Debt Dumpers - 2014

[Reginat]

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 agree with the other poster about not going in stores. I try to not go in other stores other than the grocery store. I try to use a cash chunk amount for the week or weekend; if I am getting down to the last of my chunk, it motivates me to Slow Way Down/ stop spending as much as I am able. I had paid off my cc this spring, and kept it paid off until a $600 impulse purchase came along in mid-June -- what was I thinking?!!!! Now I have just paid off the cc again -- I need to remember to pre-plan/ pre-save for any potential indulgences so I don't trick myself again with a big impulse buy! I am going to try to be diligent, too. Good luck!

 

[mousehockey37]

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.

I'm in the credit rebuild right now, and I'll offer this. Now that they're paid off, just use them as gas cards. Put a tank of gas on them, and pay it off when you get home. You get the usage of the card and the balance goes away quick.

But you are correct. Having debt is apparently better than not having it. Which sucks.

 

[mousehockey37]

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 have a simple trick. Keep the card open, but take it and lock it up somewhere. I understand about having one in case of an emergency if you are out, but if you don't need it, put it in a firesafe box or a lockbox and give someone else the key if you can, that you trust, a family member or such.

If you don't have it on you, you can't use it. It's that simple.

As far as a debit card/cash, set yourself some limits, go to the bank and actually pull out the green stuff. When you run out of it, that's it, you're done.

As far as impulse shopping, it's want vs need. I have tons of things I want, but I need to put gas in the car, food on the table and pay my bills. It's all self-control.

Just think of cutting back all the impulses as a way to save for a big want that you can reward yourself with later (vacation? new car? etc).

Good luck.

 

[pryncess527]

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.

For me, the "trick" was starting a zero-based budget program. With zero-based budgeting, you give every dollar you have a job. It really helped me understand and evaluate the trade-offs I was making when I made an impulse buy. If I have no money in the "Semirhage Treat Yo Self" category, then I need to wait. If I don't want to wait, I actively have to rob some other budget category to cover the spending -- which makes the trade-off clear. 9 times out of 10 (really more like 99 times out of 100), thinking about having to take money from "Disney Vacation" or even "Car repairs" to cover an impulse purchase is just enough to make me put that purchase back. When your money is all in one pot with no specific job, it's harder (IMO) to come face to face with the tradeoff you are making.

I used to be quite the impulse shopper, but zero based budgeting has drastically changed my habits in just 1 year. I just needed the information to make better decisions.

Some people use physical envelopes for zero-based budgeting (Dave Ramsey). I like to put all our spending on CCs for the rewards, so we use an electronic program/app to help us keep track -- youneedabudget.com

 

[Minnie-Mickey]

Thanks for all the suggestions. I have been cutting back on expenses this year as we are working off one income. I am usually not a crazy shopper ie I only have 3 srubs for work. Sometimes, I just need to remind myself of the budget. Unfortunately, we are working off the lower of the two incomes. Cutting your income by over 60 % can be tough at times. I know I could cut out vacation this summer but I had saved for almost 2 years. It is fully paid and I managed to get some great deals. I just need to remember while on vacation it is cash or nothing. After this trip, it will be local tourism at it's best.

 

[rusafee1183]

Said goodbye to Discover today!!! That's our 4th snowball out of 6. Making good progress

Sent from my iPhone using DISBoards

 

[gracie1]

Said goodbye to Discover today!!! That's our 4th snowball out of 6. Making good progress

Sent from my iPhone using DISBoards

Way to go!! that is fantastic! We are getting ready to take the plunge and get rid of all our smartphones and go with just basic phones. We really don't use enough for what were paying with the smartphones.

 

[ruadisneyfan2]

Said goodbye to Discover today!!! That's our 4th snowball out of 6. Making good progress

Sent from my iPhone using DISBoards

Yay!!


We're still chugging along. We had a lot of extra expenses in May & June which derailed us for a while. I refuse to give up my summer vacation but we are scaling back where we can. We only had to pay for 2 out of 8 seats for our flights (4 ppl, RT) so that was a huge help. It's good that it's mostly a sightseeing trip so once we get there (Bryce Canyon NP, UT) we shouldn't have a lot of expenses besides food. We'll have a cabin the first 4 days and dh likes to cook so it won't be a lot of restaurant meals.

