Debt Dumpers 2025

[trenty]

Thanks everyone. I also posted in the budgeting group on Facebook. And the majority of responses on there was to pay off the CCs then rebuild the EF. Then if we have an emergency before the EF is rebuilt, we can use the CC to deal with the emergency. They're saying that because the amount of money I'd be saving on interest by paying off the CC is more than the amount of money I'd be getting on interest from the EF. I know what DR says, but what are your thoughts on that?

The Dave Ramsey plan works largely because it is based on changing financial behavior rather than just optimizing mathematical formulas. You need to decide if Ramsey is a plan you want to embrace.

 

[comicguy]

I finally hit $1k for my emergency fund. So I've got some questions.

Right now, it's just sitting in a regular checking account at our current bank that we have access to on our mobile app. Should I just leave it there? It's just a checking account like our other 3 and doesn't bring in any interest. But there's also no fees or penalties should we need to draw from it in an emergency or should we need it to make ends meet at the end of the month. Or should I look into a HYSA or other savings account whether through my current bank or another bank?

My next question is this, should I just use the $1k to pay off my 2 CCs (about $800 total) then use the $60/month I would be paying on the CCs back into the savings account? It will take me about 12 months to build it back up to $1k, but I would have my CCs paid off (I wouldn't close them since it would help build my credit score). However, we'd be in trouble should something happen like a dishwasher going out, etc.

First, congrats on hitting 1k e-fund. That takes some work to get there during debt payoff. I would suggest that you use a seperate account to house your e-fund that may take a couple of days to access it (online or a bank/Credit union that is a bit out of the way). It will give you enough pause to think about why you need it and most things can be charged and paid off within a week if needed by having the e-fund available. (blown tire, cracked winsheild, etc...)

I will say we struggled with the same dilema when we started out, but having that 1k avaiilable saved us a couple of times (blown tire, new exhaust, etc...). Once used it needs to rebuild it back up before restating debt pay down. It was a lifesaver for us! Now that you have the 1k e-fund I would direct the money you used ot get it there to you CC payoff, yes, you will pay some intrest but having an e-fund is worth the peace of mind if needed so you don't get back into an endless cycle of charging (very easy to fall back into (happened to us when starting out as well).

Best advice on using an e-fund, ask yourself, Is is this a tue emergency? Can my life function without doing repair, replace, buy, or pay for item/service needed? Can I get by waiting to fix/replace item (if not safety/health related)? How will this impact my payoff goals? Is it important to me? Obviuosly only you can answer these questions when the time comes, but it helps you determine how and when your e-fund needs to be used.

Again, Congrats and continued good luck moving forward

 

[Nettlelondon]

I finally hit $1k for my emergency fund. So I've got some questions.

Right now, it's just sitting in a regular checking account at our current bank that we have access to on our mobile app. Should I just leave it there? It's just a checking account like our other 3 and doesn't bring in any interest. But there's also no fees or penalties should we need to draw from it in an emergency or should we need it to make ends meet at the end of the month. Or should I look into a HYSA or other savings account whether through my current bank or another bank?

My next question is this, should I just use the $1k to pay off my 2 CCs (about $800 total) then use the $60/month I would be paying on the CCs back into the savings account? It will take me about 12 months to build it back up to $1k, but I would have my CCs paid off (I wouldn't close them since it would help build my credit score). However, we'd be in trouble should something happen like a dishwasher going out, etc.

Well done, I bet a few months ago it seemed like you would never get there.

Leave it where it is but be disciplined. You have shown yourself what you can do, just keep it up. Whatever the source of the funds you have been able to divert to the emergency fund can now be applied to the credit cards and get those knocked out.

Interest savings are fine and dandy but it is more important for you to get comfortable with a new way of living with money and I think you will gain more comfort from knowing that you have a cushion between you and the vagaries of the world than saving a few dollars in interest (that you probably won't notice).

 

[ThereYouSeeHer]

My next question is this, should I just use the $1k to pay off my 2 CCs...

You had this same scenario exactly one year ago today. Here's your answer to your own question: "So much for an EF. Now I wish I had that $700 back I used to pay off my CC. I was stupid and paid off my CC instead of putting that into an EF."

https://www.disboards.com/threads/debt-dumpers-2024.3936118/post-65764009

It will take me about 12 months to build it back up to $1k...

