Debt Dumpers - 2013

[ceemys]

Space girl and Eureka. Thank you! .

My house is 3 times the size of my apt AND only about $200 more a month! 2 story, with a big loft. My own sewing room for the first time ever. It has always been in my bedroom. Blech! I have basic vinyl floor and oak cabinets because I paid extra for stuff I can't change later or would be hard later, 9 foot ceilings, water softener rough in, kitchen island, extra windows, ceiling fan caps, gas furnace, side lite near the front door, stuff ,Ike that. I did splurge and I am having speakers built into the ceiling. . I am very excited but nervous! when it is done I will show a picture. Y'all have gone though my painful process the entire time, you deserve a reward.

Question for anyone....my CC company increased my credit limit $1000 extra. Not that I will use it, I am only using about $50 a month. But do you think with Capitolone doing that, that my credit score will increase more?

 

[SpaceGirl]

Space girl and Eureka. Thank you! .

My house is 3 times the size of my apt AND only about $200 more a month! 2 story, with a big loft. My own sewing room for the first time ever. It has always been in my bedroom. Blech! I have basic vinyl floor and oak cabinets because I paid extra for stuff I can't change later or would be hard later, 9 foot ceilings, water softener rough in, kitchen island, extra windows, ceiling fan caps, gas furnace, side lite near the front door, stuff ,Ike that. I did splurge and I am having speakers built into the ceiling. . I am very excited but nervous! when it is done I will show a picture. Y'all have gone though my painful process the entire time, you deserve a reward.

Question for anyone....my CC company increased my credit limit $1000 extra. Not that I will use it, I am only using about $50 a month. But do you think with Capitolone doing that, that my credit score will increase more?

Christine

Your new home sounds wonderful, and it sounds like you are already making good financial decisions with the options that you have chosen. I must admit I am very excited for you, can't wait to see the photos. Thank you for letting us share this time with you and your daughters.

Now on to your question Congratulations on your Credit Limit Increase, this is a good thing Yes this should raise your credit score.

This is the debt to credit ratio I was talking about in my earlier post, the debt you have divided into the amount of credit you have available (Credit Limits) gives the credit bureaus the percentage of debt you have. The lower % the better. Most people that have a credit scores in the 800's have less than 10% debt on credit cards.

If I were you I would only let one credit card report any balance until you close. (if you have more than one CC)

 

[ceemys]

Summersalt.

I agree with Everything SpaceGirl said! First..Welcome! and second, do not take out a 2nd mortgage or equity. Just pay down the debt in its current mode. You won't change the debt...just transferring.

SpaceGirl...That is GOOD to know!! It really eases my stress. I only have that one CC. To add, the house is only 4 miles away from the apartment, so my oldest will be at the same HS. I purposely did this. The youngest one will switch schools, but she is in 1st grade. No biggie. She knows this school anyway, her sitters kids went there. She is comfortable and the older one is playing it up BIG time and saying that in 1st grade, everyone loves the new kids and it is a big deal when a new kid comes to class.

 

[zurgswife]

Still hoping to be able to pay down debt but until DH gets a full time gig (he is consulting PT right now). My pay and his PT only barely cover our current expenses. Between the two of us we have a very very large amount in student loans as we both went back to school to change careers.

Once we get a gig my guess is it would take us 3-5 yrs of constant FT job to get out of debt. He does have a gig in the wings from his current PT employer but waiting for the funding to come through for a 12month contract. Fingers crossed this comes in soon.

 

[summersalt]

Welcome

Your right later is better than NEVER You do have a lot going for you with that mortgage only having 3 months to pay. So without knowing more about the credit card debt ( How many cards, high low balances and interest rates) Here's what I would do....

I would never put my house at risk over credit card debt, (you have worked to hard over the years for this) if you take out a HOL that's what you would be doing. It is a proven fact that people that take out loans to pay-off credit card debt end up with just as much or more debt on the cards they paid off with the loan.

#1-About the credit card debt-I love credit cards-as long as you use the credit card company and don't let them use you it's all good.

Sounds like you are letting them use you right now so for the next three months I would pay as much as I could to start getting rid of the balances owed, not the card (unless you pay annual dues to have the card then close the card once it is paid-in-full)

I would try to consolidate your balances if possible maybe transfer them to a 0% interest rate for as long as you can.

