Debt Reducers

[RayJay]

I think Dave Ramsey will be a good christmas gift.

Unfortunately this may make it worst for you, I tried it with my family and friends, it only backfired, people, even if they are close to you don't want to be told about their money issues, cause the truth hurts.

This is something people need to discover themselves, only then will they truly want to be out of debt.

RayJay

 

[RayJay]

metime- I can't answer for why all people get into debt but I can speak for myself. I think there is a misunderstanding sometimes that people get into debt b/c they can't control their spending. Sometimes it goes deeper than that. When my husband and I had our first child, we were both school teachers. We bought a small starter home and lived fairly simply. We both wanted me to stay home when our son was born and were willing to sacrifice to make that happen. We learned that even with the best of intentions, sometimes there just isn't enough money. We really needed my salary that we didn't have to make ends meet. We ended up draining the savings account that we had to get by. I went back to work for a short time, we had 2 more kids, and my husband got a promotion to administration. We were busting at the seams of our very small house so we bought a bigger house. I quit my job permanently when the second 2 kids arrived and we've been living the staus quo ever since. It's a daily battle to provide for everyone's needs on 1 salary. We aren't perfect as far as spending goes, but generally we live simply. I'll give you examples. $13 a month basic cable, dial-up internet, never buy papers, magazines, etc. RARELY go out to eat, rent or borrow $1 movies for entertainment, cousin cuts our hair. Shop at super Wal-mart for everything on a tight weekly budget. Drive 9 and 13 year old cars. Don't own timeshares, camps, or any kind of campers. Will save for 2 years to take a vacation, mostly b/c we don't want life to pass by with our kids never knowing certain joys that we want them to experience. I'm in no way trying to sing the blues, b/c even with our debt, I consider us to be a very blessed family. Our debt hasn't come b/c we were off buying flat screen TVs that we couldn't afford or fancy cars, we are in debt b/c we valued me staying home instead of working and we found it hard to live well on 1 salary, even a decent one. So we trugde on, constantly trying to put whatever money we can on debt, then racking it back up, like a never ending dance. We can't complain b/c we chose this life for ourselves and I would never trade the time I've had with my kids. But it came at a cost.
I'm sorry to write so much, but I hope I've been able to give you insight into at least one persons debt! It's funny, I consider myself to be a frugal person yet we have thousands of dollars of debt. Go figure!

Again, your not alone, my wife left her job 10 years ago to be at home with our kids, we were in severe debt, thousands. It took me five years to get out.

During that time I didn't really feel like I wanted too I just did, I mean we still took vacations when we should have put it towards debt, we saved and then I would pay something down, but many times we needed to borrow just to get buy that month, that was when I really thought, this ain't right and made the change to get totally debt free. Being in debt was such a feeling of despair.

I really could go on for a mile, in short so many of these posts for me is like looking in the mirror.

Best of luck to you, and congrats on your decision to stay home.
RayJay

 

[mom2kazkids]

So I am happy to bump up this thread by saying that we have greatly reduced our debt. We are now down to our mortgage, my van and a credit card that we pay off monthly. I paid off this week: Home Equity loan, Home Depot appliance bill, JC Penney's card, Kohl's card, and our Disney Visa for the last billing statement and even into the current billing cycle. Now today we received our stimulus money and into the savings it will go. It is a great feeling to have all that paid off as this summer I will be cutting back greatly on the hours that I work, and also have to pay about $300 every paycheck for daycare.

I hope now that we can make double payments on our van and have it paid off in the next year.

Barb

 

[Grendalynn]

So I am happy to bump up this thread by saying that we have greatly reduced our debt. We are now down to our mortgage, my van and a credit card that we pay off monthly. I paid off this week: Home Equity loan, Home Depot appliance bill, JC Penney's card, Kohl's card, and our Disney Visa for the last billing statement and even into the current billing cycle. Now today we received our stimulus money and into the savings it will go. It is a great feeling to have all that paid off as this summer I will be cutting back greatly on the hours that I work, and also have to pay about $300 every paycheck for daycare.

I hope now that we can make double payments on our van and have it paid off in the next year.

Barb

I am interested to know how you did that and how long it took you, if you dont mind sharing!!?? I am really interested in reducing our debt but feel overwhelmed when i think about it!!

 

[tinaluis]

So I am happy to bump up this thread by saying that we have greatly reduced our debt. We are now down to our mortgage, my van and a credit card that we pay off monthly. I paid off this week: Home Equity loan, Home Depot appliance bill, JC Penney's card, Kohl's card, and our Disney Visa for the last billing statement and even into the current billing cycle. Now today we received our stimulus money and into the savings it will go. It is a great feeling to have all that paid off as this summer I will be cutting back greatly on the hours that I work, and also have to pay about $300 every paycheck for daycare.