The real question is, "What was the source of the $1000?" You were somehow able to save $1000 in less than a month, but it would take a year to save the same amount of money again? Something isn't adding up here. It doesn't sound like you were able to increase income or decrease expenses to gain ongoing monthly margin, which is the real issue.

My concern is that some or all of the $1000 is simply a one-time windfall or paycheck that just came in, which hasn't been properly budgeted for the rest of the month's expenses yet.

 

[WDW_fan_in_TX]

I completely forgot about that, lol. How in the world did you remember? Kind of scary actually. But that is a fair point. I will keep it and just keep paying on the CCs as normal. Just keep not eating out but when we have to for work and cut expenses. Thanks for the reminder.

You had this same scenario exactly one year ago today. Here's your answer to your own question: "So much for an EF. Now I wish I had that $700 back I used to pay off my CC. I was stupid and paid off my CC instead of putting that into an EF."

https://www.disboards.com/threads/debt-dumpers-2024.3936118/post-65764009



The real question is, "What was the source of the $1000?" You were somehow able to save $1000 in less than a month, but it would take a year to save the same amount of money again? Something isn't adding up here. It doesn't sound like you were able to increase income or decrease expenses to gain ongoing monthly margin, which is the real issue.

My concern is that some or all of the $1000 is simply a one-time windfall or paycheck that just came in, which hasn't been properly budgeted for the rest of the month's expenses yet.

 

[ThereYouSeeHer]

I completely forgot about that, lol. How in the world did you remember? Kind of scary actually. But that is a fair point. I will keep it and just keep paying on the CCs as normal. Just keep not eating out but when we have to for work and cut expenses. Thanks for the reminder.

Haha, I had an odd case of deja vu because I vaguely remembered a previous emergency fund. I tried to refresh my memory as to what happened, and it was a little scary when I saw the date!

Keep on swimming!

 

[Cfabar1]

Thanks everyone. I also posted in the budgeting group on Facebook. And the majority of responses on there was to pay off the CCs then rebuild the EF. Then if we have an emergency before the EF is rebuilt, we can use the CC to deal with the emergency. They're saying that because the amount of money I'd be saving on interest by paying off the CC is more than the amount of money I'd be getting on interest from the EF. I know what DR says, but what are your thoughts on that?

I'll offer a counter opinion -

$800 as quickly as possible... Find a way to make an extra $800 by the end of the month... like your life depended on it...

Then pay off the credit cards...

Taking a year to rebuild $800 of emergency funds... that's not a great way to approach this... DR talks about being Gazelle intense....

The advantage of $800 is it isn't $8,000.... it's not a lot of money.... you can do it... and quickly....

 

[WDW_fan_in_TX]

Thank you. Yep, going to find a way to knock it out quickly. I am doing our budget for the next 4 weeks right now (we get paid every 4 weeks, so we do it based on that and not the first day of the month to the last day hence why I don't use Every Dollar). But, we're working on it. After all bills are paid, gas/tolls, groceries and tithes are accounted for, we'll have $100 for everything else. So yea, it's always really tight. But that's the way it is.

I'll offer a counter opinion -

$800 as quickly as possible... Find a way to make an extra $800 by the end of the month... like your life depended on it...

Then pay off the credit cards...

Taking a year to rebuild $800 of emergency funds... that's not a great way to approach this... DR talks about being Gazelle intense....

The advantage of $800 is it isn't $8,000.... it's not a lot of money.... you can do it... and quickly....

 

[Nettlelondon]

I'll offer a counter opinion -

$800 as quickly as possible... Find a way to make an extra $800 by the end of the month... like your life depended on it...

Then pay off the credit cards...

Taking a year to rebuild $800 of emergency funds... that's not a great way to approach this... DR talks about being Gazelle intense....

The advantage of $800 is it isn't $8,000.... it's not a lot of money.... you can do it... and quickly....

One thing you may have missed is that WDW_Fan's other half is not necessarily as committed to getting their finances sorted as he is, meaning that there have to be compromises made on how focussed the efforts can be.

