Debt Dumpers - 2017

[Eureka]

Can I ask how many hours in care did you get for $60/week? And was that for all your children or per child? When I babysat in middle school/high school, I would make that much easily in a weekend and that was 15-20 years ago. We are looking for full time care, so 40-50 hours per week. And when you consider that $1200 is roughly $6.75 per hour, it doesn't seem too crazy, I guess. But it is still a huge chunk of our take home pay and will be our largest expense outside of our mortgage.

I think of all of our choices with the baby on the way, this is going to be the hardest. I want to find a quality center with a low caregiver to child ratio that will be nurturing and accommodate our needs, but won't cost us 25% of our take home pay.

That's going to be a tough order. When DS#1 was a baby, I worked 2-10pm and DH worked days; I had Fridays off and worked Saturdays. So we really only needed four half-days of care, but had to pay for full time because unless we could find someone to split a spot with, DS was taking up a spot and thus we had to pay. Daycare centers are known for rapid/huge turnover in staff, so I would ask about that too when you are interviewing them. It's hard to put a ton of money to child care but in the grand scheme of things, it's a short time in your life. You'll feel incredibly flush once Baby starts kindergarten

 

[*3*Mouseketeers]

Can I ask how many hours in care did you get for $60/week? And was that for all your children or per child? When I babysat in middle school/high school, I would make that much easily in a weekend and that was 15-20 years ago. We are looking for full time care, so 40-50 hours per week. And when you consider that $1200 is roughly $6.75 per hour, it doesn't seem too crazy, I guess. But it is still a huge chunk of our take home pay and will be our largest expense outside of our mortgage.

I think of all of our choices with the baby on the way, this is going to be the hardest. I want to find a quality center with a low caregiver to child ratio that will be nurturing and accommodate our needs, but won't cost us 25% of our take home pay.

It was per child. By the time my daughter came along my son was already in school. I had them in daycare from 6:30 am until 3:00 - 3:30 pm so it was full time. They also provided breakfast, lunch and snacks. I looked up the daycare in the next town over that my niece works at and theirs is a much larger daycare center than the one my kids went to and their rates are $110 per week for infant to age 2 and $100 per week for 2,3,4 year old. I guess it just all depends on the area you live in. Having a good quality daycare you can trust is worth any amount though! Good luck!! Oh, and also you can get back some of it on your taxes.

 

[Eureka]

It was per child. By the time my daughter came along my son was already in school. I had them in daycare from 6:30 am until 3:00 - 3:30 pm so it was full time. They also provided breakfast, lunch and snacks. I looked up the daycare in the next town over that my niece works at and theirs is a much larger daycare center than the one my kids went to and their rates are $110 per week for infant to age 2 and $100 per week for 2,3,4 year old. I guess it just all depends on the area you live in. Having a good quality daycare you can trust is worth any amount though! Good luck!! Oh, and also you can get back some of it on your taxes.

I agree with it depends where you live. When DS16 was a baby, we were paying $169/week and obviously that was years ago.

 

[Jen and Ashwin]

The day care center near my house just emailed back and I am feeling elated. They said the cost is $232/week! That is $202 less per week than the university's child care center, about $1000 per month total. They also said they accommodate cloth diapers and support using breast milk. They are closed only on the holidays that I already get off for my job. They have a vacation policy of 3 weeks per year for a full time child, meaning if you request vacation at least 2 weeks ahead, then you don't have to pay for the days your child will be absent from care. And they are one of only a few nationally accredited centers in my area.

I am going to set up a time to visit the center this week and DH already told me to see about reserving a spot.

 

[DnA2010]

The day care center near my house just emailed back and I am feeling elated. They said the cost is $232/week! That is $202 less per week than the university's child care center, about $1000 per month total. They also said they accomodate cloth diapers and support using breast milk. They are closed only on the holidays that I already get off for my job. They have a vacation policy of 3 weeks per year for a full time child, meaning if you request vacation at least 2 weeks ahead, then you don't have to pay for the days your child will be absent from care. And they are one of only a few nationally accredited centers in my area.

I am going to set up a time to visit the center this week and DH already told me to see about reserving a spot.

That all seems very excellent! Yay to cloth diapers and BM- I'm very happy to be doing both

 

[DnA2010]

Holy Toledo! I guess I was lucky, I found a local Daycare run by sisters and they charged $60/week. My son went there from age 2 to 5 and my daughter went there from birth to 5. They had my son fully potty trained the first day he was there! They were so good. They closed the daycare a couple years ago because of sickness in the family and there are no other daycares in my town. I'm so glad to be finished with daycare! I could not imagine paying $1200 or $1800 a month. Of course, I'm sure our pay is lower and cost of living lower. I guess it all evens out.

