Debt Dumpers - 2014

[zy144622]

So we've been super tight in trying to keep paying on our debt AND do things like car repairs. It's been a long 5 years. But I recently got several new clients (I freelance) with ONGOING work! Now we can pay more on the debt AND start our house repairs that we are needing. Happy dance!

I'm happy for you! Hard work does pay off, just not always in the timeframe we are looking for...

 

[Eureka]

So we've been super tight in trying to keep paying on our debt AND do things like car repairs. It's been a long 5 years. But I recently got several new clients (I freelance) with ONGOING work! Now we can pay more on the debt AND start our house repairs that we are needing. Happy dance!

I used to freelance so I know so well how great this for you. Ongoing work is the best kind

 

[SAMCRO]

I want a bumper sticker that says "This is the car I bought BEFORE I understood debt reduction and budgeting!" It can be next to the one that says "My dream car is a 2005 Camry."

Live and learn and start from where you are, I guess.

I have a bumper sticker on my 1995 Jeep with 200k miles that says:

"Don't laugh it's paid for"

 

[rusafee1183]

I'm really excited! I am paying off the first debt in my 'snowball'! I am renting out our DVC points for next year, so that is what I am using to pay it off. I am feeling the momentum going, and I am so determined right now.

We also are finally getting the hang of YNAB. I am still working through some kinks, but really loving it! I definitely think we will purchase after the free trial.

So, for anyone else who follows Dave Ramsey's plan, I am thinking of taking on a 2nd job to gain some extra income... but I am a little nervous about it and would like to get some opinions from people who work more than one job to see if this is something attainable. I am not looking at this as a long term solution, but if I can do it for 6 months - it can really help us out.


My aunt works for an organization that gets disabled individuals living on their own. It can range from mental disabilities to physical disabilities/elderly individuals. She offered me a job on the weekends since she knows that we are trying so hard to get out of debt. I already work a full time job, but have toyed with a part time job off and on for years to try and make some extra cash to pay off this debt quicker. WELL - it's not a part time job. It's basically a full time position compressed into 2 days. I would be working from 7am Saturday morning through Sunday night at 11pm. They pay you to sleep at the home, and you actually end up being paid for 40 hours in those 2 days.

I am apprehensive to take it, but I can't imagine passing up on an opportunity like this. Even if I only do it for 6 months, I can knock out at least half of my credit card debt. A year would put us in almost the completely debt free zone with the budget we have already set up with our current incomes.

I'm just nervous about a few things. The main ones are 1) Sleeping overnight in a house that I am unfamiliar with and being away from my DH. 2) Burning myself out and - 3) Having to help people with bathroom issues. I just don't know if I am cut out for it, but I really feel like I need to try. It would literally end up being an ADDITIONAL $1,200 - $1,300 a month.

Any thoughts? I am leaning towards 'giving it a shot' but want to get some opinions.

 

[pryncess527]

I want a bumper sticker that says "This is the car I bought BEFORE I understood debt reduction and budgeting!" It can be next to the one that says "My dream car is a 2005 Camry."

Live and learn and start from where you are, I guess.

I need that one too! I came to the harsh realization last week that, if my car payment were going into the vacation fund instead, I'd be planning my dream Disney trip as we speak.

I do love my car. LOVE. It's probably better than a vacation because I get to drive it every day, and when the weather is nice, having my top down is every bit as awesome as a vacation -- but if we'd owned YNAB when we made the purchase, I'm willing to be I'd be driving a much cheaper car . . . (which I confess, partially make me happy we did not have YNAB then . . .)

 

[pryncess527]

I'm just nervous about a few things. The main ones are 1) Sleeping overnight in a house that I am unfamiliar with and being away from my DH. 2) Burning myself out and - 3) Having to help people with bathroom issues. I just don't know if I am cut out for it, but I really feel like I need to try. It would literally end up being an ADDITIONAL $1,200 - $1,300 a month.

Any thoughts? I am leaning towards 'giving it a shot' but want to get some opinions.

I think I'd have these same concerns -- and be equally tempted by the extra income!
If you give it a shot, and only make it a month, will that cause problems for your aunt/burn bridges, etc? That would be my other concern. If you think they'd be understanding if you tried and couldn't take it, then I'd give it a shot.
I've been toying with a second job myself, but I know my H wouldn't want me to, he already values our weekend time together so highly, and I'm afraid it would make him feel like I'm sending a message he doesn't make enough, but I really just want to be out of debt! Extra money from Amazon mTurk and Ebay is nice, but it's not going to shave 2-3 years off our debt repayment plan like more serious extra work would . . .

