Debt Dumpers - 2014

[xCourxCorex]

JMHO, but really I would pay off those student loans before buying a home. Houses are money pits and while I love our happy little home, it's always something and everything is so expensive to have repaired or replaced and the quality of things are just junk any more. (Home Depot) In 17 yrs we're on our 4th kitchen faucet, 3rd lawn mower, 3rd gas grill, etc. We've painted interior many times & 2nd time for exterior next month, updated carpets, lighting, kitchen, both bathrooms, garage door & electric opener, roof, sidewalks, driveway, soffits, windows, furnace/central AC, built a shed, dug an underground drain next to driveway so water doesn't pool/freeze there. Luckily dh is handy and did all except roof & driveway. My brother did AC/furnace & my dad was a kitchen designer/project manager but still it just never ends. The first few months after we bought it, dh would say "we're hemorrhaging money." In that 17 yrs, our property taxes have gone from 3200 to 8700/yr. To own a home and deal with all that plus student loans would be torture. again, jmho. It's great you were able to save such a huge emergency fund.

Thanks, after some thought I have decided to get them paid off entirely... Sooooo reworking my plan again: 1) finish emergency fund goal (because it's gonna drive me nuts til I get there) 2) set aside money for January trip 3) pay off all of student loans - by December 1st! It'll be tight but hopefully I can pull in extra hours and give myself some wiggle room and then I'll have the satisfaction of saying I'm 100% debt free!

Stayed an extra half shift tonight, and tentatively picking up an extra day in a couple weeks, so that's looking good!

 

[mousehockey37]

I need some advice and guidance.

Most of you know I declared bankruptcy last year. I still have my car payment and my student loans to pay off. Once I get my refund I will have enough to pay off my car loan. This frees up $300 a month.

Now, I'm wondering if I should bank my refund and my car payment made each month to improve my credit. I'm not saving a ton on interest (interest rate is 1.75%) so I'm not sure if it's worth paying my loan off right away. I've got 1 year left on my loan so that's 12 more payments that will be made on time that can help improve my credit score.

I do like the idea of paying off my loan and having one less thing to worry about. My student loans start up next month. So that adds 2 payments each month.

Thoughts? Advice? Thanks!!!!

Actually you're looking at it wrong. As you're still recovering from the bankruptcy, to improve your credit, you want to hang onto the remaining debts. The student loans and the car loan are both structured payments. As you make the monthly payments, you are helping your credit, as opposed to paying everything off and having 0 debt.

If you have a minimal amount left with the car, it's not going to be a big deal, it's gonna go away in a few months. The student loans, just keep paying the minimums and plug on.

I would just bank the refund and pretend you can't touch it, aka some emergency money, and just run the car payments out til the end. The more positives you can put on the credit report, the better, and you'll still have the paid in full on the car in a short while.

 

[AirGoofy]

I need some advice and guidance.

Most of you know I declared bankruptcy last year. I still have my car payment and my student loans to pay off. Once I get my refund I will have enough to pay off my car loan. This frees up $300 a month.

Now, I'm wondering if I should bank my refund and my car payment made each month to improve my credit. I'm not saving a ton on interest (interest rate is 1.75%) so I'm not sure if it's worth paying my loan off right away. I've got 1 year left on my loan so that's 12 more payments that will be made on time that can help improve my credit score.

I do like the idea of paying off my loan and having one less thing to worry about. My student loans start up next month. So that adds 2 payments each month.

Thoughts? Advice? Thanks!!!!

I would not worry about your credit score. Having a good credit score means you can get more debt.

With your return, i would keep $1000 in my emergency fund and then pay off the car. Then, start using that $300 a month towards those student loans. Good luck.

 

[ruadisneyfan2]

Thanks, after some thought I have decided to get them paid off entirely... Sooooo reworking my plan again: 1) finish emergency fund goal (because it's gonna drive me nuts til I get there) 2) set aside money for January trip 3) pay off all of student loans - by December 1st! It'll be tight but hopefully I can pull in extra hours and give myself some wiggle room and then I'll have the satisfaction of saying I'm 100% debt free!

Stayed an extra half shift tonight, and tentatively picking up an extra day in a couple weeks, so that's looking good!

 

[crazycatstacy]

Are these private loans or federal loans or some of both? I worked for a prominent student loan servicer for quite some time. So feel free to PM me and I can help you out the best I can.

Anyway, you can't do a consolidation loan of private and federal loans. Also, don't count on the loan forgiveness. It's a very enticing offer that they dangle out there but it goes from month 1. So if you miss month 2, I'm pretty sure you're not eligible anymore. Remember, anything with loan forgiving and the federal government is going to be super sticky to get through.