 

[Cfabar1]

One thing you may have missed is that WDW_Fan's other half is not necessarily as committed to getting their finances sorted as he is, meaning that there have to be compromises made on how focussed the efforts can be.

So then maybe $400 a month for 2 months?

 

[DanceDisney23]

After all bills are paid, gas/tolls, groceries and tithes are accounted for, we'll have $100 for everything else. So yea, it's always really tight. But that's the way it is.

I know you are already looking for a different job and it’s not easy. What are DW’s options for career advancement or a job switch? You guys have an income problem that will be very difficult to save or budget your way out of.

One/both of you need to bring in more income.

 

[WDW_fan_in_TX]

I've talked to her about potentially switching jobs. If nothing else, maybe just to be closer to home as she currently drives 30 minutes each way or more depending on traffic plus has to pay tolls both ways. But she doesn't want to change. Loves her customer base. Has gotten to know them really well.

I know you are already looking for a different job and it’s not easy. What are DW’s options for career advancement or a job switch? You guys have an income problem that will be very difficult to save or budget your way out of.

One/both of you need to bring in more income.

 

[DanceDisney23]

I've talked to her about potentially switching jobs. If nothing else, maybe just to be closer to home as she currently drives 30 minutes each way or more depending on traffic plus has to pay tolls both ways. But she doesn't want to change. Loves her customer base. Has gotten to know them really well.

I was afraid you were going to say something like this. DW will not want to change until you guys hit rock bottom. Which for your sake I hope never happens. You seem like a good person who is trying to do the right thing.

 

[barkley]

i'm doing a happy dance today grocery budget wise.

it used to be that once per year 2 (maybe 3) of our local grocery chains would do annual case sales that provided some GREAT savings on canned and frozen goods. the pandemic and supply line issues kicked that to the curb for a couple of years and then when inflation started....inflating? well, that cut it down to just one store and it was iffy to see if they would do one and then if any real values were to found. TODAY the AD HITand the deals ARE TO BE HAD, including some special sales on chicken so dh and I made a grocery run.
I am thrilled to share that:

I bought-

5 cases of beans (black, kidney, pinto) so 60 cans
5 cases of veggies (green beans & corn) so 60 cans
23 pounds of boneless/skinless chicken breasts
6- 4 pound bags of foster farms breast meat chicken nuggets so 24 pounds (no, dh and I are not nugget junkies but my youngest is and this is about a 6 month supply at 50% of the price i've been paying in recent months)
10 pounds of frozen potato products (tots and fries)


grand total spent-$160.65/savings $137.00.

my freezer and pantry are stuffed


I also snagged about 4 pounds of vine tomatos (our plants are now gone to the freezes) at .79 cents per pound and 3 avocados for .99 cents each (when did they get so freaking expensive that they would have cost me around $7.50 full price?).

 

[Bellex917]

i'm doing a happy dance today grocery budget wise.

it used to be that once per year 2 (maybe 3) of our local grocery chains would do annual case sales that provided some GREAT savings on canned and frozen goods. the pandemic and supply line issues kicked that to the curb for a couple of years and then when inflation started....inflating? well, that cut it down to just one store and it was iffy to see if they would do one and then if any real values were to found. TODAY the AD HITand the deals ARE TO BE HAD, including some special sales on chicken so dh and I made a grocery run.
I am thrilled to share that:

I bought-

5 cases of beans (black, kidney, pinto) so 60 cans
5 cases of veggies (green beans & corn) so 60 cans
23 pounds of boneless/skinless chicken breasts
6- 4 pound bags of foster farms breast meat chicken nuggets so 24 pounds (no, dh and I are not nugget junkies but my youngest is and this is about a 6 month supply at 50% of the price i've been paying in recent months)
10 pounds of frozen potato products (tots and fries)


grand total spent-$160.65/savings $137.00.

my freezer and pantry are stuffed


I also snagged about 4 pounds of vine tomatos (our plants are now gone to the freezes) at .79 cents per pound and 3 avocados for .99 cents each (when did they get so freaking expensive that they would have cost me around $7.50 full price?).

This is a dream LOL! I get the most joy out of saving on food bc it's the biggest variable in my budget. If I can keep that in check, it keeps the rest in check, too. That's awesome! Kudos!