Now that ds is 17 and a licensed driver, our car ins has gone up a lot, even with still only having 2 cars. That will be coming due in the next 2 months and the next installment of ds17's senior trip to WDW is due then too.

Hopefully we can return to our snowball by October. That sounds so far away but it's really only around 10 weeks. Part of me just wants to say no to everything except the snowball but then my other half refuses.

Just keep swimming!

 

[barbmouse]

I sometimes read this thread but don't usually post. It is great to read about everyone's successes as well as set backs. However; today I stopped by to share that we paid our car off!!! We plan to drive it for a loooong time and now we will begin to really focus on debt using the snowball method. Looking forward to it!!

 

[barbmouse]

Paid off another credit card. Next one scheduled to be paid off in August. This makes 5 bills paid off since April. Feels great!!!!

This is so inspiring! Congratulations to you!!

I could use some help/suggestions in getting started with the snowball or any methods used to pay down debt. I'm going to reread Dave Ramsey's method but if anyone has any ideas to share on things that helped you, please share!!

 

[rusafee1183]

Way to go!! that is fantastic! We are getting ready to take the plunge and get rid of all our smartphones and go with just basic phones. We really don't use enough for what were paying with the smartphones.

Thank you! I thought about going all out gazelle intense and getting rid of my smart phone and cable, but found that with how often we stay in now - they're the only things keeping me sane! Lol. Good luck with everything!!!

Yay!! We're still chugging along. We had a lot of extra expenses in May & June which derailed us for a while. I refuse to give up my summer vacation but we are scaling back where we can. We only had to pay for 2 out of 8 seats for our flights (4 ppl, RT) so that was a huge help. It's good that it's mostly a sightseeing trip so once we get there (Bryce Canyon NP, UT) we shouldn't have a lot of expenses besides food. We'll have a cabin the first 4 days and dh likes to cook so it won't be a lot of restaurant meals. Now that ds is 17 and a licensed driver, our car ins has gone up a lot, even with still only having 2 cars. That will be coming due in the next 2 months and the next installment of ds17's senior trip to WDW is due then too. Hopefully we can return to our snowball by October. That sounds so far away but it's really only around 10 weeks. Part of me just wants to say no to everything except the snowball but then my other half refuses. Just keep swimming!

I'm with you! We planned a WDW trip for September knowing Dave Ramsey would be screaming at us. Lol! But honestly, travel and vacation planning is the only thing I truly love. I have no hobbies, and nothing really to look forward to besides that. Knowing I have that to look forward to is the only thing keeping my head in the game and keeping me going. I am a firm believer that working on debt is like dieting... If you give up EVERYTHING, you will quit and that won't do any good either. Have fun on your vacation!

I sometimes read this thread but don't usually post. It is great to read about everyone's successes as well as set backs. However; today I stopped by to share that we paid our car off!!! We plan to drive it for a loooong time and now we will begin to really focus on debt using the snowball method. Looking forward to it!!

WOOOOHOOOOO!!!!! That is AWESOME news! We paid off my car several years ago, but weren't in a good mind set at the time. If I was smart, I would have taken the money I saved from the payment and applied it to debt or savings... But, we weren't there yet. Hopefully you make the most of it!

This is so inspiring! Congratulations to you!! I could use some help/suggestions in getting started with the snowball or any methods used to pay down debt. I'm going to reread Dave Ramsey's method but if anyone has any ideas to share on things that helped you, please share!!

Just start small. List your smallest debt and focus all of your energy on it. We started using YNAB in conjunction with Dave Ramsey, and that had a been a god send. We have found so much extra money that we never knew we had and just wasted on junk. Good luck with everything! It's definitely nice to check in on this site and read the encouragement and post your success stories! Sent from my iPhone using DISBoards

 

[ruadisneyfan2]

This is so inspiring! Congratulations to you!!

I could use some help/suggestions in getting started with the snowball or any methods used to pay down debt. I'm going to reread Dave Ramsey's method but if anyone has any ideas to share on things that helped you, please share!!