They are all federal loans. I know that the loan forgiveness is no guarantee but if it works I will not have them in ten years and if it doesn't I guess I am no worse off. I was able to finally get ahold of someone at the consolidation place that had a clue and it is now going thru so hopefully I will have my answer soon. I have paid this month so hopefully it will start next month the way I have it envisioned.

 

[LilacBarries]

Super excited-DH did most of the taxes today and it looks like we're getting about 2100! We've owed about that the last two years so any refund is a big deal. We'll be able to pay off evil 1 and evil 2 (the names we have on our accounts for our two smallest credit cards), our bed and probably our cruise. We still have to sign up for insurance so we need to put money aside for that. Such a good feeling!

 

[gracie1]

Super excited-DH did most of the taxes today and it looks like we're getting about 2100! We've owed about that the last two years so any refund is a big deal. We'll be able to pay off evil 1 and evil 2 (the names we have on our accounts for our two smallest credit cards), our bed and probably our cruise. We still have to sign up for insurance so we need to put money aside for that. Such a good feeling!

That is great!! Glad you can get rid of evil 1 and evil 2!! I love the names you've given them!

 

[mousehockey37]

I would not worry about your credit score. Having a good credit score means you can get more debt.

With your return, i would keep $1000 in my emergency fund and then pay off the car. Then, start using that $300 a month towards those student loans. Good luck.

Having a good score though can also impact her employment, future loans, etc. There are lots of employers now that do run credit checks on potential employees. It's not exactly fair since you're trying to work so you have money to pay the bills so you can keep your score up (a vicious cycle) but it happens.

I agree with the emergency fund, but will stand firm about riding out the structured payment plans. Any good credit showing in the wake of the bankruptcy is going to do her good as she gets further away from the bankruptcy itself.

 

[ruadisneyfan2]

Good morning!
Just when I was about to post about my excitement of being able to pay off another cc a week from Thursday, we woke up this morning to having no heat.
Great! so God knows how much this is going to cost. We did get a decent sized refund but wanted to paint the exterior of our house and be able to send our kids to a week of sleepover camp. For ds 17, my homebody who would have never considered going to camp before, this is probably his last opportunity. It's a computer programming camp, what he wants to go to college for, so I think it will be good for him to hopefully confirm his interest in the field before spending expensive college $$$ on it.
Sigh.... Luckily my brother is a HVAC mechanic and is laid off at the moment so if I have to pay someone for labor I might as well pay someone I love and trust. Im hoping it doesnt need replacing; it's 17 yrs old.

 

[PrincessKymm]

Good morning! Just when I was about to post about my excitement of being able to pay off another cc a week from Thursday, we woke up this morning to having no heat. Great! so God knows how much this is going to cost. We did get a decent sized refund but wanted to paint the exterior of our house and be able to send our kids to a week of sleepover camp. For ds 17, my homebody who would have never considered going to camp before, this is probably his last opportunity. It's a computer programming camp, what he wants to go to college for, so I think it will be good for him to hopefully confirm his interest in the field before spending expensive college $$$ on it. Sigh.... Luckily my brother is a HVAC mechanic and is laid off at the moment so if I have to pay someone for labor I might as well pay someone I love and trust. Im hoping it doesnt need replacing; it's 17 yrs old.

Oh no!!!! I hope it is something small and simple!!!! It's good to have HVAC in the family, it gets expensive!!!

Good luck to your DS. That camp sounds like a good opportunity. If it doesn't pan out see if the local community college will let him audit a class or two. Might give him an idea if the camp doesn't work out but I sure hope it does!

 

[BernardandMissBianca]

WOOHOO!! 3 bills paid off today. and 1/2 of another.
Lowes card is 1/2 paid off and I should be able to pay that off next payday. I want it gone since the 0% interest is over in April.
Tuition for the 3 youngest - $0
the Apple credit card - $0
The seasonal spot for our RV. - $0
That opens up April 1 so I need to have that cash in hand when we arrive, I have banked that in savings for the time being.

Still have some money left over from our refund, just need to see how much Amex is this month.

I'm taking the Amex and the Apple cards out of my wallet since I never use them.

 

[PrincessKymm]

WOOHOO!! 3 bills paid off today. and 1/2 of another. Lowes card is 1/2 paid off and I should be able to pay that off next payday. I want it gone since the 0% interest is over in April. Tuition for the 3 youngest - $0 the Apple credit card - $0 The seasonal spot for our RV. - $0 That opens up April 1 so I need to have that cash in hand when we arrive, I have banked that in savings for the time being. Still have some money left over from our refund, just need to see how much Amex is this month. I'm taking the Amex and the Apple cards out of my wallet since I never use them.

Great job!!! Keep it up!!!

 

[ruadisneyfan2]

Oh no!!!! I hope it is something small and simple!!!! It's good to have HVAC in the family, it gets expensive!!!

