Debt Dumpers 2025

[bababear_50]

Thank you everyone for all your help.
I appreciate it.
I'll try to update when I can.
Mel

 

[disney-inspired]

While looking at the terms of my DVC loan, I realized how little I have paid to the principal. Not super surprising as I knew the DVC loan rates were high as it's a luxury item.
I decided to see if I could get a lower interest personal loan solely to save money on interest. Logix bank approved my request and I'll be shaving off 3% AND I'll have it paid off in half the time! I was so excited to see that, I had to come share with my debt dumper pals. Even better, the monthly payment is only $80 more than I'm paying now.
The new loan has 48-month term but I'm planning to throw additional $ at it to pay it off in 3 years, maybe even sooner if I throw my bonus at it this year.

I finished paying off one of my medical debts - so I'll be getting $100 back each month. The other medical debt will be PIF in December, which will then free up another $185. Getting nearly $300 back a month will be awesome.

I've pretty much decided what apartment complex I want to move to later this year in Texas. I emailed them with my slew of questions, and they responded pretty quickly.

I'm trying to decide if I should contribute to my companies 401k since they don't do a traditional match or continue putting into my Roth IRA. I know the whole point of a 401k is to reduce your taxable income but it's not like I'm making six figures or anything. I already have my W4 adjusted to get me as close as possible to zero $ tax return - the small amount I do get back is normally due to them overtaxing my bonus and then having student loan interest deductions.

 

[firefly_ris]

I'm trying to decide if I should contribute to my companies 401k since they don't do a traditional match or continue putting into my Roth IRA. I know the whole point of a 401k is to reduce your taxable income but it's not like I'm making six figures or anything. I already have my W4 adjusted to get me as close as possible to zero $ tax return - the small amount I do get back is normally due to them overtaxing my bonus and then having student loan interest deductions.

You can open a Traditional IRA which does reduce your taxable income. The annual contribution limit is lower than the 401k but if you're not maxing it out now and not getting a match maybe a Traditional IRA is a good alternative. I'm self employed so that is what I have, while my husband focuses on 401k.

 

[Matty B13]

Also, if you leave your company with the 401k, you will have to either transfer it to your new company 401k or to a personal Traditional IRA. Probably your easiest thing to do, since you don't have a contribution match, is to open a traditional IRA of your own though Fidelity, Vanguard, or any of the online trading websites. We have one through ETrade and it was easy to setup.

 

[ruadisneyfan2]

I'm not sure if I ever mentioned it, but I have a younger cousin that has NF1(basically cancerous brain tumors). He's 11. Last week he was admitted to the hospital with a virus. That virus quickly spread to pneumonia to the point he needed intubated and very very strong medicine. Unfortunately, his body couldn't handle it and he passed this afternoon. We have an unplanned trip to ND now for his funeral next weekend. We're going to leave a couple days early and try to do a few fun things with the kids before we go to the serious things since we will have to cancel our family vacation next month.

I'm doing a big vendor event and I told them I was going to stay half of tomorrow, but I'd be breaking down early and missing the 3rd day completely. I also decided to donate all funds I make from the event to a charity that was very active with him and his family called Brave the Shave. It just feels right.

I'm so sorry for your loss. That is heartbreaking.

 

[ruadisneyfan2]

Here are some of May's results for the things I noted at the beginning at the month.

Personal
- Eating healthier: Trying to add more fruits/veggies, less fried and less red meat;
(Haven't eaten anything fried in over 3 weeks. Been buying fruits on every Walmart trip.)
- More Exercise: Goal is to walk 2 to 2-1/2 miles at least 4 days per week.
Currently walking 1-1/2 to 2-1/2 miles 3-4 days per week.
- Weight loss: Goal of 250 by July 27. Started at 278 on April 1.
Currently sitting at 264.6

Financial
- Keep paying on/not using CC1: Currently down to $429. Still haven't used it this year.
Missed a payment last month for the first time ever because my dad fell and broke his arms, I was out of town to see them, and I didn't have my computer. I paid the payment as well as a late fee.
- Eat Out Less: Trying to cut eat out spending to under $800 for the month.
Have spent $669 eating out this month (with 1 day left).
- Sell, sell, sell: I sold $475 worth of baseball cards, while DW sold $100 worth of her old scrubs to a lady on Facebook.
- Save for Chicago ($1700/$2300): We put $575 toward our Chicago trip thanks to what we sold. And we also bought our tickets to the Cubs game. So all we lack is our tickets to the show and spending money.