$60 a WEEK??? not DAY?? how is that even possible? I think the absolute cheapest I've heard is $45 a day!

 

[mmbrad02]

I think it also depends on where you live and the cost of living in terms of daycare. We picked the absolute best option in our area and it was $100 a week for the years we were there (ages 2-5). Prior to that we used a private sitter and paid $80 a week for birth till age 2. Our daycare allowed one week vacation; otherwise you paid whether you were there or not. We did have to pack our childs lunch everyday. It was an awesome facility and she came out learning so much and was very much ready for Kindergarten. Now she attends a different facility for after school hours and we pay $45 a week but that is a 20% discount because my husband is employeed by the same place (he works at a hospital, and the daycare is affiliated). Those are the going rates where we live.

 

[piccolopat]

Okay, friends, talk me down from leasing a car. Here is the situation. We have three piece a junk cars, mine being the least junkiest of all. We're at the point of needing to replace my car for something more reliable, however, DH has been on and off of work the last 18 months so we don't have a significant amount of money to put to something new to us. When we replace my car, the one junker we'll get rid of is worth less than 1K so not a significant trade in. I'm thinking because times have been hard, maybe a cheap lease is the way to go for two years to get me and the kids in something reliable, but I've always read that leases are bad. Thoughts?

OK I am going to be the exception here. We've leased two cars in recent years and would do it again. The first time we leased, we were getting a car from a different manufacturer and wanted to be sure we still liked it before we were stuck with it. The second time we were getting our first crossover and again we weren't sure we'd like it compared to the minivan it was replacing. For both cars, the lease payments were much less than if we bought the car and financed it for the same amount of time (3 years). We opted to lease but to put away the difference in an account so it would be there is we decided to buy the car at the end. We bought both cars at the end of the lease with the cash we saved and the process was simple. Some caveats - we never come close to the 10-12,000 miles a year allowed under most leases. We also are very careful where we park to minimize any damage. DH is retired and I commute by rail to work with DH just driving me to the station. We hold onto our cars for a long time (the van was 16 years old) and so we go years without car payments. We have a friend who has been leasing for years just because she likes to be in a new car all the time. She's also a low mileage driver but she has had to contend with fixing some damage before she turned in her lease.

If you qualify for a lease, be sure to understand the total cost to lease. If you don't plan to buy it at the end of the lease, you want your up front costs (down payment and monthly lease payments) to be as low as possible. Make sure the mileage works for you or estimate your mileage overage costs. You should also be able to get information on how much certain kinds of damage will cost you at the end if you don't opt to repair them before turning the car in.

 

[Eureka]

The day care center near my house just emailed back and I am feeling elated. They said the cost is $232/week! That is $202 less per week than the university's child care center, about $1000 per month total. They also said they accomodate cloth diapers and support using breast milk. They are closed only on the holidays that I already get off for my job. They have a vacation policy of 3 weeks per year for a full time child, meaning if you request vacation at least 2 weeks ahead, then you don't have to pay for the days your child will be absent from care. And they are one of only a few nationally accredited centers in my area.

I am going to set up a time to visit the center this week and DH already told me to see about reserving a spot.

That's great! Ask a ton of questions. Don't forget to ask about their sick policy in depth (what constitutes a fever (for keeping them home), how long do they need to be fever-free, can they go with a rash, how long do they need to be on antibiotics) because the baby WILL get sick a lot at first with all the new germs. Ask how they report injuries too. And now I will leave you alone. LOL.

 

[Jen and Ashwin]

That's great! Ask a ton of questions. Don't forget to ask about their sick policy in depth (what constitutes a fever (for keeping them home), how long do they need to be fever-free, can they go with a rash, how long do they need to be on antibiotics) because the baby WILL get sick a lot at first with all the new germs. Ask how they report injuries too. And now I will leave you alone. LOL.

All of these question ideas are so helpful. I am totally new to this, so any suggestions really help. I have a tour set up for next week on Wednesday morning. They only require a $50 deposit to hold a spot and they said there is no such thing as too early, so as long as I like what I see on the tour, I am going to fill out the paperwork and make the deposit right then. DH is in agreement. We can always change our mind later, so it seems best just to do it now.

 

[hmack]

money saving tip -

Live somewhere where it snows 30 inches in less than 24 hours. It's hard to go shopping when you literally can't open the door.

 

[MummyButterfly]

I know it's February, but I've just spent three hours reading this entire thread - and I hope it's not to late to join y'all???