Good luck to your DS. That camp sounds like a good opportunity. If it doesn't pan out see if the local community college will let him audit a class or two. Might give him an idea if the camp doesn't work out but I sure hope it does!

Great news. A bolt came unscrewed from the blower fan thing a ma jig.
What a relief! I'll still pay him for his time and gas since he lives an hour away.
Still way easier than expensive parts or worse, a new furnace.

As for ds, during spring break we'll be taking a break from exterior house painting to tour a college he's interested in and they'll let him sit in on a class: Intro to Software Engineering. I'm excited for him.

 

[gracie1]

WOOHOO!! 3 bills paid off today. and 1/2 of another.
Lowes card is 1/2 paid off and I should be able to pay that off next payday. I want it gone since the 0% interest is over in April.
Tuition for the 3 youngest - $0
the Apple credit card - $0
The seasonal spot for our RV. - $0
That opens up April 1 so I need to have that cash in hand when we arrive, I have banked that in savings for the time being.

Still have some money left over from our refund, just need to see how much Amex is this month.

I'm taking the Amex and the Apple cards out of my wallet since I never use them.

Great job!!! Doesn't it feel great to look at all those $0 balances?

 

[pryncess527]

Super excited-DH did most of the taxes today and it looks like we're getting about 2100! We've owed about that the last two years so any refund is a big deal. We'll be able to pay off evil 1 and evil 2 (the names we have on our accounts for our two smallest credit cards), our bed and probably our cruise. We still have to sign up for insurance so we need to put money aside for that. Such a good feeling!

lol, love the names! Congrats on knocking out two debts!!!

 

[pryncess527]

WOOHOO!! 3 bills paid off today. and 1/2 of another.
Lowes card is 1/2 paid off and I should be able to pay that off next payday. I want it gone since the 0% interest is over in April.
Tuition for the 3 youngest - $0
the Apple credit card - $0
The seasonal spot for our RV. - $0
That opens up April 1 so I need to have that cash in hand when we arrive, I have banked that in savings for the time being.

Still have some money left over from our refund, just need to see how much Amex is this month.

I'm taking the Amex and the Apple cards out of my wallet since I never use them.

Congratulations!! That is some great progress

 

[pryncess527]

Great news. A bolt came unscrewed from the blower fan thing a ma jig.
What a relief! I'll still pay him for his time and gas since he lives an hour away.
Still way easier than expensive parts or worse, a new furnace.

As for ds, during spring break we'll be taking a break from exterior house painting to tour a college he's interested in and they'll let him sit in on a class: Intro to Software Engineering. I'm excited for him.

Oh good, I'm glad things weren't as bad as feared!

Have a great time visiting colleges! I work at a Uni and I always love the visits from prospective students, it is so sweet to see them all excited

 

[BernardandMissBianca]

Loving my zero balances. Now if DH would just give me the Amex balances! I told him to sign up for paperless but I want the passwords so I can just handle these myself.

 

[LilacBarries]

Has any one on here done/doing the envelope system?

We've tried in the past and did ok with it, not great. We're really trying to get stuff paid off and our two biggest problems are eating out and little debit card purchases.

We started meal planning again in February and did a lot better on the eating out bit, but now to combat the debit card. I think the next step is doing the envelope system. We haven't carried a credit card in our wallets in over 4 years, i don't know why I'm so scared to stop carrying my debit card. Anyone have any tips for getting started?

 

[pryncess527]

Has any one on here done/doing the envelope system?

We've tried in the past and did ok with it, not great. We're really trying to get stuff paid off and our two biggest problems are eating out and little debit card purchases.

We started meal planning again in February and did a lot better on the eating out bit, but now to combat the debit card. I think the next step is doing the envelope system. We haven't carried a credit card in our wallets in over 4 years, i don't know why I'm so scared to stop carrying my debit card. Anyone have any tips for getting started?

YNAB. It's an electronic version of the envelope system (stands for You Need a Budget). I could never do the envelope system, I hate having cash, keeping huge amounts of cash makes me nervous, and I hate losing out on rewards I could be getting through responsible credit card use. YNAB has transformed our family finances by teaching us to allocate all of our money to jobs (like you do in envelopes) and then make our spending choices based on the category balances in our budget. If we overspend on groceries, we have to rob another category/digital envelope and it makes the trade off of our decision obvious, and often encourages us to rethink our choices. A lot of folks on the Dis swear by it.

There is a 30 day free trial, I highly recommend you (and really everyone!) check it out. http://www.youneedabudget.com/
they have free classes to help you get started, and give away free copies of the software in the online classes. It also goes on deep sale sometimes, so don't let the $60 pricetag deter you from giving it a shot. In hindsight, I'd pay $100 . . .