Debt Dumpers - 2015

[PrincessGrownUp]

I don't post much, but hopefully I can join in. . I can't wait to read this entire thread later for inspiration and to feel like I'm not alone in the debt world. :/
Besides my mortgage my debt is 2 huge cc balances. The first one has a balance of around 7k with 13% apr and the other 10k with 6% apr. :eek. I started the year off right, I used my FSA money for Xmas so that didn't set me back. I also received a $300 bonus and it went straight to my cc - bringing the balance under 7k. Which felt like a small accomplishment. I set up my FSA to have the full 5k taken out. A portion of that will be for Xmas, another portion for furniture for my sons bedroom and the rest towards my cc's.

 

[gracie1]

I want to join this group too! We have been working really hard to keep expenses down, but I know I have a ways to go. Any tips on how to rebuild credit? We are now living credit card free to avoid temptation. I would love to get our credit back up there without falling into a trap. We started out paying our balances in full and then one month several years into this lifestyle we had some unexpected expenses and our savings just decimated.

We want to maintain a consumer debt free lifestyle and yet try to have good credit in case we need it.

I would use one credit card for everyday expenses and then pay it off when the statement comes in. Like this month - just use it to put gas in the car. The cash you have allowed put aside and then pay it off when the statement comes in. Next month, instead of gas try just one visit to the grocery store - set the cash aside and then pay off when statement comes in. Just do little things and sign up for credit karma! Great website - even my bank uses them! This way you can keep track of your credit score

 

[ruadisneyfan2]

Joining in this year! Last year I joined this debt dumpers group on the Dis & it changed my life!!! We dumped about 14k in debt & actually have money in checking so for the first time in forever are not living month to month. We even bought a new home and have taken some trips! With the support of this group and the start of YNAB exactly one year ago, we've had success. With that said, we spent double what I had predicted for Christmas & that was not fun to discover. It makes me realize we always have to stay on our toes and can't get too cushy with our new debt free lifestyle. So while we may not have debt, I am looking to this group to continue another year and stay afloat. I want to keep on healthy spending and focus on our financial goals. Thanks everyone for being here!!!

That's great to hear. You're an inspiration to all of us I am sure.

I don't post much, but hopefully I can join in. . I can't wait to read this entire thread later for inspiration and to feel like I'm not alone in the debt world. :/
Besides my mortgage my debt is 2 huge cc balances. The first one has a balance of around 7k with 13% apr and the other 10k with 6% apr. :eek. I started the year off right, I used my FSA money for Xmas so that didn't set me back. I also received a $300 bonus and it went straight to my cc - bringing the balance under 7k. Which felt like a small accomplishment. I set up my FSA to have the full 5k taken out. A portion of that will be for Xmas, another portion for furniture for my sons bedroom and the rest towards my cc's.

First, I personally would do a balance transfer to get rid of those high interest rates. I had 2 cards, though not that high but still around 6k on each. I got a Discover card that offered 12 months 0% interest in dh's name then later found the offer from Discover that was 18 months 0% in my name. Dh's rate expires in July so I'm working on that one first. Should be done by May. Then comes mine.

Second, how on earth do you use a FSA for Christmas expenses?
Only eligible expenses can be used to take $ from that account. Even some dr copays for us are required to show proof such as the EOB from my health insurance company. Anything else is fraud.
Other than giving children's sunblock or a pair of crutches as a gift, I don't see a way around this.

 

[skeettafic]

I'd like to join in!

Every year DH and I say we're going to get things paid off and it just never seems to happen. Thankfully we have fantastic credit and aren't behind on anything but sooo sick of feeling like we're constantly working on paying something. We have 2 credit cards that in particular just kill me. One has $3300 on it and the other has (gulp) $14,000 on it. Sigh. I have to say that 2 years ago it had $18,000 on it so we are slowly chipping away at it.

We are also planning a WDW/Universal trip for next December which I refuse to put on cards so we have to budget in paying for that. We also just paid for Christmas but no added credit card debt there - all paid for outright.

I just downloaded YNAB and am playing with that. I'm going to sign up for some of the webinars cause I don't think I understand completely where to put the money for everything.

Outside of the credit cards, we have a car payment, rent and my student loan debt. Savings is no where near where I want it to be.

Biggest goal for me is get rid of the $3300 CC. If I can get that knocked out quickly, then we can start really making progress on that big one!

