Debt Dumpers - 2016

[Jen and Ashwin]

I've heard great things about YNAB but have never checked it out.

I feel kind of like a broken record, but I think this program is life changing. I wish I had it years ago when I first got a job and started living on my own. I don't think I would have ever ended up with any debt at all. You can do a 34 day free trial and take all of their webinars for free. DH and I watched them all and it was really helpful in learning how to use the program.

 

[DisneyMandC]

@yupikgal , I don't have any experience in terms of paying down credit card debt, but I think what Jen said about paying the 0% card down as much as possible before the interest starts makes sense. And I second her statements as well on YNAB! We use it and love it. It really helps you see where your money is going, but also to know exactly how much you have left in your budget each month to put towards debt. That part has been most helpful for us.

 

[yupikgal]

I would write it all down. Seeing the actual numbers helps me a lot to figure out what my best move would be. If the balances are equal and the promo rate ends in September, then it might make sense to attack that card first. Will it be your highest interest rate card then? I like the snowball method because it is very motivating. You can pay the minimum balance on all of your cards, but then attack the highest interest rate (or lowest balance is another option) first. Once that is done, put as much as you can towards the next card, etc.

The thing that has been helping DH and I the most has been using YNAB (youneedabudget.com). We have really trimmed out unnecessary spending and stopped adding to our debt by using this program. It also helps me divert any extra funds towards our debt payments. I am hoping to have our credit card and student loan balances paid off in 8 months or so. If we can keep up our current pace, we will make it.

I have written it all down, I have a spreadsheet with all monthly expenses (it really helps to keep me on track as far as which bills get paid when, since some are not on autopay) I also use Mint, although I have always been tempted to try YNAB to see the differences!! Yes, the Discover once the 0% runs out will definitely be the highest interest rate one. The snowball will actually kind of be like the avalanche in our case, because if I start paying more towards the 0% one now, by the end of September when the regular rate kicks in, it will also be the highest interest rate one. Thanks for your suggestions, and congratulations on your debt repayment!! "Keep on swimming"!!

@yupikgal , I don't have any experience in terms of paying down credit card debt, but I think what Jen said about paying the 0% card down as much as possible before the interest starts makes sense. And I second her statements as well on YNAB! We use it and love it. It really helps you see where your money is going, but also to know exactly how much you have left in your budget each month to put towards debt. That part has been most helpful for us.

Thank you! I will set up YNAB today. How much does it cost after the free trial period, btw? I use Mint right now, I am not sure what the difference is?

OMG you & I are 2 peas in a pod! Same situation ...... too many credit cards .... transferred to a no interest but didn't pay it off in time .... life happened ... square one AND we leave this weekend for vacation. Yikes.

I would love to get out of the pod, that is why we are changing things in our lives and not doing vacations (at least big ones) until our debt is paid. Eating at home a lot more, we don't have cable tv, finding things around the house to sell. I want out of this prison called debt. It's like one big noose around the neck. Good luck with your journey!

I'll keep you all posted as I go along. I'm so grateful for this board, especially because I know everyone here is a big Disney fan like us! I have come to the sad realization that going to Disney will have to be put on hold for now, so to combat my sadness, I have been faithfully listening to Disunplugged & other Disney podcasts and watching others go on vacation on youtube (sad, I know) but at least for now, it is helping to get rid of the "I want to go to Disney" blues! I can't wait to be able to afford it again!!

 

[Jen and Ashwin]

How much does it cost after the free trial period, btw? I use Mint right now, I am not sure what the difference is?

It costs $5 per month or $50 per year. After our trial ended, we gladly signed up for the $50 subscription.

Before YNAB we also used Mint, but it wasn't helping us get out of debt. I was making big payments to our cards every month, but didn't feel like I was actually making a dent. And I learned after some careful analysis that it was because we were actually consistently spending more than we were making. So even though I was paying tons towards the cards, we were still accumulating debt. Mint never really helped me see that.

YNAB is much more proactive than Mint. Mint showed us the aftermath of our monthly budget, whereas YNAB helps us make active budgeting decisions from the start and helps keep us on track throughout the month so that we don't go over our income. We have actually been way under, helping us make bigger payments towards our cards. All of our cards are currently at 0% as well and we are hoping to pay everything off before the rates expire. I think that we are well on track to accomplish that.

