Debt Dumpers - 2015

[Miss Whimsy]

Well, the debt dumping took a major step back this week... The cat spent 6 nights at the animal hospital and ran up an almost $5000 bill. I'm glad he's OK (knock on wood), but yeeeeesh.

Savings accounts got cleaned out and the rest of the 5K is just going to get added to the pile of debt. We also cancelled our tentative plans to go to DL in January.

 

[dayvewc]

I'm also jumping on the Debt Dumper train - a bit late in 2015, but better late than never!

Our story: Our only debt 6 years ago was an auto loan that we were already 2 years into paying off. Shortly after our first wedding anniversary, my husband was laid off from his job. 4 months later, I was laid off from mine. With both of our unemployment checks, we were able to cover all our expenses, but didn't go into 'emergency mode' and slash those expenses. Over the next two years, either he was unemployed or I was unemployed. We started economizing more, but we also started putting 'emergencies' on credit cards. I started going to school to improve my job hunting prospects, but still only qualified for Stafford loans, no grants or scholarships. In 2012, we both found full-time, permanent jobs. School fell by the wayside as my grandfather, then my father passed. Lots of plane tickets on credit cards to go home to MA. Still, with all of this going on, we paid off the car in 2013 and moved to be closer to my job. The original idea was that DH would find a job closer to our new place to make more money and reduce commute costs. We could afford the difference in rent since we no longer had the car payment, but again, the presumption was that he was leaving his job since he was miserable there. What we didn't plan on? Crazy rental increases. Our old place went up $75/mo over 5 years. This place went up $75/mo after one year. Fortunately, I got a promotion at the same time as the rent increase, so we were able to absorb the difference. The situation at DH's job improved dramatically, so he didn't want to leave. We were now living at the extent of our income, not incurring new debt but unable to really thwack down the old. Then we got the new rental increase at our current place which would be $145/mo more. We can't keep up with increases like that.

SO, to get our mid-five figures debt under control, we're moving back to the old neighborhood. I can live with commuting, since work pays for it, but will eventually be able to transfer closer to home if I want to. With what we will be saving on rent, utilities, gas and insurance each month, it's $700/mo cheaper to live down there than here, which will be added to our current stack method as well as allowing us to start our emergency fund. My SIL is extraordinarily generous and is paying for the three of us to go to WDW, otherwise we would not be taking a vacation like that.

With our current plan, we should be completely out of CC debt (6 cards) within 2 years. I have 8 years left on my student loans and we have 2 years left on a personal loan.

It's never too late to join. Sounds like you've had a bit of a roller coaster, but also sounds like you have a plan. Way to go. Good luck, and just keep swimming!

Well, the debt dumping took a major step back this week... The cat spent 6 nights at the animal hospital and ran up an almost $5000 bill. I'm glad he's OK (knock on wood), but yeeeeesh.

Savings accounts got cleaned out and the rest of the 5K is just going to get added to the pile of debt. We also cancelled our tentative plans to go to DL in January.

Ouch, that definitely hurts. Glad that the furry fuzzy four legged friendly family member is doing OK. Fingers crossed he stays that way.

I hate that you had to cancel plans, but sometimes life just intervenes. This might be the proverbial "closing the barn doors after the horses have escaped", but have you looked at either pet insurance or Care Credit? I know that the insurance is not too expensive and the coverage is pretty good, if the pet is healthy to begin with. Not so sure with what will now be pre-existing conditions. And as a credit card, the Care Credit has a horrible, horrendous, absolutely detestable interest rate, BUT the upside is that you get 18 months (maybe more) to pay the bill interest free. It also works at most eye doctors, dentists, eye-glass stores, regular doctor offices, pretty much anything medical - including veterinarians. It has definitely been a Godsend with some of my recent medical bills, even though I originally got it for my pet.

 

[Angeejoe]

I'm also jumping on the Debt Dumper train - a bit late in 2015, but better late than never!

Our story: Our only debt 6 years ago was an auto loan that we were already 2 years into paying off. Shortly after our first wedding anniversary, my husband was laid off from his job. 4 months later, I was laid off from mine. With both of our unemployment checks, we were able to cover all our expenses, but didn't go into 'emergency mode' and slash those expenses. Over the next two years, either he was unemployed or I was unemployed. We started economizing more, but we also started putting 'emergencies' on credit cards. I started going to school to improve my job hunting prospects, but still only qualified for Stafford loans, no grants or scholarships. In 2012, we both found full-time, permanent jobs. School fell by the wayside as my grandfather, then my father passed. Lots of plane tickets on credit cards to go home to MA. Still, with all of this going on, we paid off the car in 2013 and moved to be closer to my job. The original idea was that DH would find a job closer to our new place to make more money and reduce commute costs. We could afford the difference in rent since we no longer had the car payment, but again, the presumption was that he was leaving his job since he was miserable there. What we didn't plan on? Crazy rental increases. Our old place went up $75/mo over 5 years. This place went up $75/mo after one year. Fortunately, I got a promotion at the same time as the rent increase, so we were able to absorb the difference. The situation at DH's job improved dramatically, so he didn't want to leave. We were now living at the extent of our income, not incurring new debt but unable to really thwack down the old. Then we got the new rental increase at our current place which would be $145/mo more. We can't keep up with increases like that.

