Debt Dumpers - 2013

[gracie1]

I'm so excited....my car is officially paid off! No more car payments!!!

I'm also one payment away from paying off a personal loan that I took out a few years ago. Its almost embarrasing to admit it, but when DH and I first got married we racked up some credit card debt. Some was just a result of being young and not as responsible as we should have been. The rest was because he had major surgery and was out of work for six months. It was difficult to make ends meet and we used the cards to pay for our living expenses. I spent a lot of time doing the balance transfer game on credit cards but the balance just wasn't going down fast enough. A couple of years ago, I took out a personal loan with fixed payments and a very low fixed rate. So, I'm very excited to finally have this off my back once and for all!

It feels so awesome to get two debts totally paid off!!!

I am going to take the amount that I would have paid on these debts each month. Add some to savings and the rest will pay off one other small credit card balance that I have. That card will be paid off in less than 6 months (I have a zero interest rate on it until next January).

After that, the only debt that I will owe is my student loan (which is almost paid off...about two years worth of payments left) and the mortgage!

We still have a couple of credit cards that we use, but we pay them off each month. Anytime I charge something to my card, I immediately deduct it from my checking account register. This way I know that I'm not overextending myself and can pay the card off in full in month.

Fantastic Job!!! I did the personal loan to consolidate debt before two (actually twice - and still didn't learn my lesson!) You are doing great

 

[AuroraRora]

Awesome job everyone!!

 

[PrincessKymm]

I'm so excited....my car is officially paid off! No more car payments!!!

I'm also one payment away from paying off a personal loan that I took out a few years ago. Its almost embarrasing to admit it, but when DH and I first got married we racked up some credit card debt. Some was just a result of being young and not as responsible as we should have been. The rest was because he had major surgery and was out of work for six months. It was difficult to make ends meet and we used the cards to pay for our living expenses. I spent a lot of time doing the balance transfer game on credit cards but the balance just wasn't going down fast enough. A couple of years ago, I took out a personal loan with fixed payments and a very low fixed rate. So, I'm very excited to finally have this off my back once and for all!

It feels so awesome to get two debts totally paid off!!!

I am going to take the amount that I would have paid on these debts each month. Add some to savings and the rest will pay off one other small credit card balance that I have. That card will be paid off in less than 6 months (I have a zero interest rate on it until next January).

After that, the only debt that I will owe is my student loan (which is almost paid off...about two years worth of payments left) and the mortgage!

We still have a couple of credit cards that we use, but we pay them off each month. Anytime I charge something to my card, I immediately deduct it from my checking account register. This way I know that I'm not overextending myself and can pay the card off in full in month.

Awesome job!!!!

 

[momtosam]

Coming out of lurkdom to share -- I really like this payoff calculator from Bankrate. It gives you a specific payment plan to follow in order to pay off your debts most quickly. I'm the kind of person who needs a checklist to follow. Each month I can cross off each payment as I make it. It keeps me on track.

http://www.bankrate.com/calculators/managing-debt/debt-pay-down-calculator.aspx

 

[momof2gr8kids]

Everyone's doing great. Can't wait til I can say we have no debt except our mortgage!

Got our $1000 emergency fund set up. Paid off a big chunk of our credit card, and transferred the rest to our LOC as the interest rate was much lower. I think seeing that amount on our LOC everytime I log into online banking is a great motivator. Not like a cc statement you get once a month and can tuck it away! Will be cancelling that cc once the payment goes through.

I've set up a budget using the Gail Val-Oxlade budget and am committing 15%from each paycheck to our LOC. Dh's income fluxuates so it's hard to plan, so rather than a set amount I decided to do it this way. Going by her budget, we are actually over on savings, but it's savings we can't touch - for retirement and kids RESPs (education - not sure what you guys call it in the in the US). So I will adjust that to add to our emergency fund. Any extra left over the day before the next payday will be split between Debt and Emerg. Fund.

Thanks to everyone on this thread that posts, to help keep me motivated. I may not post all the time, but I do read and it's nice to be around like minded people. (Instead of the constant badgering of one friend who always wants me to go shopping with her! LOL)

 

[gracie1]

You guys are all doing a fantastic job I am getting ready to tackle my home equity loan. I still have 10 years left on it, and plan on paying right now just $100 a month extra. If I do that then that will save me 3 years on it, and I am hoping to be able to throw a little extra throughout the year on it. I would like to have it paid off in 5 years - we will see!

 

[bababear_50]

Ok
I guess I'm not doing too great.
I've been watching everything I spend when Wham! the knob on the dryer breaks off and the electrical unit attached to it falls inside the dryer.
The dryer is just over the one year warranty.
So I paid $15.00 for a part but the rest of the repair+ service call and labor and taxes$170.00.Total $185.00.So no extra payments can be made this month on any debt.
Sometimes I just need a hug and right now is one of those times.
Oh well thanks for letting me vent (not as in dryer vent) that's whole other story of the three birds nest that I had to have removed last month.
Ok I know things happen in threes but this girl is out of cash right now
and my emotions are pretty raw so if any other appliance wants to break could it please be the toaster...........

