Debt Dumpers - 2016

[stayhomemom77]

So I woke up to a call from a different neighbor that a tree fell on my shed!!! Omg. The contractors still working on my house from another neighbors tree. I'm ready to move on a boat, but I'm sure I'd float into a hurricane at this rate.

WHAT??? Holy cr@p. Hey Murphy...no more nonsense for Angeejoe!!

I'm just thankful you have that cruise to look forward to soon.

Hope 2016 is a more restful for you in other ways as well.

 

[stayhomemom77]

Before you raid your retirement account, I would consider other options. Using your retirement money will have a very negative impact on your later years, so you would be sacrificing a lot in the long term for a short term feeling of relief:

http://money.usnews.com/money/retir...k-withdrawal-affects-your-retirement-security

Maybe you can call your credit card and ask for a reduced interest rate or some sort of repayment plan? You could also look into a credit card to transfer the balance with 0% interest. Check out Chase Slate - it has no balance transfer fee for the first 60 days and gives you 0% for 15 months. A card like that could really help free up some money that you are currently paying towards interest. Or maybe look into a personal loan that has a lower interest rate than the credit card. I would consider all possible options before raiding your retirement.

THIS! My sister did this and although it's a bit different here in Canada...it didn't work out the way she had intended. In the end she realized it was a bad move. I suggest looking into all other options first to see if anything else can be done. This would be a last resort measure in my mind.

If you don't have an emergency account...perhaps the best thing to do is to cobble one together so you don't have those things come up that destroy the best laid budget plans. THEN get serious about that debt.

Six years ago, DH and I refinanced our mortgage and rolled the credit card debt into it just to get rid of it and start fresh. After a year we were right back where we started from (had charged the card back up again) except that we STILL had the extra money rolled into the refinance. I know it's tempting to just "get rid of it" but it's not always the best way.

Are there any professionals you could get advice from?

 

[rnorwo1]

THIS! My sister did this and although it's a bit different here in Canada...it didn't work out the way she had intended. In the end she realized it was a bad move. I suggest looking into all other options first to see if anything else can be done. This would be a last resort measure in my mind.

If you don't have an emergency account...perhaps the best thing to do is to cobble one together so you don't have those things come up that destroy the best laid budget plans. THEN get serious about that debt.

Six years ago, DH and I refinanced our mortgage and rolled the credit card debt into it just to get rid of it and start fresh. After a year we were right back where we started from (had charged the card back up again) except that we STILL had the extra money rolled into the refinance. I know it's tempting to just "get rid of it" but it's not always the best way.

Are there any professionals you could get advice from?

I think this is the typical response to wiping away debt quickly. Remember the adage "change is a process, not an event." If you just take the money out of the IRA, not only will you be paying penalties and negatively impacting your retirement, but you aren't going through the process of change for your finances. So, it is very likely that in the big picture, you will be even worse off. The same is usually true of consolidation loans. While it may seem daunting, re-paying the debt over years will force you to change spending/budgeting practices, and that will be what will ensure your financial future.

I don't know what the specifics to your debt are, but if you can work out a re-payment plan on your own, you will be so much better off in the future. Start with the Dave Ramsey techniques (list the debts, attack the smallest and then snowball the others) by finding money in your current budget and/or increasing income with additional jobs, selling things, etc. Attack those negative, sabotaging thoughts that are telling you you can't do this. You will feel so good about your accomplishments in the end!

 

[gracie1]

Mini rant- UGGGH student loans! I'm so fed up with them! My loan provider has been pretty good, but I had to recertify my income recently since I'm the income-based repayment plan and my income had changed significantly. So I send in the form and they move me onto the wrong plan that's $200/month more. So I called and they looked at the other plan which had the correct amount I'd determined I'd be paying. So they put me into forbearance while I could apply for that plan and told me I'd make a one time forbearance payment. Well, they don't get me the forbearance bill or the new application on time, so now I'm in forbearance until February and just got the application. Except now there are NEW repayment plans, and there's nowhere to freaking check that DH and I file our taxes separately, so it keeps asking for his income Which of course will make my monthly payment skyrocket. I finally called again and they told me just to send in proof of my income and don't put anything down about him, even though the form asks for it. I feel like I'm going to get slammed with a huge bill or something crazy down the road, but I'm just doing what they say. I did write randomly on the form in a couple places that we were married filing our taxes separately, so hopefully they'll get the message.

It's so frustrating! I want to pay my student loans, I am not trying to back out of the obligation, or even the obligation to pay the increased amount with my new income. I just want to pay the RIGHT amount based on MY income since DH and I are filing separately!

End rant.

