Debt Dumpers - 2019

[KearneyFam02]

I usually follow Dave Ramsey when I'm trying to pay off debt but this time we are doing things a bit differently. We have a credit card that needs to be paid off in May from a 12 months interest free balance transfer promo. Then we are paying off our van so we can use the extra to pay the other things off. This is the order we will be working them. We are hoping to have everything except for the car paid off by the end of the year.

1. CC - $3970 (has to be paid off by May but will be paid off with tax refund)
2. Van - $4319 (hubby gets a bonus in April that will go towards it, should be about $2500 and will be paid off shortly after)
3. Lowes CC - $865
4. LOC - 1400
5. Best Buy CC - $1457
6. Car - $8083

 

[ruadisneyfan2]

Question to those who feel comfortable responding: How much $ do you keep in your check book?

I have $ in savings that I can get to but have no idea how much to keep in my checking account. Now that I'm really working on eliminating debt, I feel like I want to take the $$ to pay off debt but am afraid if I do that and something unexpected happens, I'm just creating new debt.

Every Thursday after bills get paid, savings sent to Ally, I keep around $150-175 in checking but $100 is my main "base" even though our bank doesn't require a min amount. That amount used to be $200 but then I'd get impatient and send some toward the snowball and I've lightened up on needing $100/week. Dh usually taps out $20/week. We rarely use cash. Whatever is left the day before payday, gets put toward whatever the snowball goal has been except for the last $100. Some weeks there's $55 leftover, sometimes $15. Usually around $25-30. Then it starts over again.

Do you have an Emergency Fund? If you follow Dave Ramsey, he suggests $1000 in a separate account for unexpected expenses. Vet bills, washer died, etc. Some people feel that's not enough. For us it was good but really dh has his "slush fund" with a few thousand in that so if there were some huge emergency we would not have been broke.
Our debt is gone except our mortgage so I'm building up more liquid savings and retirement savings. I'd like to pay the mortgage down but it's only at 3% interest and we have less than 9 yrs remaining. When I read various articles/websites about financial management, they tend to suggest there's more to be made by investing vs paying off the house. Right now it's hard to see that when I look at my Vanguard.

 

[dayvewc]

I always tried to keep at least $150 in checking. My bank had no minimum, but that was enough for any immediate emergency until I could get to my emergency funds. I kept those in a different bank that I had to access in person, 200 miles away, so not easy to get to. Minimizes impulse spending though.

On a completely different note. Came home from work and someone had broken into my house and stolen my laptop. Haven't found anything else missing, just the laptop, so I guess they were really desperate for a 4 year old computer.

I just can't get a break.

 

[MamaBelleRN]

Question to those who feel comfortable responding: How much $ do you keep in your check book?

I have $ in savings that I can get to but have no idea how much to keep in my checking account. Now that I'm really working on eliminating debt, I feel like I want to take the $$ to pay off debt but am afraid if I do that and something unexpected happens, I'm just creating new debt.

Just like @Jen and Ashwin, we use YNAB (actually I heard about it from @Jen and Ashwin so THANK YOU! It’s amazing ) I like to keep my full monthly buffer in my checking account so I don’t have to fiddle around with transfers. When we’re fully buffered, it gives us quite a cushion. I know we’re losing out on interest, but for me the reduction in anxiety by seeing a healthy balance is priceless.

Every Thursday after bills get paid, savings sent to Ally, I keep around $150-175 in checking but $100 is my main "base" even though our bank doesn't require a min amount. That amount used to be $200 but then I'd get impatient and send some toward the snowball and I've lightened up on needing $100/week. Dh usually taps out $20/week. We rarely use cash. Whatever is left the day before payday, gets put toward whatever the snowball goal has been except for the last $100. Some weeks there's $55 leftover, sometimes $15. Usually around $25-30. Then it starts over again.

