Debt Reducers

[Laxmom]

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

Congrats!!! Whoo hoo!!

I got a surprise yesterday. I went to look at our checking online to see if DH's check was deposited. There was more money there than I expected. When I looked at the transactions, our stimulus check was there. I wasn't expecting in until July! We owed this year and filed electronically but mailed a check and DH's last two are 89. Put it on cc bill.

We're still making progress, not fast enough but still moving forward!

 

[udsweetpea]

OK, I need to join this thread and begin being accountable for my debt.

I've always been on time, and my credit is pretty decent. My medical bills are on a payment plan, and I pay $150/month on those. This overwhelming amount of credit card debt is so scary to me.

I work as a mortgage loan officer/processor, so I make good money, but in this market, it can be tight each month.

I just started an IRA so I am saving as I'm paying off debt.

I plan on doing the "snowball method".. paying off one card and applying that payment towards the next card.

I've been looking for other ways to make some extra money, and I've emailed a service manager of a restaurant about serving. I live at the beach, so it should be good money. I'm going to go through my parents' attic and look for things to sell on eBay. I might also start a business like Longaberger, Passion Parties, or something like that to make extra cash (but it requires a start-up fee).

Good luck to everyone else and congrats to those of you who have made yourselves debt-free!

 

[lttlmc3]

We just paid off $1800 on one card today! Not paid off, but it felt good to pay off that big chunk!

 

[Kathi OD]

Yet another CC paid off here too. That leaves just one, which should be paid off in July.

 

[mickeymom1976]

Hi, all. I just came across this thread. I've been working on my family's debt, too. We refinanced our house and dropped our interest rate quite a bit. We should save about $2000 a year by doing so. Also, I consolidated all of my credit card debt onto one card with a lower interest rate. The rate on the one card is between 4 - 10% less than what I was paying on the old cards. Now I can make one payment and since I'll be able to make much more than just the minimum payment, I hope to get the remaining card balance paid off quickly. All "extra" money is paid toward the cc, too. All of my stimuls was applied to the account, so that knocked off a nice chunk. Only $5700 to go, woo hoo. Also, just traded off my car that wasn't getting very good gas mileage. I was able to keep my payments the same, and hope to save big $$ on gas and repairs. And, our insurance company gives us new car discounts so this will help out with the premiums, I hope.

I really hope this works to get us out from under some of our debt.

 

[rbramblett]

I'm in
3 cars and 2 credit cards for a total of 36k, man that's scary in black and white.

 

[Laxmom]

It can be startling in black and white, can't it? Things are improving for us. We are finally able to live on DH's salary and mine is going to savings and debt. His bonus comes in July which will go a long way toward debt. Anxious to get this behind us.

 

[MyGoofy26]

Paid off 2 credit cards this weekend! Getting ready to pay off another. I thought I had it paid off, but I paid it a day before the new statement cut so I still owe $1 and change in interest. I think I can scrounge that up today and make it three paid off CCs.

The one I'm VERY excited about. The CC company ratejacked me to 28%! The new rate takes effect next month. So it's paid off and going to be sockdrawered til the annual fee is due. They thought they were getting one over on me, instead I paid them off so they'll get zilch AND I get to keep the card open a few months to help my utilization. Take that! I'll cancel it just before the AF is due.

I just made my list of bills and it's exciting to see that it's half of what it once was!

 

[8 Ears]

Way to go Mygoofy26! Doesn't it feel wonderful!

For those not there, you can do it!

Also, after writing bills out I found out I am able to make the back payment on DH's truck from when DS broke his leg. The loan company for the other vehicle was most helpful! But Bangor Savings would not work with us at ALL!! Hated to do it but just have not paid them, knew I would make it up when I could and the time is now!

Happy Debt Reducing!

 

[Suzanna1973]

Paying off 3 more bills on Friday!!!

 

[angeladisney]

I am posting to this thread. DH and I want to buy a house, but our credit sucks. He owe 14,756 in old credit cards, and a few old cable, water bill, electric bill this does include his student loans which is about 7,500 but it in good standing. Now for my credit a lot of old capital one accounts, a few old phone bill, and a lot of medical bills due to bad kidneys. I guess what am asking my wonderful diser family is were do I begin on getting rid of this debt. We my husband and I agree we were irresponsible in the pass and are now ready to pay back the money we owe. One last thing we also owe my parents about 16,400 for different thing they help us with over the last 13 years. I plan on pay them, but they said after we get through pay everyone else.