Just make sure you keep a record of the date/time you called and each person you spoke with for your records

 

[gracie1]

Hi everyone, I'm new and had a question. Has anyone taken money from their retirement accounts to pay down their debt? I have been saddled with debt for years and I can't seem to pay it off. Every time I make a dent, something new very expensive thing happens and I wind up right back where I started. I'm a single mom and therefore I only have one income. My daughter has some special needs so between therapy and tutoring for her, I don't have a lot of extra cash. I feel like if I could just pay off my debt and start fresh. I'm desperate to be free and to stop worrying about how I'm going to pay all of my expenses each month.

Has anyone else considered liquidating retirement funds to pay off debt and start fresh? I feel like it's my only option to come out from under.

Welcome!! Have you sat down and listed every debt that you owe with the interest? Most of us instead of starting by paying the highest interest rate start with the smallest balance. Do you typically pay a little extra to each account? Just pay the minimum amount on the accounts except the one with the smallest balance and put the extra money towards that. Once that card is paid then snowball all that money towards the next account and so on. The other option is to talk to the bank about taking a loan out to pay off all the cards - interest won't be really cheap but you can do a 3 or 5 year loan and its a fixed monthly amount. Or could you look into refinancing your home? It's tough - we all know how you feel.

 

[DisneyMandC]

Just make sure you keep a record of the date/time you called and each person you spoke with for your records

I know, I really need to start doing that. They give you their employee numbers when you call, but I didn't write down the first one. They have at least been consistent, no one has tried to back out of what I was originally told. It's just frustrating because I had checked everything off correctly on the first form, and they were the ones that processed it wrong. And every time I call I have to go through the ringer of "has your phone number changed? do you want to give us an additional phone number? is this your current email address? is this your current mailing address?" Look, I promise you I want to give you some money. I'm aware that I owe a lot, but I've never missed a payment and am not trying to start now!

 

[DisneyMandC]

I think this is the typical response to wiping away debt quickly. Remember the adage "change is a process, not an event." If you just take the money out of the IRA, not only will you be paying penalties and negatively impacting your retirement, but you aren't going through the process of change for your finances. So, it is very likely that in the big picture, you will be even worse off. The same is usually true of consolidation loans. While it may seem daunting, re-paying the debt over years will force you to change spending/budgeting practices, and that will be what will ensure your financial future.

I don't know what the specifics to your debt are, but if you can work out a re-payment plan on your own, you will be so much better off in the future. Start with the Dave Ramsey techniques (list the debts, attack the smallest and then snowball the others) by finding money in your current budget and/or increasing income with additional jobs, selling things, etc. Attack those negative, sabotaging thoughts that are telling you you can't do this. You will feel so good about your accomplishments in the end!

I agree with this. Not to say that the debt is necessarily your "fault" as I know it can happen out of medical necessity or the like, but taking your money out of retirement isn't going to solve the problem long-term. I know how you feel because I've seriously considered just almost wiping out our checking account before to pay off a car loan, but I know we need to keep some money in there for emergencies and the like.

 

[gracie1]

I know, I really need to start doing that. They give you their employee numbers when you call, but I didn't write down the first one. They have at least been consistent, no one has tried to back out of what I was originally told. It's just frustrating because I had checked everything off correctly on the first form, and they were the ones that processed it wrong. And every time I call I have to go through the ringer of "has your phone number changed? do you want to give us an additional phone number? is this your current email address? is this your current mailing address?" Look, I promise you I want to give you some money. I'm aware that I owe a lot, but I've never missed a payment and am not trying to start now!

Make sure from here on out you write down their employee number and date/time just in case you run into any problems. I made sure to do that especially with this identity theft I am dealing with. And then every time you call back and get someone else you can refer to their number. Last year I learned that especially with the unemployment office!! I sent in documents they said they never received and said whoever I talked to did not note anything on my records and I didn't have their name.

 

[ruadisneyfan2]

So I woke up to a call from a different neighbor that a tree fell on my shed!!! Omg. The contractors still working on my house from another neighbors tree. I'm ready to move on a boat, but I'm sure I'd float into a hurricane at this rate.

Oh my! I'm so sorry to hear this. I do remember, it hasn't been very long since a tree fell on your house.
That's awful but remember as long as no one was hurt, material things are all replaceable.
What a headache to have to deal with though.
Just think, soon you will at sea, listening to the ship's horn play.

 

[DisneyMandC]

Make sure from here on out you write down their employee number and date/time just in case you run into any problems. I made sure to do that especially with this identity theft I am dealing with. And then every time you call back and get someone else you can refer to their number. Last year I learned that especially with the unemployment office!! I sent in documents they said they never received and said whoever I talked to did not note anything on my records and I didn't have their name.

I forgot about your identity theft fiasco! How is that coming? And your home refinance, right?

 

[Angeejoe]

WHAT??? Holy cr@p. Hey Murphy...no more nonsense for Angeejoe!!

