Debt Dumpers - 2014

[ruadisneyfan2]

Just keep making the minimum payments on all the debts - whatever that minimum amount is (if it is lower) - and throw all extra money at the first debt in the snowball. Then, throw all payments from debt #1 at debt #2 and keep going. The debt snowball is more about changing our behavior habits.

Thanks. We've been doing well with our snowball. We have paid off 6 bills since October 10.
I just wasn't sure how to handle changing minimums. www.debtMD.com lists The Plan as keeping the original minimum until it's time to attack it. I figured I'd be able to pay down the bill I'm currently working on faster if I send less to the other bills. I didn't know if there was a right or wrong way to do it.

 

[AirGoofy]

Thanks. We've been doing well with our snowball. We have paid off 6 bills since October 10.
I just wasn't sure how to handle changing minimums. www.debtMD.com lists The Plan as keeping the original minimum until it's time to attack it. I figured I'd be able to pay down the bill I'm currently working on faster if I send less to the other bills. I didn't know if there was a right or wrong way to do it.

I don't think either is wrong, since you're paying debt. I think the intention of the snowball was to help you focus. It sounds like you've been doing that.

 

[aliceindisneyland]

Tax refund came in 3 days! Another $1300 against the ccs. In the last week I've lowered my utilization from 94% to 66% (said in the voice of the beaver from Lady and the Tramp)

 

[PrincessKymm]

Tax refund came in 3 days! Another $1300 against the ccs. In the last week I've lowered my utilization from 94% to 66% (said in the voice of the beaver from Lady and the Tramp)

Congrats!!! That's awesome news!!!

 

[pryncess527]

@PrincessKymm I'm so sorry to haer you and your dbf broke up. I'm glad you have some money in savings to help ease the transition, and it's great to have family close for help and support.

This. I am pressing forward as each year gets a little better. Our second car will be paid off at the end of the year and if I stick to my guns every month with meal planning and only planned eating out then all of our other debt(except orthodontist) will be paid off!

We'll start 2015 with no car payments, no credit card debt and no house payment!!!! Disney cruise ultimate vacation is on the radar for summer 2015!!!

Love hearing all the inspirational stories

Yay! Congrats on making so much progress, motivation gets so much easier (to me) when the end is in sight. Starting off 2015 with no car, cc, or house payments sounds amazing!!!! What a great goal

As time goes on though, the balance on all of them lower, and then the minimum payments continue to lower also. Do you adjust your minimum payment down lower and put the difference toward the bill you're attacking or do you keep paying what you originally listed as the minimum payment?

Mine were all automated through my bank, so I didn't bother to change them. It probably would have only made a small difference if I had. I agree wtih AirGoofy -- as long as you are focused on the debt you are doing the right thing. There are a few variations on the "snowball" technique, and I don't think any of them are wrong, just suited to different personal preferences.

Tax refund came in 3 days! Another $1300 against the ccs. In the last week I've lowered my utilization from 94% to 66% (said in the voice of the beaver from Lady and the Tramp)

Congrats! What great progress!!!

 

[pryncess527]

We got some great news last night -- DH got a job! His current job contract ends March 31st and we've known for some time that he was not interested in renewing it, so he's been job hunting. His new job starts . . . April 1st!!! No employment gap, no savings drain, no COBRA health insurance!!!!

We got our state tax return today and the entire thing went towards our HELOC debt, since I'm no longer paranoid about padding our savings in anticipation of his unemployment. We are on track to have the HELOC paid off completely by March 2015, which is great -- but I'm determined to get it done faster. I've set a mental goal of having it paid off by Septemeber 2014 instead. I will need the stars to align and have a few things go my way to have that work out, but I'm all about thinking positive and seeing what happens. If we fall short, we'll come closer than if we hadn't tried so hard in the first place.

 

[Eureka]

We got some great news last night -- DH got a job! His current job contract ends March 31st and we've known for some time that he was not interested in renewing it, so he's been job hunting. His new job starts . . . April 1st!!! No employment gap, no savings drain, no COBRA health insurance!!!!

We got our state tax return today and the entire thing went towards our HELOC debt, since I'm no longer paranoid about padding our savings in anticipation of his unemployment. We are on track to have the HELOC paid off completely by March 2015, which is great -- but I'm determined to get it done faster. I've set a mental goal of having it paid off by Septemeber 2014 instead. I will need the stars to align and have a few things go my way to have that work out, but I'm all about thinking positive and seeing what happens. If we fall short, we'll come closer than if we hadn't tried so hard in the first place.

Great news, congrats!

 

[gracie1]

We got some great news last night -- DH got a job! His current job contract ends March 31st and we've known for some time that he was not interested in renewing it, so he's been job hunting. His new job starts . . . April 1st!!! No employment gap, no savings drain, no COBRA health insurance!!!!

We got our state tax return today and the entire thing went towards our HELOC debt, since I'm no longer paranoid about padding our savings in anticipation of his unemployment. We are on track to have the HELOC paid off completely by March 2015, which is great -- but I'm determined to get it done faster. I've set a mental goal of having it paid off by Septemeber 2014 instead. I will need the stars to align and have a few things go my way to have that work out, but I'm all about thinking positive and seeing what happens. If we fall short, we'll come closer than if we hadn't tried so hard in the first place.