Do you have an Emergency Fund? If you follow Dave Ramsey, he suggests $1000 in a separate account for unexpected expenses. Vet bills, washer died, etc. Some people feel that's not enough. For us it was good but really dh has his "slush fund" with a few thousand in that so if there were some huge emergency we would not have been broke.
Our debt is gone except our mortgage so I'm building up more liquid savings and retirement savings. I'd like to pay the mortgage down but it's only at 3% interest and we have less than 9 yrs remaining. When I read various articles/websites about financial management, they tend to suggest there's more to be made by investing vs paying off the house. Right now it's hard to see that when I look at my Vanguard.

We are one a DR ‘light’ journey for paying off debt. It does seem like he should up his $1k suggestion. Since our craziness with flooding started in November, between home insurance deductible, dish washer replacement, furnace repair and plumbing repairs due to the flooding, we have had $3,450 in unexpected expenses. That doesn’t even include the medical expenses we have had since December because I use our HSA to cover those costs. Between my son’s broken arm and some expensive genetic testing for our three year old, that’s an additional $1,200 (at least- still waiting to hear from the lab what our actual responsibilitiy will be. The Geneticist wanted to run a full chromosomal analysis but said the test can cost +$1k depending on insurance). I am so glad the only stress this has caused is not being fully buffered. Two years ago, facing this many unexpected expenses would have driven us further into debt. It has slowed our roll, but I CANNOT wait to be free of all debt aside from our mortgage and be able to focus on savings. Until then, keeping my one month buffer will keep me sane

I always tried to keep at least $150 in checking. My bank had no minimum, but that was enough for any immediate emergency until I could get to my emergency funds. I kept those in a different bank that I had to access in person, 200 miles away, so not easy to get to. Minimizes impulse spending though.

On a completely different note. Came home from work and someone had broken into my house and stolen my laptop. Haven't found anything else missing, just the laptop, so I guess they were really desperate for a 4 year old computer.

I just can't get a break.

I am so sorry to hear this. Lots of ((((Hugs)))) and prayers.

 

[Tygerlilly]

End of the month and we stayed mostly on budget. I might have gone over grocery budget, but I snagged a couple good deals that will last us into next month, so I won't need to worry about buying a few things then.

I'm just itching for taxes to come in so I can pay all this stuff off. I'm so not patient now that I am seeing progress. And I need to start putting money on our account at the wedding venue.

I can't remember if I mentioned it, but we really sat down and looked at our guest list and took it from 130 to 110. We also decided on a different buffet option. It's not quite as extravagant, but still really nice with a lot of options. After these changes, we're saving around $3,000 on wedding expenses. So we're both happy there.

 

[Jen and Ashwin]

Just looked at my USPS daily digest and our Magical Express luggage tags are arriving today. I am so freaking excited for our trip in March!

 

[Jen and Ashwin]

End of the month and we stayed mostly on budget. I might have gone over grocery budget, but I snagged a couple good deals that will last us into next month, so I won't need to worry about buying a few things then.

I'm just itching for taxes to come in so I can pay all this stuff off. I'm so not patient now that I am seeing progress. And I need to start putting money on our account at the wedding venue.

I can't remember if I mentioned it, but we really sat down and looked at our guest list and took it from 130 to 110. We also decided on a different buffet option. It's not quite as extravagant, but still really nice with a lot of options. After these changes, we're saving around $3,000 on wedding expenses. So we're both happy there.

Congrats on saving $3k. It is so easy to get wrapped up in needing so many things for weddings, as I can attest to. I was lucky that my parents paid for the majority of our wedding expenses, but I wanted certain extras and got a second job for about a year to make that happen. I would never have done it if it meant incurring any debt. And DH paid for the rehearsal/welcome dinner himself because he didn't want to burden his parents. You are making smart choices that you will not regret later!

 

[Birdie dog]

I do have an emergency fund. I have about $5000 in savings plus about $200000 in retirement that wouldn't be easy to get but I could. I still pay bills every other week and at some point may try to switch to auto-pay but right now, I'm more interested in paying down debt so I need to put thought in to bill paying.

I envy all of you who look forward to a tax refund. I claim zero, own a house AND put away 16% of my earnings and still pay every year. It totally sucks.

