Debt Dumpers - 2016

[Jen and Ashwin]

I can't keep cash in a jar because I spend it, no my kids! But usually on them. I need to open a savings account but my credit is so poor, no one will give me one, and I'm unemployed. Anyone know an online bank that might work with me on small deposits?

Do you have a checking account? Most online savings accounts require you to transfer deposits from another checking or savings account. I have several savings accounts with Ally. There are no maintenance fees and your money earns a little interest. I have several accounts because they are each labeled for different purposes, such as vacation, warranty savings, home costs, etc. I have been happy with Ally. They are easy to use.

 

[NinaBella]

Happy 2016!

- Started off with actually having money in my savings account going towards a 2018 vacation in Ireland! Whoo Hooo...

- We have a few home repairs/projects on the list of to-do
-- A/C damper needs repair before the summer
-- Water softner is broke so need to get that repair
-- House needs power washing and we need rain gutters before the summer

- Both the younger kids go back next week to start back with orthodontics next Tuesday! DD has had "Phase 1" already so she will go into "Phase 2". DS will be doing his in one phase. Got the quote 2 weeks ago for portion of the bill after insurance.

For those curious as to what braces cost (and my older two also had braces with same Orthodontist).
- January down payment for DD is $239.30 then $59.40 for 'records'. DS down payment is $239.40 then $59.40 for 'records'. So Almost $600 to get them started.
- DD12 is on a 24 month plan of $69.99 a month. DS14 is on a 26 month plan at $91.66 a month.
--Total for this phase for DD is $4,476 (insurance pays $2500) so I pay $1976
-- Total for DS is $5182 (insurance pays $2500) so I pay $2682.
I forgot what I paid for DD under "Phase 1" since that was 1st & 2nd grade and she is now a 7th grader. Our insurance at that time only paid $1500. We have a different dental insurance now.

We are also starting to give the kids a weekly allowance in 2016 so instead of me spending money at random on them, they can budget themselves. Not off to a good start on that because DD12 was out shopping with a friend a couple days before Christmas and lost her debit card in the store bathroom. It's a store 45 minutes away so I just cancelled it an ordered a new one. It was in her back pocket. She got some cross-body purses for Christmas so she has to get in the habit of using a purse instead of her pockets. I did order her a few things from Dillards this morning under their 50% sale, so I already spent money on her in 2016! But I figured it was a 50% off sale! Ha Ha.

DD and DS got an AppleTV for Christmas. Found out of the two TVs were were going to use for the AppleTV, one didn't have an HMDI capability, so going today to buy a new TV. Got an estimate from a company to have it mounted on DD bedroom wall and the estimate is $265! They are providing the mount, dropping the wires behind the wall, and adding the plug box thing on the wall below. I know we can mount it and just have the wires dangle down the wall or use a wire cover, but I want a cleaner look with the wires behind the wall. The box below is to run the wires to come out the wall and to the outlet and cable connection that is on the opposite wall from where I want the TV. The TV is less than $200 so it cost more to mount it.

So all-in-all, still having home repairs and Christmas expenses continuing... but we are making progress towards adding to the savings account and snowballing a few debts.

I get a bonus at work in February but I plan to use that to pay off DD summer camp and our trip to Niagara Falls this summer. We are taking our Niece's family to Great Wolf Lodge there!

Happy New Year!

 

[ruadisneyfan2]

I can't keep cash in a jar because I spend it, no my kids! But usually on them. I need to open a savings account but my credit is so poor, no one will give me one, and I'm unemployed. Anyone know an online bank that might work with me on small deposits?

Capital One 360!
They used to be ING.com which is when I started with them in 2005. They were taken over by Capital One a few years later.
As long as you're able to link your savings account to another bank to transfer $ in and out you're good.
There are no fees unless you're overdrawn and no minimum balances. Once you're a customer, you can have up to 25 savings accounts with them.
So I have one for Emergency Fund, Car Insurance, quarterly sewer bill, Vacation, College Funds, etc.
They also offer free checking. Again, no fees or minimums as long as you're not overdrawn. Free ATM. This is what I used as a separate checking account when I first started to pay my weekly snowball payment so it didn't blend with our regular checking account. I treat it like it's just another bill.

In the last 2.5 years I've gotten better/stronger with snowballing and now transferring to another account only delays making the payment another 2 days later. Now I just schedule the snowball payment to occur the day before payday and then on payday the money goes in and the payment comes out. Almost instant gratification.

 

[ruadisneyfan2]

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 100%!!!!!!!!!!!!!!

