Debt Dumpers - 2014

[ruadisneyfan2]

I think I posted in the 2013 thread before the holidays. I need to get a hole of our debt in a MAJOR way. We're sitting at $29k in credit card debt alone. Add in cars, student loans, etc, and we're in a world of hurt, LOL. Sadly according to mint we spent $13k in December ALONE! (I think several sports/activities checks posted this month).

DH and I both make good money. But because of that, we also spend good money. I looked at DR and want to apply some of his ideas, but again, not all work for us, or do we want them to. We both have newer cars (I have 2014 Jeep Grand Cherokee, he has a 2011 Jeep Liberty, with the hopes of making it to payoff with his and keeping it for our DD). We have a lawn service, a cleaning lady. My daughter does elite travel soccer, my son just started mini mites hockey. We make enough to have all these goodies, and then some, but we need to curb back our spending and get back within our means.

We used to pay off our CC's every month. Then something came up, and we carried a small balance, and then it happened again, and apparently again and again and again, LOL. So now we need to tame the beast.

I've signed up for two 0% balance cards so far, just trying to hold off the crazy amounts of interest we've been paying. I'm going to try for another 1 or 2 this weekend to see if I can't get a huge chunk of the balances off the high rate cards! Then we need to attack and I'd like to try the snowball effect. Of course our lowest balance is already ON a 0% store card, so I'm keen letting that ride out until we pay that off before the rate change. Perhaps we can start with the smaller balances I'll have left on the high rate cards.

I'm guessing I can't be alone living in a world of "but I want this..." while trying to budget, LOL. My biggest issue is the sense of entitlement I have. I work for a reason, to live in a nice house, to drive a new car, and have nice things and do fun things and go places, etc. If I wanted to pinch pennies, I'd stop working ($20K in daycare savings) and stay home. So it's hard to strict the balance for me from extremes (Dave Ramsey for example) and excessive (me, LOL).

Here we go!

I used to think this way too. It justified many vacations, cleaning service, etc. I have to say though we made sure we only had 1 car payment at a time and never hired a lawn service. When ds17 turned 11 we paid him $10 to cut it. He thought that was big $ and gave dh a break. We both come from a long line of DIY-ers and it's hard to wrap my mind around paying for labor on things we're capable of doing ourselves. I broke down & hired a cleaning service when my kids were 5 & 2 because it just wasn't getting done. I spent half my weekend doing laundry and the other half cleaning house and never got to spend time with the kids. Dh would take them to say Franklin Institute in Philly to "get them out of my hair" so I could get a lot done but after a while I felt like I'm the shmuck working 24/7 (ok, maybe 16/7) while he's out making fun memories with our kids. Anyway, as our kids got older, I decided I'd rather pay them than a stranger. $5 to do the bathroom takes a lot of stress off me and they need to learn how anyway.

So there I go rambling again. Sorry.

You can keep justifying but at some point it will become too much to juggle & you'll stop caring what the neighbors think. We can't live like retired people who are done raising kids, paid off their homes & have a nice nest egg.

Once kids start school, time really flies. (I truly can't believe ds is halfway through 11th grade!) and in a blink you'll be looking at colleges. I'm sure you'd like to be able to help them out with that as well. Stick with us and you'll have it all under control by the time that day arrives

I've paid off almost $8000 in debt since I joined in spring!
You can do it!!


eta: I liken it to losing weight. If you cut way down to extreme, it will be much harder to stick with it. That would be like almost fasting. Maybe keep one thing that really makes life easier/enjoyable but cut the fat from something that isn't a huge priority. We still have cable/Fios, mostly because there would be a revolution if I cut it but we don't have extra pay channels and we rarely go out to dinner, barely even get take out pizza now.
I also disagree with some things DR says, like stop funding our retirement accounts while we pay off debt. Dh is 55 and I don't think there's anything on Earth that would make him stop paying into that. Still, just because I disagree with some things DR says, doesn't mean I can't follow his advice that I agree with. We've still made great progress! I joined in spring but didn't start snowballing until after our Sept trip to WDW.