Home/Projects
- Create an office space upstairs: Went through 3 boxes of stuff, and I got stuff to toss. But no real progress here.
- Growing veggies: No news here. Going to visit with mom and walk through how to redo them in the next weeks.

I'm going to be honest, this was all really good until I saw this. Then I nearly

"- Eat Out Less: Trying to cut eat out spending to under $800 for the month.
Have spent $669 eating out this month (with 1 day left)."

Most months we don't even spend $200 and that is without trying to pay off any debt.
Be strong. You can improve on this.

How long would your debt last if you brought this number down to $200 and applied the other $600 to your debt/EF?
Do the math.

 

[CoP Luv]

I'm going to be honest, this was all really good until I saw this. Then I nearly

"- Eat Out Less: Trying to cut eat out spending to under $800 for the month.
Have spent $669 eating out this month (with 1 day left)."

Most months we don't even spend $200 and that is without trying to pay off any debt.
Be strong. You can improve on this.

How long would your debt last if you brought this number down to $200 and applied the other $600 to your debt/EF?
Do the math.

I would usually agree, but I will have to applaud @WDW_fan_in_TX for the immense work he (AND HIS WIFE) have done since he has started posting. When he first joined, there was a lot of excuses of why things couldn't be changed, especially those that he shared from his wife's perspective. His latest updates have shown really hard work in just educating themselves and seeing the results of their hard work. He mentioned previously how he wasn't going to sell baseball cards. Now he did and is putting that money somewhere.

Can more be done? Absolutely. As a supportive community that is here, these suggestions should definitely be made so that others can continue to learn. Maybe he was spending $1000/month eating out, and getting down to $669 is a huge win for his household. Like you, I couldn't imagine spending that much of my budget there, but there may be parts of my budget that others don't agree on.

So great job, @WDW_fan_in_TX and all others that are posting their updates. I am a FPU leader and love to cheer on those on this journey.

 

[EilonwyWanderer]

If you have a family of 4, it usually costs around $100+ to eat out once even at 'inexpensive' chains like Applebees or Chili's. I'm basing that on my family and we still have 2 kids that eat off the cheaper kids menu (usually, we're about at the end of that for one of them). Even going to McDonalds these days runs $30+.

With two parents that work full time and school/after school activities it can be REALLY hard not to cave to 'I just don't have the energy to cook tonight, order something' and eventually everyone gets sick of 'boil some pasta' if you don't have time to get to the store for something fancier.

Planning meals in advance can absolutely help, but I just wanted to note that spending what seems like insane amounts of money eating out every month is often not just people throwing money out the window for fun. It's people/parents who are really, really tired and the costs of food going up and up. We struggle with this too @WDW_fan_in_TX -- I've found actually going through the restaurant charges every month to be helpful to curb our impulses to go out along with trying to combine going out to stores to either one run, or only one of us goes. Because we know if we all go we're going to stop to get food somewhere!

 

[Matty B13]

Learning about Finances is a long journey for most people. While I never really incurred a lot of debt when I was young, I would buy a new vehicle that "I could afford" I didn't understand what I was losing by not investing/saving that money by buying a used vehicle.

One of the best things I did (Not until I got married) was setup spreadsheets of what my income was and what we spent. The spreadsheet makes very clear if you are overspending or saving.

I also setup a spreadsheet of our retirement accounts, and it is unbelievable (especially over the last decade) how much investing can just compound exponentially. Thankfully we put a bunch of money away before having kids, and now don't really have to worry about our retirement. Imagine if I had started when I was in my early 20's........ I kick myself to this day I didn't start earlier.

