Debt Dumpers - 2014

[Eureka]

I know the feeling! Maybe it was just the end of 2013 blues! You can do this!!

It was just a crazy few days...getting back to work with a rush deadline after a week's vacation and having to deal with some stress having to do with extended family made me feel like I needed another vacation! I took a nice long walk with a friend today and went out to lunch with another friend and even had a nap, so feeling better already.

 

[Holly Quinlan]

Count me in!! I have $3,000 in credit card debt and $10,000 in student loans and $4,000 in taxes My car will be paid off in April!!! Would have been Feb but I have several late fees. My goal for 2014 is to pay off half, but DH's job has been up in the air for a while so not sure how long I can count on his income. Good news is he has an interview Friday! I'm starting the 52 weeks savings plan so I have $1 saved

 

[dayvewc]

Dayvewc ~ I agree with gracie1 about him getting another part time job.

My suggestion is that you talk to him about getting an extra job. It sounds like he likes the job he has and is planning on staying there - and if you continue to work your butt off just to make it each month, it's just not fair. That's just my two cents though! Hugs to you and I hope things are better in 2014!!

Thanks. We'll be having probably quite a few conversations. lol. I think part of the problem is that I've enabled him for so long. I do know that he is up for the assistant manager position, and would move into the managers slot in September if he stays. It's not a big pay raise, but it is guaranteed more hours, so ...

Count me in!! I have $3,000 in credit card debt and $10,000 in student loans and $4,000 in taxes My car will be paid off in April!!! Would have been Feb but I have several late fees. My goal for 2014 is to pay off half, but DH's job has been up in the air for a while so not sure how long I can count on his income. Good news is he has an interview Friday! I'm starting the 52 weeks savings plan so I have $1 saved

I'm right with you!! I actually modified it just a little. I made it a 53 week plan, and have a spreadsheet to check off every Wednesday for my "deposit". Just means next New Years, I'll "pay" myself $53 on Wednesday, then $1 on Thursday.

 

[AJ1983]

Hey everyone! We just refinanced our house and rolled existing debt (credit cards and my student loans) into our mortgage,and taken out extra to do renovations on the house prior to starting a family. We will be paying at a MUCH lower interest rate, it frees up cash flow each month, and will save us $450 each month in interest alone.

This means we will be able to pay for our wedding and honeymoon in cash, then increase the mortgage payments after the wedding.

I know we haven't technically piad off that debt, but we will be saving money overall, paying for the wedding,and getting out home ready to have a baby. Otherwise, we would have been committed to those monthly payments for another 3 years. We wanted to be free of those payments before I took a year off for maternity leave, and we are anxious to start a family next year, so this seemed like the best option for our family.

That being said, we are treating this as a fresh start and are going to stick to our budget.We have been doing really well with this since the summer, when we stopped using the credit cards as anything more than convenience cards.

Good luck to everyone on your debt saving goals this year!

 

[SpaceGirl]

There are rough patches in the relationship, but we have managed to work through most all of them. The biggest (from my perspective) is the money issues.

A little more background: he knows that he is not great with finances, so (mostly) leaves that all to me. Which means, he gives me his check each week and then I give him back what is not "due" for household bills etc.

Currently, he is working for just at minimum wage for 3-4 days a week, so most of his checks are between $160 - $210. The first $100 each week goes to pay his car payment (pay off at the end of May). The next $20 I set aside for his auto insurance. (We are on a shared policy, which actually lowered my insurance by $50 a month). After that, he gets back $7 for each day he worked for gas and then approximately 25% of what is left. The rest goes to shared household bills. Looking back, he has been been getting back between $35 and $50 (including gas allowance).

Household bills and expenses average about $2000 / month not including my gas, or any food. Before he was unemployed, he was paying his car payment and half all expenses. Since he found this job (which I kind of hope is temporary, but he enjoys and may make permanent) he has been "paying" his car payment and between $100-$200 a month for bills. My full-time job pays me just about $2100 a month, and my part-time jobs net me between $300 - $1000 a month, depending on time of year and number of hours I get. With the minimal amount of spending that I normally do, I can _just_ make the bills from what I get from my primary job. The secondary jobs pay my gas and food and pay extra on CC's. The problem is if anything unexpected happens, it has to get added back on the CC as I have no reserves left.

Starting today, though, it is going to get rougher since he managed to get signed up for insurance. That will be an additional $80 a month that he will have to pay. He makes just over the cut-off for Medicaid (we live in a non-ACA-medicaid expanded state) so he has to pay it out of pocket.

I feel like I'm whining. And I am sure I am some. It just seems like every time I can see the glimmer of a light at the end of the tunnel, it turns out to just be a will-o-the-wisp and the tunnel is a lot longer than I thought.