Right now after tax we bring home 2500

Rent-600
Water-127
Electric-143
Car-432
Insurance-110
Computer and washer pymt-240 ( be paid off in August)
Dad-100
Cigarette-120
Gas-200
Groceries(2 adults and 5 kids)-320 month
phone-70
dish-106
Total: 2669
we are in the red by 69 a month
Please give any suggestion you have. Please be gentle.

 

[Chicago526]

Paid off 2 credit cards this weekend! Getting ready to pay off another. I thought I had it paid off, but I paid it a day before the new statement cut so I still owe $1 and change in interest. I think I can scrounge that up today and make it three paid off CCs.

The one I'm VERY excited about. The CC company ratejacked me to 28%! The new rate takes effect next month. So it's paid off and going to be sockdrawered til the annual fee is due. They thought they were getting one over on me, instead I paid them off so they'll get zilch AND I get to keep the card open a few months to help my utilization. Take that! I'll cancel it just before the AF is due.

I just made my list of bills and it's exciting to see that it's half of what it once was!

Before it's due, call them up and ask if they'll waive the fee for the year. They might do it to keep you from canceling. That way you can keep the card open to help your utilization but not have to pay the fee.

 

[minnie1928]

I am posting to this thread. DH and I want to buy a house, but our credit sucks. He owe 14,756 in old credit cards, and a few old cable, water bill, electric bill this does include his student loans which is about 7,500 but it in good standing. Now for my credit a lot of old capital one accounts, a few old phone bill, and a lot of medical bills due to bad kidneys. I guess what am asking my wonderful diser family is were do I begin on getting rid of this debt. We my husband and I agree we were irresponsible in the pass and are now ready to pay back the money we owe. One last thing we also owe my parents about 16,400 for different thing they help us with over the last 13 years. I plan on pay them, but they said after we get through pay everyone else.

Right now after tax we bring home 2500

Rent-600
Water-127
Electric-143
Car-432
Insurance-110
Computer and washer pymt-240 ( be paid off in August)
Dad-100
Cigarette-120
Gas-200
Groceries(2 adults and 5 kids)-320 month
phone-70
dish-106
Total: 2669
we are in the red by 69 a month
Please give any suggestion you have. Please be gentle.

I'll state the most obvious...you need more income. Perhaps a PT job for you or DH...remember, it doesn't mean that it's a permanent thing. Or, do some ebay/yardsales. If you want to move eventually, you might as well start decluttering and get some of that money back in your hands to pay off bills.

Second, SERIOUSLY look at your expenses. While your food bill looks great for that many people, you spend nearly the same amount on your combined phone/dish/cigarettes...none of which are necessities.

Third, I'm assuming that you have no money in savings...you need to get some amount saved ($1000?) ASAP to cover whatever might come your way next.

I would highly recommend that you go to your local library and check out Dave Ramsey's Total Money Makeover ASAP! It'll lay out all the steps that you need to take in order to make it to your goal.

I wish you and your family the best of luck in this journey...you can do it!

 

[nowellsl]

Second, SERIOUSLY look at your expenses. While your food bill looks great for that many people, you spend nearly the same amount on your combined phone/dish/cigarettes...none of which are necessities.

These would all be a good place to start!!!

 

[Kathi OD]

Second, SERIOUSLY look at your expenses. While your food bill looks great for that many people, you spend nearly the same amount on your combined phone/dish/cigarettes...none of which are necessities.

I wish you and your family the best of luck in this journey...you can do it!

Angela,

This is a hard job, believe me, I know, but definitely look at these expenses. If you can manage to cut them in half, at least you won't be in the red each month. This will begin to stop the bleeding immediately.

At the same time, start looking for ways to bring in more income to start a savings fund. There have been quite a few suggestions as to how you can do that already given on this thread. Many of them do not require that you get a second job, although that would work too.

While your grocery bill is quite low for your family size, is it possible to lower it even more? You may already be doing some of these things, but here are some ways that might be helpful. One of the things I did when our children were little was to split milk with powdered milk. I'd make the powdered milk when the kids were in bed and refill the milk jugs from the store. Since the kids didn't see me doing it, they never knew. With 5 children, you might save quite a bit. I also started buying generic or store brand cookies, chips, pretzels. If they won't eat them, don't buy them. Most kids will eat the cheap stuff if there isn't anything else to munch on.

Repeat after me: THE DOLLAR STORE IS MY FRIEND! Buy cleaning supplies at the dollar store and cut out using paper towels buy using either sponges and/or dishcloths (buy these at the dollar store too).

I don't know about anyone else, but a big budget stretcher for me was to NEVER, EVER take your children shopping with you. They always managed to get me to buy something I didn't want (a bag of cookies, cupcakes, or some little toy). Better to leave them home w/ DH and tell him it's quality time.