Where to begin?

DH and I have been Dave Ramsey-ing since 2012 when we got married. Our situation is odd - we are both divorced and so some money is our money, but some money is "his" and "mine". We have three checking accounts, one joint savings account, and six credit cards. In 2015 we had to take out a car loan, then disaster struck and we had to take out a second car loan in 2016. Plus, our mortgage (and a VERY small credit line).

2017 Goals:
Pay off the credit line.
Pay off 1 of the 2 car loans
Pay off 2 of the 6 credit cards fully
Have $1,000 in our emergency fund
Pay outright for 1 child's Freshman Year of college (we will have 3 kids in college next year: 2 Freshmen and 1 Junior, but the other 2 are going on student loans co-signed by their mother...)
Begin the absolutely necessary repairs to our house (master bathroom, deck)

We got back $6,000 in our income tax refund (the Federal is already in our account). I wish we could take this throughout the year, but we pay into a higher tax bracket than we actually are - so we are just happy the refund happens when it does. I was able to go ahead and pay of the credit line and more than half of one of the two smallest credit cards. We also put $1,000 in our emergency fund. The rest is earmarked for the household repairs that can't wait (and the new brakes on the truck).

I pay a little extra on our mortgage every month (mostly because round numbers are easier for me to budget with). We owe about $130,000 on our 4 bedroom/2.5 bath house (sits on almost a full acre lot). Based on when we bought it, we know it's a good long-term investment. We just need to eliminate the rest of our debt.

To compound everything, my oldest son (the one who will be a Freshman in college next year) was diagnosed with a life-threatening illness in August 2016. DH and I agree that while getting out of debt is a priority, making sure we have family experiences and memories is also. Therefore, we are taking both our Seniors (the boy and then my younger bonus daughter) on special senior trips. And we are taking our younger four to Disney in December (cheap time to go, since we homeschool being gone won't be an issue, and we are hoping for free dining).

In addition, DH and I usually take a little time away for ourselves, but this year we lucked out. He has a work conference in New Orleans (where I'm from), so I get to go with him (without kids!!) and spend a five days down there. Work picks up the tab for the hotel and PAYS us to drive his car. I'll get to see old friends during the day and show him around at night (he's never been).

I've picked up a small job (it's hard to work when you have eight kids and you're homeschooling three of them and dealing with two in preschool). It isn't going to be a ton of extra income, but it's enough to help pay off a bill! Mostly, if we can keep our head above water, 2018 is the light at the end of the tunnel for us (DH's big promotion should happen in March/April 2018). We have to make it one more year.

Thanks for letting me join you! I'm sure I'll think of more stuff I was suppose to add later.

 

[thiabelle]

I pay $100/week for the dog walker and she is here about 45 minutes a day!! Bwahahahaha

 

[Dentam]

I pay $100/week for the dog walker and she is here about 45 minutes a day!! Bwahahahaha

Yeah, dogs can be almost as spendy as kids! I paid $100 a month for my dog to go to doggy daycare 1 day per week. It would be over $100 per week if she went every day. Now that she's older she doesn't go at all, but it was great for those puppy years when she really needed to get the energy out while I was at work.

 

[disneyduonj]

Halfway through February update:
Savings: $225 from Santander Checking account bonus
Unbudgeted expenses: $50 (ezpass), $30 (girl scout registration), $44.07 (misc amazon expenses)
Still hoping to put another $474 in savings at the end of the month - its staying in my checking account til the end of the month in case there are more of these unbudgeted expenses.

 

[NinaBella]

So, on the topic of Debt Dumping...

I am torn on which account to snowball next.

1) Synchrony Bank: Air Conditioning Line of Credit when we replaced A/C. I think both names may be on this account. I pay from my bank web bill pay. Next time I get the paper statement I should create an online account.

Current Balance: $7,486.02 Interest Rate 9.9%
Minimum monthly payment: $109


2) Delta: American Express Credit Card. Card is in my name only.

Current Balance: $11,656.70 Interest Rate: 15.99%
Min due this month is $264. I normally pay $300 a month while snowballing two other accounts, but just paid the balance off of those two accounts.

Editing to add a 3rd card. This one is in DH name only.

3) United Chase Credit Card. This is not even our highest balance card but interest rate is high. Highest balance card has a low interest and is with USAA who we like. My goal is to eliminate all non-USAA accounts actually. This card was opened when DH traveled overseas for work every few months.
Current Balance: $14,302.57 Interest rate: 13.24%


Between pending tax refund and work annual bonus will pay off summer trips and camps, I may have some extra to put on one of these on top of snowballing. I suppose my thinking is leaning towards paying off credit card first for the higher interest rate and can use in case of emergency if needed (but not likely as we have other cards). I have already stopped using this card completely.