Nice to be someplace where everyone understands! DH doesn't really get the idea of making a budget every month so I feel like I'm going it alone sometimes.

 

[BrerRabbit66]

I don't post much, but hopefully I can join in. . I can't wait to read this entire thread later for inspiration and to feel like I'm not alone in the debt world. :/
Besides my mortgage my debt is 2 huge cc balances. The first one has a balance of around 7k with 13% apr and the other 10k with 6% apr. :eek. I started the year off right, I used my FSA money for Xmas so that didn't set me back. I also received a $300 bonus and it went straight to my cc - bringing the balance under 7k. Which felt like a small accomplishment. I set up my FSA to have the full 5k taken out. A portion of that will be for Xmas, another portion for furniture for my sons bedroom and the rest towards my cc's.

Welcome! You are definitely not alone in the debt world. Looking at your situation, I would suggest investigating options for a reduced interest rate on those cc's. Google: debt snowball calculators. There are free ones that will help you make the most of the monthly payments if you can pay above the minimums.

Lastly, in reference to your FSA comments, I am puzzled. If you are subject to the US Tax Code, then be careful as FSA distributions are for eligible medical or dependent care expenses. Possibly others if you are active duty military. Any other use would generate IRS issues and penalties.

Since your location indicates that you live a long way from Disney, then perhaps it's another country and FSA means something different. . Anyway, best of luck with the debt reduction and definitely check out the rest of the thread for more inspiration!

 

[PrincessGrownUp]

That's great to hear. You're an inspiration to all of us I am sure.

First, I personally would do a balance transfer to get rid of those high interest rates. I had 2 cards, though not that high but still around 6k on each. I got a Discover card that offered 12 months 0% interest in dh's name then later found the offer from Discover that was 18 months 0% in my name. Dh's rate expires in July so I'm working on that one first. Should be done by May. Then comes mine.

Second, how on earth do you use a FSA for Christmas expenses?
Only eligible expenses can be used to take $ from that account. Even some dr copays for us are required to show proof such as the EOB from my health insurance company. Anything else is fraud.
Other than giving children's sunblock or a pair of crutches as a gift, I don't see a way around this.

My plan is to get the 13% apr card down to 5k, then transfer the balance to a 0% card where I'm confident that I could pay it off before interest starts getting charged.

I have the Health Plan and Child Care FSA plans. For the child care plan, they deduct funds from each paycheck. At the end of the year I printed a claim form for all of the funds that accumulated, got it signed by the daycare center, sent it in and they sent me a check.
Sorry for the confusion.

 

[PrincessGrownUp]

Welcome! You are definitely not alone in the debt world. Looking at your situation, I would suggest investigating options for a reduced interest rate on those cc's. Google: debt snowball calculators. There are free ones that will help you make the most of the monthly payments if you can pay above the minimums.

Lastly, in reference to your FSA comments, I am puzzled. If you are subject to the US Tax Code, then be careful as FSA distributions are for eligible medical or dependent care expenses. Possibly others if you are active duty military. Any other use would generate IRS issues and penalties.

Since your location indicates that you live a long way from Disney, then perhaps it's another country and FSA means something different. . Anyway, best of luck with the debt reduction and definitely check out the rest of the thread for more inspiration!

Thank you for the warm welcome! Please see my answer above. It's the Child Care FSA plan. Sorry for the confusion!

 

[DisMom829]

I am joining on this thread! We have been doing the snowball method for the last year. I will admit it, we rocked it until June 2014 than fell completely off track. We jumped back on in Dec 2014, as reality has set in and we realized that DS will start HS in the fall of 2015. We only have 2 years until he starts driving. 4 years until college. YIKES!!! So to start 2015 on the right foot:

1) I increased the amount going into savings that is at a separate credit union from our normal one. We do not have a card on this savings account, have to physically drive across town to get the money out.
2). Need to pay off the remaining $2k in student loan debt from DH going back to school 2 years ago after he lost his job of 19 years.
3). We need to pay off 1 car loan this year. Currently have 2, both 0 interest. So haven't felt a dire need to pay one off, but changing that attitude.
4). I increased my 401k to max it out this year. Company matches up to 6%.
5). Need to make a significant contribution to the emergency fund. DD will need braces in the near future, i fear this year, will know more Feb 19th. cost of Ds's were $4900.
6). I will pay CASH for 2 week WDW vacation in June, huge family vacay. We are staying value resort this year (bargaining tool used to bribe kids, they wanted more time at the world, so value resort or no go). We are currently booked with the DxDP. I plan on canceling that, putting the cost of the DP in savings, from my math $4660. paying for meals with my DV card (card will have zero balance when we leave home). Pay off DV after first 7 days, use accumulated points for some meals, put remaining 7 days on my DV and pay of off when we get home with remaining DP costs put in savings. Also contemplating upgrading to PAP, getting TIW card to offset cost.

