Debt Reducers

[akmom]

I just paid off my last CC balance online. Except for my mortgage, I'm
DEBT FREE!!!!

Yea!!!! Congrats! I'm so thrilled for you!

 

[akmom]

Checked the mail last night and we got our new payment book for the mortgage. The mortgage went down! Yea!!! That is extra money towards those ugly cc's!

 

[Grendalynn]

Checked the mail last night and we got our new payment book for the mortgage. The mortgage went down! Yea!!! That is extra money towards those ugly cc's!

How does one mortgage go down?? I want that kind of mortgage!!! The value of our house just went up, I am afraid to know what our taxes will now be - with a new high school and sewer/water being upgraded here in town, I dont want to know how much or taxes will go up to!!! therefore affect our escrow/mortgage payment....

 

[HenDuck]

I posted this in a separate thread, but thought it fits nicely here:

I found a great debt pay-down calculator at www.bankrate.com.

Just go to calculators (at the top of the page). Then look for Home Equity Calculators (half way down the page) and click on "Debt pay-down advisor".

It's perfect for people who have multiple debts and want to try the snowball method. It calculates it all out for you and shows you a monthly breakdown of payments and balances.

Hope it's useful to some of you.

Good luck!

 

[mommytoone]

I am going to join!!!! I am late in joining but will try my best.

WOW You guys are doing great. Any advice? I don't have alot of debt but I have enough.

I will post more later. I am officially NOT buying anything that I/WE do not NEED!!! YEAH That's a step right?

 

[8 Ears]

I forgot to post Friday!! Although I did not pay off any medical bills like I had planned I did pay off our K1 from this winter. Ashamed it has taken this long! Also paid our propane that we use for our kitchen stove.

DH got a bonus so I did some school shopping as well.

Not sure if I will get to any of the medical bills again this week as I had forgot I owed my mom from when each of our vehicles broke down during a cold snap last winter. Want to get that amount paid off. Actually, with what I have worked today and what was left over from our checks on Friday I can do that!

Hmm, will be able to put some towards a medical bill but not sure if I will be able to pay it off. Next week!

How did you do on Friday?

 

[minnie1928]

My fingers are itchin to pay something off, but DH doesn't get paid for another 2 weeks (monthly paycheck)!

We've decided that since our debt is minimal (house + DVC) that we are going to plump up our emergency fund for a few months. I still want to pay off DVC before year end, but now that I'm "retired" for a while I want the security of having a larger EF.

Since retiring I've made it my job to deal shop for the bargains! I'm on a quest to keep as much money and spend as little as possible. I'm doing as much work as I can on our "new to us" house without having to hire a pro in order to save some more $.

Keep going everyone!!!

 

[littlelulu33]

I have to wait until Thursday to make payments, but again this month all of our reg. bills have been paid for July and we get a extra check this month. So I will be paying a lot down on the CC. Having 2 bank accounts is making things so much easier. It keeps my overspending to only what I actually need. We needed new car seat for DD2 (she is really tall and almost out grown the convertible seat that we have. I bought the Britax Frontier and paid cash--It felt really good to pay cash for it. They only had one since it was on sale. Now to save for one for the other car. We still have a couple of months before we are going to need it so I can wait for a sale for that one too.

 

[Doodlebug939]

Well the 15th means payday for us. Even before I leave the house this morning I have set down and paid $485 worth of debt. Compared to some of you it doesnt sound like much. I paid the minimum on one card and $400 on the other which still doesnt feel like much. But I did pay off Best Buy today. Hey the bill was only $35 dollars but still it is one more bill down. On to the next.

In hind sight I shouldnt feel to bad because I do not get a paycheck on July 15th or July 30th as a work at a school and they only pay 11 months. Next year they are doing 12 months so that will be better.

Already scanning and planning the August 1st payday.

How did you guys do lately?

 

[Kathi OD]

I'm so depressed! Last month we paid off one of our CC and this month we had to charge 2100 on it for DS's summer school tuition!! He needed one more class to graduate and DH has been out of work for 5 weeks. At least it has a low interest rate....<sigh>

 

[HenDuck]

the snowball repayment plan with my next paycheck this month. I'm toying with the idea of taking an extra $500 from savings to accelerate my first cc debt. It would mean cutting almost 3 months off the pay-off and I think I could use a good kick in the booty to get this thing started and stay motivated.

Good luck everyone!

 

[akmom]

Paid off another cc this month! So excited. 2 down, 3 to go!!!

 

[8 Ears]

Way to go akmom!

I am looking forward to Friday to pay off my Mom, that I had forgot about! Hopefully will be able to squeeze out a medical bill as well.

 

[Laxmom]

Ok, this is really weird but.....we got another deposit from the IRS. We got our stimulus check for $1200 for DH and I. We didn't get any money for our 17 yo. and didn't expect it since we don't get the child tax credit anymore - we can still claim him as a deduction. Well, we got another $300 last week. Today, I got a letter explaining that they had corrected our stimulus amount. I sure hope they don't change their mind and take it back!!