 

[DisneynBison]

Imagine if I had started when I was in my early 20's........ I kick myself to this day I didn't start earlier.

This one thing can change whole family financial situations. It should be taught to every kid and reminded of how important starting saving early is and how it pays off down the road. I tell my kids regularly "spend what you have left after saving, don't save what you have left after spending."

 

[barkley]

I'm going to be honest, this was all really good until I saw this. Then I nearly

"- Eat Out Less: Trying to cut eat out spending to under $800 for the month.
Have spent $669 eating out this month (with 1 day left)."

Most months we don't even spend $200 and that is without trying to pay off any debt.
Be strong. You can improve on this.

How long would your debt last if you brought this number down to $200 and applied the other $600 to your debt/EF?
Do the math.

I would usually agree, but I will have to applaud @WDW_fan_in_TX for the immense work he (AND HIS WIFE) have done since he has started posting. When he first joined, there was a lot of excuses of why things couldn't be changed, especially those that he shared from his wife's perspective. His latest updates have shown really hard work in just educating themselves and seeing the results of their hard work. He mentioned previously how he wasn't going to sell baseball cards. Now he did and is putting that money somewhere.

Can more be done? Absolutely. As a supportive community that is here, these suggestions should definitely be made so that others can continue to learn. Maybe he was spending $1000/month eating out, and getting down to $669 is a huge win for his household. Like you, I couldn't imagine spending that much of my budget there, but there may be parts of my budget that others don't agree on.

So great job, @WDW_fan_in_TX and all others that are posting their updates. I am a FPU leader and love to cheer on those on this journey.

If you have a family of 4, it usually costs around $100+ to eat out once even at 'inexpensive' chains like Applebees or Chili's. I'm basing that on my family and we still have 2 kids that eat off the cheaper kids menu (usually, we're about at the end of that for one of them). Even going to McDonalds these days runs $30+.

With two parents that work full time and school/after school activities it can be REALLY hard not to cave to 'I just don't have the energy to cook tonight, order something' and eventually everyone gets sick of 'boil some pasta' if you don't have time to get to the store for something fancier.

Planning meals in advance can absolutely help, but I just wanted to note that spending what seems like insane amounts of money eating out every month is often not just people throwing money out the window for fun. It's people/parents who are really, really tired and the costs of food going up and up. We struggle with this too @WDW_fan_in_TX -- I've found actually going through the restaurant charges every month to be helpful to curb our impulses to go out along with trying to combine going out to stores to either one run, or only one of us goes. Because we know if we all go we're going to stop to get food somewhere!

I see valid points on all sides of this.

yes-the o/p has made TREMENDOUS leaps in creating new spending habits and continues to build on the successes. yes-the easiest way to combat the high cost of eating out is to NOT. yes-depending on the dynamics of a household, eating out is the practical means to maintain one's physical and mental health.

that said-the cost of eating out is generally obscene these days although in some cases the net cost of making some meal items can cost more making them at home versus 'eating out' (spec. non tipped pickup/counter service type places). I nearly choked at the cost of a recent to-go order at wendy's for 3 of us coming close to $60 but then a week or so later i'm at the grocery store to get stuff to do burgers and fries at home (no chili, no nuggetts) and the net cost item to item was not far off what we paid (and of course I had to pay more b/c I can't just buy 4 lettuce leafs, 16 pickle slices, 6 slices of bacon...).

I don't know, it just seems like allot of what has been historically considered 'cheap food', 'fast food' (fast as in quick to prepare) is no longer.

 

[afan]

This one thing can change whole family financial situations. It should be taught to every kid and reminded of how important starting saving early is and how it pays off down the road. I tell my kids regularly "spend what you have left after saving, don't save what you have left after spending."

And I would have loved to have done that in my 20s, but like most of us then, we didn't make much and we're just trying to get by.