The two accounts I paid off last week were both in my name only, not DH. One was my Southwest Credit Card and one was a loan with Navy Federal.


Which would you choose to snowball between these two? Why? Snowball amount will be at minimum $800 a month towards one of these.

 

[Jen and Ashwin]

So, on the topic of Debt Dumping...

I am torn on which account to snowball next.

1) Synchrony Bank: Air Conditioning Line of Credit when we replaced A/C. I think both names may be on this account. I pay from my bank web bill pay. Next time I get the paper statement I should create an online account.

Current Balance: $7,486.02 Interest Rate 9.9%
Minimum monthly payment: $109


2) Delta: American Express Credit Card. Card is in my name only.

Current Balance: $11,656.70 Interest Rate: 15.99%
Min due this month is $264. I normally pay $300 a month while snowballing two other accounts, but just paid the balance off of those two accounts.

Editing to add a 3rd card. This one is in DH name only.

3) United Chase Credit Card. This is not even our highest balance card but interest rate is high. Highest balance card has a low interest and is with USAA who we like. My goal is to eliminate all non-USAA accounts actually. This card was opened when DH traveled overseas for work every few months.
Current Balance: $14,302.57 Interest rate: 13.24%


Between pending tax refund and work annual bonus will pay off summer trips and camps, I may have some extra to put on one of these on top of snowballing. I suppose my thinking is leaning towards paying off credit card first for the higher interest rate and can use in case of emergency if needed (but not likely as we have other cards). I have already stopped using this card completely.

The two accounts I paid off last week were both in my name only, not DH. One was my Southwest Credit Card and one was a loan with Navy Federal.


Which would you choose to snowball between these two? Why? Snowball amount will be at minimum $800 a month towards one of these.

If you put $800 towards the Synchrony Bank LoC, you will eliminate that debt in 10 months and you will have paid $340 in interest on this debt.

If you put $800 towards the Delta card, you will eliminate that debt in 1 year, 5 months and will have paid $1,388 in interest on the debt.

If you put $800 towards the Chase card, you will eliminate that debt in 1 year, 9 months and will have paid $1,711 in interest on the debt.

Whichever you choose, you will continue to accrue interest on the other cards during that time, so you need to take that into consideration. I would say if you want a quick win, do the LoC. If you are most concerned about accruing interest, then tackle the Delta card first, since it has the highest rate.

 

[Dentam]

Looks like my coworker wants to buy my bike that's been sitting in my garage for a few years now with no use. It's in great shape, I just don't feel comfortable riding it with the traffic in this area and don't have the right vehicle to be able to take it anywhere. Need to look up its value used - paid $500 for it back in 2011. Will put the money toward a cc payment!

 

[Eureka]

money saving tip -

Live somewhere where it snows 30 inches in less than 24 hours. It's hard to go shopping when you literally can't open the door.

I'm guessing you might be in Maine? My parents are in Bangor and my sister is in Scarborough. Sounds about what they got. Stay safe and warm!

 

[NinaBella]

If you put $800 towards the Synchrony Bank LoC, you will eliminate that debt in 10 months and you will have paid $340 in interest on this debt.

If you put $800 towards the Delta card, you will eliminate that debt in 1 year, 5 months and will have paid $1,388 in interest on the debt.

If you put $800 towards the Chase card, you will eliminate that debt in 1 year, 9 months and will have paid $1,711 in interest on the debt.

Whichever you choose, you will continue to accrue interest on the other cards during that time, so you need to take that into consideration. I would say if you want a quick win, do the LoC. If you are most concerned about accruing interest, then tackle the Delta card first, since it has the highest rate.

I know I have seen folks say Dave Ramsey says to go with the lowest balance for that fast win. Okay... I just threw $700 more on there making the total I have paid this month $809. I will make a goal to pay it off by the end of July. I haven't filed taxes yet, hoping to do that with DH tonight, but will probably put the refund on this account too. I think my employee bonus will cover our summer plans, so refund can go straight toward debt. We were close to paying in taxes a few years ago so we started having extra $200 taken out each of DH paychecks so this year looks like our refund will be just under $2K. It's much nicer to get a refund than to worry about paying taxes. I tend to pay all of our bills on the first, then mid month paychecks are free to go toward extra debt, savings, or other expenses like traveling to DD out-of-town or out-of-state competitions.