 

[Holly Quinlan]

So today was payday and I've never been this excited about being broke I paid all my bills on time! Paying on time has always been an issue with me, I just forget about them . I even paid some bills for next week. I sat down again and refigured everything and found a way to pay off all my credit cards one student loan my car and two personal loans by the end of April before my husband gets laid off.(I have also found about 20 different recipes for Ramen noodles lol!!!)And then IT happened I crashed my car into the garage I have a $500 deductible so there goes another $500 ugh!! But I now have $3 in my 52 weeks savings woohoo!!!

 

[dayvewc]

So today was payday and I've never been this excited about being broke I paid all my bills on time! Paying on time has always been an issue with me, I just forget about them . I even paid some bills for next week. I sat down again and refigured everything and found a way to pay off all my credit cards one student loan my car and two personal loans by the end of April before my husband gets laid off.(I have also found about 20 different recipes for Ramen noodles lol!!!)And then IT happened I crashed my car into the garage I have a $500 deductible so there goes another $500 ugh!! But I now have $3 in my 52 weeks savings woohoo!!!

In order:
lol
Been there, I understand
Yay, getting any bit ahead always feels great!
Woo-hoo!!! on getting stuff paid off and Oh, man. Gotta bite losing an income.
Ramen noodles are great. I don't eat them much anymore, but I have cookbooks full of 4-ingredient and/or crockpot meals that will feed me for a week at a time.
Ouch!! so sorry about the car. Hope it didn't do too much damage and doesn't hurt your rate any. And hope you weren't hurt also!!
Yay on the 52 weeks savings. I'm right with you there!!

 

[Stuarotra]

Hi all!!! I just want to thank those of you who suggested YNAB. Before Christmas, my husband and I looked at some of the tutorials, and he was ready to buy it right then. He said "I think I can do this one". Well I had read somewhere on this thread that sometimes it goes down to 15.00.

I told him about the discount and we would just have to be patient and wait for it. Well, right before Christmas, it went down to 30.00. He was ready to buy it then too. Once again, I said "I know it will go down to 15.00, we just need to wait". I'm usually not a patient person but when it comes to getting a bargain, I can be very patient.

Sure enough, right after Christmas, I saw a post on the budget board that said YNAB. Was 14.99 for 48 hours!!!!! Yay!!!! We bought it and love it!! Took the free beginners class and learned the basics. I want to watch the other classes but at least we have a budget now!!

Sorry this was so long. I'm just so excited about finally having a budget plan that works for both of us and getting it at a bargain is even better!!

Good job everyone. Keep up the good work. I may not post much, but I read everyday.

Taunya

 

[fabulousfive]

Joining in! We've been using Mint the past few years, but just saw on this forum yesterday about YNAB. So excited about getting started with that for a change. Just nervous about having to take the time to record transactions, even with the phone app, but I'll start and see how it goes. Thanks everyone!!!

 

[gracie1]

I used to think this way too. It justified many vacations, cleaning service, etc. I have to say though we made sure we only had 1 car payment at a time and never hired a lawn service. When ds17 turned 11 we paid him $10 to cut it. He thought that was big $ and gave dh a break. We both come from a long line of DIY-ers and it's hard to wrap my mind around paying for labor on things we're capable of doing ourselves. I broke down & hired a cleaning service when my kids were 5 & 2 because it just wasn't getting done. I spent half my weekend doing laundry and the other half cleaning house and never got to spend time with the kids. Dh would take them to say Franklin Institute in Philly to "get them out of my hair" so I could get a lot done but after a while I felt like I'm the shmuck working 24/7 (ok, maybe 16/7) while he's out making fun memories with our kids. Anyway, as our kids got older, I decided I'd rather pay them than a stranger. $5 to do the bathroom takes a lot of stress off me and they need to learn how anyway.

So there I go rambling again. Sorry.

You can keep justifying but at some point it will become too much to juggle & you'll stop caring what the neighbors think. We can't live like retired people who are done raising kids, paid off their homes & have a nice nest egg.