I'm just thankful you have that cruise to look forward to soon.

Hope 2016 is a more restful for you in other ways as well.

Oh my! I'm so sorry to hear this. I do remember, it hasn't been very long since a tree fell on your house.
That's awful but remember as long as no one was hurt, material things are all replaceable.
What a headache to have to deal with though.
Just think, soon you will at sea, listening to the ship's horn play.

I keep telling myself, 2 more days & it's a new year & fresh start!! This cruise can't come soon enough!

 

[gracie1]

I forgot about your identity theft fiasco! How is that coming? And your home refinance, right?

Their both getting on my nerves!! So far no new bills/cc have come in so that's a plus. I would say if nothing new comes in by the end of January then I should be all set. I am just waiting on a cc statement from Macy's where they did charge that up and then I have to fill out fraud forms with them. I would expect them to come in the next few weeks. As for the refi that is the one that's getting on my last nerve. As of this minute they were looking to settle on Tuesday but my insurance company is moving so slow getting the paperwork to them and their closed Friday so I don't know what will happen. I hate being a pest and calling but I am going to have to bug them I guess. I just want to hear the words your all set and closing on Tuesday. Until then I am going to be stressed out. The plus side is my dad started his radiation treatment yesterday for his cancer so at least that got started!

 

[DisneyMandC]

Their both getting on my nerves!! So far no new bills/cc have come in so that's a plus. I would say if nothing new comes in by the end of January then I should be all set. I am just waiting on a cc statement from Macy's where they did charge that up and then I have to fill out fraud forms with them. I would expect them to come in the next few weeks. As for the refi that is the one that's getting on my last nerve. As of this minute they were looking to settle on Tuesday but my insurance company is moving so slow getting the paperwork to them and their closed Friday so I don't know what will happen. I hate being a pest and calling but I am going to have to bug them I guess. I just want to hear the words your all set and closing on Tuesday. Until then I am going to be stressed out. The plus side is my dad started his radiation treatment yesterday for his cancer so at least that got started!

Glad to hear about your dad! And that is a pain. We just bought our first home and it felt like everything took forever, even though we were fortunate to work with a company that was great about keeping in touch. But it was like every time we turned around they needed a different form or some other info! And I know we'll have to refinance in a couple years once we get paid down enough to take our PMI off... ugh.

 

[Angeejoe]

Their both getting on my nerves!! So far no new bills/cc have come in so that's a plus. I would say if nothing new comes in by the end of January then I should be all set. I am just waiting on a cc statement from Macy's where they did charge that up and then I have to fill out fraud forms with them. I would expect them to come in the next few weeks. As for the refi that is the one that's getting on my last nerve. As of this minute they were looking to settle on Tuesday but my insurance company is moving so slow getting the paperwork to them and their closed Friday so I don't know what will happen. I hate being a pest and calling but I am going to have to bug them I guess. I just want to hear the words your all set and closing on Tuesday. Until then I am going to be stressed out. The plus side is my dad started his radiation treatment yesterday for his cancer so at least that got started!

Sending prayers to your dad!

 

[momtosam]

Today I've achieved a new level of debt dumping. I am currently processing my very first at home hair dye job!!!! Eeeeeks!!!! I will let you know how it comes out.

 

[LinderInWonderland]

Today I've achieved a new level of debt dumping. I am currently processing my very first at home hair dye job!!!! Eeeeeks!!!! I will let you know how it comes out.

Good luck! I used home dye from age 17 to age 40, when I let my hair go natural. It's been all shades of red, burgundy, brown and black.

 

[Colleen27]

Today I've achieved a new level of debt dumping. I am currently processing my very first at home hair dye job!!!! Eeeeeks!!!! I will let you know how it comes out.

Good luck! I did my own for years with good results, and rather enjoyed doing it. I've used a salon a few times but would rather do it myself because at home dye prices I'm more comfortable playing with different colors and effects.

 

[momtosam]

The verdict is in...I like it! I'm also at an age where the grays are coming more frequently so this way I can touch up as needed.

 

[LinderInWonderland]

The verdict is in...I like it! I'm also at an age where the grays are coming more frequently so this way I can touch up as needed.

That's why I stopped dyeing mine! I have gray and white hair mostly around my hairline, so it was showing up FAST against black hair. I actually love the gray and wish I had more of it. I am thinking of trying trend hair and going mostly gray with an opalescent effect. The good thing about the pastel color highlights is that they just fade instead of giving roots (I had a salon do a modified version of this two years ago). I end up with nice highlights that become ombré and with all the grays they just blend really nicely.

ETA: It's also good for my budget, only dyeing my hair once every two years instead of every 5-6 weeks! ::

 

[hollybearsmom]

Do I have to call these creditors, or can I do all contact in writing?