We also sold our trailer today. That is a nice little windfall. Now I can cancel the storage space and the insurance. Those are both paid in advance so we should have a refund coming. DH's annual bonus should be here by the end of the week. I had already planned to fund our upcoming trip to WDW out of my check which comes tomorrow but I think I will sit on the other money and carefully plan where to put it. This should wipe out our debt! Cruise is paid for too so all is right with the world!! Now, lets hope that something doesn't fall apart on the cars or the house in the mean time!! It never seems to fail that you take one step forward and two steps back!!

 

[tinaninea]

Just wanted to celebrate! I paid off my first debt in my snowball last night! It was a credit card with about $800 on it to begin with. Next up is my husband's credit card, it started at a little over $500, but it's down to $290 now, so I think I can be done with it in about 3 weeks and that will be the end of credit card debt. After that it's our cars, student loans, and a small personal loan. We're having a garage sale this weekend. Guess where all that money's going.

Congrats akmom!!!

 

[8 Ears]

Nice job tinaninea

Almost quit'in time, another day closer to Friday!

For those that are debt free........ do you find it harder to work now that you are debt free?

 

[RetroMom]

I'm now officially in. Who knew months ago when I was planning a Disney trip that I would find a home here on the DIS? I found so much info for that trip, and now I keep coming back for more advice and to share what I can. I'm now asking for the opportunity to hang out with you all and please forgive the long post.

Sooo,

It's really hard to say (well, I guess type)this. It helps that others like me are out there finding their way back and that I (hopefully) will not get flamed on this thread. I'm 43, divorced with one son who is in college and living independently, one son who is a senior in high school who splits his time between his dad's house and mine, and DS11 and DS6 who are with me full-time (two sets of kids). After health insurance and taxes/etc., I bring home about $1700/month. I also receive child support of $700. This is not always on time, but I have kept one month's reserve in savings and swap it in and out when he pays. So total of about $2400/month.

There was a long period of time when child support was erratic, if any, and so I built up a lot of credit card debt and with it interest and fees, for late payments etc. It doesn't help that I was really depressed for a long time and I tried to hide it, but the outlet for the empty feeling was buying stuff. Not expensive, but a little bit here and there constantly. It adds up! Then I stuck my head in the sand and just ignored it all. Didn't balance my checkbook or pay bills on time. Citibank made me mad with a huge finance charge increase, so I didn't make paying them a priority. Child support wouldn't come, late fees, disconnect fees, just a nightmare!! Stopped answering the phone. I went back and forth between depression and numbness. When my tax return and the stimulus check came in, I should have used that to get myself together. But my little one is 6 and I desperately wanted to take him to Disney, so I did, since "I could pay cash for it". Charge the tickets to the credit card, but paid it back before the trip. Meals and so forth, took cash down. Rooms and rental car put on the card and would pay when I got back with the money I had "put away". I know I should have canceled my plans, but we had such a wonderful time that I just can't regret that we did it. However, I know how stupid I was with everything else I have done...

So now, here I am, determined to make a new start and work my way out of this. This is what I have done so far:

Read all the threads on the Budget board that I felt would help me.
Checked out from the library the movie and book version of "Maxed Out". Very interesting information.
Checked out Dave Ramsey's "Financial Peace Revisited" and read it. I'm number 42 on the request list for "Total Money Makeover".
Balanced my checkbook, there was some money thankfully, paid my bills up to date (leaving very and I do mean very little).
Set up my budget for each pay period and what would come out of each check. Not very much for extra payments, but I shouldn't be late anymore.
I was paid yesterday, so today I went and withdrew the amounts for each envelope for the remaining two weeks for gas and for food.
Tallied up debt: Citibank Visa $5757 at 25% interest rate and I am on a "arranged" payment program with them, automatic $200 per month for a year; Sears Mastercard $2300 at 3.99% - old transfer; and Discover Card $4137 at 28.99%. Grand total before the interest accruing now: $12,195.82.
Checked my credit reports. No mistakes, but according to them, I am Very Low on the credit score scale (no surprise there!).

Thanks for your patience in reading this whole thing. Any advice would be welcome, but I do have a particular question for those of you who follow some version of Dave Ramsey. I have the $1000 that I was going to pay on the credit card for the rest of the trip. I could do that or I could use that as Baby step number 1. I know it would take me a very long time to save up that money otherwise, and it would get me started so I could start collecting snowflakes here and there for that eventual snowball and would keep me from using the credit cards in the future for emergencies. But if I pay it as originally planned, then my credit card would not have as high an amount to be accruing interest. Any words of wisdom? Again, thanks for just reading. I sincerely appreciate it.

 

[WDW4TheGirls]

I'm now officially in. Who knew months ago when I was planning a Disney trip that I would find a home here on the DIS? I found so much info for that trip, and now I keep coming back for more advice and to share what I can. I'm now asking for the opportunity to hang out with you all and please forgive the long post.