Once kids start school, time really flies. (I truly can't believe ds is halfway through 11th grade!) and in a blink you'll be looking at colleges. I'm sure you'd like to be able to help them out with that as well. Stick with us and you'll have it all under control by the time that day arrives

I've paid off almost $8000 in debt since I joined in spring!
You can do it!!


eta: I liken it to losing weight. If you cut way down to extreme, it will be much harder to stick with it. That would be like almost fasting. Maybe keep one thing that really makes life easier/enjoyable but cut the fat from something that isn't a huge priority. We still have cable/Fios, mostly because there would be a revolution if I cut it but we don't have extra pay channels and we rarely go out to dinner, barely even get take out pizza now.
I also disagree with some things DR says, like stop funding our retirement accounts while we pay off debt. Dh is 55 and I don't think there's anything on Earth that would make him stop paying into that. Still, just because I disagree with some things DR says, doesn't mean I can't follow his advice that I agree with. We've still made great progress! I joined in spring but didn't start snowballing until after our Sept trip to WDW.

That is awesome that you have paid $8000 towards your debt since spring

I am just like everyone else, I always justified that I work hard and should take vacations, buy nice things, etc. Which is what got me in the cc trouble!! I haven't had a vacation since I got out of debt! One day I will get one, but I enjoy being out of debt more than getting in debt for vacations now. My mom and I have been taking just day trips to see shows, and we might take an overnight trip to Hershey in the Spring and go to Hershey Park. I've been to the factory and all but the park was closed. I am actually in the process of making a bucket list of things I want to do that are within driving distance for day trips that are much more affordable I have surprised myself with how much stuff there is to do within a 3 hour drive that I never paid attention to in the past.

Great job everyone!!

 

[Eureka]

I've read Mary Hunt's book and really like her better than DR. She has a stronger philosophy about saving up an emergency fund, which appeals to me. DR's $1000 initial emergency fund just isn't enough to make me feel comfortable. I need to have more in the bank thank that to feel safe.

A few thoughts....sorry, this turned out to be longer than I thought!

I agree about $1000 is not enough of an emergency fund. It really doesn't go that far these days; we couldn't even pay one month's mortgage with that. I like Gail Vaz-Oxlade, I just can't get with Dave Ramsey because of the religious stuff and also it's not practical for us to go cash-only. Gail has that as her way of making the people in big trouble cut back, but in her books she talks about planned spending, emergency fund and teaches how to live within your means without necessarily having to be completely debt-free, which is more reasonable for us.

We got a "pre-inheritance" a few years ago (proceeds from a house sale) used some of it for some home repairs but then put the rest in a savings account that requires a high minimum balance so we're not tempted to touch it. It's our emergency fund, but our definition of emergency may differ than others'. For us, it means if DH's contract is not renewed (his company contracts with the govt and is up for rebid this year), we could use it to live on until he finds a job. It's easier to think about now that I am working full time, but I really don't know what else would be a true emergency. If we don't have one, it will go toward college for the kids (in addition to their newly-opened 529s) or our retirement (in addition to our 401Ks). We have a separate savings account that is for planned expenses like car repairs, vacations, home improvements. We put into that weekly and that's the account I would like to build up, because in the not-too-distant past, we had to raid that for bills before I worked full time, and had to put repairs on the credit card.

As for DR's view of being debt-free, I get it, but I think there's a difference between high-interest consumer debt and low-interest debt. We have a car payment but at 1.9 percent, so there is little incentive to pay it off early since we are paying less than $1000 over the life of the loan. We also have a mortgage and would love to get rid of it, but we just can't pay extra on that AND contribute to retirement and college funds all at the same time. But when we are done (I think in 10-11 more years), it sure will be nice to put that payment toward traveling, retirement or to help out the kids, who at that point will be in their early 20s.

We do have a hefty credit card balance at the moment. If we chose to, we could pay it off with some of the emergency fund but again, we have a low-ish interest card and would rather have some savings in the bank just in case. Our goal in 2014 is to get rid of as much of that balance as we can. It makes me nervous owing it, but I know it will be fine.

I think I am kind of rambling....I guess what I am saying is that for me/us, it's more important to have some liquidity in case it's needed instead of being completely debt-free and cash poor. Just my two cents - or from the length of this email, probably more, lol!

Thanks for listening.

 

[Eureka]

So today was payday and I've never been this excited about being broke I paid all my bills on time! Paying on time has always been an issue with me, I just forget about them . I even paid some bills for next week. I sat down again and refigured everything and found a way to pay off all my credit cards one student loan my car and two personal loans by the end of April before my husband gets laid off.(I have also found about 20 different recipes for Ramen noodles lol!!!)And then IT happened I crashed my car into the garage I have a $500 deductible so there goes another $500 ugh!! But I now have $3 in my 52 weeks savings woohoo!!!

