Debt Dumpers - 2015

[dayvewc]

Why are you wanting to cash out? Because of the current market correction (drop?)

That's actually a really bad time to cash out. Don't sell low. If anything, now is a good time to buy more- though I prefer to not time the market and am just sticking to my regular buying schedule.


Stocks are the only thing people never seem to want to buy on sale... and have the urge to sell when they will garner the lowest price.

I agree. In 2009, I managed to pick up a couple of hundred dollars worth of Ford stock when it was down to $10 a share. I had to sell it to pay some unexpected bills a couple of years later, but at that point I had over a 400% return.

Though, in all honesty, in the late 90's in my first real attempt to purchase stock, I got about 500 shares of RainForest cafe stock while it was relatively cheap. I was feeling really good when the value more than doubled, but quit following the market so I would not be tempted to sell just for the profit. Held on to it for several years, but when I checked again it was only worth about a quarter of what I paid for it.

 

[Iowajes]

dayvewc- That's one of the reasons I've stopped picking individual stocks. I did really well with Pfizer, but lost almost everything I put into Lucent... We won't talk about Enron.

Now I index invest. I use Vanguard which has extremely low expense ratios, so my money isn't eaten up by fees. I have US indexes and international ones.

I kind of want to get back into dividend investing (the indexes do pay dividends, but not as high); but picking individual stocks is just too much of a gamble for me.

 

[AlohaNow]

Why are you wanting to cash out? Because of the current market correction (drop?)

That's actually a really bad time to cash out. Don't sell low. If anything, now is a good time to buy more- though I prefer to not time the market and am just sticking to my regular buying schedule.


Stocks are the only thing people never seem to want to buy on sale... and have the urge to sell when they will garner the lowest price.

Agreed. What would the plan be? To cash out of the market entirely, taking both the loss and the tax hit? And then stuffing cash into your mattress? Investing for retirement is a loooooooong term deal. The market goes up and the market goes down. Study its history, and you’ll see that over time we will all make money.

 

[bcwife76]

Woohoo some awesome progress being made by everyone in this post!!

 

[Mamato2cutekiddos]

Hi there! New here... DH and I are eager to dump our debt and to snowball. The problem is- it seems like every month there is always something that takes up what little extra money we have. I'd like to take a 2nd job but DH's hours are that he only gets home at 6:30 and as we move toward tax season (I'm an accountant) I will be hitting a bit of OT in the winter months, but my schedule is required to remain open for the possibility of needing to work.

I'd love some ideas on how to bring in extra money. I might put an ad on craigslist for part time/at home account work for a small business. I'd love to hear some other suggestions though.

I feel like we are frugal- I haven't bought new clothes for myself in years. My casual shoes broke a week ago and I've been too cheap to buy myself a new pair. And yet every month there seems to be SOMETHING that eats up all our extra cash. I'm just not sure how to break the cycle. We have cut down on a lot, and cancelled as much as we can but some things are necessary.

Our debt currently looks like this:
My car: 6k owing
DH car: 14k owing (brand new)
Personal loan: 5k
CC #1: 3000
CC#2: 500
CC #3: 500
CC#4: 300
CC #5: 300
CC#6: 700

Medical debt: 10k (emergency surgery and 1 week hospital stay due to blood infection with poor health insurance).

Total: 40k debt.

Sweet baby Jesus that's depressing

 

[Angeejoe]

Hi there! New here... DH and I are eager to dump our debt and to snowball. The problem is- it seems like every month there is always something that takes up what little extra money we have. I'd like to take a 2nd job but DH's hours are that he only gets home at 6:30 and as we move toward tax season (I'm an accountant) I will be hitting a bit of OT in the winter months, but my schedule is required to remain open for the possibility of needing to work.

I'd love some ideas on how to bring in extra money. I might put an ad on craigslist for part time/at home account work for a small business. I'd love to hear some other suggestions though.

I feel like we are frugal- I haven't bought new clothes for myself in years. My casual shoes broke a week ago and I've been too cheap to buy myself a new pair. And yet every month there seems to be SOMETHING that eats up all our extra cash. I'm just not sure how to break the cycle. We have cut down on a lot, and cancelled as much as we can but some things are necessary.

Our debt currently looks like this:
My car: 6k owing
DH car: 14k owing (brand new)
Personal loan: 5k
CC #1: 3000
CC#2: 500
CC #3: 500
CC#4: 300
CC #5: 300
CC#6: 700

Medical debt: 10k (emergency surgery and 1 week hospital stay due to blood infection with poor health insurance).

Total: 40k debt.

Sweet baby Jesus that's depressing

There's a great group of folks here with great ideas & support!

 

[dayvewc]

Hi there! New here... DH and I are eager to dump our debt and to snowball. The problem is- it seems like every month there is always something that takes up what little extra money we have. I'd like to take a 2nd job but DH's hours are that he only gets home at 6:30 and as we move toward tax season (I'm an accountant) I will be hitting a bit of OT in the winter months, but my schedule is required to remain open for the possibility of needing to work.