Good to know that you both are in a strong relationship, the fact that money seems to be the only detrimental aspect of your relationship is a BIG one though.

You say he isn't good with finances, "So (mostly) leaves that all to me. Which means, he gives me his check each week and then I give him back what is not "due" for household bills etc."

I did some math from your numbers and he isn't good with finances because he was no finances...He basically has a car and car insurance and gas (sometimes) he pays for.

The new medical insurance for an additional $80.00 a month is questionable because he hasn't been paying anything yet.

Monthly Pay (Not sure if this is before or after taxes)
$160.00 a week is $8,320.00 a year or $693.33 a month
$210.00 a week is $10,920.00 a year or $910.00 a month
Average of the two possible pay checks is $801.66
So $801.66 monthly pay
Car payment $400.00
Car insurance $ 80.00
Gas $35.00/$50.00 average $43.00=$184.16 month
Medical Insurance $ 80.00

So just his basic expenses are $744.16 a month, from what your saying this amount is (sometimes) more then what he some times makes at his job $693.33. If he makes the higher pay check every week that's $910.00 it leaves $165.84 a month for his contribution to the Household expenses of $2000.00 which doesn't include any food. I'm sure he has other personal expenses but no additional amount has been added to this. (You mentioned cigarettes in one of your post I know that can add several hundred dollars a month to the budget) So in reality he isn't contributing anything for his living expenses, unless he consistently is making the higher paycheck.

There isn't anything wrong with one partner carrying a larger financial responsibility but you must know what is expected of each of you. Fair is fair and you working 4 jobs while he works 3 or 4 days a week isn't fair, you might find this acceptable, just see the amount for what it is.

Now for the solution: If you have debt there are really only two things you can do to get rid of it.

#1. Make more money: As you are already working 4 jobs that would be hard for you.

#2. Cut your expenses: You need to cut back on day to day expenses eating out, cable, cell phones, electricity, water, car insurance, rent (though you may have your own home) if you are buying your home cut back on homeowners insurance, try to refinance @ a lower rate...anything you can do.

Try and start an Emergency Fund even a small one that will keep new charges off the credit cards.

No New Debt should be your goal for right now.

Any additional payment amount on the credit cards will help, you do have many options to pay this debt off just keep at it.

Remember eyes wide open.

You can do this....

 

[SpaceGirl]

It was just a crazy few days...getting back to work with a rush deadline after a week's vacation and having to deal with some stress having to do with extended family made me feel like I needed another vacation! I took a nice long walk with a friend today and went out to lunch with another friend and even had a nap, so feeling better already.

Hang in there...I always feel like I need a vacation after a vacation over the Holidays... So Much to Do, So Little Time.

 

[SpaceGirl]

Count me in!! I have $3,000 in credit card debt and $10,000 in student loans and $4,000 in taxes My car will be paid off in April!!! Would have been Feb but I have several late fees. My goal for 2014 is to pay off half, but DH's job has been up in the air for a while so not sure how long I can count on his income. Good news is he has an interview Friday! I'm starting the 52 weeks savings plan so I have $1 saved

Love your enthusiasm...After the car is paid-in-full you should be able to attack the other debt, you maybe able to pay off more then half.

I think I'll start the 52 week savings also sounds like a fun way to save.

 

[Deffenm]

I am going to continue to work on this for 2014. Here are our goals.

1.) Pay off 2 credit cards that total $7,551.
2.) Save at least $1,000 for emergency fund.

We are a one income family, however DH does coach soccer and that money helps out with vacations/house & car repairs. He doesn't make a ton but every little bit helps. So as he gets paid for coaching we will decide how much goes towards vacations, emergency fund, and to pay more towards bills. I don't have much wiggle room in my pay checks as I cover all the expenses. I will be sticking to a monthly budget though with hopes that I can save money from grocery bill and eating out.

I have January bills all planned out!

 

[Chelley00]

Can I join?

We had a really really rough and expensive 2013. DH had major surgery last December and was off work for 8 weeks. Short term disability doesn't pay a lot 10 days after his surgery DS17 was in a horrific car accident which left us with a lot of medical bills. A lot. Plus I missed a lot of work due to their constant care, doctor's appts and therapy. We also had to replace his car and not too long after that, our fridge gave up.

So, we had to rely on credit cards to make ends meet, we still are paying on some medical bills and we have a small car payment for DS.

I've spent the past few days trying to get all our ducks in a row, figure out what to pay off first and how to just dig us out of this hole. We were supposed to go on a long planned trip for my birthday in March with a large group of friends and realized we couldn't swing it and canceled it. Disappointing but I feel better not having to try and pay for it on top of everything else.