 

[rusafee1183]

I think I'd have these same concerns -- and be equally tempted by the extra income!
If you give it a shot, and only make it a month, will that cause problems for your aunt/burn bridges, etc? That would be my other concern. If you think they'd be understanding if you tried and couldn't take it, then I'd give it a shot.
I've been toying with a second job myself, but I know my H wouldn't want me to, he already values our weekend time together so highly, and I'm afraid it would make him feel like I'm sending a message he doesn't make enough, but I really just want to be out of debt! Extra money from Amazon mTurk and Ebay is nice, but it's not going to shave 2-3 years off our debt repayment plan like more serious extra work would . . .

The nice thing is that she already told me when she offered me the job that it's not for everyone, and that if I am not cut out for it or don't want to do it that she totally understands. So, that's a good thing. I am just more concerned with taking the week off from my full time job for training (I have the time to use, it's no big deal) and dealing with filing another job on my taxes at the end of the year and dealing with possible tax implications for sometghing that I won't stay with.

I have never been someone who leaves a job after only a few months... I stick with my jobs for YEARS, so the idea of having something only there for a month or two kind of freaks me out. It makes me feel like I will owe a lot in taxes at the end of the year, even though that's likely just me worrying myself for no good reason.

 

[pigletto]

I need that one too! I came to the harsh realization last week that, if my car payment were going into the vacation fund instead, I'd be planning my dream Disney trip as we speak.

I do love my car. LOVE. It's probably better than a vacation because I get to drive it every day, and when the weather is nice, having my top down is every bit as awesome as a vacation -- but if we'd owned YNAB when we made the purchase, I'm willing to be I'd be driving a much cheaper car . . . (which I confess, partially make me happy we did not have YNAB then . . .)

I hear you but did the opposite. We had a trip planned for August and decided to cancel in favor of a new, larger vehicle. Then I started using YNAB. Within a week we had scrapped the idea of the new vehicle altogether. When we realized that the car we have has zero issues and no payments (it's just very small) it made no sense. Might as well drive it into the ground and sock away even more money. So Yay.. we talked ourself out of a car and a vacation in one weeks time.
We'll still do the car, and the trip, but we're saving up for the car instead of financing and saving cash for the trip next winter. I know I will be really happy that I made these decisions... it was just a little tough at the time. I'm pretty sure when the time comes it will be a used vehicle of some sort as well. I can't believe how much YNAB has changed our thinking in such a short time, but I'm glad we are using it (except when I cram us all into our small car lol).

 

[pryncess527]

The nice thing is that she already told me when she offered me the job that it's not for everyone, and that if I am not cut out for it or don't want to do it that she totally understands. So, that's a good thing. I am just more concerned with taking the week off from my full time job for training (I have the time to use, it's no big deal) and dealing with filing another job on my taxes at the end of the year and dealing with possible tax implications for sometghing that I won't stay with.

I have never been someone who leaves a job after only a few months... I stick with my jobs for YEARS, so the idea of having something only there for a month or two kind of freaks me out. It makes me feel like I will owe a lot in taxes at the end of the year, even though that's likely just me worrying myself for no good reason.

I would not let the tax implications scare you. They are often overblown IMHO. Even if the job bumps you up a bracket, that will only effect the "extra" money. I've heard people say that their second job income gets eaten up in taxes, but I've never actually seen the math back that up. In a progressive income tax system, it seems impossible . . .
Getting paid to sleep sounds awesome! (kidding, mostly, I know there will be more to it than that. But you will get paid to sleep sometimes! My sister did a similar job in college and said it wasn't bad at all)

 

[pryncess527]

I hear you but did the opposite. We had a trip planned for August and decided to cancel in favor of a new, larger vehicle. Then I started using YNAB. Within a week we had scrapped the idea of the new vehicle altogether. When we realized that the car we have has zero issues and no payments (it's just very small) it made no sense. Might as well drive it into the ground and sock away even more money. So Yay.. we talked ourself out of a car and a vacation in one weeks time.
We'll still do the car, and the trip, but we're saving up for the car instead of financing and saving cash for the trip next winter. I know I will be really happy that I made these decisions... it was just a little tough at the time. I'm pretty sure when the time comes it will be a used vehicle of some sort as well. I can't believe how much YNAB has changed our thinking in such a short time, but I'm glad we are using it (except when I cram us all into our small car lol).

Good for you!! I keep reminding myself that Food & Wine will taste better when it can be paid for up front!

 

[pigletto]

Good for you!! I keep reminding myself that Food & Wine will taste better when it can be paid for up front!

It will!! It will feel like a celebration and there won't be the added debt stress to add on top of the post vacation blues.

 

[jen19806]

I would not let the tax implications scare you. They are often overblown IMHO. Even if the job bumps you up a bracket, that will only effect the "extra" money. I've heard people say that their second job income gets eaten up in taxes, but I've never actually seen the math back that up. In a progressive income tax system, it seems impossible . . .

