Debt Dumpers - 2014

[Silvana]

Been official on budget since May 23, which was my first full check from the new job. After being unemployed since November it still feels a little weird to have money and to work but it's a nice kind of weird if that makes any sense. So I've paid rent and made my first payment on the IRS. Caught up a bit on the behind car payment and have my student loan set up on auto pay to get me out of delinquency.

July will see more catching up on the car, the amount of two payments sent in one to the IRS. Then in August, which is my three payday month, I'm going to have to use the extra payday to finally fix the car. It's been down for awhile and we HAVE to be back to two cars soon. But I'll still be able to send IRS two and a half payments and finish catching up the car payments.

I didn't start the IRS till June, that was when they finally sent the damn paper work but it and the car will be both paid in full in Sept. Which also marks the month I start snowballing the little credit card. By the end of March I will have paid off the final 1960 for the HHR, 700 to IRS, 1400 to the little credit card and 4900 to the big credit card. This pays them all off and counts my DH's minimum payment to the cards.

My reward is saving for a WDW trip while we do minimum payments to the student loan and the personal loan. Then we knock those out and save to move. Move will be done by end of July 2017. I know a lot of debt people would say i should kill all the debt before going on a trip but this is how it works for me. I'm living with very thin amounts left over on these early debts and I don't want to get burned out. With the trip in the middle it's an oasis of hope and relaxation.

 

[Reginat]

What I learned: I am glad that I paid off my credit card earlier this year. I am glad that I have been accumulating some savings.

What I forgot: I got excited when I saw the Menus for the Epcot Food and Wine Festival when they came out the other week. I knew I had enough money to cover everything so I made on-site reservations, but only did an increment payment to Disney, so now I am feeling [temporary] anxiety until I can pay off the entire amount, and have a "clear" credit card again.

Summary: I had been good. Then I did something that was technically ok, but having some anxiety over running up my credit card again, when I could have planned better to keep it paid off. Well, at least I have learned something for next time: for myself, I need to be ready to Prepay the whole thing for my peace of mind. Oh well, live and learn!

 

[NemoMOm]

So, we just sold a house and bought a new one. Since we were saving for the new house and made some money off the old, we were able to pay some debt off!

We paid off all my medical $500 (seems never ending)

We paid off all credit cards $2500

Small loan $700.

Small student loan $1280

So, left we have DVC, which we hope to pay off next month of $4600, hubby's car 15,000, Hubby's student loan 15,000, my student loan 24,000

It seems like so much left, but we have cut out $500 a month!

 

[BernardandMissBianca]

I've been gone too, but I need to get back on the wagon.
DH will probably be changing jobs soon with a significant pay reduction. So things will be tight again. Thankfully I have one less tuition to pay for now that DS13 is in HS, but DS17 is going into college and we will need to spot him some money for that, plus he needs a car and insurance.
He is also a big impulse shopper. I told him he needs to keep a notebook on him and every time he says he has a want he needs to write it down and start tallying how much these wants cost. This week it was a terrarium, to the tune of over $50. He bought here and there, not really paying attention to the overall cost. I paid for it, but I'm giving him the receipts tonight. I did it as a little experiment. He doesn't really have a grasp on what he spent. I think he will get sticker shock when the "bill" comes due.

Then he needed a pair of shorts for work. New job as a secretary so he needs nicer clothes than what he had but it's warm so he needed dressier shorts. DS went into Kohls looking for one pair, DH ended up getting him 4 shorts and 2 shirts. And then he told me to just put in on AMEX. ERGH!! I am trying to pay those off!! And then asked me if I was making DS pay me back. I'm like dude, he came in for one pair of shorts. Above and beyond that, is on DH.

DH is not setting a good example for DS. I'm really struggling with making sure DS starts off his adult life on the right foot. We have been talking extensively about not buying things just for the sake of accumulating things. He wants to travel, a lot. I'm like money for France or dinner and a movie every weekend.