SO, to get our mid-five figures debt under control, we're moving back to the old neighborhood. I can live with commuting, since work pays for it, but will eventually be able to transfer closer to home if I want to. With what we will be saving on rent, utilities, gas and insurance each month, it's $700/mo cheaper to live down there than here, which will be added to our current stack method as well as allowing us to start our emergency fund. My SIL is extraordinarily generous and is paying for the three of us to go to WDW, otherwise we would not be taking a vacation like that.

With our current plan, we should be completely out of CC debt (6 cards) within 2 years. I have 8 years left on my student loans and we have 2 years left on a personal loan.

Welcome to the thread!!!

Well, the debt dumping took a major step back this week... The cat spent 6 nights at the animal hospital and ran up an almost $5000 bill. I'm glad he's OK (knock on wood), but yeeeeesh.

Savings accounts got cleaned out and the rest of the 5K is just going to get added to the pile of debt. We also cancelled our tentative plans to go to DL in January.

So sorry to hear your kitty has been under the weather! Sending positive thoughts your way

 

[mrsabbott]

LinderinWonderland.. It is crazy how quickly that debt can pile up, isn't it?? I had worked so hard to get debt free and it seemed like it was one emergency after another, lost jobs, etc.. But we will get there!!

Miss Whimsy.. So sorry to hear about your fur baby! I know we spent about $5K on one of ours once. How could we not? They are family! We have a Care Credit card and the interest is less than a regular credit card, but the 18 months same as cash is a nice benefit! I have about $200 left to pay from a previous vet bill and will likely have to use it on dental bills for my DD since we don't currently have dental insurance (hoping to get that before the kids need braces!!).

I feel like we are just holding on until February (when we usually get our taxes back) and can jump start our debt snowball. In the meantime, I feel like we are just treading water.. My FIL once said that Hubs or I should get a 2nd job to get out of debt. Hubs works 5-6 days a week, 50-60+ hrs a week. He gets up early, goes to work, comes home late, eats dinner, goes to bed. Repeat. His job is physically demanding and he works out in the heat. A 2nd job would force him to do without sleep, something he needs. We have 4 kids (age 10 and under) and my job allows me to work on their school schedule since I work in the school system. I looked into after school care for the kids with the thought that I could get a 2nd job somewhere BUT the cost is astronomical and any $ I made would go into paying for childcare.

So.. I try to cut expenses wherever I can and I am waiting patiently for the chance to jump start our debt snowball. My hope is that I can reward our family with an awesome vacation when it is all said and done!

 

[ruadisneyfan2]

Hi Everyone!
I haven't stopped by in a while. Life has been a bit hectic with back to school time. Yesterday we moved ds18 into his college dorm. I don't know how people do it with more than one kid in college! It's exhausting.

We're still chugging along. Our car insurance account is fully funded as is our emergency fund.
On Thursday I'll start working on our Christmas fund which should keep me busy through mid Oct. Then time to attack the 0% x 12 months cc that I used for our Universal trip. (This weekend, yay!) Then dh's truck loan.
If all goes according to The Plan, we should have only our mortgage by the end of the school year.

To the pp wondering about spending some savings on home improvement projects, JMHO, but I would do the gutters first. They are not simply cosmetic/curb appeal items, they protect your home from further water damage. They are important preventative maintenance items. Also unless your current situation is unlivable, such as you have no sidewalks to your front door and walking through mud to get there, I'd hold off elective/cosmetic projects until my cc debt was paid off at least. If you could live without that $ in your savings account, pay down a debt with it.
Again, jmho. Only you can decide what's important to you and what isn't.

 

[Angeejoe]

LinderinWonderland.. It is crazy how quickly that debt can pile up, isn't it?? I had worked so hard to get debt free and it seemed like it was one emergency after another, lost jobs, etc.. But we will get there!!

Miss Whimsy.. So sorry to hear about your fur baby! I know we spent about $5K on one of ours once. How could we not? They are family! We have a Care Credit card and the interest is less than a regular credit card, but the 18 months same as cash is a nice benefit! I have about $200 left to pay from a previous vet bill and will likely have to use it on dental bills for my DD since we don't currently have dental insurance (hoping to get that before the kids need braces!!).