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?

We did this too. It makes the credit card balances show 0 but it doesn't change our ways of thinking or spending vs. saving money. Really, it's dangerous.




I liken the whole pay down process to losing weight. If we needed to lose 40 lbs and went out and got liposuction we'd be happy but we never really changed our ways of eating/exercising so the weight is eventually gained back. Only through the old fashioned, slower way of eating less and moving more, making sometimes painful lifestyle changes, do we learn to change the behaviors that got us in that situation to begin with.

At what point does it hit us that something has to change? When we need to lose 10 lbs or 100 lbs? When we need to pay off $1000 debt or $40,000? You know when you reach that point you have to change your ways. When you need to lose 100 lbs you might think, "This would have been so much easier if it were only 10 lbs." but back then we were not uncomfortable carrying the extra 10 lbs and it was not enough to make us change our ways. Likewise, when it was only $1000 in debt, we were still ok with that. Wouldn't it have been much easier to pay down when it was still only $1000? Yes, but it didn't strain our budget and it was not uncomfortable to carry that $1000. Only when it starts to feel uncomfortable do we see it as a problem. Then we ignore it a while because we don't want to face facts.

Now I'm dealing with it head on, smacking it in the face and getting it out of my life. We all want to believe that if only we had a higher paying job it would be so much easier but realize that EVERYONE has a budget, regardless of what you earn. Sometimes the more you make, the more debt you'd be comfortable carrying.


(When I say "you" I don't direct this to anyone in particular.)

 

[bababear_50]

I can't keep cash in a jar because I spend it, no my kids! But usually on them. I need to open a savings account but my credit is so poor, no one will give me one, and I'm unemployed. Anyone know an online bank that might work with me on small deposits?

Hi Hon
I am in Canada so I'm not sure any banks I suggest will work.
My situation was that many years ago I was a stay at home mom with no bank accounts in my own name.
We had joint accounts which most of the time were overdrawn and a mess. Our credit rating was in the dumpster. Long story and too private to go into but just know thousands of women find themselves in this situation for many reason.
My solution was to open a joint savings account with one of my sons. I added a few dollars when ever I could and it quickly grew, also my self-esteem grew! In one year I opened my own savings account. I just looked and the same account is still available today --Royal Bank Canada (RBC)
Leo Savings account-Children and youth.
http://www.rbcroyalbank.com/products/deposits/leo-young-savers-account.html

Just a suggestion.
Hugs Mel

 

[ruadisneyfan2]

The funny thing is, once you recognize these dangerous spending behaviors, it's so easy to see it in friends, based on little comments they make. They admit they want to buy another big purchase before paying off the last one and all I can do is think, "Wow, that used to be me." and know that eventually she will reach the point where the debt feels uncomfortable.

 

[gracie1]

The funny thing is, once you recognize these dangerous spending behaviors, it's so easy to see it in friends, based on little comments they make. They admit they want to buy another big purchase before paying off the last one and all I can do is think, "Wow, that used to be me." and know that eventually she will reach the point where the debt feels uncomfortable.

This is so true!!

 

[bababear_50]

Oh Boy!
My oldest son just emailed me to ask if he can move back home until he gets back on his feet.
He lost his job just before Christmas. My middle son and he kind of do not get along very well so they both are going to have to come to a happy arrangement or this will effect my stress levels. I told both of them we will have to have a sit down (not email) talk before this happens.
I plan to let him know that he must contribute financially and around the house.
In the past two years I developed Atopic eczema and other skin conditions ,which are negatively affected by stress, so I know I have to set boundaries and limits.
Wish me luck
Hugs Mel

 

[NinaBella]

Oh Boy!
My oldest son just emailed me to ask if he can move back home until he gets back on his feet.
He lost his job just before Christmas. My middle son and he kind of do not get along very well so they both are going to have to come to a happy arrangement or this will effect my stress levels. I told both of them we will have to have a sit down (not email) talk before this happens.
I plan to let him know that he must contribute financially and around the house.
In the past two years I developed Atopic eczema and other skin conditions ,which are negatively affected by stress, so I know I have to set boundaries and limits.
Wish me luck
Hugs Mel

Sounds like it could be stressful. What are their ages? Maybe they have learned how to stay out of each other's way?

 

[bababear_50]

Sounds like it could be stressful. What are their ages? Maybe they have learned how to stay out of each other's way?