UGH sorry financial vent over. LOL

 

[AirGoofy]

How do you balance being debt free but keeping a good credit score?

I don't worry about credit scores. A high credit score means I am good at managing debt. Instead of being good at managing debt, it would be better to just have no debt.

If you are worried about a home mortgage loan, there are several banks and credit unions that will still work with you, especially with a 20% down payment.

 

[rani8600]

So I made my first extra payment towards my student loan today Im working on trying to have the whole thing paid off is 18 months, which is two years early. Was anyone nervous before their first extra payment? Right before I hit submit I had these thoughts of, what if I need this money for something and wont have it….

I guess that’s what savings is for but still. I suppose I will get used to it in time.

 

[desiree71081]

So I made my first extra payment towards my student loan today Im working on trying to have the whole thing paid off is 18 months, which is two years early. Was anyone nervous before their first extra payment? Right before I hit submit I had these thoughts of, what if I need this money for something and wont have it….

I guess that’s what savings is for but still. I suppose I will get used to it in time.

I know that feeling all too well of "what if I need the money" but I know that if I don't pay it towards what NEEDS to be paid, I will spend it on stupid stuff that I don't need to begin with.

Paying $820 just this month towards a credit card that will be paid off next month. I only actually have to send $25/month towards this card so seeing $820 go to it worries me a bit because "what if I need the money for something else" but I know how great it will feel to see it paid off soon.

 

[ruadisneyfan2]

So I made my first extra payment towards my student loan today Im working on trying to have the whole thing paid off is 18 months, which is two years early. Was anyone nervous before their first extra payment? Right before I hit submit I had these thoughts of, what if I need this money for something and wont have it….

I guess that’s what savings is for but still. I suppose I will get used to it in time.

It gets easier all the time. As long as you have an emergency fund established, you have a safety net! As you see your balance due amount dropping much more quickly than in the past it only motivates you more.
It's a great feeling.

 

[dtr_angel]

I am so annoyed with our auto loan company!!!!

I have been making a lot of extra payments this year to pay it off early. No matter how often or how much the amount is or if I make it online or through mail, they do not apply my extra payments to the principal! I started mailing the checks and making sure it was a different amount than the monthly payment and making a note and writing on the check that it was to be applied to principal only but they will not do it! Our first 2 auto loans we had before this were through our local credit union. I had no issues applying extra payments to principal only. Our first loan we paid off in less than 8 months, the second was 18 months. When I make mortgage payments or payments on DH's student loans if I pay over the minimum it asks me how I want to apply the extra (to escrow, interest, or principal balance) it's just really frustrating to me!

I'm wondering if it would be possible or worth it to try to transfer (or I guess refinance?) to our local credit union or get a personal loan to pay it off from the big bank? We plan to have it paid off in 12 months.

My only issue with that is that we will be getting pre-approved for a mortgage after we pay off this car loan. We have really high credit scores though so maybe it's not an issue.

 

[ellochka]

I know that feeling all too well of "what if I need the money" but I know that if I don't pay it towards what NEEDS to be paid, I will spend it on stupid stuff that I don't need to begin with.

Paying $820 just this month towards a credit card that will be paid off next month. I only actually have to send $25/month towards this card so seeing $820 go to it worries me a bit because "what if I need the money for something else" but I know how great it will feel to see it paid off soon.

If you have $1,000 to $2,000 in an emergency fund, you would not have to worry about it. Just make sure it is not in your checking account.

 

[ellochka]

I've been paying off debt but also watching our credit scores. Just paid off all of DH's (2) credit cards. His credit score dropped 38 points!!!! I'm at the point where being debt free is more important than the credit score but I just think it's ridiculous for the score to drop that much by paying something off. It's like they would rather you have debt than be debt free.

How do you balance being debt free but keeping a good credit score?