Congrats!! That is great news. I may have actually just picked up an extra job for a couple nights a week. Wasn't planning on working 2 jobs, but hey, the extra income would be great.

 

[hmack]

It took a while but I finished reading through this thread and I just want to say, "thank you."

Thank you for being willing to be honest about the ups and the downs.

This thread has encouraged me to take my head out of the sand and really take a look at my finances and debt.

Last weekend I felt like I hit femotional bottom and sobbed after paying the bills and seeing what I had to live on for the next two weeks. I felt like I didn't have any control and allowed myself to be the victim of circumstances.

Fast forward nearly a week of reading this thread and I feel like I've had a major light-bulb moment. Instead of letting the bills and debt dictate how I feel - I can turn it around. I feel empowered for the first time in nearly a year since my DH changed jobs and our income went down considerably.

I have goals and I'm working on a plan and it feels great and you all helped me get here. So thank you.

Hoping to join in your debt busting community.

 

[ruadisneyfan2]

It took a while but I finished reading through this thread and I just want to say, "thank you."

Thank you for being willing to be honest about the ups and the downs.

This thread has encouraged me to take my head out of the sand and really take a look at my finances and debt.

Last weekend I felt like I hit femotional bottom and sobbed after paying the bills and seeing what I had to live on for the next two weeks. I felt like I didn't have any control and allowed myself to be the victim of circumstances.

Fast forward nearly a week of reading this thread and I feel like I've had a major light-bulb moment. Instead of letting the bills and debt dictate how I feel - I can turn it around. I feel empowered for the first time in nearly a year since my DH changed jobs and our income went down considerably.

I have goals and I'm working on a plan and it feels great and you all helped me get here. So thank you.

Hoping to join in your debt busting community.

Welcome aboard!
I was in your shoes last April. That's when I had to face facts and get a grip on my finances. At the time we were in need of a roof ($7000+) and had a big summer vacation planned that would cost us more to back out of than to proceed. Fast forward to now: the trip was awesome, the roof is complete, emergency fund in place and 6 bills paid off. #7 scheduled to be done by may 1st. I am still amazed at how much progress we've made just by keeping close track of where every penny goes and staying motivated. It's actually exciting to pay bills. Lol
Keep checking in here and we'll help keep you moving forward.

 

[Shmily1]

I need to get my money in order quickly as I am my own worst enemy. I love to eat out.... often. I have recently signed up for the trial on YNAB and think I will do much better if I can remember to key everything in as I spend it. I know in the end it will be great but I just have to get it all going.

 

[writermommy6]

I was in the same boat until a few years ago. That's when I learned that I am in control of my money not the other way around. I am awful about wanting to eat out and then I sat down and added how much I was spending. That was a serious OMG moment. So now I look at it as a challenge. How long can I go without eating out? I have even brought out my cookbooks to make homemade Chinese or Mexican food. It's been a pretty cool experiment.

 

[pryncess527]

It took a while but I finished reading through this thread and I just want to say, "thank you."

Thank you for being willing to be honest about the ups and the downs.

This thread has encouraged me to take my head out of the sand and really take a look at my finances and debt.

Last weekend I felt like I hit femotional bottom and sobbed after paying the bills and seeing what I had to live on for the next two weeks. I felt like I didn't have any control and allowed myself to be the victim of circumstances.

Fast forward nearly a week of reading this thread and I feel like I've had a major light-bulb moment. Instead of letting the bills and debt dictate how I feel - I can turn it around. I feel empowered for the first time in nearly a year since my DH changed jobs and our income went down considerably.

I have goals and I'm working on a plan and it feels great and you all helped me get here. So thank you.

Hoping to join in your debt busting community.

Welcome!!! Taking control of your finances, even when it feels bleak, really can be empowering! I'm glad you are feeling motivated and inspired.

 

[pryncess527]

I need to get my money in order quickly as I am my own worst enemy. I love to eat out.... often. I have recently signed up for the trial on YNAB and think I will do much better if I can remember to key everything in as I spend it. I know in the end it will be great but I just have to get it all going.

Getting it going can be tricky (or it was for me, I'd never budgeted like that before), but the YNAB forums are really friendly and helpful if you get stuck

Going out to eat is my own worst enemy too. Forcing myself to rob my Disney fund every time I wanted to go over my restaurant budget has been a great motivator, lol

 

[dtr_angel]

I haven't posted here in a while but I've been reading along. I'm feeling discouraged right now. Getting YNAB in November changed our lives and we're doing really good. We've never carried credit card balances so we're lucky in that respect but we have a high car payment, DH's student loans, and a small mortgage. January was a great month - I paid an extra $800 on the car, we started a Roth IRA, got life insurance, and I added a good chunk of change to our vacation fund. February I was only about to add an extra $400 to the car payment. March I wasn't able to add any extra to the car payment because in February we decided to move our July vacation to May so all extra money went there.