 

[dayvewc]

These are the spreadsheets I made to track my weekly savings plan.

and

I'm not too artistic at adding background and watermarks.

 

[dtr_angel]

Today was the first payday of the year. I was so excited to put numbers in YNAB this morning I'm excited for a fresh start! This is the year!

DH and I need to get some life insurance on us. We both turn 30 this year. Any recommendations on type we should get or companies? I'm clueless. I had started a small Gerber policy on DS (17 months) when he was born last year but realized it was not necessary so I won't be wasting money on that one anymore. I'd rather put money away for college for him.

We also need to go see a lawyer this year and get a will in writing, which I don't think is too much $$.

Also have plans to FINALLY start a Roth IRA.

We signed up for the FSA with our health insurance this year. We decided on an amount to cover our deductible, some co-pays for the number appointments we know we need this year, my maintenance prescription every 3 weeks, and our dental deductible. Should I include those in my monthly budget since we have to pay for them before getting reimbursed? I've heard of people having a debit card that you could use but I'm not sure if/how we could get one.

I'm doing a version of the 52 weeks savings plan. I'm putting away $55/pay (x 26 paydays = 1430 total) which will give us the $1300 we need for our APs for our trip to Disney in December

 

[gracie1]

Can I join?

We had a really really rough and expensive 2013. DH had major surgery last December and was off work for 8 weeks. Short term disability doesn't pay a lot 10 days after his surgery DS17 was in a horrific car accident which left us with a lot of medical bills. A lot. Plus I missed a lot of work due to their constant care, doctor's appts and therapy. We also had to replace his car and not too long after that, our fridge gave up.

So, we had to rely on credit cards to make ends meet, we still are paying on some medical bills and we have a small car payment for DS.

I've spent the past few days trying to get all our ducks in a row, figure out what to pay off first and how to just dig us out of this hole. We were supposed to go on a long planned trip for my birthday in March with a large group of friends and realized we couldn't swing it and canceled it. Disappointing but I feel better not having to try and pay for it on top of everything else.

Of course you can join!!! Welcome! Sorry to hear about your DH and then DS! I hope they are both okay now medically. I think once you get everything down on paper and see where everything stands, it will be easier for you to tackle one thing at a time. And remember, were all on here to help each other!

 

[dtr_angel]

Is there any way on YNAB to "earmark" money in a savings account. For example, we have a vacation club account and part of the money in there is for vacation 1, and part is for vacation 2. My version of the 52 weeks saving plan goes towards vacation 2, and I want to know how much I have towards each one. Should I just keep an excel spreadsheet?

 

[gracie1]

Today was the first payday of the year. I was so excited to put numbers in YNAB this morning I'm excited for a fresh start! This is the year!

DH and I need to get some life insurance on us. We both turn 30 this year. Any recommendations on type we should get or companies? I'm clueless. I had started a small Gerber policy on DS (17 months) when he was born last year but realized it was not necessary so I won't be wasting money on that one anymore. I'd rather put money away for college for him.

We also need to go see a lawyer this year and get a will in writing, which I don't think is too much $$.

Also have plans to FINALLY start a Roth IRA.

We signed up for the FSA with our health insurance this year. We decided on an amount to cover our deductible, some co-pays for the number appointments we know we need this year, my maintenance prescription every 3 weeks, and our dental deductible. Should I include those in my monthly budget since we have to pay for them before getting reimbursed? I've heard of people having a debit card that you could use but I'm not sure if/how we could get one.

I'm doing a version of the 52 weeks savings plan. I'm putting away $55/pay (x 26 paydays = 1430 total) which will give us the $1300 we need for our APs for our trip to Disney in December

Is that your little boy in your picture? If so, he is absolutely adorable. Gorgeous eyes!!

I do not have life insurance yet either, and was looking into my insurance carrier (home/auto) and also talked to my health insurance agent. The health insurance agent had more options and were cheaper. I would go that route if I were you (but definitely price it out!). I still haven't done anything yet, though. I can't decide if I would want the lower monthly premium and then at a certain age it stops, or if I want the higher monthly premium and if I 'survive' to a certain age, I can cancel and get back everything that was paid in. But in my mind - if the company went out of business, I would still be out the money I had paid in, right?

As for the Roth IRA, I plan on stopping at my bank sometime this week and look into opening one. Any little bit would help that I could stash in there!

I like your version of the 52 weeks savings plan. I think it is a much easier way to save - by spreading it evenly throughout the year. Especially when the holidays roll around!

 

[rharper1496]

I'm in!