#2-New Roof-now I would take a HOL for this but lock in a good low stable interest rate, hoping that you can wait until your mortgage is paid off in three months or wait as long as you can so more of your budget that is going toward your mortgage now can be snowballed toward the credit card balances. Take out the lowest amount of money you may need to get the roof only done.

#3-College Tuition-Is a full scholarship to much to hope for? Scholarships and grants that your daughter can get is the best option, after that student loans in her name not yours. (interest rates should be lower and your home is safe) She needs to be financially responsible for her education not you and your husband. That being said there nothing stopping you from helping her if she needs it further down the road.

#4-Car Loan-If you and/or your husband work having dependable transportation is a must, I would just keep paying the monthly payments until it is paid-in-full, then snowballing the payment toward the other debt. (If the other debt is paid-in-full then snowball the money toward the car loan)

Remember while your are trying to do all this keep up with your retirement fund.

This advice is very much appreciated! We have made paying off the mortgage and saving for retirement a priority over the years so we have a good sized nest egg built up. We also have an emergency fund saved too. I'm now wondering if it would be best to pay off the debit and cut back on the retirement savings? I will be looking to transfer those credit card balances to a 0% interest rate right now! As for the roof, it can't wait much longer so I'm expecting that I will have to take out a HOL as soon as the first mortgage is paid off.

 

[Eureka]

Space girl and Eureka. Thank you! .

My house is 3 times the size of my apt AND only about $200 more a month! 2 story, with a big loft. My own sewing room for the first time ever. It has always been in my bedroom. Blech! I have basic vinyl floor and oak cabinets because I paid extra for stuff I can't change later or would be hard later, 9 foot ceilings, water softener rough in, kitchen island, extra windows, ceiling fan caps, gas furnace, side lite near the front door, stuff ,Ike that. I did splurge and I am having speakers built into the ceiling. . I am very excited but nervous! when it is done I will show a picture. Y'all have gone though my painful process the entire time, you deserve a reward.

Question for anyone....my CC company increased my credit limit $1000 extra. Not that I will use it, I am only using about $50 a month. But do you think with Capitolone doing that, that my credit score will increase more?

Wow, only $200 more is great. Except don't forget it will cost more to heat with the size increase, so be ready for that this winter. I am jealous of your sewing room. I don't sew, but would love my own "office" for my couponing stuff, scrapbooking stuff, would come in handy for work etc. Right now I sit in a recliner in our "study" which was a dining room before we moved in. No doors to close for quiet.

 

[SpaceGirl]

This advice is very much appreciated! We have made paying off the mortgage and saving for retirement a priority over the years so we have a good sized nest egg built up. We also have an emergency fund saved too. I'm now wondering if it would be best to pay off the debit and cut back on the retirement savings? I will be looking to transfer those credit card balances to a 0% interest rate right now! As for the roof, it can't wait much longer so I'm expecting that I will have to take out a HOL as soon as the first mortgage is paid off.

Sounds like the roof should be moved to the top of the list. A new roof should/does qualify as an Emergency so I would use the Emergency Funds to pay for the roof if you have enough in savings. Then start rebuilding the fund afterward.

It sounds like you have a plan to put in motion GOOD LUCK, check back and let us know how your doing.

Remember other than your roof NO NEW DEBT...This doesn't mean you can't make purchases you need, it means you should have the money to pay for them when you buy them.

 

[SpaceGirl]

Still hoping to be able to pay down debt but until DH gets a full time gig (he is consulting PT right now). My pay and his PT only barely cover our current expenses. Between the two of us we have a very very large amount in student loans as we both went back to school to change careers.

Once we get a gig my guess is it would take us 3-5 yrs of constant FT job to get out of debt. He does have a gig in the wings from his current PT employer but waiting for the funding to come through for a 12month contract. Fingers crossed this comes in soon.

Ouch !!! going back to school is so expensive when you already have a family and household to support. If you can do that you shouldn't have any trouble paying the loans off as soon as your husband gets a full-time job. It shows you both are willing to do whatever it takes.

I hope your husband lands the job and you can get started very soon. Check back and let us know how you are doing, here's to better times in the near future.

 

[SpaceGirl]

To add, the house is only 4 miles away from the apartment, so my oldest will be at the same HS. I purposely did this. The youngest one will switch schools, but she is in 1st grade. No biggie. She knows this school anyway, her sitters kids went there. She is comfortable and the older one is playing it up BIG time and saying that in 1st grade, everyone loves the new kids and it is a big deal when a new kid comes to class.