DH and I have been talking a lot lately and we are thinking that we'd like to move sooner rather than the later we were last thinking (we wanted to pay off the car and student loans first) but now we're thinking as soon as we pay off the car, then that $400/month should go towards our down payment. We would ideally like to move by the end of 2015... Now I just don't know if this is even realistic to pay off the car AND save another $10k for the down payment (although more would be better, of course) by next summer so we can get our house on the market. Right now DH's student loan payment is only $115/month so I just don't know how important it is to pay them off before trying to sell our house. I obviously don't want to take the whole 15 years to pay them off, but trying to pay them off completely really would set back our moving plans by a few years.

 

[gracie1]

Wow!! Everyone is doing a fantastic job!! You should all be so proud of yourselves.

 

[aliceindisneyland]

It's actually exciting to pay bills. Lol

I am feeling the same way - first time ever, even though we've gotten out of a much higher level of debt before - I didn't have the mindset I do now, or the YNAB plan!

I haven't posted here in a while but I've been reading along. I'm feeling discouraged right now. Getting YNAB in November changed our lives and we're doing really good. We've never carried credit card balances so we're lucky in that respect but we have a high car payment, DH's student loans, and a small mortgage. January was a great month - I paid an extra $800 on the car, we started a Roth IRA, got life insurance, and I added a good chunk of change to our vacation fund. February I was only about to add an extra $400 to the car payment. March I wasn't able to add any extra to the car payment because in February we decided to move our July vacation to May so all extra money went there.

DH and I have been talking a lot lately and we are thinking that we'd like to move sooner rather than the later we were last thinking (we wanted to pay off the car and student loans first) but now we're thinking as soon as we pay off the car, then that $400/month should go towards our down payment. We would ideally like to move by the end of 2015... Now I just don't know if this is even realistic to pay off the car AND save another $10k for the down payment (although more would be better, of course) by next summer so we can get our house on the market. Right now DH's student loan payment is only $115/month so I just don't know how important it is to pay them off before trying to sell our house. I obviously don't want to take the whole 15 years to pay them off, but trying to pay them off completely really would set back our moving plans by a few years.

Don't feel discouraged - that's wonderful progress! I assume you're upsizing your house, not downsizing? Are you moving in town or out of the area? 10K = $100,000 house down payment - is that correct? ...and another 10K for closing costs. Are you going to make a profit on your current house? Sweat equity (not necessarily remodeling but scrubbing and retouching and organizing so your house looks better than the other ones when you're selling) will help you get a higher price for your current house. You could make a plan starting now through 2015 of a couple of areas in the house to make shiny each month. Could you sell a bunch of stuff in the house to help pay the car off more quickly? (less to move too!) How much do you owe on your car?

 

[writermommy6]

Moving into hyperfocus mode. We have been sharing one vehicle for two years because the other one needed to be repaired to pass the emission inspection. Finally got it repaired $1100 and now we have to pay all of the back fees so another $600. ANNNNND now our 'good' car is acting up. So in order to keep our June 1 vacation a go I have to come up with $3000 over the next 2 months. Let the decluttering (and ebay/Craigslist selling) and work search begin. I'm a freelancer so the only work I have is the stuff I search for on a regular basis. Wish me luck!

 

[ceemys]

This is great that everyone is doing so well!

I have a new budget with my fiance moving in sooner than expected. His house sold faster than we thought! I am meticulous, so I have our wedding and Disney honeymoon budget written out in detail! He is coming over with a car payment so when we get back from the honeymoon, I will be all over making double payments on his car to get it paid off. I have not even started on my car savings yet. He has passed his budgeting over to me. His car is his only debt, so it isn't bad, but he doesn't track anything on his checking account. That will be my job now.

Between both of us, we can pay cash for everything but it is going to be tight for the next 4 months. But just like last year when I was saving so long for my house....it will be worth it. BTW!!!! I just Love, Love my new house. I have pictures on my phone, but need to figure out how to get it on here to show you my newly painted LR and my favorite part....the kitchen!

Keep on swimming everyone.

 

[gracie1]

This is great that everyone is doing so well!

I have a new budget with my fiance moving in sooner than expected. His house sold faster than we thought! I am meticulous, so I have our wedding and Disney honeymoon budget written out in detail! He is coming over with a car payment so when we get back from the honeymoon, I will be all over making double payments on his car to get it paid off. I have not even started on my car savings yet. He has passed his budgeting over to me. His car is his only debt, so it isn't bad, but he doesn't track anything on his checking account. That will be my job now.

Between both of us, we can pay cash for everything but it is going to be tight for the next 4 months. But just like last year when I was saving so long for my house....it will be worth it. BTW!!!! I just Love, Love my new house. I have pictures on my phone, but need to figure out how to get it on here to show you my newly painted LR and my favorite part....the kitchen!

Keep on swimming everyone.

It really amazes me how well you did in one year. Paying off your debts, building up your credit (which is the hardest!!!) saving a down payment on your house - and getting a house, new furniture and all the unexpected times Murphy hit!
Hope you have a wonderful wedding and honeymoon in Disney