Sooo,

It's really hard to say (well, I guess type)this. It helps that others like me are out there finding their way back and that I (hopefully) will not get flamed on this thread. I'm 43, divorced with one son who is in college and living independently, one son who is a senior in high school who splits his time between his dad's house and mine, and DS11 and DS6 who are with me full-time (two sets of kids). After health insurance and taxes/etc., I bring home about $1700/month. I also receive child support of $700. This is not always on time, but I have kept one month's reserve in savings and swap it in and out when he pays. So total of about $2400/month.

There was a long period of time when child support was erratic, if any, and so I built up a lot of credit card debt and with it interest and fees, for late payments etc. It doesn't help that I was really depressed for a long time and I tried to hide it, but the outlet for the empty feeling was buying stuff. Not expensive, but a little bit here and there constantly. It adds up! Then I stuck my head in the sand and just ignored it all. Didn't balance my checkbook or pay bills on time. Citibank made me mad with a huge finance charge increase, so I didn't make paying them a priority. Child support wouldn't come, late fees, disconnect fees, just a nightmare!! Stopped answering the phone. I went back and forth between depression and numbness. When my tax return and the stimulus check came in, I should have used that to get myself together. But my little one is 6 and I desperately wanted to take him to Disney, so I did, since "I could pay cash for it". Charge the tickets to the credit card, but paid it back before the trip. Meals and so forth, took cash down. Rooms and rental car put on the card and would pay when I got back with the money I had "put away". I know I should have canceled my plans, but we had such a wonderful time that I just can't regret that we did it. However, I know how stupid I was with everything else I have done...

So now, here I am, determined to make a new start and work my way out of this. This is what I have done so far:

Read all the threads on the Budget board that I felt would help me.
Checked out from the library the movie and book version of "Maxed Out". Very interesting information.
Checked out Dave Ramsey's "Financial Peace Revisited" and read it. I'm number 42 on the request list for "Total Money Makeover".
Balanced my checkbook, there was some money thankfully, paid my bills up to date (leaving very and I do mean very little).
Set up my budget for each pay period and what would come out of each check. Not very much for extra payments, but I shouldn't be late anymore.
I was paid yesterday, so today I went and withdrew the amounts for each envelope for the remaining two weeks for gas and for food.
Tallied up debt: Citibank Visa $5757 at 25% interest rate and I am on a "arranged" payment program with them, automatic $200 per month for a year; Sears Mastercard $2300 at 3.99% - old transfer; and Discover Card $4137 at 28.99%. Grand total before the interest accruing now: $12,195.82.
Checked my credit reports. No mistakes, but according to them, I am Very Low on the credit score scale (no surprise there!).

Thanks for your patience in reading this whole thing. Any advice would be welcome, but I do have a particular question for those of you who follow some version of Dave Ramsey. I have the $1000 that I was going to pay on the credit card for the rest of the trip. I could do that or I could use that as Baby step number 1. I know it would take me a very long time to save up that money otherwise, and it would get me started so I could start collecting snowflakes here and there for that eventual snowball and would keep me from using the credit cards in the future for emergencies. But if I pay it as originally planned, then my credit card would not have as high an amount to be accruing interest. Any words of wisdom? Again, thanks for just reading. I sincerely appreciate it.

Congrats! It sounds like you are on your way. You have done a lot of work already and it sounds like you definitely have a plan.

If it were me, I would keep that $1000 in a savings account for peace of mind. We have done that, and when an unexpected expense comes up, it feels SO good to not have to charge it. Then just get your snowball rolling! Any chance you could move those 2 cards to lower interest rates?

 

[8 Ears]

RetroMom, wow!

Way to go for taking the first steps in reducing your debt! You are right where we were several years ago. Several cc's, maxed out, phone calls at all hours, ignoring the calls, feeling sick when picking up the mail!........
You can do it, I know 'cuz we did!
As I am sure you have read some of my posts, we are not debt free, yet but well on our way.

I would also keep the $1,000.00 cushion. Murphy's Law says that as soon as you pay down one of the cc's something will be NEEDED.

Good luck you are headed in the right direction

 

[littlelulu33]

Retro Mom--Great job to start paying down the debt. We started back a few months ago and we are doing great. It brings such happiness to see the CC go down. We only have one card and it was close to your numbers and we have reduced it in half in about 3-4 months.
The thing that I can tell you we have froze the CC. Before we froze them we said oh just carry them just in case. Well it always seemed that we found something that we liked or to get for DD. It was always something that was not needed. So once the CC were froze we only had the debt card and it helped alot, but we still had extra spending stuff that we really did not need just not as much. So we went to two checking accounts we have bill only acct and fun/food/gas money acct and when it is out it is out until next pay. That has helped the most. I think your envelopes will do the same thing, but I hate to carry cash and I would forget to take the cash and end up in trouble in line to pay.
Even if you can just a little that you have extra at the end of the week like $25 or $50 it will add up quicker than you think.
My DH thought why only pay a small amount just hold on to it until you make a bigger payment when it is due. I said because we could spend it then, If we don't have it we don't spend it. So on the CC it went. I have been able to make lots of extra little payments (under $100) almost every week and it has moved my payoff date up by a couple of months. DH is still not sure we can do it by the end of the year, since we did go on a small vacation and paid cash and we are getting the outside of the house painted, but I think we can and I am determined to do it.