I feel like we are just holding on until February (when we usually get our taxes back) and can jump start our debt snowball. In the meantime, I feel like we are just treading water.. My FIL once said that Hubs or I should get a 2nd job to get out of debt. Hubs works 5-6 days a week, 50-60+ hrs a week. He gets up early, goes to work, comes home late, eats dinner, goes to bed. Repeat. His job is physically demanding and he works out in the heat. A 2nd job would force him to do without sleep, something he needs. We have 4 kids (age 10 and under) and my job allows me to work on their school schedule since I work in the school system. I looked into after school care for the kids with the thought that I could get a 2nd job somewhere BUT the cost is astronomical and any $ I made would go into paying for childcare.

So.. I try to cut expenses wherever I can and I am waiting patiently for the chance to jump start our debt snowball. My hope is that I can reward our family with an awesome vacation when it is all said and done!

You should tell FIL " I took you up on your advice, got a second job, & daycare will eat all of the profits. So since you think it's a great idea, I know you'd like to watch the kids for free!!!" I have a feeling he may change his mind...

 

[Miss Whimsy]

Thanks for the info about Care Credit, guys, I'll look into it. He's going to have some ongoing issues, though hopefully nothing like this $5K bill again, but I need to be prepared to up my vet expenditures over the course of his life. I'm just glad he's back, and that he's eating. He's starting to be a little jerk again so I think he's feeling better. (Why do we put up with cats, I ask you.)

 

[mrsabbott]

You should tell FIL " I took you up on your advice, got a second job, & daycare will eat all of the profits. So since you think it's a great idea, I know you'd like to watch the kids for free!!!" I have a feeling he may change his mind...

Haha!! Would never happen. FIL (Step-FIL, actually) has never raised kids of his own and married MIL when DH and his brother were teenagers. Doesn't understand a THING about what it is really like or what it takes. LOL!

 

[Angeejoe]

Haha!! Would never happen. FIL (Step-FIL, actually) has never raised kids of his own and married MIL when DH and his brother were teenagers. Doesn't understand a THING about what it is really like or what it takes. LOL!

Well if he suggests it again, let him know this brilliant idea

 

[ruadisneyfan2]

Haha!! Would never happen. FIL (Step-FIL, actually) has never raised kids of his own and married MIL when DH and his brother were teenagers. Doesn't understand a THING about what it is really like or what it takes. LOL!

As usual, everyone is a parenting expert until they actually become one.

 

[mrsabbott]

As usual, everyone is a parenting expert until they actually become one.

Admittedly, I thought that I was a parenting expert until I actually became one! ROFL!!

 

[ruadisneyfan2]

Admittedly, I thought that I was a parenting expert until I actually became one! ROFL!!

Me too! We were very opinionated about how children should behave. It all changes when it's your own and you're living la vida loca.

 

[dayvewc]

Me too! We were very opinionated about how children should behave. It all changes when it's your own and you're living la vida loca.

That's why I love my dogs so much. No one says anything to me if I take my babies out in public with a leash on them.

 

[ruadisneyfan2]

 

[ariel1025]

Since we are at the start of the month I thought I'd do an update to keep myself remaining accountable

For the month of August our debt balance decreased by $1,074.33. Not as much as I'd like, but a decrease is a decrease, I suppose

And I know adding credit cards isn't recommended, but I got an offer from Capital One for 0% until May 2016. I did the math and transferring my (almost) 24% interest Discover card over and continuing that same minimum payment would have it paid off before the promotional offer ends. Talked to Husband and it seemed silly not to do it, so we did. Goodbye interest

I also realized that it isn't necessary for my Husband to still have is MyFico account right now, so he cancelled that. It's only $16, but it's still $16 that will go into our snowball starting this month!

Lastly, thank you to whoever posted about cutting out their DVD portion of Netflix!! I don't know why that didn't cross my mind before, but it SO isn't worth it for us to still have it. Will be talking to Hubs about cutting that out tonight, which would add an additional $10 to our snowball!

Good luck on the debt dumping this month, everyone

 

[ruadisneyfan2]

Since we are at the start of the month I thought I'd do an update to keep myself remaining accountable

For the month of August our debt balance decreased by $1,074.33. Not as much as I'd like, but a decrease is a decrease, I suppose

And I know adding credit cards isn't recommended, but I got an offer from Capital One for 0% until May 2016. I did the math and transferring my (almost) 24% interest Discover card over and continuing that same minimum payment would have it paid off before the promotional offer ends. Talked to Husband and it seemed silly not to do it, so we did. Goodbye interest

I also realized that it isn't necessary for my Husband to still have is MyFico account right now, so he cancelled that. It's only $16, but it's still $16 that will go into our snowball starting this month!