Wait for a month and then check the score again. He should have higher credit after the cards have been paid off. As far as I know, it's total BS that you need to have any balance at all on your credit card for it to improve the score. You get improved scores for any credit card that is open, in good standing, and has less than 10% "utilization" (last balance as a percent of credit max). So, having zero debt is totally fine.

 

[AirGoofy]

I am so annoyed with our auto loan company!!!!

I have been making a lot of extra payments this year to pay it off early. No matter how often or how much the amount is or if I make it online or through mail, they do not apply my extra payments to the principal! I started mailing the checks and making sure it was a different amount than the monthly payment and making a note and writing on the check that it was to be applied to principal only but they will not do it! Our first 2 auto loans we had before this were through our local credit union. I had no issues applying extra payments to principal only. Our first loan we paid off in less than 8 months, the second was 18 months. When I make mortgage payments or payments on DH's student loans if I pay over the minimum it asks me how I want to apply the extra (to escrow, interest, or principal balance) it's just really frustrating to me!

I'm wondering if it would be possible or worth it to try to transfer (or I guess refinance?) to our local credit union or get a personal loan to pay it off from the big bank? We plan to have it paid off in 12 months.

My only issue with that is that we will be getting pre-approved for a mortgage after we pay off this car loan. We have really high credit scores though so maybe it's not an issue.

Another idea to consider is to deposit the extra payments into a bank account - maybe different from an emergency fun - and don't have it linked with a debit card. Then, you still make extra payments to this account, make the minimum payment to the car loan, and then close the account and write a large check in paying off the balance. It takes more effort on your part as you can't see the balance reduce more quickly and it is temptation.

 

[OhMari]

So I made my first extra payment towards my student loan today Im working on trying to have the whole thing paid off is 18 months, which is two years early. Was anyone nervous before their first extra payment? Right before I hit submit I had these thoughts of, what if I need this money for something and wont have it….

I guess that’s what savings is for but still. I suppose I will get used to it in time.

Ya it is tough, and that is why you have to stay disciplined and try not to spend money, or go out to eat. Hang in there, you will be so happy when that loan is gone.

 

[OhMari]

I had a vacation week in May and I had to take another one last week, before the fiscal year was over. Me and dh have been doing projects around our house to get it ready to put on the market and sell it. I didn't realize how fast paint, cement, cleaning supplies really added up and we spent over $1,000. I thought we would only spend $50. Luckily I was doing the $53 week challenge (2) both ways, so I had well over $1,000 in my challenge.

Anyway, we are pre-approved and just got our credit scores from the bank and I saw one of my credit scores was 806, the other 2 were 799 and 782. It was a long 5 years, pounding payments.

 

[Lemurone]

Haven't been to the boards since 2012 planning our first family trip. I'm back in the planning stages for our summer 2015 trip so here I am!
We just had a major screw up with five "accidental" charges against our checking account (inept hotel desk person charged us for 3x as many nights as we stayed, and YMCA charged us for two extra weeks of summer camp). We haven't had savings really since I was on maternity leave last summer--just haven't built it back up mostly because I haven't had the urgency to like I did with impending unpaid work leave. But with the accidental charges we were thrown into the negative until they refunded the money and it was a wake up call to have our cushion rebuilt! Not to mention the $1000 air compressor we just had to borrow money from FIL to replace in my car...so, I'm trying to get back on track. I have downloaded Check and Mint to help me track my spending and budget and they're very helpful. I didn't realize how our credit debt had added up to about $8000. I have had too many emergency cards for lean times where I say "oh, I'll use it for this and then repay the card as soon as I get paid..." And then don't. I've also started a gallon glass jar where anything $5 or under goes . We've got about $75 already probably there in dollars and coins. That's trip deposit money . I'm making an effort to shop at Aldi exclusively too. I guess I just need to pick a credit card and start pounding away, huh?