I'd love some ideas on how to bring in extra money. I might put an ad on craigslist for part time/at home account work for a small business. I'd love to hear some other suggestions though.

I feel like we are frugal- I haven't bought new clothes for myself in years. My casual shoes broke a week ago and I've been too cheap to buy myself a new pair. And yet every month there seems to be SOMETHING that eats up all our extra cash. I'm just not sure how to break the cycle. We have cut down on a lot, and cancelled as much as we can but some things are necessary.

Our debt currently looks like this:
My car: 6k owing
DH car: 14k owing (brand new)
Personal loan: 5k
CC #1: 3000
CC#2: 500
CC #3: 500
CC#4: 300
CC #5: 300
CC#6: 700

Medical debt: 10k (emergency surgery and 1 week hospital stay due to blood infection with poor health insurance).

Total: 40k debt.

Sweet baby Jesus that's depressing

You'll find lots of support here. and it can seem overwhelming. We're here with you on that.

IMHO, everyone has to find the system that works for you, but the "snowball" seems to be the most popular. I know how it is when every month just seems to have something unexpected, I'm there right now. I don't know about getting other jobs, that is all dependent on what kind they are, how well you can work it into your current schedule, and if it is actually worth the added stress. Good luck on finding one if that is what you decide.

I realize you didn't actually ask for opinions, but I'm that person who gives it anyway. Just from what you have posted, I would recommend setting up a schedule of priorities for what gets paid off first. If it were me (and not knowing interest rates, or how near limit any of the cc's are), I'd tackle things in the order of CC 5, 4, 3, 2, 6, 1, then the personal loan, your car, medical debt, and then DH car. (Lowest balance to highest balance). To do that, I would cut all payments to the minimum and use what you were paying to start the snowball.

For example:
Card Minimum Current Payment
1 $60 $100
2 $20 $50
3 $20 $50
Then the new payment would look like
Card Minimum New Payment
1 $60 $60
2 $20 $20
3 $20 $120

You would still be paying the same amount each month, but you would be able to get rid of the really low balance cards pretty quick.

As you pay off an account, use the money that was going there and apply it to the next one on the list.

At the same time DON'T CHARGE ANYTHING ELSE ANYWHERE. If you can't find a way to pay cash, wait to buy it until you can.

Also, since you mention those unexpected things, as soon as the first card is paid off, just me, I would actually set aside the original payment there and start building an emergency fund. This will delay the ultimate payoff, but it will help you by giving you a cash cushion for when life happens. This will make the first month or so the hardest, until you have at least one of the low balance cards paid off, but in my experience it is possible.

Of course, all of my unasked for advice is on the assumption that 1) you are paying more than the minimums on at least some of the accounts, and 2) you either aren't currently adding to the debt or are capable of not adding to the debt until the first account it paid off.

I got my start by doing something similar. I took all my cards out of my wallet so I couldn't use them even if I wanted to, and cut back to the minimum payments, but I also used some of what was going to payments to start my emergency fund / living money.

Again, hugs and you can do this. Just keep swimming!!

 

[dayvewc]

There's a great group of folks here with great ideas & support!

You beat me to it. ;-) Of course, I had to write a small novel.

 

[Angeejoe]

You beat me to it. ;-) Of course, I had to write a small novel.

Great minds...

 

[momtosam]

You beat me to it. ;-) Of course, I had to write a small novel.

Bwahahaha!!!

 

[NinaBella]

[

 

[Eureka]

We just tonight decided to get rid of our Netflix DVDs. We also do streaming through them and have a couple other streaming services, PLUS cable (don't even get me started, I have tried to cut back more but my family hasn't been happy so I've stopped trying and honestly, it's not dire straits that we have to save that money). We can barely keep up with the shows we watch live and stream and realized we were not getting our money's worth from the DVDs anymore. I'm sure we may pay to rent one from Amazon or On Demand that's not free now and then, but I don't think it's going to add up to the $16/month we're going to save.

 

[Angeejoe]

We just tonight decided to get rid of our Netflix DVDs. We also do streaming through them and have a couple other streaming services, PLUS cable (don't even get me started, I have tried to cut back more but my family hasn't been happy so I've stopped trying and honestly, it's not dire straits that we have to save that money). We can barely keep up with the shows we watch live and stream and realized we were not getting our money's worth from the DVDs anymore. I'm sure we may pay to rent one from Amazon or On Demand that's not free now and then, but I don't think it's going to add up to the $16/month we're going to save.

Last year we got rid of Netflix dvd also, but I wish streaming had better movies. If there's ever a dvd we really want I just get it from Redbox for $2. We were not getting out money out of Netflix dvd as we were just too busy to watch them.