Eh- it can happen if tax deductions or credits you rely on have income limits & you are close. Years ago I got out of grad school with 6 figure student loan debt, the second job I was working pushed AGI up so student loan interest deduction was getting phased out. So, at years end the net result was I essentially earned even less per hour than expected from the second job once the lost tax credit was figured in. Not huge amounts of $, but it was frustrating b/c I was trying to be responsible & it just hadn't occurred to me that it would happen that way.

People who have subsidized insurance through the ACA now might be working extra, but losing. People who get subsidized lunch for their kids or reduced prices at the local YMCA etc. Pretty much anyone who might be on the cusp- sometimes programs aren't really set up to encourage people to work harder or more. In those situations it can be a net neutral or net loss.

 

[hmack]

Checking in just to say that I'm still here.

I won't meet all of my goals for this month. BUT, after only a month and a half of budgeting and keeping my eyes open to my spending habits (and adjusting here and there) I feel more hopeful than I have in a while.

It nice to get my head out of the sand. It's not always a lovely view but it's better than ignorance.

I have my financial plan set for May and that feels good.

So far I've found that this ride is a lot like Expedition Everest. exhilirating, slightly terrifying and sometimes you slide backwards but at least I don't have to go through the single-rider line, I have all of you riding along in my cart.

 

[xCourxCorex]

Picking up so many extra shifts has definitely paid off.. my check this week allowed me to finish my emergency fund goal (finally!!!) plus have some extra after setting aside for bills to splurge on myself a little.. a quick trip to Marshall's took care of the retail therapy I needed

And even better news, I had been working 32 hours a week, which is considered full time so I did get benefits, but the past couple of months we have been extremely short staffed. I took advantage and asked if they'd let me bump up to a permanent 40 hour position and they said yes! So starting next week I have my 40 hours, plus I can still pick up overtime when I want to! YAY!

Now that my emergency fund goal is complete, my next big task is dumping my student loans. I hope to have the smallest finished by the end of May (yay for a 3-paycheck month!) and the other two by the end of October.

 

[dmross]

I need that one too! I came to the harsh realization last week that, if my car payment were going into the vacation fund instead, I'd be planning my dream Disney trip as we speak.

I do love my car. LOVE. It's probably better than a vacation because I get to drive it every day, and when the weather is nice, having my top down is every bit as awesome as a vacation -- but if we'd owned YNAB when we made the purchase, I'm willing to be I'd be driving a much cheaper car . . . (which I confess, partially make me happy we did not have YNAB then . . .)

Lol! I know exactly what you mean!

 

[dmross]

I have a bumper sticker on my 1995 Jeep with 200k miles that says:

"Don't laugh it's paid for"

Haha! There are probably a couple of people that you pass on the road every day that understand and applaud you.

 

[writermommy6]

Picking up so many extra shifts has definitely paid off.. my check this week allowed me to finish my emergency fund goal (finally!!!) plus have some extra after setting aside for bills to splurge on myself a little.. a quick trip to Marshall's took care of the retail therapy I needed And even better news, I had been working 32 hours a week, which is considered full time so I did get benefits, but the past couple of months we have been extremely short staffed. I took advantage and asked if they'd let me bump up to a permanent 40 hour position and they said yes! So starting next week I have my 40 hours, plus I can still pick up overtime when I want to! YAY! Now that my emergency fund goal is complete, my next big task is dumping my student loans. I hope to have the smallest finished by the end of May (yay for a 3-paycheck month!) and the other two by the end of October.

Yay you!!!! You never know if you don't put yourself out there.

 

[desiree71081]

Just paid off another bill.

It's amazing how much gets paid off when you are watching your spending and sending in more than the minimum payment.

That makes 4 bills in the last month and a half paid off!!!!!

 

[Silvana]

Just started my new job on 4-21 after being out of work since November. I have an idea what my paycheck will be after taxes but won't know for sure until Mon. 5-5 though we won't get paid until Fri. 5-9. We've hit some snags with vehicles and owing on the tax return for the first time ever.

It looks like I won't be able to pay off the credit cards at the end of the year like originally anticipated. At first that was a big hit to my plan. It made me really have that moment of "Why am I bothering with all this trouble and stress when the debt will eventually be gone anyway as long as we pay the minimum." but then I remembered that the promise is credit cards and car paid, then a vacation to Disney, then the loan and the student loan.

That will end up putting us debt free by the end of 2016 and I'm alright with that. If we did the minimum payment it would be much later.

 

[princezB]

My goals are that I get out of debt from moving quickly!!! I'm hoping in the next 3 years all will be good with finances. I've set in my head that I will not by buying clothes for the next year (more if I could!)- this is so hard for my I am such a clothes horse!!! I want to be able to have no CC debt at least, the good news is by the time I pay off my debt, my car will be paid off...woohoo!!!