 

[jen7233]

I use my main checking as the “emergency fund” which is why I like to keep the balance higher than some. I have a few small savings accounts, need to consolidate now I think. I forgot to add on to this sentence so going back in to edit. I mean, I was using the zero fee savings accounts as digital cash envelopes, kind of thinking to just consolidate down. I am clearly having typing issues this morning!

I always tried to keep at least $150 in checking. My bank had no minimum, but that was enough for any immediate emergency until I could get to my emergency funds. I kept those in a different bank that I had to access in person, 200 miles away, so not easy to get to. Minimizes impulse spending though.

On a completely different note. Came home from work and someone had broken into my house and stolen my laptop. Haven't found anything else missing, just the laptop, so I guess they were really desperate for a 4 year old computer.

I just can't get a break.

That's crazy! A string of bad luck. File a police report. Of course, with the issues you've had of late, could it be someone you know, or someone they know? Sorry that happened!

We are one a DR ‘light’ journey for paying off debt. It does seem like he should up his $1k suggestion. Since our craziness with flooding started in November, between home insurance deductible, dish washer replacement, furnace repair and plumbing repairs due to the flooding, we have had $3,450 in unexpected expenses. That doesn’t even include the medical expenses we have had since December because I use our HSA to cover those costs. Between my son’s broken arm and some expensive genetic testing for our three year old, that’s an additional $1,200 (at least- still waiting to hear from the lab what our actual responsibilitiy will be. The Geneticist wanted to run a full chromosomal analysis but said the test can cost +$1k depending on insurance). I am so glad the only stress this has caused is not being fully buffered. Two years ago, facing this many unexpected expenses would have driven us further into debt. It has slowed our roll, but I CANNOT wait to be free of all debt aside from our mortgage and be able to focus on savings. Until then, keeping my one month buffer will keep me sane

I agree, $1,000 suggestion is not a large enough amount for a beginner emergency fund. More so if looking at a longer term debt reduction mode of say 2-3 years. If you have kids and own a home, more possibilities of expensive things than $1,000 can happen in that expanded timeframe.

 

[barkley]

just put it all in one savings, use an Excel spreadsheet, and go back to keeping it simple.

I have a few small savings accounts, need to consolidate now I think. I forgot to add on to this sentence so going back in to edit. I mean, I was using the zero fee savings accounts as digital cash envelopes, kind of thinking to just consolidate down.

cautionary tale-consider having more than one (ideally no fee) savings account b/c if you only have one and it's attached to your checking account for overdraft protection, and that checking account (like most) has a debit card- then ALL THOSE SAVINGS are subject to risk in the event your debit card is compromised.

we had an instance w/dd's within the past year and fortunately the bank's fraud detection caught the charge as it hit the card and questioned the transaction b/c if it had gone through it would have over drafted the checking and emptied the attached savings (many thousands of dollar out of the country charge). just recently on our debit card someone tried to run a few dollar charge on what the bank figures was a fishing expedition to see if the card number was good before the crooks tried for something larger. fortunately we caught it but we only have a small savings attached to the checking b/c if we need to do a larger purchase we can just transfer funds from another savings that's not associated and therefore kept protected.
it's not that there's not fraud protection/hold harmless on our accounts for this but it can take several days at minimum to get the bank to reverse charges and if all your checking and savings have been drained..........

I agree, $1,000 suggestion is not a large enough amount for a beginner emergency fund

i agree as well-for us it's always been the amount of our highest insurance deductible (homeowners).

 

[Jen and Ashwin]

That's crazy! A string of bad luck. File a police report. Of course, with the issues you've had of late, could it be someone you know, or someone they know? Sorry that happened!

@dayvewc This was my initial thought too. Who would break in and just take a 4 year old laptop. More likely someone in the house or a friend of someone took it.