I knew saving was important but I couldn't afford to. What would have helped more was understanding credit cards better and that they aren't what you should be supplementing your wages with. To me avoiding that debt in your 20s is more important and what should be taught so it's understood more than the saving. Once you understand how to live with a small budget, when you start making more it would have been easier to start saving. I have that mindset now, the last few years I've given myself very little of my actual raise each year, it all goes into savings and investments. I don't need or miss it, but you have to learn that.

 

[ruadisneyfan2]

I almost didn’t post my last comment because I don’t like to be negative and I completely agree that his progress has been AMAZING.


The amount he mentioned just shocked me because the last time I read his progress, people were encouraging him to stop eating out but he wanted to hold onto the one he enjoys the most, after church on Sundays. I guess I thought that was his goal.


I totally understand that life gets hectic and you have to do what you have to do to get through it.
We all have to decide for ourselves what is a must-have and what we can live without.

The more I talk to people, the more I realize that my dh is truly an outlier. At 67 and still working his FT job and every weekend painting at ds25’s house, he still finds the energy to meal plan, grocery shop every week and cook every night.
After dinner stuff is cleaned up, he starts cooking more so that he has a nice breakfast and lunch to pack for work.
Believe me, he is far from perfect and he has his faults, like we all do, but eating dinner together at home has always been something he felt strongly about from day 1. It also helps our bottom line.

 

[barkley]

And I would have loved to have done that in my 20s, but like most of us then, we didn't make much and we're just trying to get by.

I knew saving was important but I couldn't afford to. What would have helped more was understanding credit cards better and that they aren't what you should be supplementing your wages with. To me avoiding that debt in your 20s is more important and what should be taught so it's understood more than the saving. Once you understand how to live with a small budget, when you start making more it would have been easier to start saving. I have that mindset now, the last few years I've given myself very little of my actual raise each year, it all goes into savings and investments. I don't need or miss it, but you have to learn that.

one of the biggest differences I see impacting younger folks being able to save vs. when I was in my late 20's (aside from the horrific issues of student debt) is some of the opportunities we had 'back in the day' (the 90's ) with housing. at least in the region I lived in wherein ownership vs renting could set you up to be ABLE to start saving. when dh and I first married we thought home ownership was in the distant future but our cpa pointed out that housing prices then (down/buyer's market), despite double digit interest rates, after the tax write-offs would result in a mortgage payment less than the regional norm for renting and we would be protected from on average 10% yearly rental cost increases. despite having to figure in money for upkeep and maintainance we were able to keep ahead of the game for our housing costs AND they were fixed so they were not going to change. having our largest single expense fixed we could do our best to try and tweak other areas of expence to save a bit, any small raises in pay could be saved. these days? beyond not fathoming how in the world any first time home buyer can come up with a down payment-the mortgage payments are psycho! even with the going interest rates at just shy of 50% less than the rate we first bought at sad1: yeah-12% was considered a good rate for first timer then) it comes nowhere near a savings in our region vs. renting. yeah you aquire equity yada/yada but in the short to medium term trying to balance your expenses with your income it's not the same when you can rent a place for on average-50% of what the monthly mortgage would run.

 

[newski_mom]

one of the biggest differences I see impacting younger folks being able to save vs. when I was in my late 20's (aside from the horrific issues of student debt) is some of the opportunities we had 'back in the day' (the 90's ) with housing. at least in the region I lived in wherein ownership vs renting could set you up to be ABLE to start saving. when dh and I first married we thought home ownership was in the distant future but our cpa pointed out that housing prices then (down/buyer's market), despite double digit interest rates, after the tax write-offs would result in a mortgage payment less than the regional norm for renting and we would be protected from on average 10% yearly rental cost increases. despite having to figure in money for upkeep and maintainance we were able to keep ahead of the game for our housing costs AND they were fixed so they were not going to change. having our largest single expense fixed we could do our best to try and tweak other areas of expence to save a bit, any small raises in pay could be saved. these days? beyond not fathoming how in the world any first time home buyer can come up with a down payment-the mortgage payments are psycho! even with the going interest rates at just shy of 50% less than the rate we first bought at sad1: yeah-12% was considered a good rate for first timer then) it comes nowhere near a savings in our region vs. renting. yeah you aquire equity yada/yada but in the short to medium term trying to balance your expenses with your income it's not the same when you can rent a place for on average-50% of what the monthly mortgage would run.