Here's how we got started. First, as pp said, list all debts from smallest to largest. Forget the interest rate. List all the minimum payments for each too. Add it all up and save a copy somewhere. In a year or 2 you'll be able to look back on where you were and how much progress you've made.
Next, find extra money somehow. Work more and/or cut back on eating out & extra spending. Anything that was a "want" and not a "need" wasn't cut completely but maybe just postponed for a month or 2. (Sometimes that's enough to make me not even want it anymore.) Some people can cut out cable TV, smart phones, etc. It's however drastic you want to get. DR recommends giving up vacations & stopping contributions to our retirement accounts. Honestly, I can't get that intense.

For us it just so happened to coincide with the end of our rent-to-own payments for ds14's sax, $37/month. We also refinanced our mortgage which saved $260/month.
I used that extra money to start a $1000 emergency fund. This is important so in case you have unexpected bills like your car, dentist, vet, etc. you won't have to turn to a cc as a way out. If you need to tap your EF, you need to repay it asap.
So with the paycheck that would typically pay the sax and mortgage, I pretended to make payments but to my EF. Once that was funded I could start working on debt.
I opened a 2nd checking account with Capital One 360 (formerly ING) so I could easily transfer my little snowball out of the regular funds. I set it up to automatically do this monthly so it never gets forgotten in the mix of bills.

Next, start paying on the smallest debt. For all the others just send the minimum payment. Once the smallest bill is paid in full, you add bill #1's minimum payment to your snowball and start attacking bill #2. Keep going until they're all done. Oh it sounds so simple...

The reasoning behind starting with the smallest vs. starting with the highest interest rate is so that we see success fairly soon. For us the smallest was a $300 Kohls bill so it didn't take long. Once you start seeing progress, it's really very motivating!
From October to April I paid off 7 credit cards. We're a little stuck in the mud right now but in the grand scheme of things it's a bump in the road. We'll get past it and get moving again.

hth! Good Luck! We're all here if you have any more questions.

 

[ruadisneyfan2]

Thank you! I thought about going all out gazelle intense and getting rid of my smart phone and cable, but found that with how often we stay in now - they're the only things keeping me sane! Lol. Good luck with everything!!! I'm with you! We planned a WDW trip for September knowing Dave Ramsey would be screaming at us. Lol! But honestly, travel and vacation planning is the only thing I truly love. I have no hobbies, and nothing really to look forward to besides that. Knowing I have that to look forward to is the only thing keeping my head in the game and keeping me going. I am a firm believer that working on debt is like dieting... If you give up EVERYTHING, you will quit and that won't do any good either. Have fun on your vacation! Sent from my iPhone using DISBoards

I couldn't agree more.

 

[Silvana]

So my plan was to fix our HHR and then pay off IRS, the HHR and both credit cards. I'm snowballing one payment into the other. IRS I couldn't start until July because I didn't get the paper work until late June. Also I was out of work from Nov. 11, 2013 until April 21, 2014 so I fell behind in the car payments (thankfully my loan holder was willing to work with us and partial payments) and have had to make the normal payment plus to catch up to current. I've paid everything I got extra to the IRS. We are making just minimum payments to a personal loan and to my student loan for now.

August is a three check month so I'm using cash to have the HHR looked out and hopefully fixed. It'll also be the last month of extra payment to catch up the car. So I'll end up paying off the car and the IRS both the first payday of Sept. and have some of the extra I've been paying to the car to put toward the lower CC. Then in Oct. I'll put both of those payment to the lower CC. Nov. I'll make the last of the lower CC payment and roll the extra to the higher CC and start hitting it with the full snowball in Dec. The higher CC will be all finished in March 2015 (which seems so far away at one minute and so close in the next )

My prize for being good and following this budget is I get to use the snowball on saving for a trip to WDW starting in April 2015, booked in Nov and paid in full (including flight and souvenir money) in Dec. 2015. Then the snowball goes back to debt fighting with extra payments to the personal loan. I just realized that when we leave in May of 2016 to go to WDW that the personal loan will also be paid off and the first extra payment to my student loan will be made.

WE WILL HAVE ONLY ONE DEBT LEFT WHEN WE GO!!!

I can't begin to say how happy I am about that and it's all because I found this thread and you guys/girls stories inspired me that I can do it. So thank you all so very much!

 

[gracie1]

You guys are all doing such a fantastic job!! I've been hit with a few expenses here and there but have continued to be able to not add cc debt It is annoying how when you have everything planned out that the unexpected expenses always hit. So I have to re-do my budget for the next couple months - I like to try to see where I will be at the end of the year.
Considering I took a job that is seasonal - my vacation is going to be for the few months I am off in the winter time!