Lastly, thank you to whoever posted about cutting out their DVD portion of Netflix!! I don't know why that didn't cross my mind before, but it SO isn't worth it for us to still have it. Will be talking to Hubs about cutting that out tonight, which would add an additional $10 to our snowball!

Good luck on the debt dumping this month, everyone

$1074 is still great progress!
Don't you automatically get your FICO score free with a Discover card? Also we did a 0% transfer TO a Discover card, actually 2 cards, and it worked out very well. We did pay the balance transfer fee but that was much smaller than the interest accruing on our other cards. We did pay them both off before the 0% promotion expired. Keep focused and you'll get there!

 

[mrsabbott]

That is awesome, Ariel! That is one of our credit cards right there.. that's no small thing!

I have a Credit Karma account and it is free. I can get my FICO score free and track my debt and stuff. I've had it for a long time and have had no problems with it at all. Might be an option for you to look into.

Still not sure when I am going to start working full time. I work in the school system and they have to follow a procedure. Even though I'm already employed there and I already have the job, they still have to post the job and then I have to "apply" for it. I won't interview for it because she's already interviewed me for my current job and offered me this one. But they still have to follow every step. I even have to go in for orientation again! Crazy! So, I'm guessing next month, maybe? Hopefully, it is soon.

I wrote down our debt and the order in which I want to try and pay them off. We are getting ready to cut cable. I have a specific goal that I am hoping to reach by a certain date and our reward will be to take a vacation! (See ticker below.) Is it crazy that I am using a vacation as motivation to buckle down and get this debt paid off??

 

[ruadisneyfan2]

Vacations set us back more than a few times but I figured it keeps me sane and focused when I return so it works. Less than a month after I paid off all our cc's (still had truck loan) I got an offer for 0% x12 months using checks from my Disney visa. So we cashed a check to go to Universal. It's a treat to myself for being so good in all other areas. Vacations are my kryptonite. I can only be so strong for so long.
At least with all the other cards paid off I'll be able to knock it out fairly quickly. As soon as I'm done saving for Christmas.
Funny how I can tell another pp not to do home improvements but I can't tell another to skip all vacations. Shows you how rational I am about vacations. Really it's all the same principal. Neither is a dire necessity to live but we all have something we can justify spending $ on when we know deep down we shouldn't.

 

[dayvewc]

That is awesome, Ariel! That is one of our credit cards right there.. that's no small thing!

I have a Credit Karma account and it is free. I can get my FICO score free and track my debt and stuff. I've had it for a long time and have had no problems with it at all. Might be an option for you to look into.

Still not sure when I am going to start working full time. I work in the school system and they have to follow a procedure. Even though I'm already employed there and I already have the job, they still have to post the job and then I have to "apply" for it. I won't interview for it because she's already interviewed me for my current job and offered me this one. But they still have to follow every step. I even have to go in for orientation again! Crazy! So, I'm guessing next month, maybe? Hopefully, it is soon.

I wrote down our debt and the order in which I want to try and pay them off. We are getting ready to cut cable. I have a specific goal that I am hoping to reach by a certain date and our reward will be to take a vacation! (See ticker below.) Is it crazy that I am using a vacation as motivation to buckle down and get this debt paid off??

Not crazy at all. Motivation helps keep us going!! Good luck and hope you make it!!

Vacations set us back more than a few times but I figured it keeps me sane and focused when I return so it works. Less than a month after I paid off all our cc's (still had truck loan) I got an offer for 0% x12 months using checks from my Disney visa. So we cashed a check to go to Universal. It's a treat to myself for being so good in all other areas. Vacations are my kryptonite. I can only be so strong for so long.
At least with all the other cards paid off I'll be able to knock it out fairly quickly. As soon as I'm done saving for Christmas.
Funny how I can tell another pp not to do home improvements but I can't tell another to skip all vacations. Shows you how rational I am about vacations. Really it's all the same principal. Neither is a dire necessity to live but we all have something we can justify spending $ on when we know deep down we shouldn't.

Yeah, I have come to the conclusion that dumping my debt is more a matter of changing how I manage all of my finance, including vacations and home repairs and all those other things. Yes, I can go on a "crash diet" and not spend a penny on anything for a month to 6 weeks except paying debt down, but then when I break down and get something I over do it. I'm working to make sure that what I spend is less than what I bring in, and what I pay is significantly more than what I charge.

 

[Eureka]

Well, the debt dumping took a major step back this week... The cat spent 6 nights at the animal hospital and ran up an almost $5000 bill. I'm glad he's OK (knock on wood), but yeeeeesh.

Savings accounts got cleaned out and the rest of the 5K is just going to get added to the pile of debt. We also cancelled our tentative plans to go to DL in January.

Oh no! What happened to your cat? That's a huge bill.