Debt Dumpers 2021

[pblack]

When we bought our house 3 years ago we had 3 major home projects that we wanted to tackle (or have to tackle): re-do the roof, re-plaster the pool, get an insert for our fireplace. This morning I put the deposit down on the insert for our fireplace! I'm super excited to finally check one of our major things off our list. We purchased an electric insert and with the installation our total is $2600 which will be paid for with our tax return. This actually ended up being a little cheaper than I thought it would be. I was kind of expecting $3000-4000.

We also finally told our roommate that we'd like him to move out. I know I said I was going to do this the weekend before last, but I don't like awkward conversations lol. We've given him until the end of May to find a new place since we know how difficult it can be.

I'm also starting to think about how we want to spend the stimulus. The first stimulus we used to pay towards/off my student loan debt, the second stimulus we threw in savings, but I'm thinking with this one i'd like to knock out some of our other home projects. Finish buying new door knobs, get a new outdoor gazebo/canopy, paint for the inside and maybe outside of the house, new outdoor lights, a ring doorbell, etc. I know there are a few other things i'm forgetting. I'm planning on putting a list together later and pricing things out to see what we're looking at.

 

[imbatman]

It is more important for us to get the mattress than pay off the CC at this point.

Absolutely - a good night's sleep is key to making everything else that is going on in life much easier to bear. Or means that we can take full advantage of the good things that come our way.

Who just saved $1k on a mattress and topper with free delivery and pick up? MEEEEEE!!!!! Total cost: $1040.08

 

[ruadisneyfan2]

Does anyone know if this latest stimulus has a gradual phase out for income? If not, we’ll wont qualify.

 

[jen7233]

Does anyone know if this latest stimulus has a gradual phase out for income? If not, we’ll wont qualify.

I heard under $75k single, or $150k for a couple. Over $80k/$160k disqualified. Disclaimer: I watch news updates on the bill on YouTube and it's a tax person, lol, but I like the channel short and sweet updates much better than boring .gov websites on this stimulus topic!

 

[imbatman]

From USA Today: The checks would start to phase out at $75,000 and phase out entirely at $80,000 of income for individuals, as opposed to about $100,000 in the version of the legislation passed by the House last week. Joint filers would have their checks phase out starting at $150,000 and entirely at $160,000.

 

[colormegreen]

We do qualify for the stimulus. I originally didn't think we would. I know early on they wanted to go even less then the $150,000 for couples, glad they didn't. The kids portion will be put into their accounts, and we will be using ours to pay off the other card that has interest. Then we will be increasing how much we put into our savings. The other cards are no interest and with the payments we make we will be paying them off on time without the interest penalty. I've been doing so well on not using the credit cards. Slowly but surely I am getting there.

 

[barkley]

When we bought our house 3 years ago we had 3 major home projects that we wanted to tackle (or have to tackle): re-do the roof, re-plaster the pool, get an insert for our fireplace. This morning I put the deposit down on the insert for our fireplace! I'm super excited to finally check one of our major things off our list. We purchased an electric insert and with the installation our total is $2600 which will be paid for with our tax return. This actually ended up being a little cheaper than I thought it would be. I was kind of expecting $3000-4000.

is it one that generates any type of heat? ours wasn't really designed to do so but several years back we installed a temperature controlled blower on it-my god! i can't believe how much heat that little sucker puts out.

 

[Tygerlilly]

Disclaimer: I watch news updates on the bill on YouTube and it's a tax person, lol, but I like the channel short and sweet updates much better than boring .gov websites on this stimulus topic!

Are you a daily Clear Value watcher also? Lol. He's great!

 

[pblack]

is it one that generates any type of heat? ours wasn't really designed to do so but several years back we installed a temperature controlled blower on it-my god! i can't believe how much heat that little sucker puts out.

It does put out heat, but not a ton of heat from my understanding. We want it for more aesthetic purposes and not so much a heat source, so we were ok with it not putting out a ton of heat. The model we bought has 10 colors you can choose from for the logs and flame which i'm really excited about. When the salesperson was circling through the colors when we were there he had it on a purple/green combo that made me automatically think of Halloween and all the fun things I could do to decorate around it lol.

 

[Buzzsgramma]

So I had to mentally slap myself back to reality last night after paying for my car repairs. I had serious browsers remorse even considering adding potentially 70k debt just for a vehicle I "want". Here I am on a debt dumpers board airing my debt skeletons, so close to being out of CC debt, and I want a new car? Umm no. So needless to say I slammed the brakes on car browsing, shopping, and dreaming. My vehicle is just fine. I'll be scratching new vehicle off my next check in.

Excellent decision....