Hugs everyone and hopefully I will get back on track soon.

Mel

 

[momof2gr8kids]

Awww Hugs Bubabear. I know how frustrating it feels when you set your mind to paying off stuff then suddenly everything comes at once.
Crossing my fingers for you that the setbacks are over!

 

[bababear_50]

Awww Hugs Bubabear. I know how frustrating it feels when you set your mind to paying off stuff then suddenly everything comes at once.
Crossing my fingers for you that the setbacks are over!

Thanks for the Hugs and good wishes,it means alot to me.
Mel

 

[jenny105]

I got a small raise at work so I'm now able to put a little more into my savings and 401k. I went off the rails a bit with debt repayment but I am determined to get back on track!

 

[gracie1]

Ok
I guess I'm not doing too great.
I've been watching everything I spend when Wham! the knob on the dryer breaks off and the electrical unit attached to it falls inside the dryer.
The dryer is just over the one year warranty.
So I paid $15.00 for a part but the rest of the repair+ service call and labor and taxes$170.00.Total $185.00.So no extra payments can be made this month on any debt.
Sometimes I just need a hug and right now is one of those times.
Oh well thanks for letting me vent (not as in dryer vent) that's whole other story of the three birds nest that I had to have removed last month.
Ok I know things happen in threes but this girl is out of cash right now
and my emotions are pretty raw so if any other appliance wants to break could it please be the toaster...........

Hugs everyone and hopefully I will get back on track soon.

Mel

Sorry about the dryer Your luck sounds like mine, as soon as a warranty runs out then it breaks! The good thing is, you didn't have to replace the dryer. My expenses always seem to come with vehicles. And it always seems to happen in November, right before the holidays

Hopefully nothing else happens for you and next month will be a better month.

 

[gracie1]

I got a small raise at work so I'm now able to put a little more into my savings and 401k. I went off the rails a bit with debt repayment but I am determined to get back on track!

Congrats on the raise Every little bit helps! I got a promotion.....but no raise!

 

[arthur06]

This is my first post on here...

DW and I got a chance to hit the reset button on our debt a month or so ago. We bought a foreclosure for really cheap, paid cash and have been renovating it and paying as we go. We owned a primary house with a mortgage. In doing our repairs we charged things to credit cards, paid cash for things, and everything in between.

We sold our first house and eliminated our mortgage. However, our new home, which we hired a contractor, will not be done until Sept. 1st. So, we moved in with the in-laws for the summer.

In the last month I have paid off 5 credit cards. All had balances under $1,000 but they are all paid.

I have 6 cards left to pay off, and should have them knocked out by July. We don't really have a lot of debt, but just $200 on this card, $700 on this one, etc.

It really doesn't hurt that we don't have a mortgage, cable bill, phone bill and other home associated bills for the summer.

 

[BernardandMissBianca]

Why is it that every time the house knows we get money, something breaks??? DH had the turbo go in his car on the way home from DC. $900 later, it will be fixed by the middle of next week. Thankfully we have the Mini he can drive (1966) but we needed to buy a new battery for it, it's sat for a year. But we don't have to get him a rental car.
DH sold some stock last week so the money to cover the VW will come in soon, but not soon enough. We need to float it on a credit card. I hate that!! We've been doing so well!!!

Oh and the compressor went out on the AC for our room, but we are thinking of getting those wall mounted ductless units anyway so we are not going to replace the current unit just yet.

 

[gracie1]

This is my first post on here...

DW and I got a chance to hit the reset button on our debt a month or so ago. We bought a foreclosure for really cheap, paid cash and have been renovating it and paying as we go. We owned a primary house with a mortgage. In doing our repairs we charged things to credit cards, paid cash for things, and everything in between.

We sold our first house and eliminated our mortgage. However, our new home, which we hired a contractor, will not be done until Sept. 1st. So, we moved in with the in-laws for the summer.

In the last month I have paid off 5 credit cards. All had balances under $1,000 but they are all paid.

I have 6 cards left to pay off, and should have them knocked out by July. We don't really have a lot of debt, but just $200 on this card, $700 on this one, etc.

It really doesn't hurt that we don't have a mortgage, cable bill, phone bill and other home associated bills for the summer.

Welcome to the thread! Sounds like you are doing a great job to paying off the accumulated debt. Just think how great it will be to move into your new home with no mortgage or credit card debt!!

W

 

[gracie1]

Why is it that every time the house knows we get money, something breaks??? DH had the turbo go in his car on the way home from DC. $900 later, it will be fixed by the middle of next week. Thankfully we have the Mini he can drive (1966) but we needed to buy a new battery for it, it's sat for a year. But we don't have to get him a rental car.
DH sold some stock last week so the money to cover the VW will come in soon, but not soon enough. We need to float it on a credit card. I hate that!! We've been doing so well!!!