 

[Minnie-Mickey]

I am looking for help. I have paid off all CC. But apparently, I am an impulse spender. I never realized it until today. I guess better late than never. I need to learn a trick or my cc will be back up again. I returned items to 5 stores today of stuff I wanted at the time but when I truly ask myself I most likely will never use it. What are people's tricks. Most of the items I returned do not add up to much. I think the most expensive item was $20 so I am not a big spender. But 20 here and there add up to alot over time.

 

[Minnie-Mickey]

ps Why is it we can go all summer with the same dumpy clothing but as soon as vacation comes we need new items?

 

[tinkerone]

I am looking for help. I have paid off all CC. But apparently, I am an impulse spender. I never realized it until today. I guess better late than never. I need to learn a trick or my cc will be back up again. I returned items to 5 stores today of stuff I wanted at the time but when I truly ask myself I most likely will never use it. What are people's tricks. Most of the items I returned do not add up to much. I think the most expensive item was $20 so I am not a big spender. But 20 here and there add up to alot over time.

i'm trying to get my sister out of the impulsive spending mode. i tell her to ask herself 'what do i want more'. so if she picks up a shirt, for example, she should look at it and ask herself that. i know she wants to pay off a large loan she has that her dh doesn't know about. i know she wants to go on a vacation. i know she wants to put money away for retirement. she needs to think about what she wants 'more' than that small purchase. you add up all those small purchases and you have your loan paid off.

hope you understand. just something to try. figure out what you want 'more' than the item in your hand.

 

[OhMari]

I am looking for help. I have paid off all CC. But apparently, I am an impulse spender. I never realized it until today. I guess better late than never. I need to learn a trick or my cc will be back up again. I returned items to 5 stores today of stuff I wanted at the time but when I truly ask myself I most likely will never use it. What are people's tricks. Most of the items I returned do not add up to much. I think the most expensive item was $20 so I am not a big spender. But 20 here and there add up to alot over time.

I put myself on a "no clothes buy for a year."
It was hard at first. I would still look in the stores and try on clothes, but I would put the clothes back or on the rack for items you don't want. Now, I just avoid going into malls, stores and shopping centers. You really need to find something else to do. Me and my dd's used to shop at least twice a month, sometimes every weekend.
One other trick I did, is I line my clothes up and start on one end and work myself all the way through all my clothes. After I wash my shirt, pants, capri's I turn the hanger around, so I know I wore that outfit. If I really do not want to wear it, it goes in the GoodWill pile.

 

[ruadisneyfan2]

I am so annoyed with our auto loan company!!!!

I have been making a lot of extra payments this year to pay it off early. No matter how often or how much the amount is or if I make it online or through mail, they do not apply my extra payments to the principal! I started mailing the checks and making sure it was a different amount than the monthly payment and making a note and writing on the check that it was to be applied to principal only but they will not do it! Our first 2 auto loans we had before this were through our local credit union. I had no issues applying extra payments to principal only. Our first loan we paid off in less than 8 months, the second was 18 months. When I make mortgage payments or payments on DH's student loans if I pay over the minimum it asks me how I want to apply the extra (to escrow, interest, or principal balance) it's just really frustrating to me!

I'm wondering if it would be possible or worth it to try to transfer (or I guess refinance?) to our local credit union or get a personal loan to pay it off from the big bank? We plan to have it paid off in 12 months.

My only issue with that is that we will be getting pre-approved for a mortgage after we pay off this car loan. We have really high credit scores though so maybe it's not an issue.

Is there some type of clause in your contract that doesn't allow you to apply additional payments to the principal? I would call the bank and have them explain their actions and see if there's some way to have them apply to the principal. What do they apply the extra to? Your next regularly scheduled payment? At least at some point there will be no future payments to apply to when you pay it off early but it's a shame they make it so difficult. I'm a visual type person so I like to see the balance drop. Do they at least tell you something like. "Your next payment is due in November 2014." or something like that?

That's a good thing to take note of for all of us in the future for car loans. Be sure to check if you can apply extra to the principal at any time.