That sounds funny but I totally know what you mean. Great job!

 

[jenny105]

I read Dave Ramsey's baby steps. Now I'm more focused on putting my extra cash into an e-fund and then will start putting it toward my debt. Can't wait to get that tax refund!

 

[tdmoney7]

I'm on board!! Hoping this board will help me stay on track. Like the YNAB but hate the 60$ rage. I read some people have gotten it cheap - anyone know of a coupon code or when it might get lower? I like the $14.99 price a poster got at the beginning of the year! TIA!

 

[Holly Quinlan]

Has anyone used turbotax? How did you like it was it difficult to do? Trying to save money by not paying someone else to do my taxes. I don't get much of a refund anyway.

Sent from my iPhone using DISBoards

 

[momtosam]

Has anyone used turbotax? How did you like it was it difficult to do? Trying to save money by not paying someone else to do my taxes. I don't get much of a refund anyway.

Sent from my iPhone using DISBoards

I use TaxAct. The first year I kept the previous year's return by my side that was completed by H&R Block. I could pretty much look at that return to see where information should go into TaxAct. After I did it one year, it was easy to continue with it each year.

 

[PlaneJoy1]

Hi all!!! I just want to thank those of you who suggested YNAB. Before Christmas, my husband and I looked at some of the tutorials, and he was ready to buy it right then. He said "I think I can do this one". Well I had read somewhere on this thread that sometimes it goes down to 15.00.

I told him about the discount and we would just have to be patient and wait for it. Well, right before Christmas, it went down to 30.00. He was ready to buy it then too. Once again, I said "I know it will go down to 15.00, we just need to wait". I'm usually not a patient person but when it comes to getting a bargain, I can be very patient.

Sure enough, right after Christmas, I saw a post on the budget board that said YNAB. Was 14.99 for 48 hours!!!!! Yay!!!! We bought it and love it!! Took the free beginners class and learned the basics. I want to watch the other classes but at least we have a budget now!!

Sorry this was so long. I'm just so excited about finally having a budget plan that works for both of us and getting it at a bargain is even better!!

Good job everyone. Keep up the good work. I may not post much, but I read everyday.

Taunya

I Have really loved YNAB since we found it in December. It is making a difference in our household simply because we can track our spending on our phones and see budgeted balances. We are still tweaking here and there but I really! really love it! My DH no longer feels like he can't spend money because he has his own money budgeted just for him. To me it's a modern take on DR's envelope system.

 

[Stuarotra]

I Have really loved YNAB since we found it in December. It is making a difference in our household simply because we can track our spending on our phones and see budgeted balances. We are still tweaking here and there but I really! really love it! My DH no longer feels like he can't spend money because he has his own money budgeted just for him. To me it's a modern take on DR's envelope system.

I completely agree!!!

 

[gracie1]

A few thoughts....sorry, this turned out to be longer than I thought! I agree about $1000 is not enough of an emergency fund. It really doesn't go that far these days; we couldn't even pay one month's mortgage with that. I like Gail Vaz-Oxlade, I just can't get with Dave Ramsey because of the religious stuff and also it's not practical for us to go cash-only. Gail has that as her way of making the people in big trouble cut back, but in her books she talks about planned spending, emergency fund and teaches how to live within your means without necessarily having to be completely debt-free, which is more reasonable for us. We got a "pre-inheritance" a few years ago (proceeds from a house sale) used some of it for some home repairs but then put the rest in a savings account that requires a high minimum balance so we're not tempted to touch it. It's our emergency fund, but our definition of emergency may differ than others'. For us, it means if DH's contract is not renewed (his company contracts with the govt and is up for rebid this year), we could use it to live on until he finds a job. It's easier to think about now that I am working full time, but I really don't know what else would be a true emergency. If we don't have one, it will go toward college for the kids (in addition to their newly-opened 529s) or our retirement (in addition to our 401Ks). We have a separate savings account that is for planned expenses like car repairs, vacations, home improvements. We put into that weekly and that's the account I would like to build up, because in the not-too-distant past, we had to raid that for bills before I worked full time, and had to put repairs on the credit card. As for DR's view of being debt-free, I get it, but I think there's a difference between high-interest consumer debt and low-interest debt. We have a car payment but at 1.9 percent, so there is little incentive to pay it off early since we are paying less than $1000 over the life of the loan. We also have a mortgage and would love to get rid of it, but we just can't pay extra on that AND contribute to retirement and college funds all at the same time. But when we are done (I think in 10-11 more years), it sure will be nice to put that payment toward traveling, retirement or to help out the kids, who at that point will be in their early 20s. We do have a hefty credit card balance at the moment. If we chose to, we could pay it off with some of the emergency fund but again, we have a low-ish interest card and would rather have some savings in the bank just in case. Our goal in 2014 is to get rid of as much of that balance as we can. It makes me nervous owing it, but I know it will be fine. I think I am kind of rambling....I guess what I am saying is that for me/us, it's more important to have some liquidity in case it's needed instead of being completely debt-free and cash poor. Just my two cents - or from the length of this email, probably more, lol! Thanks for listening.