They are 30 and 31 not kids but sometimes act like it.
I hope the time they have spent away from each other has given them time to grow up a bit and respect each other for their differences. I will talk to them about my stress levels,I work in a high stress job so home has to be my haven.
If anyone has suggestions adult kids living at home please I'm all ears.
Hugs Mel

 

[Angeejoe]

Well I got paid this morning... and it's gone DH and I paid off our credit cards so we're starting the year without any CC debt! Mine was down to $380 after applying the $500 we got from DH's parents for Christmas and cashing out for a $120 statement credit with my points. DH's was still $1400 though. That one hurt a little bit. DH and I played around with YNAB a lot last night, and are enjoying it so far. I've also cashed out for $50 from Swagbucks for Paypal and am hoping to get that today or tomorrow to send towards my student loan. I'm so motivated to get rid of this debt, I just want it out of our lives!

Congrats!!!

So bare with my math here but I did this on a spread sheet for the 365 day challenge (I'll do a post separate also of this same info) but if anyone is wanting to do the 365 day challenge mentioned above add $.01 on Day 1 and $1.00 on Day 100 etc. but only want to make a deposit every 4 weeks (roughly once a month) here is the weekly breakdown and 4 week (monthly) totals that would need to be deposited.

Week 1 0.28
Week 2 0.77
Week 3 1.26
Week 4 1.75
4.06

Week 5 2.24
Week 6 2.73
Week 7 3.22
Week 8 3.71
11.90

Week 9 4.20
Week 10 4.69
Week 11 5.18
Week 12 5.67
19.74

Week 13 6.16
Week 14 6.65
Week 15 7.14
Week 16 7.63
27.58

week 17 8.12
Week 18 8.61
Week 19 9.10
Week 20 9.59
35.42

Week 21 10.08
Week 22 10.57
Week 23 11.06
Week 24 11.55

Week 25 12.04
Week 26 12.53
Week 27 13.02
Week 28 13.51
51.10

Week 29 14.00
Week 30 14.49
Week 31 14.98
Week 32 15.47
58.94

Week 33 15.96
Week 34 16.45
Week 35 16.94
Week 36 17.43
66.78

Week 37 17.92
Week 38 18.41
Week 39 18.90
Week 40 19.39
74.62

Week 41 19.88
Week 42 20.37
Week 43 20.86
Week 44 21.35
82.46

Week 45 21.84
Week 46 22.33
Week 47 22.82
Week 48 23.31
90.30

Week 49 23.80
Week 50 24.29
Week 51 24.78
Week 52 28.92
101.79

Going into the New Year with some good news. My husband found out he got the max % of raise they were offering this year AND they had already input it into the paycheck he received today (should have been tomorrow, but they paid a day ahead since it's a holiday tomorrow). It comes out to $100.25 more than previous. Our goal is to live on the old income as that's what we input into our budget for the year and utilize the extra income as snowball

Wishing everyone a very safe and happy New Year!!!

Well this was so nice of you to figure out!! I just may have to do it.

I have heard people say they do these challenges in the reverse, since they don't have the extra higher dollars in December. Anyone do it this way?

I can't keep cash in a jar because I spend it, no my kids! But usually on them. I need to open a savings account but my credit is so poor, no one will give me one, and I'm unemployed. Anyone know an online bank that might work with me on small deposits?

Can you join a credit union? Mine requires $50 to join that just stays in your savings, it's still your money, but you can't withdraw it unless you close the account.

Oh Boy!
My oldest son just emailed me to ask if he can move back home until he gets back on his feet.
He lost his job just before Christmas. My middle son and he kind of do not get along very well so they both are going to have to come to a happy arrangement or this will effect my stress levels. I told both of them we will have to have a sit down (not email) talk before this happens.
I plan to let him know that he must contribute financially and around the house.
In the past two years I developed Atopic eczema and other skin conditions ,which are negatively affected by stress, so I know I have to set boundaries and limits.
Wish me luck
Hugs Mel

Sending you hugs, sounds stressful for sure.

 

[Dentam]

Well, I'm starting the new year off with an emergency vet bill. The friends who were watching my dog while I was visiting my family this past week took her along with their two dogs in to the emergency vet for x-rays yesterday. Apparently one of them tore up a head lamp and they couldn't find one of the batteries for it. They took all of them in to be on the safe side in case one had eaten it. Turns out none of them did and they found it when they got back home. That's an extra $100 I wasn't planning to spend this month though. I do have pet insurance that covers emergencies but the deductible is over $100.

Hope the new year improves from here on out!

