it would take to pay things off and how much more you'll be handing over by only doing minimum payments! Here's another scary thing....one of DH's credit cards has a minimum payment that is about half as much as the interest that accumulates every month. It's something he never really paid any attention to until we started using YNAB. If you think about it for a minute, it means when he pays the minimum, he owes more each month than he did the previous month even though he doesn't use the card at all!

 

[SpaceGirl]

It's crazy isn't it?? I aim to pay double what my minimum payment or at the very least pay $10 over. Anything to cut down on the interest and time frame!

Jenny

It is worst than CRAZY, most of us shop and try and to find the best deals so that we will not be overspending on the things we want/need, then it goes on the credit cards and we are paying two times the original cost.

How many of us would pay $200.00 for an item when we could purchase the same thing for $100.00....Apparently I use to do it all the time.

 

[peel]

Jenny

It is worst than CRAZY, most of us shop and try and to find the best deals so that we will not be overspending on the things we want/need, then it goes on the credit cards and we are paying two times the original cost.

Good point!!!

 

[summersalt]

Christine


The following is the information they posted:

New Balance..............$3,969.39
Current Payment Due......$39.00

If you make no additional charges using this card and each month you pay:
Only the Total Minimum Payment
You will payoff the balance shown on this statement in about:
16 years
And you will end up paying an estimated total of:
$7,596.03

16 years and the price doubles....

When it's written down in black and white it shows you how bad yet easy minimum payments really are, they give you a false sense that if you make your payments you are being responsible and have control of your finances.

What upsets me the most is I did this for so many years.

This makes me sick! I gotta do work to get my cc debit paid once and for all!! Thanks for sharing. It's very motivating information!

 

[SpaceGirl]

It really is scary when you see how long it would take to pay things off and how much more you'll be handing over by only doing minimum payments! Here's another scary thing....one of DH's credit cards has a minimum payment that is about half as much as the interest that accumulates every month. It's something he never really paid any attention to until we started using YNAB. If you think about it for a minute, it means when he pays the minimum, he owes more each month than he did the previous month even though he doesn't use the card at all!

Peel

It is ridiculous, the amount owed goes up because of the interest charges, then you are paying interest on the interest charges.... It really gets my Blood a Boiling.

 

[SpaceGirl]

This makes me sick! I gotta do work to get my cc debit paid once and for all!! Thanks for sharing. It's very motivating information!

Summersalt

Get busy girl.....

 

[disneycrazi]

Eureka - that does sound good! I will have to give it a try. crazycatstacy - Welcome! SpaceGirl - Keep Dancing Girl you are doing GREAT. hmmm. I was raised in Upper Florida, so Navy Beans and Cornbread...yummm. disneycrazi - I'm in N Indy also! Live in Fishers, work in Carmel. KateKat23 - Welcome and AWESOME. congrats on the pay off date so close! ~Kristy - I have stress eating versus emotional buying, but I kind of know what you are talking about. We have lots of people on our board paying off student loans. I use quicken for my budget but a lot seem to like You Need a Budget. pryncess527 - Thank you! I'm sure she will have a blast. Her friends mom rented a limo for the 4 friends and their dates. Oh boy!! lol Sometimes you just have to go zen. I can't wait to hear the cheer of the 0 balance! And yea Ebay buyers!

Live in Noblesville, work in Carmel too!!

 

[SpaceGirl]

What types of budgeting systems is everyone using. I need to start keeping track of my emotional spending. I "deserve" to be debt free more than I "deserve" a new dress or going out to eat.

Kristy

I just got all my bills together and made my own chart using Excel Worksheet Customizing what I wanted to track and all my balances.

I still use the same charts but instead of imputing amount owed on my credit cards I love putting $00.00. Of course I still track my other bills for ongoing monthly expenses (water, electric, phone, etc..)

 

[SpaceGirl]

But now I'm back to being laser focused. I want to spend AS LITTLE AS POSSIBLE between now and Sunday. Any money left over on Sunday become an extra payment on the credit card, and we are SO close to paying it off, I'm at the point where I feel like every $1 counts.

I did get $60 new dollars to add to that payment thanks to some weekend ebay sales

Good for you, and your Laser Focused attack, I had a vision of Darth Vader going after your debt.

 

[ceemys]

Christine

North Florida Girl here just south of Jacksonville in Clay county, we must be Kindred Spirits.

.

We used the credit card and it posted a few days after they had moved into their beautiful new home, he transferred the full amount to my account so I could pay the bill.

Anyway that's the back store to my post...I haven't had any credit cards carry a large balance in a while, I knew that the credit card companies have to post the "If you only pay the minimum Payment it will cost you this amount" on the bill so I was interested in seeing the information. I was in shock when I received the actual information.

The following is the information they posted:

New Balance..............$3,969.39
Current Payment Due......$39.00

If you make no additional charges using this card and each month you pay:
Only the Total Minimum Payment
You will payoff the balance shown on this statement in about:
16 years
And you will end up paying an estimated total of:
$7,596.03

16 years and the price doubles....

When it's written down in black and white it shows you how bad yet easy minimum payments really are, they give you a false sense that if you make your payments you are being responsible and have control of your finances.

What upsets me the most is I did this for so many years.

That's insane! I remember when they started doing that. Is is fairly newish. That is when I started paying double or triple what the minimum was. Definitely eye opening.

I was over in the panhandle. .

 

[ceemys]

Live in Noblesville, work in Carmel too!!

Cool! it's a small world!

 

[pryncess527]

Good for you, and your Laser Focused attack, I had a vision of Darth Vader going after your debt.

LOL, I love it! I'm going to conjure up this image next time I'm tempted to buy something this week.

 

[SpaceGirl]

It's official six Christmas presents purchased.

 

[summersalt]

It's official six Christmas presents purchased.

Yay!!

I love Christmas....

 

[SpaceGirl]

Yay!!

I love Christmas....

I love Christmas too.... I'm on a roll just purchased 3 more gifts

 

[SpaceGirl]

LOL, I love it! I'm going to conjure up this image next time I'm tempted to buy something this week.

Now I'm visualizing you walking into a store followed (Queue: Soundtrack from StarWars) by Darth Vader with his laser light saber.

May the force be with you