Debt Dumpers - 2013

[momof2gr8kids]

So today is payday and I paid 15% towards our debt. I went through and added up all we put towards debt in the last few months and it's sickening. When I think that the $ could be going towards stuff I want or need now (like a Disney trip!), not paying off debt.

So, seeing that makes me more motivated to get rid of it and never have it again!

 

[gracie1]

So today is payday and I paid 15% towards our debt. I went through and added up all we put towards debt in the last few months and it's sickening. When I think that the $ could be going towards stuff I want or need now (like a Disney trip!), not paying off debt.

So, seeing that makes me more motivated to get rid of it and never have it again!

I couldn't agree more with you!! Once I budgeted out everything I had to pay to get the debt paid off, I was sickened too! But you will get there. I did and because of doing the budget and seeing how much I was paying to get out of debt did motivate me not to get back into it. It's nice to be able to just have to pay the mortgage and home equity loan. although I would love to see that home equity loan gone. I plan on trying to pay $100 a month extra towards it, even though it doesn't seem like a lot, it will knock months off of it in the end. I think I have 10 years left on it, and if I can pay the $100 a month and then take tax money towards it each year, I should be able to have it paid off in 5 years! That's my goal anyways.

You are doing a great job!!

 

[AuroraRora]

^^ I think this too - when I consider the size of my debt from student loans and credit cards, it's as big as a mortgage. After paying it all off, I wish I'd be able to say "look at this gorgeous debt-free house I own". Or, "look at this 6-figure savings account I have!" Instead, all I'll have is no debt. But this is a major motivator for me to never get back into debt again - I never want to be back in this situation once I've got myself out of it. And I want to be prepared for the future so my kids never know what this kind of debt is like either.

I'm trying to do Dave Ramseys Zero-Based Budget thing this month - it's so tough! I allocated everything I could/wanted to pay for this month, and already I'm about a week ahead of where I should be in terms of spending. I'm one week into the month but two weeks into spending my grocery $ allocation, and all I've been doing is picking up odds and ends at the store!

 

[gracie1]

^^ I think this too - when I consider the size of my debt from student loans and credit cards, it's as big as a mortgage. After paying it all off, I wish I'd be able to say "look at this gorgeous debt-free house I own". Or, "look at this 6-figure savings account I have!" Instead, all I'll have is no debt. But this is a major motivator for me to never get back into debt again - I never want to be back in this situation once I've got myself out of it. And I want to be prepared for the future so my kids never know what this kind of debt is like either.

I'm trying to do Dave Ramseys Zero-Based Budget thing this month - it's so tough! I allocated everything I could/wanted to pay for this month, and already I'm about a week ahead of where I should be in terms of spending. I'm one week into the month but two weeks into spending my grocery $ allocation, and all I've been doing is picking up odds and ends at the store!

The grocery budget is the worst! I basically buy the same things each week and still seem to go over budget.

 

[Eureka]

The grocery budget is the worst! I basically buy the same things each week and still seem to go over budget.

Food costs are outrageous. We are going away soon so I just bought a few things for this week (included a lot of fruit, and the kids have 1 more week of school, so stuff for lunches) and a few things to take with us. Still over $100 for four of us. I don't budget for the grocery store though. I just buy what we need, usually a couple items I hadn't planned on (lol!), and adjust in other categories. I have been much more vigilant about eating down what we have lately though.

 

[pryncess527]

What a great board!!!! My H and I are focused seriously on debt dumping right now. I'm dying to plan a 10th anniversary trip to Disney, but we are hoping we can eliminate some of our major debt first and pay cash for the trip. It's nice to have something to look forward to, but there are also days when I feel like we are never going to get to go on vacation!!

We did just pay off one of our cars last week Very excited about freeing up that car payment to now go towards credit cards. If we can get our 1 credit card and 75% of our Home Equity loan paid off, we'll be ready to start saving up for our dream trip

 

[pryncess527]

So today is payday and I paid 15% towards our debt. I went through and added up all we put towards debt in the last few months and it's sickening. When I think that the $ could be going towards stuff I want or need now (like a Disney trip!), not paying off debt.

So, seeing that makes me more motivated to get rid of it and never have it again!