I agree with what you're saying. DH and I bought our first house 30 years ago and our mortgage payment was about $250 after we had been paying $375 to rent a 2BR apartment for the first year we were married.

We lived in that house for 2 years and after fixing it up sold for a decent profit and moved to the house we raised our kids in. I also loved that house and it had much more room when they started arriving a few years later.

 

[barkley]

I agree with what you're saying. DH and I bought our first house 30 years ago and our mortgage payment was about $250 after we had been paying $375 to rent a 2BR apartment for the first year we were married.

One difference though is that none of my kids would ever live in the first house we bought. It was a 2 BR fixer upper. The second BR didn't even have a closet!! I loved that house and was so proud to have it be ours (well, ours and the banks lol), but (at least my) kids have such high expectations now. I live in the same town I grew up and you could still buy a nice starter house (much nicer than what we had) for much cheaper than the rent my kids are paying, but they want to live in the city which limits their options greatly. They can afford it right now, but I do worry about their financial future because although they save, they aren't seeing the path to homeownership for the reasons that you mention.

we were the odd ducks back in '91 when as a young couple we told realtors we were interested in looking at existing smaller homes. everyone was pushing that new construction or recent builds were the only way to go. not that we could afford the new stuff anyway but they all seemed too cookie cutter and flimsy to us. we liked stuff similar to what we had grown up in. as it ended up we were the youngest couple on our cul-de-sac and adjacent streets by at least 20/as much as 30 years (the homes had been built in '61 and there were ALLOT of original owners). I look at the prices they sell for now and I can't imagine being a first time buyer trying to get into one but I think they are entirely different homes b/c (from what I can see on Zillow) it looks like every time one went on the market some flipper snapped it up and renovated the interior into the same cookie cutter styles we were trying to avoid.

 

[ruadisneyfan2]

these days? beyond not fathoming how in the world any first time home buyer can come up with a down payment-the mortgage payments are psycho! even with the going interest rates at just shy of 50% less than the rate we first bought at sad1:

I can explain how ds25 did it, even here in NJ which has a high COL.
He had been wanting to move out for a long time. When he first started working FT in his chosen career, he knew he was earning enough to leave.
Of course I would never tell him he can’t, or that he shouldn’t, but I pointed out to him that right now, making good money but at the same time having very few bills (except car ins and car payment that he could quickly pay down) means this is the easiest time you will ever have to save money. Once you leave, it will always be a struggle to save. There is so much stuff you need to get established, bills eat away at your paycheck, and you still want to be able to have fun. I also told him not to work himself to death or work so much that he misses out on his youth but also working OT is soooo much easier when you’re young.

He agreed with everything. Except for a few road trips to the Poconos and VT to go snowboarding, he worked 50-60 hours/week for the past 2 years and packed away 90% of his take home pay in an Ally savings account and watched it grow. He put $45k down on his house, had $15k for closing costs, and still had $8k to put into fixing it up. He didn’t ask us for money but I insisted on giving him a few thousand to have as a starter EF.

He says he’d rather work hard now because he knows in his career (industrial welding) it’s hard on the body and he doesn’t want to have to work hard when he’s old. He insisted on a 15-year mortgage so that it will be paid off before he turns 40.
His monthly payment is about $2800/month including taxes and insurance. This is for a 3BR/1BA split level, LR, EI-kitchen, downstairs den and laundry room, with 1 car attached garage on 1/3 acre. It’s a perfect starter home for a single person or a couple.
He is still able to put 10% into his 401k.

This is the boy who listens to Dave Ramsey podcasts, not because he has debt, but so he never gets tempted to spend more than he earns and end up with debt.

He is pretty amazing, not because he is my kid, but I have to admire his motivation, fortitude, and determination.