 

[Docmom]

I am joining on this thread! We have been doing the snowball method for the last year. I will admit it, we rocked it until June 2014 than fell completely off track. We jumped back on in Dec 2014, as reality has set in and we realized that DS will start HS in the fall of 2015. We only have 2 years until he starts driving. 4 years until college. YIKES!!! So to start 2015 on the right foot: 1) I increased the amount going into savings that is at a separate credit union from our normal one. We do not have a card on this savings account, have to physically drive across town to get the money out. 2). Need to pay off the remaining $2k in student loan debt from DH going back to school 2 years ago after he lost his job of 19 years. 3). We need to pay off 1 car loan this year. Currently have 2, both 0 interest. So haven't felt a dire need to pay one off, but changing that attitude. 4). I increased my 401k to max it out this year. Company matches up to 6%. 5). Need to make a significant contribution to the emergency fund. DD will need braces in the near future, i fear this year, will know more Feb 19th. cost of Ds's were $4900. 6). I will pay CASH for 2 week WDW vacation in June, huge family vacay. We are staying value resort this year (bargaining tool used to bribe kids, they wanted more time at the world, so value resort or no go). We are currently booked with the DxDP. I plan on canceling that, putting the cost of the DP in savings, from my math $4660. paying for meals with my DV card (card will have zero balance when we leave home). Pay off DV after first 7 days, use accumulated points for some meals, put remaining 7 days on my DV and pay of off when we get home with remaining DP costs put in savings. Also contemplating upgrading to PAP, getting TIW card to offset cost.

For 2 weeks an annual pass would make sense as does TIW. The break even point for TIW is around $500 and it sounds like you'll have more than that! They do add 18% tip but if you pay that anyway it's not a big deal. Also can use TIW for drinks ! And with both if you're planning another trip the following year just do it within your year timeframe so you get extra savings that way. We're DVC owners so I'm biased towards the DVC villas but have you considered renting points and staying in a DVC villa? Depending on family size it can save you money. In our case we also save on meals since usually stay in a 1 bedroom with a full kitchen.

 

[DisMom829]

For 2 weeks an annual pass would make sense as does TIW. The break even point for TIW is around $500 and it sounds like you'll have more than that! They do add 18% tip but if you pay that anyway it's not a big deal. Also can use TIW for drinks ! And with both if you're planning another trip the following year just do it within your year timeframe so you get extra savings that way. We're DVC owners so I'm biased towards the DVC villas but have you considered renting points and staying in a DVC villa? Depending on family size it can save you money. In our case we also save on meals since usually stay in a 1 bedroom with a full kitchen.

I've considered renting points, but there are 19 of us going, we have 5 rooms right now booked at ASMu. We would need to find enough points at the same resort to accommodate all of us.

 

[Docmom]

I've considered renting points, but there are 19 of us going, we have 5 rooms right now booked at ASMu. We would need to find enough points at the same resort to accommodate all of us.

Take a look at David's : http://www.dvcrequest.com/default.asp. You can get estimates for cost to compare with what you'll be paying at ASMu. With that many and for that long you would need a lot of points so realistically it would only work via a middleman. Total cost would most likely be more than at ASMu though, even with the dining savings, although you would gain space. A studio (1 bed, 1 sofa sleeper, some with an extra single Murphy bed - all with microwave and small fridge but no full kitchen or washer/dryer) which is comparable to a regular hotel room would range between $3000-$5000 for 2 weeks in June. Guesstimate double that for a two bedroom which sleeps 8-9 (not counting any under 3) and a bit more for a grand villa which sleep about 12 (again, not counting under 3 because they can sleep in a pack and play). Negative is no daily housekeeping; you can add that but we've never missed not having it. They will do towels and trash on day 4 and a cleaning on day 8, then repeat on that cycle for longer stays. It might be pushing it to find availability but since June isn't peak DVC time (lower point months like September, early December and January are peak times) you may find something that would work....especially at Animal Kingdom, Saratoga Springs or Old Key West.