Oh and the compressor went out on the AC for our room, but we are thinking of getting those wall mounted ductless units anyway so we are not going to replace the current unit just yet.

The ductless vents are fantastic! I don't have one but work with various contractors that have started installing them and its a nice system!

 

[MaryKLady]

Coming out of lurkdom to share -- I really like this payoff calculator from Bankrate. It gives you a specific payment plan to follow in order to pay off your debts most quickly. I'm the kind of person who needs a checklist to follow. Each month I can cross off each payment as I make it. It keeps me on track.

http://www.bankrate.com/calculators/managing-debt/debt-pay-down-calculator.aspx

Never seen this before but I like it!

Hi, Im a lurker

We don't have any debt except our mortgage. I've always put a little extra toward it but now that DD9 is getting closer to college, I'd really like to get it paid. I have recently discovered this person you speak of, Dave Ramsey and I am using the baby steps. Right now we are beefing up our emergency fund and working on getting our insurance policies up to date.

 

[jenbelles]

I too am I lurker...
I also found out about Dave Ramsey by reading this board. While I am not ready to be as extreme as some of his suggestions, I am ready to start to dump the debt. This will be the third time that I have racked up credit cards to an obscene amount. However, I need some suggestions in regards to his baby step approach.

DH and I are very fortunate to both have full time employment that allows us to continue to pay all of our bills. We are also fortunate enough to have paid off his vehicle about two years ago, leaving us with a decent amount of money to apply to pay down our debt. However, I have not been strict enough with making sure we apply it to our debt every month.

After reading these boards, I made a list of the debt that I think is realistic to be paid off in 5 years. (assuming we do not need to purchase a new car)

Where I get confused is the suggestion to pay off all of the small balances first no matter the interest rate.

We have 4 Store Credit Card's with balances but all of these cards are 0% interest.

I have one personal loan that if we apply the extra payments, will be paid off in 9 months opening up an additional $350 per month. If I paid off all of the 0% interest cards (the smallest balances of my debt) it would take almost one year and only free up an additional $145 per month.

Isn't this an instance where I should go off program?

 

[gracie1]

I too am I lurker...
I also found out about Dave Ramsey by reading this board. While I am not ready to be as extreme as some of his suggestions, I am ready to start to dump the debt. This will be the third time that I have racked up credit cards to an obscene amount. However, I need some suggestions in regards to his baby step approach.

DH and I are very fortunate to both have full time employment that allows us to continue to pay all of our bills. We are also fortunate enough to have paid off his vehicle about two years ago, leaving us with a decent amount of money to apply to pay down our debt. However, I have not been strict enough with making sure we apply it to our debt every month.

After reading these boards, I made a list of the debt that I think is realistic to be paid off in 5 years. (assuming we do not need to purchase a new car)

Where I get confused is the suggestion to pay off all of the small balances first no matter the interest rate.

We have 4 Store Credit Card's with balances but all of these cards are 0% interest.

I have one personal loan that if we apply the extra payments, will be paid off in 9 months opening up an additional $350 per month. If I paid off all of the 0% interest cards (the smallest balances of my debt) it would take almost one year and only free up an additional $145 per month.

Isn't this an instance where I should go off program?

When does the interest run out on your 0% cards? And what will the interest rate be on the cards compared to the loan that you have?

 

[PrincessKymm]

I too am I lurker...
I also found out about Dave Ramsey by reading this board. While I am not ready to be as extreme as some of his suggestions, I am ready to start to dump the debt. This will be the third time that I have racked up credit cards to an obscene amount. However, I need some suggestions in regards to his baby step approach.

DH and I are very fortunate to both have full time employment that allows us to continue to pay all of our bills. We are also fortunate enough to have paid off his vehicle about two years ago, leaving us with a decent amount of money to apply to pay down our debt. However, I have not been strict enough with making sure we apply it to our debt every month.

After reading these boards, I made a list of the debt that I think is realistic to be paid off in 5 years. (assuming we do not need to purchase a new car)

Where I get confused is the suggestion to pay off all of the small balances first no matter the interest rate.

We have 4 Store Credit Card's with balances but all of these cards are 0% interest.

I have one personal loan that if we apply the extra payments, will be paid off in 9 months opening up an additional $350 per month. If I paid off all of the 0% interest cards (the smallest balances of my debt) it would take almost one year and only free up an additional $145 per month.

Isn't this an instance where I should go off program?

The reason dave ramsey says to pay off smallest to largest is a psychological thing. When you pay off the smallest balance you get that momentum going. I suggest listing them in order smallest to largest and paying them off that way since you can pay the bills each month. If you were having a cash flow problem if agree to get rid of the large payment each month. Get rid of the 0% interest and then roll each payment into the snowball for the loan.