I say, do the free trial, watch all of the webinars and give it an honest effort. We cut our spending by over $1000 in the first month because we were spending so much more deliberately than before.

 

[yupikgal]

It costs $5 per month or $50 per year. After our trial ended, we gladly signed up for the $50 subscription.

Before YNAB we also used Mint, but it wasn't helping us get out of debt. I was making big payments to our cards every month, but didn't feel like I was actually making a dent. And I learned after some careful analysis that it was because we were actually consistently spending more than we were making. So even though I was paying tons towards the cards, we were still accumulating debt. Mint never really helped me see that.

YNAB is much more proactive than Mint. Mint showed us the aftermath of our monthly budget, whereas YNAB helps us make active budgeting decisions from the start and helps keep us on track throughout the month so that we don't go over our income. We have actually been way under, helping us make bigger payments towards our cards. All of our cards are currently at 0% as well and we are hoping to pay everything off before the rates expire. I think that we are well on track to accomplish that.

I say, do the free trial, watch all of the webinars and give it an honest effort. We cut our spending by over $1000 in the first month because we were spending so much more deliberately than before.

Jen, I really appreciate your quick & informative response! I am definitely giving it a go today. What do I have to lose? It sounds like I've got more to gain by using it. Is it also in app form so I can download it on my phone? $50/year is worth getting out of debt!! I will watch the webinars, thank you so much! If you don't mind me asking, where was all that extra $$ going? I know that I can shave off our grocery/restaurant budget for sure. I've already made strides to do this, but that is one of the most flexible areas in our budget. I'm also on budget billing for our electric & gas bill, so I know how much it is each month, and we actually have credits on both accounts right now because each summer they assess the account and see if we owe or they owe us! Good luck to you with your debt repayment!! You're doing great!!

 

[Jen and Ashwin]

Jen, I really appreciate your quick & informative response! I am definitely giving it a go today. What do I have to lose? It sounds like I've got more to gain by using it. Is it also in app form so I can download it on my phone? $50/year is worth getting out of debt!! I will watch the webinars, thank you so much! If you don't mind me asking, where was all that extra $$ going? I know that I can shave off our grocery/restaurant budget for sure. I've already made strides to do this, but that is one of the most flexible areas in our budget. I'm also on budget billing for our electric & gas bill, so I know how much it is each month, and we actually have credits on both accounts right now because each summer they assess the account and see if we owe or they owe us! Good luck to you with your debt repayment!! You're doing great!!

Yes, there is also a phone app. We use it to record any expenses while we are out shopping. I worried that maybe DH wouldn't be on board with using the app to record his purchases, but it is so easy that he didn't bat an eyelash.

As far as where the money came from, it was a big variety of things. We were overspending in lots of places and it varied over the past several months. Spending a little too much on our food budget ($100), buying a few new pieces of clothing ($150), getting a new video game ($50), eating out at a sit down restaurant 1-2 extra times a month ($50), etc. It didn't seem like we were being that excessive because it is usually a few $20-30 purchases every few days, but man did it add up. On top of that, we really examined areas that we could cut our regular spending down. So we cancelled some subscription type things and decided to delay some planned expenses until we were in better shape. It really added up for us, especially in that first month.

On top of all that, I have been making a big effort to sell things that we don't need/want anymore. Lots of items from our wedding last year and other things laying around the house. I have been bringing in a few hundred dollars each month this way for the last several months. I actually just sold $80 worth of quilting fabric today that I had been meaning to sell for over a year. It feels good to make some money to put towards our debt as well as declutter the house!

 

[yupikgal]

Yes, there is also a phone app. We use it to record any expenses while we are out shopping. I worried that maybe DH wouldn't be on board with using the app to record his purchases, but it is so easy that he didn't bat an eyelash.

As far as where the money came from, it was a big variety of things. We were overspending in lots of places and it varied over the past several months. Spending a little too much on our food budget ($100), buying a few new pieces of clothing ($150), getting a new video game ($50), eating out at a sit down restaurant 1-2 extra times a month ($50), etc. It didn't seem like we were being that excessive because it is usually a few $20-30 purchases every few days, but man did it add up. On top of that, we really examined areas that we could cut our regular spending down. So we cancelled some subscription type things and decided to delay some planned expenses until we were in better shape. It really added up for us, especially in that first month.