 

[hollybearsmom]

I'm not on any bank accounts because of my bad credit, so I'm looking for somewhere to take a chance on me really. That's one reason I was thinking just a savings account would be less risk and maybe a bank would go that route. Thanks for all the suggestions. I'll update if I get one opened.

 

[Angeejoe]

Well, I'm starting the new year off with an emergency vet bill. The friends who were watching my dog while I was visiting my family this past week took her along with their two dogs in to the emergency vet for x-rays yesterday. Apparently one of them tore up a head lamp and they couldn't find one of the batteries for it. They took all of them in to be on the safe side in case one had eaten it. Turns out none of them did and they found it when they got back home. That's an extra $100 I wasn't planning to spend this month though. I do have pet insurance that covers emergencies but the deductible is over $100.

Hope the new year improves from here on out!

What a bummer on the bill, but glad your dogs ok!!

 

[dayvewc]

Well this was so nice of you to figure out!! I just may have to do it.

I have heard people say they do these challenges in the reverse, since they don't have the extra higher dollars in December. Anyone do it this way?

I don't have it right now, but a couple of years ago, I tried a variation on the 52 week plan. I made an excel sheet listing the date and amount for each deposit. Then on Friday, however much money I had in my wallet I put in my "piggy bank" and checked that amount off (with the date that I put it in there) on the spreadsheet. (I had printed it and hung it on the fridge to remind me every day to save money). It actually worked well for me for a couple of months, then I realized that my roommate was taking the money out of the bank as he needed it. And wasn't replacing it. To this day, I don't know why he would think I wouldn't notice. The bank was even marked "Summer Vacation Money".

I'm not on any bank accounts because of my bad credit, so I'm looking for somewhere to take a chance on me really. That's one reason I was thinking just a savings account would be less risk and maybe a bank would go that route. Thanks for all the suggestions. I'll update if I get one opened.

Most of the banks here will give you a checking and/or saving account if you have the money to open them. It varies between $50 and $100. Some of them will issue a debit card too, others won't. I think as long as you have the minimum to open you shouldn't have problems. But ... you might be stuck with an account that requires a minimum balance or get charged a fee.

 

[NinaBella]

"It actually worked well for me for a couple of months, then I realized that my roommate was taking the money out of the bank as he needed it. And wasn't replacing it. To this day, I don't know why he would think I wouldn't notice. The bank was even marked "Summer Vacation Money".

That is a aweful roommate. I hope you confronted him and are no longer roommates. Flat out stealing from you is not acceptable. On the flip side, you might find a bank that money can not be easily removed. Like one that has to be cut opened or has a lock and key. That might even work without the roommate issue because if you are inclined to take money out yourself it makes it more of a chore. Especially if the key is kept at work (parents house) or a separate location.

 

[goodmorningbelle]

So for the past few months, I've been really worked on budgeting money as it has come in--not just buying stuff and assuming I'll figure out how to pay for it in the end. I am happy to report that I actually had a few dollars left at the end of December to put towards debt. That's in DECEMBER people, the most spendy of months! Now, to just keep this ball rolling...

 

[gracie1]

Well, I'm starting the new year off with an emergency vet bill. The friends who were watching my dog while I was visiting my family this past week took her along with their two dogs in to the emergency vet for x-rays yesterday. Apparently one of them tore up a head lamp and they couldn't find one of the batteries for it. They took all of them in to be on the safe side in case one had eaten it. Turns out none of them did and they found it when they got back home. That's an extra $100 I wasn't planning to spend this month though. I do have pet insurance that covers emergencies but the deductible is over $100.

Hope the new year improves from here on out!

I'm glad that your dog is okay! It's a bummer to have that vet bill (although we know it could've been much higher!) but you must have really great friends to look out for their safety! I would've done the same thing as them but there are some pet lovers who wouldn't have rushed all 3 to the vet to be on the safe side!

 

[gracie1]

So for the past few months, I've been really worked on budgeting money as it has come in--not just buying stuff and assuming I'll figure out how to pay for it in the end. I am happy to report that I actually had a few dollars left at the end of December to put towards debt. That's in DECEMBER people, the most spendy of months! Now, to just keep this ball rolling...

That is awesome to have money left at the end of December! The hardest month to ever have money leftover!! Way to go!

 

[gracie1]

They are 30 and 31 not kids but sometimes act like it.
I hope the time they have spent away from each other has given them time to grow up a bit and respect each other for their differences. I will talk to them about my stress levels,I work in a high stress job so home has to be my haven.
If anyone has suggestions adult kids living at home please I'm all ears.
Hugs Mel

How long has it been since they've lived together?