 

[DLgal]

We do qualify for the stimulus. I originally didn't think we would. I know early on they wanted to go even less then the $150,000 for couples, glad they didn't. The kids portion will be put into their accounts, and we will be using ours to pay off the other card that has interest. Then we will be increasing how much we put into our savings. The other cards are no interest and with the payments we make we will be paying them off on time without the interest penalty. I've been doing so well on not using the credit cards. Slowly but surely I am getting there.

Just our of curiosity, why are you giving your kids stimulus money? Did they lose jobs? These funds are meant to help families with increased costs associated with having kids to provide for.

 

[FQLover]

Single head of household has a different ceiling than single, but less than joint filers. I am still "in" and for the first time, dependent kids over 17 will get a check, too. I am putting my DD's in her savings account to help with college room and board next fall semester. I am dividing mine up within all my separate savings accounts in Cap One 360. Yes, that money will be spent (helping the economy) just not this minute. When I pay off my car, when I pay for my upcoming crown bill from the dentist, when I buy Christmas gifts, when my dog gets her next bladder stone surgery, etc.

 

[DLgal]

Guys, I am literally the worst at the snowball method. After TWO days of looking at my Ally bucket spreadsheet, I was like "screw this." I moved money around and fully funded my first 2 savings goals: vacations and DL passes. Now, ALL my savings will be funnelled towards the Emergency Savings goal. It's currently around $3300 with a goal of $48,000. Hoping to meet that by next January. Hoping this ONE goal will keep me focused all year.

 

[colormegreen]

Just our of curiosity, why are you giving your kids stimulus money? Did they lose jobs? These funds are meant to help families with increased costs associated with having kids to provide for.

The kids are to young to work. The oldest will soon need drivers ed, PSATs, etc...so saving for those expenses. The little one is not in need of many things right now, and due to working from home I haven't had the need to pay for daycare. I'm sure if the husband's job situation doesn't change we might have to touch it if we need things for them, but until then I prefer to save it for college or other expenses I have not foreseen.

 

[imbatman]

Thought you all might appreciate this as much as I did:

 

[slightly_obsessed]

Guys, I am literally the worst at the snowball method. After TWO days of looking at my Ally bucket spreadsheet, I was like "screw this." I moved money around and fully funded my first 2 savings goals: vacations and DL passes. Now, ALL my savings will be funnelled towards the Emergency Savings goal. It's currently around $3300 with a goal of $48,000. Hoping to meet that by next January. Hoping this ONE goal will keep me focused all year.

This definitely made me snort because I have totally done this myself before! Sometimes it's best to keep it simple. Whatever works!!!

 

[DLgal]

This definitely made me snort because I have totally done this myself before! Sometimes it's best to keep it simple. Whatever works!!!

Amen!

 

[ciaoaloha31]

Yay all $74 of my state refund was direct deposited this morning! Still better than owing I will be throwing that towards my 0% Amex balance this month.

 

[4 Ears]

Sold a set of golf clubs and a TV that we upgraded after Christmas. Not a lot but putting it towards that loan. Every little bit helps...

 

[DLgal]

So, I've decided I'm going to "hack" the new child tax credit situation once the law passes. It seems the IRS will be setting up a portal where you can go to enter your filing status, number of qualifying kids, and taxable income from your last tax return. There will also be an option to "opt out" of direct payments.

They are going to do this tax credit in kind of a weird way, so pay attention:

The previous credit was $2,000 per child up through age 16. The new credit will be $3,000 per child up through age 18. It will be $3,600 for kids age six and under.

They plan to give people part of the total credit amount in the form of direct payments, beginning in July. They propose to send either $300 or $320 payments, depending on age of child. So, you will get either $1800 or $1920 per child, leaving a credit when you file NEXT year of $1200 or $1680 per child.

The part where this becomes problematic is that they will NOT be updating W4s or the way tax withholding is calculated. So, your pay will continue to withhold expecting a credit of $2000 per child. People who opt into the monthly payments will find themselves owing additional taxes at tax time, due to the actual credit applied being less than $2000.

Now, I'm not sure why this was overlooked, but I am going to do the following:

1. Opt OUT of direct payments
2. Adjust withholding on the W4 to withhold as though I have THREE children instead of 2. This way, they will withhold based on a total child tax credit of $6000 vs $4000, since that is the new amount my 2 kids will qualify me for. If I do this NOW, I start seeing more money in our paycheck NOW rather than having to wait until July. Plus, I have no surprise at tax time, because since I didn't take direct payments, I will have the full $6,000 credit applied to my taxes.

Now, I'm not a finance person, but this seems to be a workable plan. Does anyone see a glaringly obvious thing I might be overlooking?