On top of all that, I have been making a big effort to sell things that we don't need/want anymore. Lots of items from our wedding last year and other things laying around the house. I have been bringing in a few hundred dollars each month this way for the last several months. I actually just sold $80 worth of quilting fabric today that I had been meaning to sell for over a year. It feels good to make some money to put towards our debt as well as declutter the house!

This is hilarious. I already had the phone app, I had been eyeing the program for years, but never made the leap. I guess I needed to go for it! I am kind of a finance app junkie. I started using Ready for Zero, but not really that thrilled with it so far, so I'm anxious to see how I will like YNAB. It's the only one out of the 3 that charges, so we'll see what the difference is. I know exactly what you mean. It's so easy to spend! Example; last night it was hot, I was tired and hungry. I went to the store to get a few items for our dinner (I already had the meat & most of the items, just needed a few things) and low and behold $58 later! I was so tempted to just buy the chicken wings that they had already done in their deli, but I resisted and my husband actually made them at home in our pressure cooker (Instant Pot is amazing!) and I made a mac salad for our side. We just saved more $$!! I love to go to movies, eat out, not into video games or clothes, so I'm good there. Not a makeup wearer (I do now & then) but there are definitely other areas I could reign in. I started an emergency fund account in our smartypig.com account, it's not going to be putting a lot in there, but little by little it will grow, and I know it's safely tucked away. I'm attempting to do a lose version of D.R.'s "7 baby steps". Oh, and I know I can find things to sell around the house too, thanks for the reminder!!

 

[Ngwira]

I know I said I would keep my car but I ended up with a 2010 Toyota Camry with 60k miles for $11,000. I put down 5k and financed 6k at 1.9 interest through the Toyota credit finance Corp. My monthly payments are $115.00 a month. I am very happy to have a safe, reliable car. I intend to pay it off sooner as well. It's a certified used Toyota with a 1 year warranty. Car insurance went up $30 a month because I added comp and collision.

 

[yupikgal]

Well I've got all my debts/accounts moved over, except a couple of them-small ones-one is a Roth IRA and one is my

I know I said I would keep my car but I ended up with a 2010 Toyota Camry with 60k miles for $11,000. I put down 5k and financed 6k at 1.9 interest through the Toyota credit finance Corp. My monthly payments are $115.00 a month. I am very happy to have a safe, reliable car. I intend to pay it off sooner as well. It's a certified used Toyota with a 1 year warranty. Car insurance went up $30 a month because I added comp and collision.

I wish I had $5k to put down on a car, I financed my car with no down (or maybe a little) my interest rate is low, but not as low as yours (2.25%) mine now has over 40k miles on it, but it had a about 36k when I bought it in October. My original loan was $18k, now owe just under $16. I like your payments way better, mine are over $320. Mine is a 2012 Ford Escape, I just found out that where we live, it has a higher rate of damage when in accidents, either being hit or hitting others I didn't realize that when I bought it. I really wanted a subaru, but didn't want an older one, but now I'm wishing I would have. They are more expensive, even for the older ones, but I think they last longer. Congratulations to you for your smart decision, Toyotas are great!

 

[ruadisneyfan2]

Murphy is a D***. My infection hasn't responded to antibiotics so I had to be admitted to the hospital. I'll be here for 1-3 days. I really don't want to ask how much these bills will be. Argh!!!!!!!

If your ins is like mine, this might be a good thing. Our ER copay is waived if we're admitted but then hospitalization is covered 100% if it's at the hospital I work in. So for us the most expensive ER visit is one that they treat us and send us home.

 

[DisneyMandC]

I know I said I would keep my car but I ended up with a 2010 Toyota Camry with 60k miles for $11,000. I put down 5k and financed 6k at 1.9 interest through the Toyota credit finance Corp. My monthly payments are $115.00 a month. I am very happy to have a safe, reliable car. I intend to pay it off sooner as well. It's a certified used Toyota with a 1 year warranty. Car insurance went up $30 a month because I added comp and collision.