Sounds like your older daughter has a sweet disposition and is very protective of her Baby Sis feelings. It's great she doesn't have to change her High School, it is much harder to change at her age.

She is right little children see someone new and just can't wait to meet them and make a new friend, they're like little magnets.

 

[OhMari]

Still hoping to be able to pay down debt but until DH gets a full time gig (he is consulting PT right now). My pay and his PT only barely cover our current expenses. Between the two of us we have a very very large amount in student loans as we both went back to school to change careers.

Once we get a gig my guess is it would take us 3-5 yrs of constant FT job to get out of debt. He does have a gig in the wings from his current PT employer but waiting for the funding to come through for a 12month contract. Fingers crossed this comes in soon.

Wow, at least you can cover your daily expenses. And good for you to actually see a goal that you can achieve.

All my kids have student loans and the government actually lowered their payments. I told them all to keep paying the extra to what they were originally set up for and if they have anything extra to apply and start snowballing these loans. I know we are not suppose to talk politics, but I love Obama's (not) solution to give people more manageable payments on their loans. It may help some, but it also adds a ton more interest, which they never mention.

 

[peigirl]

Ceemys - keep us updated on the progress of the new house...this is so exciting...I will live vicariously thru you lol

I am not sure if I wrote before that my husband started his new parttime job. First week it was 1 shift, this week they increased it to 2 shifts and today they called him into the office and added a 3rd shift starting next week. They also asked if I could write down for them what other hours he would be available! They want to work around my schedules from my 2 jobs and our girls' job schedules so that they can offer him more hours but not worry about who is going to be home with our little guy.

I am thinking that I might go for a supervisor position in my fast food job once I get a couple more months under my belt...may as well, and get a little raise at the same time.

 

[ceemys]

Wow, only $200 more is great. Except don't forget it will cost more to heat with the size increase, so be ready for that this winter. I am jealous of your sewing room. I don't sew, but would love my own "office" for my couponing stuff, scrapbooking stuff, would come in handy for work etc. Right now I sit in a recliner in our "study" which was a dining room before we moved in. No doors to close for quiet.

Yep. Got it covered. . I am hoping with the efficient newer gas furnace and insulated windows, it won't be too bad. But I talked to my neighbors and their electric for the winter was only $30 more than what I pay here. Wind blows through the windows here and nothing is fixed.

Ceemys - keep us updated on the progress of the new house...this is so exciting...I will live vicariously thru you lol

lol

I am not sure if I wrote before that my husband started his new parttime job. First week it was 1 shift, this week they increased it to 2 shifts and today they called him into the office and added a 3rd shift starting next week. They also asked if I could write down for them what other hours he would be available! They want to work around my schedules from my 2 jobs and our girls' job schedules so that they can offer him more hours but not worry about who is going to be home with our little guy.

I am thinking that I might go for a supervisor position in my fast food job once I get a couple more months under my belt...may as well, and get a little raise at the same time.

That is so nice! I've never heard of an employer helping you with our childcare schedule.

 

[jenny105]

So I'm not sure how my boyfriend pulled this off but he managed to get our cable bill lowered $30 with DirecTV plus we have all these free channels for a few months! He called to get the NFL RedZone channel turned on but didn't want the whole NFL Ticket package. Most of the games he watches are local. So they ended up giving us NFL Ticket free of charge - we just have to remember to turn it off next year because otherwise it'll be like $500! Then the customer service rep threw in Starz free for 6 months and Showtime free for 3 months. No need to call back because the channels will turn off when the free trial is up. Then she threw in $30 off for 12 months if we renewed our contract for one more year (it ends in November)! All because he called to get NFL Redzone lol. Not sure why she offered all of that but awesome! That extra bit of savings will go toward my CC and savings!

 

[ceemys]

So I'm not sure how my boyfriend pulled this off but he managed to get our cable bill lowered $30 with DirecTV plus we have all these free channels for a few months! He called to get the NFL RedZone channel turned on but didn't want the whole NFL Ticket package. Most of the games he watches are local. So they ended up giving us NFL Ticket free of charge - we just have to remember to turn it off next year because otherwise it'll be like $500! Then the customer service rep threw in Starz free for 6 months and Showtime free for 3 months. No need to call back because the channels will turn off when the free trial is up. Then she threw in $30 off for 12 months if we renewed our contract for one more year (it ends in November)! All because he called to get NFL Redzone lol. Not sure why she offered all of that but awesome!