We only have one debt left right now, my $16000 student loan. The goal is to have that paid off by December 31, 2014. We've budgeted $1100 a month from our regular monthly budget towards it but that won't be enough on it's own. We each have 2 3-paycheque months so the extra cheques will go towards the loan. If the CRA ever gets off it's butt and gets our income tax sorted out that would be an extra $3K. A huge chunk but it's the government so who knows when that will even happen. I already work from home and have plans to start a second business doing embroidery and applique in the spring, hopefully I have enough success in that area to push us over the top.

Wish me luck! It will be a challenge but it's not completely unreasonable.

 

[PlaneJoy1]

Today was the first payday of the year. I was so excited to put numbers in YNAB this morning I'm excited for a fresh start! This is the year!

I feel the same way when I put our paycheck in YNAB! It's kind of funny. We just finished December with a little over $500 put away. Normally we spend every penny.... this was progress!

 

[rharper1496]

I've tried that, and variations on that. It generally went:

Me: Here's your money for the week. You've got $50, but you'll need to use $20 for gas to get to work.

(The next day)
SO: I need to get gas.
Me: It's supposed to come out of the money you got.
SO: I spent it already.
Me: On what.
SO: I got hungry, so I bought some hot-links. And I owed someone at work $5 from last week. And I figured I'd buy a couple of extra packs of cigarettes. And I'm not sure where the rest of it went.
Me: I'm not sure I have any extra to give you.
SO: Ok, then I'll just call work and tell them I can't come in for a couple of days.
Me: Fine, gather the bags of cans and lets take and cash them in. Just remember, that is partly how we pay for Disney.
SO: I have faith that you'll find a way.

-----

Can you tell I get a little frustrated sometimes?

Just an idea, but it's something that helped a friend in a similar situation; What if you gave him $30 in cash and a $20 gas card? She was getting gas cards at the grocery store because she got some sort of reward points for them and it was a reminder for him that this was gas money.

 

[GirlWhoWaited]

A little behind the ball here, but I'd like to join!
I'm a young professional with a brand new job, college debt and a future to plan for. I'm looking forward to the guidance, wisdom and community here!

 

[dtr_angel]

Is that your little boy in your picture? If so, he is absolutely adorable. Gorgeous eyes!!

I do not have life insurance yet either, and was looking into my insurance carrier (home/auto) and also talked to my health insurance agent. The health insurance agent had more options and were cheaper. I would go that route if I were you (but definitely price it out!). I still haven't done anything yet, though. I can't decide if I would want the lower monthly premium and then at a certain age it stops, or if I want the higher monthly premium and if I 'survive' to a certain age, I can cancel and get back everything that was paid in. But in my mind - if the company went out of business, I would still be out the money I had paid in, right?

As for the Roth IRA, I plan on stopping at my bank sometime this week and look into opening one. Any little bit would help that I could stash in there!

I like your version of the 52 weeks savings plan. I think it is a much easier way to save - by spreading it evenly throughout the year. Especially when the holidays roll around!

Yes that's my DS, thank you! He has the most gorgeous navy blue eyes!
I am so clueless about life insurance. I'm determined to start our Roth before we get our taxes done. I've gone to the same awesome accountant since I was 18 and every year she gives me the business card and lecture on how I Need to do it while I'm young... going to be 30 this year, no more excuses!

I feel the same way when I put our paycheck in YNAB! It's kind of funny. We just finished December with a little over $500 put away. Normally we spend every penny.... this was progress!

YNAB made budgeting FUN! Never thought I would say that

 

[dayvewc]

Today was the first payday of the year. I was so excited to put numbers in YNAB this morning I'm excited for a fresh start! This is the year!

DH and I need to get some life insurance on us. We both turn 30 this year. Any recommendations on type we should get or companies? I'm clueless. I had started a small Gerber policy on DS (17 months) when he was born last year but realized it was not necessary so I won't be wasting money on that one anymore. I'd rather put money away for college for him.

We also need to go see a lawyer this year and get a will in writing, which I don't think is too much $$.

Also have plans to FINALLY start a Roth IRA.

We signed up for the FSA with our health insurance this year. We decided on an amount to cover our deductible, some co-pays for the number appointments we know we need this year, my maintenance prescription every 3 weeks, and our dental deductible. Should I include those in my monthly budget since we have to pay for them before getting reimbursed? I've heard of people having a debit card that you could use but I'm not sure if/how we could get one.

I'm doing a version of the 52 weeks savings plan. I'm putting away $55/pay (x 26 paydays = 1430 total) which will give us the $1300 we need for our APs for our trip to Disney in December

The company that does my HSA also does FSA's, and they send out a debit/credit card when you sign up. Just check with the company and see. I can get reimbursed if I spend OOP, or (for qualified expenses) I can just use my "medical debit card" to pay.