That's a great price for low mileage! And a Toyota is another car that should carry you well over 200k, so you'll definitely get your money's worth out of it.

 

[bcwife76]

I know I said I would keep my car but I ended up with a 2010 Toyota Camry with 60k miles for $11,000. I put down 5k and financed 6k at 1.9 interest through the Toyota credit finance Corp. My monthly payments are $115.00 a month. I am very happy to have a safe, reliable car. I intend to pay it off sooner as well. It's a certified used Toyota with a 1 year warranty. Car insurance went up $30 a month because I added comp and collision.

I think that was a smart decision! That's a great interest rate for a preowned car and Toyota's hold their value longer than others.

 

[Dentam]

Well, I leave for Shanghai in one week!! Booked a night at the Toy Story Hotel and then one at the SDL Hotel at the very end of the trip. Making arrangements for three days in Beijing after the conferences are over. I have to give a talk, but that's the very first day I'm there, so it'll be good to get it out of the way first thing.

Anyway, I've been putting more charges on my cc's due to making the reservations, but it's a once in a lifetime trip and luckily August is one of two months this year that I get an extra paycheck, so it should cover the extra expenses!

 

[Ngwira]

That's a great price for low mileage! And a Toyota is another car that should carry you well over 200k, so you'll definitely get your money's worth out of it.

200k plus is the plan!

 

[Ngwira]

I think that was a smart decision! That's a great interest rate for a preowned car and Toyota's hold their value longer than others.

Thank you. I'm sad to leave Honda but Toyotas are excellent too.

 

[Ngwira]

Well I've got all my debts/accounts moved over, except a couple of them-small ones-one is a Roth IRA and one is my

I wish I had $5k to put down on a car, I financed my car with no down (or maybe a little) my interest rate is low, but not as low as yours (2.25%) mine now has over 40k miles on it, but it had a about 36k when I bought it in October. My original loan was $18k, now owe just under $16. I like your payments way better, mine are over $320. Mine is a 2012 Ford Escape, I just found out that where we live, it has a higher rate of damage when in accidents, either being hit or hitting others I didn't realize that when I bought it. I really wanted a subaru, but didn't want an older one, but now I'm wishing I would have. They are more expensive, even for the older ones, but I think they last longer. Congratulations to you for your smart decision, Toyotas are great!

Keep on swimming. You will get to the point where 5k saved is nothing. When you have the opportunity buy a Subaru I'm sure you will make the right decision.

 

[Eureka]

Thank you. I'm sad to leave Honda but Toyotas are excellent too.

We have had nothing but good luck with our Toyotas and also the dealership. Our Honda has had more recalls than any other car we have had, and the local dealership is a pain to deal with.

 

[Ngwira]

We have had nothing but good luck with our Toyotas and also the dealership. Our Honda has had more recalls than any other car we have had, and the local dealership is a pain to deal with.

Yeah the airbag recalls are a PITA.

 

[Ngwira]

So this month has been such a budget buster...the windows(they finally called to schedule a measurement, guy said they should be installed by first week of August) 7k..the new to me car- 5k down and $115.00 per month plus $30 extra for insurance.
I also tend to find screaming deals in July..much better than even black friday. Last year I bought my Dyson vac from Kohls and that thing has been a life saver in keeping a clean house since I have 2 cats and 2 kids. I had a hoover which was much cheaper but it broke down at least 2 times in 6 months.. the dyson, while costlier, is worth its weight in gold.

This July I found a pair of uggs boots that I have been eyeing for a few years. Bought them for $67.00 which is a great deal for Uggs. Then I just found a great deal on a keurig machine at kohls..$40.00 after kohls cash. Also found a k cup deal, $90.00 for 192 k cups which is 21 cents a cup. I do know these are not necessities, but they do make my life easier. I'm hoping to slow down the spending come August. Our Disney trip and spending money are all accounted for so that's a huge relief. We also don't pay for child care for the months of July and August (camp is prepaid) so that counts for something.

 

[Miss Whimsy]

*goes to Sephora to buy one thing*

*buys more than one thing*

~the Miss Whimsy story~