 

[Eureka]

Last year we got rid of Netflix dvd also, but I wish streaming had better movies. If there's ever a dvd we really want I just get it from Redbox for $2. We were not getting out money out of Netflix dvd as we were just too busy to watch them.

That's exactly it. We had three queues and used to turn them over quickly, every week or so. Lately, mine sit for at least three weeks before I get to them, and Dh is the same. DS watches more, but with school starting again, his time will be limited. I actually am very happy with Netflix streaming bc I enjoy the documentaries. But there are some movies I'll have to rent bc I don't go to the theater much.

 

[Angeejoe]

That's exactly it. We had three queues and used to turn them over quickly, every week or so. Lately, mine sit for at least three weeks before I get to them, and Dh is the same. DS watches more, but with school starting again, his time will be limited. I actually am very happy with Netflix streaming bc I enjoy the documentaries. But there are some movies I'll have to rent bc I don't go to the theater much.

I like documentaries too! I also like foreign language films too. I watched After a The Wedding & Twin Sisters over the weekend, really enjoyed them both!

 

[Eureka]

I like documentaries too! I also like foreign language films too. I watched After a The Wedding & Twin Sisters over the weekend, really enjoyed them both!

Haven't seen Twin Sisters, will have to check it out. Loved After the Wedding. I watched Little White Lie (documentary) recently....so interesting and heartbreaking at the same time.

 

[Angeejoe]

Haven't seen Twin Sisters, will have to check it out. Loved After the Wedding. I watched Little White Lie (documentary) recently....so interesting and heartbreaking at the same time.

Little White Lie looks good, I just looked it up! I'm a social worker & I find this fascinating!

Did you watch The Imposter documentary? Such a weird situation.

 

[Eureka]

Little White Lie looks good, I just looked it up! I'm a social worker & I find this fascinating!

Did you watch The Imposter documentary? Such a weird situation.

No, but I'm going to put it in my list. Just the kind of thing I like. Thanks!

 

[akoenig]

I haven't seen this mentioned in awhile, so I thought I'd bring it up:

http://andthenwesaved.com/about-the-spending-fast/

The woman who runs this blog provides tons of information about how she got out of debt, and encourages her readers to "take the pledge" of commiting to a spending fast (curtailing non-essential expenses until your debts are paid down).

I find her to be very motivating and encouraging, and at the very least, it's nice to read the comments and know that I'm not alone in suffering from debt!

 

[OhMari]

You'll find lots of support here. and it can seem overwhelming. We're here with you on that.

IMHO, everyone has to find the system that works for you, but the "snowball" seems to be the most popular. I know how it is when every month just seems to have something unexpected, I'm there right now. I don't know about getting other jobs, that is all dependent on what kind they are, how well you can work it into your current schedule, and if it is actually worth the added stress. Good luck on finding one if that is what you decide.

I realize you didn't actually ask for opinions, but I'm that person who gives it anyway. Just from what you have posted, I would recommend setting up a schedule of priorities for what gets paid off first. If it were me (and not knowing interest rates, or how near limit any of the cc's are), I'd tackle things in the order of CC 5, 4, 3, 2, 6, 1, then the personal loan, your car, medical debt, and then DH car. (Lowest balance to highest balance). To do that, I would cut all payments to the minimum and use what you were paying to start the snowball.

For example:
Card Minimum Current Payment
1 $60 $100
2 $20 $50
3 $20 $50
Then the new payment would look like
Card Minimum New Payment
1 $60 $60
2 $20 $20
3 $20 $120

You would still be paying the same amount each month, but you would be able to get rid of the really low balance cards pretty quick.

As you pay off an account, use the money that was going there and apply it to the next one on the list.

At the same time DON'T CHARGE ANYTHING ELSE ANYWHERE. If you can't find a way to pay cash, wait to buy it until you can.

Also, since you mention those unexpected things, as soon as the first card is paid off, just me, I would actually set aside the original payment there and start building an emergency fund. This will delay the ultimate payoff, but it will help you by giving you a cash cushion for when life happens. This will make the first month or so the hardest, until you have at least one of the low balance cards paid off, but in my experience it is possible.

Of course, all of my unasked for advice is on the assumption that 1) you are paying more than the minimums on at least some of the accounts, and 2) you either aren't currently adding to the debt or are capable of not adding to the debt until the first account it paid off.

I got my start by doing something similar. I took all my cards out of my wallet so I couldn't use them even if I wanted to, and cut back to the minimum payments, but I also used some of what was going to payments to start my emergency fund / living money.

Again, hugs and you can do this. Just keep swimming!!

I was in your shoes, 6 years ago. The hardest part is writing it down and getting a good picture of it.
With snowballing, you have to pay the minimum amt on all your bills, but one. You try like heck, to pay as much as you can towards one bill. Even if it is an extra $5 dollars a week, that is $20 more dollars a month towards that Kohl's bill. I assume all those small cc bills are store credit cards. Good luck Op, it is hard, but worth it.