 

[Jen and Ashwin]

it's not that there's not fraud protection/hold harmless on our accounts for this but it can take several days at minimum to get the bank to reverse charges and if all your checking and savings have been drained

So the amount of liability for debit cards depends on how long it takes to report the loss. If it is over 60 days, you have no protection at all. If it is less than two, then the loss is limited to $50. This FTC page is really great for explaining what you need to know about debit cards and fraud:

https://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards

 

[fifthdimensiondweller]

We also decided on a different buffet option. It's not quite as extravagant, but still really nice with a lot of options.

Smart choice! We had the cheapest buffet option at ours (can't remember exactly but I think it was some kind of baked chicken, italian sausage, penne with sauce, and of course a basic salad, rolls, etc) and it was very popular. I know my personal preference at weddings is the more plain food anyways- between those options you could please pretty much anyone.

 

[barkley]

So the amount of liability for debit cards depends on how long it takes to report the loss. If it is over 60 days, you have no protection at all. If it is less than two, then the loss is limited to $50. This FTC page is really great for explaining what you need to know about debit cards and fraud:

https://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards

correct, but it takes time for the bank to get things done so in my case if it had been a larger fraudulent amount that drained my checking and via overdraft protection drained the attached savings account, had it been my only savings account i could have had to go several days w/o access to funds. w/me i discovered it one evening and called the after hours number where they could do a freeze on the card and START the dispute process, but it still took a couple of days for the reverse credit to be posted to the account. like i said, not a big dollar amount but if it had been and i only had one savings account that was drained in the scam i could have had outstanding checks and automatic payments bouncing left and right.

 

[Jen and Ashwin]

correct, but it takes time for the bank to get things done so in my case if it had been a larger fraudulent amount that drained my checking and via overdraft protection drained the attached savings account, had it been my only savings account i could have had to go several days w/o access to funds. w/me i discovered it one evening and called the after hours number where they could do a freeze on the card and START the dispute process, but it still took a couple of days for the reverse credit to be posted to the account. like i said, not a big dollar amount but if it had been and i only had one savings account that was drained in the scam i could have had outstanding checks and automatic payments bouncing left and right.

I never use my debit card for two reasons. First, there could be more problems if the account is compromised, such as not having access to funds or greater potential liability for fraud. And two, I like getting credit card rewards, which a debit card could never match. I never incur debt on credit cards (with the exception of using 0% offers right now to reduce our HELOC interest charges), so don't ever see the advantage of using a debit card. And because I never use them, the likelihood of them being compromised is pretty much zero as well.

 

[barkley]

I never use my debit card for two reasons. First, there could be more problems if the account is compromised, such as not having access to funds or greater potential liability for fraud. And two, I like getting credit card rewards, which a debit card could never match. I never incur debt on credit cards (with the exception of using 0% offers right now to reduce our HELOC interest charges), so don't ever see the advantage of using a debit card. And because I never use them, the likelihood of them being compromised is pretty much zero as well.

we rarely use ours as well (probably why the fraudulent charge caught my attention so quickly) but occasionally need cash outside normal banking hours so there's that, and as far as gas goes around here-there's an up charge of 5-10 cents per gallon if you use a credit card vs. cash/debit and i've yet to find a credit card reward that offsets that (but then i'm a cheapskate who refuses to pay for a credit card so mine don't nesc. get the best rewards).

 

[Tygerlilly]

Smart choice! We had the cheapest buffet option at ours (can't remember exactly but I think it was some kind of baked chicken, italian sausage, penne with sauce, and of course a basic salad, rolls, etc) and it was very popular. I know my personal preference at weddings is the more plain food anyways- between those options you could please pretty much anyone.

Our original buffet was a blackened steak, margarita chicken, and a seafood Newburg dish and like 7 different sides. The more I thought about it, the more ridiculous i thought that was.

Now we picked a steak, salmon, and chicken with 3 sides. Saved a bunch of money AND think it's a much more manageable menu.