VERY NICE!! sometimes all it takes is a phone call.

 

[Eureka]

So I'm not sure how my boyfriend pulled this off but he managed to get our cable bill lowered $30 with DirecTV plus we have all these free channels for a few months! He called to get the NFL RedZone channel turned on but didn't want the whole NFL Ticket package. Most of the games he watches are local. So they ended up giving us NFL Ticket free of charge - we just have to remember to turn it off next year because otherwise it'll be like $500! Then the customer service rep threw in Starz free for 6 months and Showtime free for 3 months. No need to call back because the channels will turn off when the free trial is up. Then she threw in $30 off for 12 months if we renewed our contract for one more year (it ends in November)! All because he called to get NFL Redzone lol. Not sure why she offered all of that but awesome! That extra bit of savings will go toward my CC and savings!

That is awesome! I hate haggling with Comcast to find a deal.

Looks like my start date for work is going to be around Oct. 1 and thank goodness because the credit card has been getting a workout. Went to get an oil change in the van (Honda odyssey) and ended up needing tires...$300. Then I went shopping for work clothes today. Got some great stuff at the outlets, but to the tune of another $300. All needed, but I can't remember the last time I spent that much on clothing in one day. Plus I still need some jeans because I lost 15 lbs last year and my old ones don't fit anymore. I do have some Kohls cash and a coupon I can use though.

 

[summersalt]

The next 10 days are gonna be challenging:
$400 for food
$200 for gas
$100 for anything else that pops up (fingers crossed nothing pops up!)

I will be so thrilled if we actually make it!

 

[SpaceGirl]

I am thinking that I might go for a supervisor position in my fast food job once I get a couple more months under my belt...may as well, and get a little raise at the same time.

Paula

Just keeping track of all your families work schedules is like a full time job, you should defiantly go for the raise your not there to socialize your there for the Money. Glad to hear your DH is picking up more shifts.

Jenny

Great news about your DirectTV bill like you say every bit helps.

Christine

Your right sometimes all it takes is a phone call.

So if anyone has insurance policies, cable bills, security monitoring, any monthly service bills that can be negotiated you should be making the calls to try and lower the rates. Even credit card rates can be lowered with a phone call some times.

Eureka

Sounds like you have been busy spending money... you knew you needed some new cloths to rejoin the work force, takes money to make money. Hope you enjoyed splurging a little on yourself. I wish I needed smaller new jeans, all my new jean purchases have been for larger sizes...

Summersalt

$700.00 for 10 days you can do this, let us know how well you do. Remember if you can operate for less that's more money for the debt.

 

[gracie1]

Just checking in with everyone to tell you that your all doing an awesome job!! I haven't posted in a while but have been following the boards. I still have a lot of dental work to go, and by year end it will be finished!! I plan on having it all done and using my savings - this way I can deduct it on my taxes since I will be over the % rate. Otherwise, I could make it go longer but won't reach it next year unless something big happened, which I hope not!!
I have pretty much decided that I will more than likely put my Disney trip off until 2015 - and build up my savings all throughout next year to get it back in shape!

 

[SpaceGirl]

I understand where your coming from, I would want to have it all done ASAP just so I wouldn't have to keep going and going.

The reason you have is more finically responsible.

Hate to hear you'll have to wait on your Disney Trip, but you will have time to save and have a Magical Trip.

 

[Doodlebug939]

I am still here! I have been reading the posts regularly and you are all so motivating. As with us August was a yucky month but we managed to charge very little and in comparison to previous years. I was able to pay back all that I charged except for about $150 so that it not too bad.

On a personal note I just started training as a bank teller which is part time and only three miles from my house. I am a little stressed about the money handling but I figured that if I follow the rules and procedures then I will be fine. I had to open a checking account with the bank that I was hired at so all of the checks can be put in that account. I was initially bummed by this but now I realize it is a great way to make sure that all of my check goes toward to debt reduction and doesn't get mixed in with household funds.

That way regardless of how small or big the check is the money can go toward a bill. And if I find that this job is not for me then our family will have not gotten used to the extra money but some debt will be gone. Thinking positive thoughts that this could grow into a better position within the bank. (I have a business degree but worked in the past as a special education aide. Go figure! So I have to start somewhere)