 

[Ava]

My husband switched to an HSA this year. We weren't sure what to really expect so we hopefully are putting enough in to cover his and dependent expenses for the year. I'm using my FSA to cover me. Which will work well since I'm having a baby this month and will use up almost the entire amount right away. Interested to see how,the HSA goes.

I've had an HSA for a few years now and one of the best things about it is that the money is yours forever. Even if you leave your job or change insurance, it's still your money. You can also request reimbursement for expenses you paid out of pocket, so if you happen to incur a large bill at the beginning of the year and don't have enough in your HSA to cover it, you can pay the bill by another method and then be reimbursed from the HSA once there's enough money in it. As long as the HSA was open at the time the expense was incurred, you can request reimbursement for it.

 

[dtr_angel]

I'm following along again this year. DH and I have been making plans and setting goals for ourselves for the year.

I posted in the old thread about the issue I had with Verizon. Long story short, we paid the bill and canceled our service with them. We got another bill for a month of service so I just paid it too but now it looks like they billed us for the entire month before we canceled. We have a credit balance. Do companies generally mail a check when you have a credit or will I need to call to get it?

 

[tarheel618]

I've had an HSA for a few years now and one of the best things about it is that the money is yours forever. Even if you leave your job or change insurance, it's still your money. You can also request reimbursement for expenses you paid out of pocket, so if you happen to incur a large bill at the beginning of the year and don't have enough in your HSA to cover it, you can pay the bill by another method and then be reimbursed from the HSA once there's enough money in it. As long as the HSA was open at the time the expense was incurred, you can request reimbursement for it.

I didn't know that, I have a choice between an FSA or a HSA depending on the insurance plan we pick. I've been wanting to switch to the plan with the HSA because it is hard to judge the FSA each year.

 

[ruadisneyfan2]

My plan is to get the 13% apr card down to 5k, then transfer the balance to a 0% card where I'm confident that I could pay it off before interest starts getting charged.

I have the Health Plan and Child Care FSA plans. For the child care plan, they deduct funds from each paycheck. At the end of the year I printed a claim form for all of the funds that accumulated, got it signed by the daycare center, sent it in and they sent me a check.
Sorry for the confusion.

Ahhh. That makes sense. I forgot all about the child care version. I did that when my kids were young too and that's been a looong time now. They're 14 & 18 now.

I'm following along again this year. DH and I have been making plans and setting goals for ourselves for the year.

I posted in the old thread about the issue I had with Verizon. Long story short, we paid the bill and canceled our service with them. We got another bill for a month of service so I just paid it too but now it looks like they billed us for the entire month before we canceled. We have a credit balance. Do companies generally mail a check when you have a credit or will I need to call to get it?

Oh what a PITA.
I would definitely call to get the credit sent to you. I accidentally sent double payments to Kohls once and that credit would have sat there forever if I didn't call to request it. Even then it took a few weeks for the check to arrive.
I can't stand Verizon but I hate Comcast even more so if we want cable & HS internet, we have to stick with Verizon.

I didn't know that, I have a choice between an FSA or a HSA depending on the insurance plan we pick. I've been wanting to switch to the plan with the HSA because it is hard to judge the FSA each year.

It is so hard to judge the FSA each year. I do it because my job's HSA-linked health plan leaves potentially a lot of OOP expenses for anything major.
I have a coworker who is in her 30s, healthy & single. For her the HSA is great because the $ carries over from previous years and keeps building.

With a family of 4 and dh & I creeping through middle age, I realize we're not too old to have a heart attack, no one's too old to get cancer, etc. Probably working in a hospital doesn't help my point of view.
My sister had breast cancer and even with great insurance with minimal OOP costs, it still totaled over $10,000 OOP by the time her treatment was all done.
I really need the peace of mind that the low OOP plans offer. Everyone's needs are different.

I wouldn't choose a high amount for the FSA unless you know you'll be having large expenses. Dh & I only chose the max amount when we knew both kids were going into braces.

 

[tarheel618]

Ahhh.

It is so hard to judge the FSA each year. I do it because my job's HSA-linked health plan leaves potentially a lot of OOP expenses for anything major.
I have a coworker who is in her 30s, healthy & single. For her the HSA is great because the $ carries over from previous years and keeps building.