I hope now that we can make double payments on our van and have it paid off in the next year.

Barb

Wow, Barb, great progress!!!!!!!!!!!!! Congratulations and here's to hoping that things continue to go well for you !

 

[mom2kazkids]

My mother gave each of her kids (5 of us) 12,000 to help reduce her taxable interest. We were on the fence about putting in savings for the kids or paying off debt. I truely think that right now we were better paying off the debt so that we can consistently put money away into saving each month. I figured that with the bills that are left we can live close to just one of our incomes and save the other.

Barb

 

[tink1978]

I am ready to get out of debt too!! I only have about $2000 on CC which I plan to have paid off by July. I also have $4500 left on my car. Once the CC is paid off, I will put about $300 extra per month on the car and get it paid off by December. That will leave only my student loans, which amount, right now, $68000. I have two refund checks from school amounting $6800 which I can pay back and lessen the amount. I plan on paying back student loans as soon as the CC and car are paid off. Hopefully, that will lessen the amount I will eventually have to pay (I am still in school working on a doctorate, but am almost done!!).

 

[comicguy]

We used the stimulas check to pay off one CC(1,200) and bought a replacement window for the upstairs bathroom(250) and then went out to dinner with the rest. In total spent the money in less than an 2 hours .

Now just one CC with 8,000 DW's student loan(2,500), my student loan(38,000), the new car(17,000), and mortgage.

 

[dsanner106]

I did get my stimulus money, and the next day a small paycheck I was missing from a while back arrived. I also had a letter from my mortgage company that looked like an ad for their HELOC programs they promote monthly. At the back of the envelope though was a note about my escrow account saying they had been overcharging me. There was a check for 1600.00 and a newly reduced payment amount. Sure glad I didn't follow my first instinct and trash that bit of junk mail. I paid off my last CC, Discover, yesterday and my overdraft account at the bank. Woo hoo. Nothing left but a second mortgage, 15000.00 and then the mortgage itself. Life is so much better without the shadow of debt hanging over us.

Drew

 

[Grendalynn]

I very much want to , and need to, do something. I am sick of feeling like we live week to week.... dont get me wrong, we make a good living, but I need to get rid of some payments and get back to reality. I hate to get a new/different job, because I like having the time with my kids while they are young and the flexibility it gives me to go to their stuff at school during the day, doctors appointments and things like that. But the reality of it is that its not putting much extra in my pocket. Anyone else feel this way??

 

[angeladisney]

Grendlyn I feel the same way I only work 4-7 MWF and 8-4and 8-8 on the weekend, but I often feel like I should give up both jobs and stay home. My little one are growing up to quick, but right now that not an option as to the fact I want to buy a house in the next two years in order to do this though we have to start fixing our credit. We owe about 14,876 in old credit card accounts, and a few old electric bill, cable bill. I feel so overwhelm. i don't know were to begin.

 

[SillyGirl30]

I don't know where I got this tip, but it worked for my husband and I. I got a picture of a thermometer and maked it every thousand dollars we were in debt. Everytime we reached a $1000 paid off, I would color it in with a green maker. It felt good to mark it off. Every time I looked at that thermometer on the refrigerator it reminded me that I wanted out of debt. I have left it there as a reminder even though it is now paid off.

I wish everyone the best of luck reaching their goals.

 

[tinkarooni]

Good Afternoon everyone. I have not been here since about page three. I'm so excited and need to share with someone. Paid off the car today! It's funny but so many of these exciting things you can't share with family and friends. DH and I make good money but we are trying to save for retirement, 2 college educations and pay off our house. Even good money today doesn't go very far.

So when someone finds out that you paid off your car 18 months early they think you're rolling in it even though we have been clipping coupons, not eating out, cut back on gifts etc etc to get that car paid off. And it feels great. Now we are going to build up a nice healthy emergency fund and than it's on to paying off that house. In the meantime we save 20% into our 401k and have no CC debt.

Since we started this plan I actually look forward to paying bills. It's so exciting. Please be excited with me! I am so looking forward to getting my Stimulus check and sticking it in the bank. How exciting to be getting a check and have no plans for it other than to SAVE IT!

 

[angeladisney]

Congrats!!!!! That Awesome

 

[nowellsl]

Good Afternoon everyone. I have not been here since about page three. I'm so excited and need to share with someone. Paid off the car today! It's funny but so many of these exciting things you can't share with family and friends.

I share it with my family and friends, but only the ones who know what a struggle it was to get out of debt and start some serious saving and don't just think I'm bragging!