 

[ruadisneyfan2]

So my plan was to fix our HHR and then pay off IRS, the HHR and both credit cards. I'm snowballing one payment into the other. IRS I couldn't start until July because I didn't get the paper work until late June. Also I was out of work from Nov. 11, 2013 until April 21, 2014 so I fell behind in the car payments (thankfully my loan holder was willing to work with us and partial payments) and have had to make the normal payment plus to catch up to current. I've paid everything I got extra to the IRS. We are making just minimum payments to a personal loan and to my student loan for now.

August is a three check month so I'm using cash to have the HHR looked out and hopefully fixed. It'll also be the last month of extra payment to catch up the car. So I'll end up paying off the car and the IRS both the first payday of Sept. and have some of the extra I've been paying to the car to put toward the lower CC. Then in Oct. I'll put both of those payment to the lower CC. Nov. I'll make the last of the lower CC payment and roll the extra to the higher CC and start hitting it with the full snowball in Dec. The higher CC will be all finished in March 2015 (which seems so far away at one minute and so close in the next )

My prize for being good and following this budget is I get to use the snowball on saving for a trip to WDW starting in April 2015, booked in Nov and paid in full (including flight and souvenir money) in Dec. 2015. Then the snowball goes back to debt fighting with extra payments to the personal loan. I just realized that when we leave in May of 2016 to go to WDW that the personal loan will also be paid off and the first extra payment to my student loan will be made.

WE WILL HAVE ONLY ONE DEBT LEFT WHEN WE GO!!!

I can't begin to say how happy I am about that and it's all because I found this thread and you guys/girls stories inspired me that I can do it. So thank you all so very much!

That's great! I feel the same way. This thread has turned us around and sent us down the right path.

You guys are all doing such a fantastic job!! I've been hit with a few expenses here and there but have continued to be able to not add cc debt It is annoying how when you have everything planned out that the unexpected expenses always hit. So I have to re-do my budget for the next couple months - I like to try to see where I will be at the end of the year.
Considering I took a job that is seasonal - my vacation is going to be for the few months I am off in the winter time!

I know what you mean.
I started steam cleaning my carpets today and remembered how last summer it was acting funny. Then I noticed that beater/roller thing wasn't spinning. Dh checked it all out. Belt is fine and power goes to the motor but the motor isn't turning either. It finally died. We've had it for around 6 years and it has certainly paid for itself many times over compared to paying someone to come in and clean but darn, the timing is so bad. Our poor emergency fund takes another hit.
It's always something...

 

[PrincessKymm]

I get my bonus tomorrow which will pay off my trip so no new debt whoo hoo! My car is under $2k so I'll have that paid off fairly soon which is awesome!

DS's medical bills are now down to under $1k so its time to start making payments.

I'm hoping to be all but student loan debt free by Dec 31. I think it's an attainable goal if I stop eating out.

Congrats to all that have done such a great job dumping debt!!! It's been so helpful to read and keep my motivation.

 

[gracie1]

I get my bonus tomorrow which will pay off my trip so no new debt whoo hoo! My car is under $2k so I'll have that paid off fairly soon which is awesome!

DS's medical bills are now down to under $1k so its time to start making payments.

I'm hoping to be all but student loan debt free by Dec 31. I think it's an attainable goal if I stop eating out.

Congrats to all that have done such a great job dumping debt!!! It's been so helpful to read and keep my motivation.

Great job!! You have really gotten your balances down to almost nothing! Sounds like by the end of the year you could be debt free

 

[Holly Quinlan]

I paid my car off yesterday just don't tell my car that!! and my DH starts his new job tomorrow so things are finally looking up hopefully we can have one more credit card paid off in the next few weeks!

 

[rusafee1183]

I paid my car off yesterday just don't tell my car that!! and my DH starts his new job tomorrow so things are finally looking up hopefully we can have one more credit card paid off in the next few weeks!

Congrats! That is awesome news!

We paid off our Discover card on Friday, but I offically called and closed it today.

On the down side, I am thinking that I am going to quit my second job soon. It is causing major issues on my mental well being, and I just don't think I can work 2 full times jobs for much longer. I'm sure this will make the progress much slower, but at the end of the day it will be what's best for my family.