OMG I know that feeling!! I can't wait to use my left over money for something fun instead of paying down debt!!! Congrats on getting to put such a large % toward debt this month

 

[gracie1]

What a great board!!!! My H and I are focused seriously on debt dumping right now. I'm dying to plan a 10th anniversary trip to Disney, but we are hoping we can eliminate some of our major debt first and pay cash for the trip. It's nice to have something to look forward to, but there are also days when I feel like we are never going to get to go on vacation!!

We did just pay off one of our cars last week Very excited about freeing up that car payment to now go towards credit cards. If we can get our 1 credit card and 75% of our Home Equity loan paid off, we'll be ready to start saving up for our dream trip

Way to go on paying off your car!! It feels great not having a car payment, doesn't it? That is the one thing that keeps me from wanting another car .... no payment!

 

[AuroraRora]

Great job paying off the car, way to go!!

 

[goofyisinphilly]

The grocery budget is the worst! I basically buy the same things each week and still seem to go over budget.

This is going to seem like an obvious question, but when was the last time you raised your grocery budget? I know we are trying to save money and reduce debt, but the cost of goods keeps rising. For the longest time, we were always over budget in the grocery department despite my best efforts. When I considered the fact that I way trying to buy groceries with my budget from 5 years ago it made sense. Groceries have gone up let's say 15% and taxes have gone up.

Wouldn't it be better to raise the budget to stop the overage? That overage has to come from someplace. Which means something else is getting shorted or raising debt in a different category.

 

[AuroraRora]

My extra student loan payment cleared today (finally - for some reason while most banks clear payments in a day or two, Discover Student Loans takes up to 7 days ugh). My balance this time last month was $6500 and now its $1400 I think that'll be the last time I'm able to make a big payment for a while though, it's back to the Snowball for me. But I keep opening my Account Info page just to see the balance and motivate myself

 

[gracie1]

My extra student loan payment cleared today (finally - for some reason while most banks clear payments in a day or two, Discover Student Loans takes up to 7 days ugh). My balance this time last month was $6500 and now its $1400 I think that'll be the last time I'm able to make a big payment for a while though, it's back to the Snowball for me. But I keep opening my Account Info page just to see the balance and motivate myself

Way to go!! I know you must feel incredible to look at the student loan amount and see $1400!! You should be proud of yourself!

 

[gracie1]

This is going to seem like an obvious question, but when was the last time you raised your grocery budget? I know we are trying to save money and reduce debt, but the cost of goods keeps rising. For the longest time, we were always over budget in the grocery department despite my best efforts. When I considered the fact that I way trying to buy groceries with my budget from 5 years ago it made sense. Groceries have gone up let's say 15% and taxes have gone up.

Wouldn't it be better to raise the budget to stop the overage? That overage has to come from someplace. Which means something else is getting shorted or raising debt in a different category.

I actually just budget it out in my head. I hate the fact that if I want healthy chips I have to pay $4 per bag, or if I want healthy snacks I have to pay $4-$5 for a box of something vs the unhealthy discount brands I could get! I guess if I consider what I bring in monthly, 15% of my pay goes to food. So I guess that's not bad. I never looked at it that way. And luckily I live in Delaware so I have no taxes. I love that!

 

[ArielSparrow]

This is going to seem like an obvious question, but when was the last time you raised your grocery budget? I know we are trying to save money and reduce debt, but the cost of goods keeps rising. For the longest time, we were always over budget in the grocery department despite my best efforts. When I considered the fact that I way trying to buy groceries with my budget from 5 years ago it made sense. Groceries have gone up let's say 15% and taxes have gone up.

Wouldn't it be better to raise the budget to stop the overage? That overage has to come from someplace. Which means something else is getting shorted or raising debt in a different category.

Agreed. If you continually go over and have tried everything else to cut corners, you need to raise your grocery budget. It's not like you are spending more money by doing so since you are spending anyway. Instead you are planning for that overage and not going into debt or stealing from another category. Well, you'll have to lower something to make it work. You are just changing things on paper to match what you do in real life.

I actually just budget it out in my head. I hate the fact that if I want healthy chips I have to pay $4 per bag, or if I want healthy snacks I have to pay $4-$5 for a box of something vs the unhealthy discount brands I could get! I guess if I consider what I bring in monthly, 15% of my pay goes to food. So I guess that's not bad. I never looked at it that way. And luckily I live in Delaware so I have no taxes. I love that!