Since we started this plan I actually look forward to paying bills. It's so exciting. Please be excited with me! I am so looking forward to getting my Stimulus check and sticking it in the bank. How exciting to be getting a check and have no plans for it other than to SAVE IT!

I felt exactly the same way, now I get excited seeing how much I'm saving every paycheck!!

 

[tinaluis]

Good Afternoon everyone. I have not been here since about page three. I'm so excited and need to share with someone. Paid off the car today! It's funny but so many of these exciting things you can't share with family and friends. DH and I make good money but we are trying to save for retirement, 2 college educations and pay off our house. Even good money today doesn't go very far.

So when someone finds out that you paid off your car 18 months early they think you're rolling in it even though we have been clipping coupons, not eating out, cut back on gifts etc etc to get that car paid off. And it feels great. Now we are going to build up a nice healthy emergency fund and than it's on to paying off that house. In the meantime we save 20% into our 401k and have no CC debt.

Since we started this plan I actually look forward to paying bills. It's so exciting. Please be excited with me! I am so looking forward to getting my Stimulus check and sticking it in the bank. How exciting to be getting a check and have no plans for it other than to SAVE IT!

That's so great!!!!!!!!!!! CONGRATULATIONS!!!!!

I know what you mean about not sharing with friends or family too. One time DH and I came into a small amount of $$ (about $1,200) because of a complaint we filed against a deceptive car dealer. We were thrilled and told everyone and it wasn't long before we got hit up for $$$. Definitely learned our lesson after that.

Anyway, keep up the good work.

 

[Enchanted_Mama]

Hi All, is there room for one more here?

Here's our situation...almost three years ago, we relocated to be closer to family. We bought a fixer upper, in serious need of fixing up, and promptly racked up about $10k in cc debt to do so. In addition, in the last year, my DH has started his own business, so the inconsistency in income and start up expenses had us in for another $20k in debt. So, as it stands, in addition to our mortgage, we have $30k in consumer debt, plus DH has $15k in student loans, and I have about $2500 left on my student loan, but that debt is scheduled to be paid off in July 2009.

In addition, we currently pay about $1500 a month for daycare for our 2 kids.

DH's income is still very inconsistent, no money one month, then a windfall the next (he gets paid upon completion of projects), so budgeting has been difficult.

We have a very small emergency fund - not nearly the 3-6 months recommended, but we do have about $1000k stashed away for emergencies.

I do max out my 401k contribution, but we have nothing set up for DH at this point.

We have nothing set aside for our girls' college fund, but I work at a University which offers free tuition for family members, so our back up plan is that they will attend here, if no magical scholarship falls from the sky

So, for us, the debt and the minimum payments and the feeling that it is just hanging on us are our biggest problem.

Here's what I'm doing to try to get us on track. First, I paid off all of our cc debt with our HEL (6% interest). I know it isn't recommended to secure unsecured debt with your house, but we have quite a bit of equity in our house (we put 20% down and since we bought it at a bargain price and then renovated it, the value has increased quite a bit, even in this market), so I felt comfortable leveraging that. The terms of our HEL are interest only for 10 years, and then 30 years to pay it off. I am now taking all of the money that was going to the other debt and putting it toward paying off the HEL asap. I believe, if nothing drastic changes with our financial situation (for better or for worse), that it will take five years to pay it off.

I canceled all of the credit cards. We are strictly cash and carry now (proud to say that our WDW trip in October is already more than 80% prepaid in cash).

In addition, come the end of June, we will no longer be paying for my older dd to be in daycare, as I'll be home with her for the summer and then she goes to school full time in the fall . That will cut down our d.c expense by about $600 a month.

Now, of course, the whole house of cards could come tumbling down at any time, given that we drive very old cars that could give up the ghost any day now and that my DH's business could certainly be impacted by the downturn in the economy. But anyway, that's the plan as it stands now. It felt good to just write it out, and I look forward to the day when I'll start to see some real progress toward eliminating the debt.

 

[8 Ears]

We did it! We paid off our last CC We are now CC and CC debt free!

 

[Kathi OD]

We did it! We paid off our last CC We are now CC and CC debt free!

 

[Whitaker24]

We are not debt free but this is what we owe less the house and what each debt is for.
Truck $7,480.13
Personal Note $3,774.84
CC: 1998.42 Laptop 18mth SAC, LCD 24 mths SAC
Bedroom Suite: $1230.89 18mths SAC
CC: $149.00/$35.00
CC: $1645.20

We have money to pay most of this off but since most are SAC Im content with paying $50 over the min. to pay them off in time. Im saving the cash fund for emergencies ect if they come up.

Not along this topic but im tempted to pay them off and cut the debt down the more i read this thread that is what ill likely do.