 

[AmyAnne]

cautionary tale-consider having more than one (ideally no fee) savings account b/c if you only have one and it's attached to your checking account for overdraft protection, and that checking account (like most) has a debit card- then ALL THOSE SAVINGS are subject to risk in the event your debit card is compromised.

we had an instance w/dd's within the past year and fortunately the bank's fraud detection caught the charge as it hit the card and questioned the transaction b/c if it had gone through it would have over drafted the checking and emptied the attached savings (many thousands of dollar out of the country charge). just recently on our debit card someone tried to run a few dollar charge on what the bank figures was a fishing expedition to see if the card number was good before the crooks tried for something larger. fortunately we caught it but we only have a small savings attached to the checking b/c if we need to do a larger purchase we can just transfer funds from another savings that's not associated and therefore kept protected.
it's not that there's not fraud protection/hold harmless on our accounts for this but it can take several days at minimum to get the bank to reverse charges and if all your checking and savings have been drained..........

I'm curious why you are using debit cards? I have persuaded most of my family to stay away from them, after an incident many years ago when MIL's debit card was compromised and it was a huge hassle to deal with the bank. We are an almost-totally credit-card paying family -- the only time I need cash is to pay the cat sitter. Credit cards just seem so much better in terms of dealing with fraud, including no risk of having overdraft fees or being unable to pay your rent or mortgage while the bank figures out whether to give you your money back.

ETA I see @Jen and Ashwin beat me to the question. As for gas, if you have a Wal-Mart that's convenient, you can get 5 cents off per gallon by using a Wal-Mart gift card. And I think the Citi Costco card offers 4% back on gas, and Discover and Chase Freedom usually offer 5% back on gas stations once per year as a quarterly promotion. No way would I ever use a debit card at a gas station -- those card readers have to be the easiest target for installing skimmers.

 

[ruadisneyfan2]

I agree, $1,000 suggestion is not a large enough amount for a beginner emergency fund. More so if looking at a longer term debt reduction mode of say 2-3 years. If you have kids and own a home, more possibilities of expensive things than $1,000 can happen in that expanded timeframe.

In DR’s defense, it’s only $1000 because if you truly follow his advice, you would get out of debt faster than most of us here. He doesn’t suggest a debt payments system “between vacations”.
He says to stop retirement contributions, cancel cable & cell phones, sell the car-pay back loan-buy a cheap car, cancel kids ice hockey camp, etc. Truly nothing bought except food, shelter, getting to work. Any deviation makes it only take longer to get out of debt.
Well sure, if I could stand to give all of that up, even temporarily, it would have taken us 6 months instead of 24.

I was too afraid it would feel like a starvation diet and that I’d give up too quickly.

 

[ruadisneyfan2]

I'm curious why you are using debit cards? I have persuaded most of my family to stay away from them, after an incident many years ago when MIL's debit card was compromised and it was a huge hassle to deal with the bank. We are an almost-totally credit-card paying family -- the only time I need cash is to pay the cat sitter. Credit cards just seem so much better in terms of dealing with fraud, including no risk of having overdraft fees or being unable to pay your rent or mortgage while the bank figures out whether to give you your money back.

ETA I see @Jen and Ashwin beat me to the question. As for gas, if you have a Wal-Mart that's convenient, you can get 5 cents off per gallon by using a Wal-Mart gift card. And I think the Citi Costco card offers 4% back on gas, and Discover and Chase Freedom usually offer 5% back on gas stations once per year as a quarterly promotion. No way would I ever use a debit card at a gas station -- those card readers have to be the easiest target for installing skimmers.

I know your question wasn’t directed at me but I had to chime in...

Dh and I use a cc for everything. I don’t even carry my ATM card in my purse. He uses his only once per week usually at our local bank.

Our kids use ATM cards because they are only 18 & 22. They are just learning how to save, budget, spend. I am reluctant to encourage cc use for them; I was their age when I got my first cc and quickly got into trouble. Ds22 would be ok. Ds18 really needs to see that “$0.16 available” before he stops spending.
I tell them to never use an ATM at a gas station but a TD Bank nearby (Medford) was found to have a skimmer on it so it's not only gas stations you have to worry about.