Very well said! In my emergency fund I feel like I need atleast one years mortgage in there in case I lost my job, and then I want to make sure there's enough in there for car repairs and all. Like right now, were at the vet getting X-rays and this will definitely be hitting the emergency fund.

 

[ruadisneyfan2]

Very well said! In my emergency fund I feel like I need atleast one years mortgage in there in case I lost my job, and then I want to make sure there's enough in there for car repairs and all. Like right now, were at the vet getting X-rays and this will definitely be hitting the emergency fund.

I think when DR says $1000 for an emergency fund, he means just a little go to $ so you dont feel the need to put minor "emergencies" on a credit card. If your car needs brakes, the clothes dryer dies, etc. It's not for catastrophic illnesses or set backs like job loss. I guess thats why its called baby steps. It's only a start.
Once the debt is gone, one can quickly build it up to a proper amount.
Everyone has their own comfort level of what amount will give you peace of mind. His example of dipping into the emrgency fund was to have a flat tire fixed without having to charge it. Most unexpected expenses are not due to catastrophic reasons.

 

[dayvewc]

Has anyone used turbotax? How did you like it was it difficult to do? Trying to save money by not paying someone else to do my taxes. I don't get much of a refund anyway.

Sent from my iPhone using DISBoards

I've used turbo tax for about 12 years. Really easy. It guides you through all the tax scenarios. I like it enough to keep using it. I will admit I've never qualified for the free version, but federal and state returns on the full 1040 usually cost me $80.

 

[jenny105]

I think when DR says $1000 for an emergency fund, he means just a little go to $ so you dont feel the need to put minor "emergencies" on a credit card. If your car needs brakes, the clothes dryer dies, etc. It's not for catastrophic illnesses or set backs like job loss. I guess thats why its called baby steps. It's only a start.
Once the debt is gone, one can quickly build it up to a proper amount.
Everyone has their own comfort level of what amount will give you peace of mind. His example of dipping into the emrgency fund was to have a flat tire fixed without having to charge it. Most unexpected expenses are not due to catastrophic reasons.

My thoughts exactly. Once you pay off the debt the third baby step is to get that emergency fund up to 3-6 months worth of expenses. I'm sure most people are more comfortable with that amount.

 

[momtosam]

I think when DR says $1000 for an emergency fund, he means just a little go to $ so you dont feel the need to put minor "emergencies" on a credit card. If your car needs brakes, the clothes dryer dies, etc. It's not for catastrophic illnesses or set backs like job loss. I guess thats why its called baby steps. It's only a start.
Once the debt is gone, one can quickly build it up to a proper amount.
Everyone has their own comfort level of what amount will give you peace of mind. His example of dipping into the emrgency fund was to have a flat tire fixed without having to charge it. Most unexpected expenses are not due to catastrophic reasons.

I agree that is what he means, but it still doesn't make me feel good to have only $1000 in reserve even while paying down debt. I prefer to keep saving at the same time even though it will take me longer to pay things off. I realize not everyone would agree, but DHs pay can fluctuate and I need to know I have some back up money on hand.

 

[gracie1]

I've never read Dave Ramsey so I just go off my own personal preference. On another note, the unexpected vet bill today came in at a tune of $400!!! Ouch!! Oh well, gotta take care of the fur baby. Hopefully this is it for a while - between vet bills and dental bills I'm going to need another job! Lol