I highly recommend doing a budget on paper or screen. It really helps to see a snapshot of your financial standing. It is hard the first time, and takes about three months to get it right, but it is so so so helpful to know exactly where you stand and to decide at the beginning of the month how much you will spend in each category. It helps to know when making choices. Hmm, if I buy this extra ____, how will it affect my bank account?

Also, don't feel bad about buying healthy food. If it is worth the value, do it. Just make sure they are actually healthy and worth the cost and not some gimmick playing on a current fad. Marketers are paid a lot to do what they do, so be sure to read the labels and shop around (how about raw, natural food from farmer's markets instead of healthy chips which are still processed?). Either way, know what you are sacrificing for it and if you think it's a good decision, then it is. There's no right or wrong answer, just personal preferences.

 

[pryncess527]

I highly recommend doing a budget on paper or screen. It really helps to see a snapshot of your financial standing. It is hard the first time, and takes about three months to get it right, but it is so so so helpful to know exactly where you stand and to decide at the beginning of the month how much you will spend in each category. It helps to know when making choices. Hmm, if I buy this extra ____, how will it affect my bank account?

.

Ditto this. My husband and I started using budget software a few months ago and it has really revolutionized how we think - and talk to each other - about money. We use YNAB, I highly recommend it. It takes some getting used to, but I can't express how helpful it has been

 

[gracie1]

I actually have nothing else that I budget for, so I just buy the groceries that I need. There is a certain amount I set aside in my savings each month, and a certain amount I keep in my checking. So as long as I do not go over the amount in my checking, I feel pretty good about that.

 

[tgeorge0207]

It has been awhile since I have posted we have had our ups and downs with dumping this debit or ours. This last Friday I was able to pay off 2 credit cards and next pay day which will be the 21st I will pay off 2 more. We are really cracking down which is nice. I can't wait to have them all paid off sad to say we have paid off 6 so far and have 9 to go! Trying to look at the good side. However, all I see is the money we could have used to go back to DISNEY

 

[AuroraRora]

It has been awhile since I have posted we have had our ups and downs with dumping this debit or ours. This last Friday I was able to pay off 2 credit cards and next pay day which will be the 21st I will pay off 2 more. We are really cracking down which is nice. I can't wait to have them all paid off sad to say we have paid off 6 so far and have 9 to go! Trying to look at the good side. However, all I see is the money we could have used to go back to DISNEY

That's awesome progress, after the next two paid off on the 21st you'll be almost half way there!

 

[gracie1]

It has been awhile since I have posted we have had our ups and downs with dumping this debit or ours. This last Friday I was able to pay off 2 credit cards and next pay day which will be the 21st I will pay off 2 more. We are really cracking down which is nice. I can't wait to have them all paid off sad to say we have paid off 6 so far and have 9 to go! Trying to look at the good side. However, all I see is the money we could have used to go back to DISNEY

Way to go on getting 6 cards paid off! You should be very proud of yourself!

 

[Doodlebug939]

It has been awhile since I have posted we have had our ups and downs with dumping this debit or ours. This last Friday I was able to pay off 2 credit cards and next pay day which will be the 21st I will pay off 2 more. We are really cracking down which is nice. I can't wait to have them all paid off sad to say we have paid off 6 so far and have 9 to go! Trying to look at the good side. However, all I see is the money we could have used to go back to DISNEY

It is good to hear that a fellow Diser is able to stay on target to reach their goals. I had a lot of success at the beginning of the year (smaller debts) so I got really motivated to continue. Recently I have been applying money each week to one bill to get it paid off. It has gottne pretty routine and boring with none of the rush.

So today I looked online to see what my balance is which is down to 1,011. I know most people dont talk specifics and I respect the boundaries. I know that this Friday I am paying another 150 so it felt pretty exciting to see the number would be under 1,000 after Friday. It gave me a little rush to be honest. And if everything goes right (I am determined to make it) then we should have it paid off by the end of July. That allows us to put $600 a month (what we have been applying to tackle the debt) to another bill. Now that is exciting.