With a family of 4 and dh & I creeping through middle age, I realize we're not too old to have a heart attack, no one's too old to get cancer, etc. Probably working in a hospital doesn't help my point of view.
My sister had breast cancer and even with great insurance with minimal OOP costs, it still totaled over $10,000 OOP by the time her treatment was all done.
I really need the peace of mind that the low OOP plans offer. Everyone's needs are different.

I wouldn't choose a high amount for the FSA unless you know you'll be having large expenses. Dh & I only chose the max amount when we knew both kids were going into braces.

There isn't a lot of difference between our FSA plan and HSA plan. The FSA does have a copay for walk in clinics and the kids dr visits but as they have gotten older we don't visit as much anymore (knock on wood). The deductibles are exactly the same. I like the fact that Jan 1 the FSA amount is there to use.

 

[PrincessGrownUp]

Ahhh. That makes sense. I forgot all about the child care version. I did that when my kids were young too and that's been a looong time now. They're 14 & 18 now.
.

It will be bitter sweet when I don't have to pay for child care expenses anymore. Haha!

 

[ruadisneyfan2]

There isn't a lot of difference between our FSA plan and HSA plan. The FSA does have a copay for walk in clinics and the kids dr visits but as they have gotten older we don't visit as much anymore (knock on wood). The deductibles are exactly the same. I like the fact that Jan 1 the FSA amount is there to use.

Not at my work. The HSA plan provides minimal coverage. The coworker I described before is the only I know who chose that plan. The rest of us with families have one of the other 2 plans that cover everything except copays.

It will be bitter sweet when I don't have to pay for child care expenses anymore. Haha!

Yes, you will miss these days.
You won't miss the bill but your children will be very different people by then. Not in a bad way but it's just not the same.
I miss baby teeth and the tooth fairy. I miss them sitting on my lap and them pressing their cheek right up to mine.
Now dinner conversation turns into politics and the news.

 

[AlohaNow]

Just checking in here. Wow this thread is popular! Happy to see so many new faces on here…..stick around and you will learn a lot!

So I made my first deposit for the backwards 52-week savings challenge. I went back and forth over whether or not to start this, as it’s another ‘layer’ of accounting for me to deal with and shouldn't I just make regular deposits into savings anyway? (Like I already do.) But so many people have said it’s an almost painless way to save additional money, so I am doing it! Also wanted to mention……in a previous post I said I was up to $70 per pay for automatic bi-weekly transfers into savings, but when I input my next one into Quicken I saw that I was actually only at $60. So to keep me to my word, I upped it to $70! Really, once you start, it is easy and you do not miss the money. And you love seeing your savings account balance grow. I remember the days before kids when our automatic savings amount was killer, meaning in the hundreds. Sigh.

And after much deliberation I got the SWA credit card and that will be used in place of our debit card. We use our debit card for almost everything and I am tired of not being rewarded every time we swipe. In the past we’ve had debit cards that earned American miles and then Hawaiian Air miles. But when we moved here I looked around for a rewards debit card from a bank and in researching it found that banks really do not offer that any more. So we will pay the annual fee but then get something that we feel is worth it in return for purchasing that we do anyway! This, again, adds a new ‘layer’ of accounting for me. I just plan to write all SW charges into the checkbook in red pen as if it were a debit transaction and then transfer the ‘red’ amount of money to pay the card every two weeks. I know there are a few threads out there regarding the SW cc offers and just wanted to mention that both DH and I received the 50,000 mile offer in the mail during December, so it is still out there for those with good credit.

Took down all the holiday decorations yesterday and wow does the house look bare. Today is my last day of the holiday time I took off so tomorrow everyone starts back to regular life with school and work. I’m a little sad, but we really did have a good time over break and I’ll just be happy for the time we had! Onward and upwards in 2015!

 

[Eureka]

Yes, you will miss these days. You won't miss the bill but your children will be very different people by then. Not in a bad way but it's just not the same. I miss baby teeth and the tooth fairy. I miss them sitting on my lap and them pressing their cheek right up to mine. Now dinner conversation turns into politics and the news.

I'm with you. DH took DS14 to buy an electric razor today and he shaved for the first time. But when we are at home and nobody is around, he still puts his head on my shoulder (looks funny because he's taller than I) sometimes when we watch movies.