It's hard to make changes in your lifestyle, I know (oman do I know)! Each suggestion might only save a couple of dollars a month, but together those dollars add up. When you start to see how less stressed you are over financial matters, it will be well worth the sacrifices you are making now. Good Luck on your journey!!!

ETA: for some other very specific ways to stretch your budget in some very simple ways (such as using only 1/2 a dryer sheet per load), check out this thread http://disboards.com/showthread.php?t=1819347

 

[akmom]

Hello everyone! I haven't posted in awhile so I just wanted to give a little update. I paid off a cc this month and I'm paying off another on next month. Then I'll have 3 left. DH and I also decided to skip the annual friends weekend getaway. Getting out of debt is my first priority! Also, when I write down my income vs expenses on paper it looks as if I have plenty of money. However, I still feel like I'm being squeeze tight each month. I do see progress being made though!

 

[Chicago526]

minnie1928, the most obvious thing is to quit smoking. I don't know if it's you or your spouse, but you can't afford it and anyway, it's not healthy. If you could even cut down the cigs by half, you'd only be $9 in the hole each month.

The other thing I see is that in august is that your computer/washer payment goes away, that $240 you didn't have before, so if you change nothing else, you now have $171 per month to help you out ($240 minus the the $69 you're in the hole every month). If you have no savings I'd put that $171 in savings until you have at least $1k in the bank, that will cover those little emergencies that always seem to pop up at the worst time. Then you can put that $171 towards your debt.

There are a couple of ways to tackle your debt. One way is to pay off the highest interest rate first, then the next highest, and so on, regardless of amount owed. Another way is to pay the smallest balance first and highest balance last, regardless of interest rate. The thinking behind the second one is that if you have several small balances, you get those knocked out of the way in a few months, giving you a mental boost and motivation to keep going. It's like a diet, you're more likely to stick to it if you lose 5 pounds the first week (pay off a debt) than if you only lose a 1/2 pound (make a big balance slightly lower).

Whatever way you go, the snow ball method is the best way to tackle it. Let's say you've got four bills, the minimum amount due each month is:

1) 75 a month
2) 100 a month
3) 125 a month
4) 150 a month

This totals $450 a month, and you have $600 a month to put towards the debt. You'd pay $225 towards the $75 debt, and pay the minimums on all the others (the minimums on bills 2-4 = $375, and then you pay $75 + 150 to bill 1, that totals $600). Once you pay off the $75 debt, you put the $225 you were paying towards the next debt, so now you are paying $325 to your $100 debt. Once that's gone, you pay $450 towards your $150 debt, once that's gone, you pay the $600 towards your last debt until it's gone!

 

[rebecca06261]

Angeladisney, forgive me but did it ever occur to you that you're spending more on cigarettes each month than you spend on groceries for your 5 kids each week. You also have a car you obviously can't afford- have you considered selling it and paying cash for an inexpensive older car? I'm sorry to sound harsh and uncaring but you and your husband might want to reconsider your priorities. **if I were uncaring, I might would say something about the dish tv, but considering that you have 5 kids, it's probably the family's only entertainment and isn't a detriment to your health.


**again, sorry if i offended you. i'm just thinking more for your kids.

 

[jdes88]

[I've been looking for other ways to make some extra money, and I've emailed a service manager of a restaurant about serving. I live at the beach, so it should be good money. I'm going to go through my parents' attic and look for things to sell on eBay. I might also start a business like Longaberger, Passion Parties, or something like that to make extra cash (but it requires a start-up fee).

Good luck to everyone else and congrats to those of you who have made yourselves debt-free!

[/QUOTE]

Maybe you could try avon...my sister sells it and does pretty well. And it's only $10 to start up!

 

[udsweetpea]

Maybe you could try avon...my sister sells it and does pretty well. And it's only $10 to start up! [/QUOTE]

Oh, I tried that. Here's my story with Avon:

Just got a letter from Avon saying I was seriously past due for $10 and they had tried to contact me multiple times before. And if I didn't pay, I would be sent to collections. This is the very first time I've heard from them. I called Customer Service and was told the fee was because I was an e-rep, but I told them I had never received a statement. They also told me I had a customer order something from my webpage, which I knew nothing about. I've been too busy to even look through my box of materials, which I paid $10 for but it never cleared my bank account. I was figuring that was the amount past due, but nope. I'm very disappointed in my Avon experience as I was never notified of any customer I had or that I was past due to the point of sending me to collections. I quickly asked them to close my account.

One of my friends sells it, and she barely makes anything at all.

But thanks for the idea