Debt Reducers

[Debbie]

Congratulations! It feels good to be in control, doesn't it. For the first year, ever, I will go into January with NOTHING on the credit card! No after Christmas "surprises". The LOC is shrinking, slowly but surely. Bring on 2009!

 

[amyy]

You are all getting me inspired. In between the boards I am reading my new Dave Ramsey book. Hopefully by next year I will be posting that I have no credit card debit (no car payment-yeah).

 

[SpaceGirl]

This is my first year not worried about all the new charges on my credit cards after Christmas. I did shop on line this year using my credit card but all new charges had money to cover them in the bank. So I'm not worried about larger balances, just have the amount that I have been working to pay off all year.

 

[albertamommyof4]

Okay i have a question, me and hubby own 1 credit card each they both have a combined total of about $3500. We have a savings account that is just over that, so should we just pay monthly on the credit cards( of course it will be more then minimun) or just pay them off??
I babysit and bring home about $500 a month, this is extra money that we will put towards the card. We don't pay to high of interest and the payments are no problem right now, i just don't want to get stuck if something comes up .
Thanks

 

[dislvr74]

I'm so happy to see this thread again. I first read it back in August when I was faced with $7,000 in cc debt and was seriously in danger of losing my marriage because of it. Since then, I made major lifestyle changes and found a part-time job and managed to pay off that debt on Dec 15th. I am keeping the part-time job in order to save for a WDW trip, but we are turning our attention towards paying off my car with our new budget habits. I think we can pay it off in one year, which would be amazing for us.

I can't believe how good it feels to start 2009 with no cc debt.

 

[albertamommyof4]

I'm so happy to see this thread again. I first read it back in August when I was faced with $7,000 in cc debt and was seriously in danger of losing my marriage because of it. Since then, I made major lifestyle changes and found a part-time job and managed to pay off that debt on Dec 15th. I am keeping the part-time job in order to save for a WDW trip, but we are turning our attention towards paying off my car with our new budget habits. I think we can pay it off in one year, which would be amazing for us.

I can't believe how good it feels to start 2009 with no cc debt.

that is awsome i am happy for you .

 

[SpaceGirl]

albertamommyof4

First the savings account that is just over $3500.00 is a good emergency fund. Keep that money for any futurer expenses that you may have that you are unable to pay cash for.

Most financial advisors say to have a six month Emergency Fund that would cover all your expenses for six months.

So between both of you, you have two credit card accounts?

If you have two accounts I would pay minimun payment on the card with the lowest intrest rate and pay all the additional money to the card that has the highest intrest.

After the higher rated card is paid in full then start paying the second card off using the same amount that you paid (+ additional) on the both cards.

Say you paid $150.00 on the first card and $100.00 on the second card after you have paid off the first card... your new payment would be $250.00 on the second card.

This is called snowballing, some people pay the smallest balance off first to have a quicker BANG or a feeling of accomplishment if both of your credit cards have the same intrest rate start with the card with the lower balance.

Both cards should be paid off quickly if you stop using them. The bonus is you will also have the money in your savings account.

 

[albertamommyof4]

albertamommyof4

First the savings account that is just over $3500.00 is a good emergency fund. Keep that money for any futurer expenses that you may have that you are unable to pay cash for.

Most financial advisors say to have a six month Emergency Fund that would cover all your expenses for six months.

So between both of you, you have two credit card accounts?

If you have two accounts I would pay minimun payment on the card with the lowest intrest rate and pay all the additional money to the card that has the highest intrest.

After the higher rated card is paid in full then start paying the second card off using the same amount that you paid (+ additional) on the both cards.

Say you paid $150.00 on the first card and $100.00 on the second card after you have paid off the first card... your new payment would be $250.00 on the second card.

This is called snowballing, some people pay the smallest balance off first to have a quicker BANG or a feeling of accomplishment if both of your credit cards have the same intrest rate start with the card with the lower balance.

Both cards should be paid off quickly if you stop using them. The bonus is you will also have the money in your savings account.

Thank you that sounds like a good plan , both of the credit cards have the same interest, so i think i will pay hubbies down first as we owe less on this one and then mine off. All the extra money is going to be split between the savings and debt repayment.
In my budget for 2009 i have $115 put towards each card so $330 a month and then if i do babysitting then i will put that towards the credit cards. So hopefully by March we will have no credit card debt and only our new van debt. Which we have been payiny for 1 year

 

[SpaceGirl]

Once you start working on your debt and start a budget, you can go through your montly expenses to see where you can cut back.

I have found so many ways to lower our monthy bills on this thread and others here on the Budget Board.

I rarely use my cloths dryer or dish washer anymore (there are just two of us)I have this goal of keeping my electric bill under $100.00 a month. I still manage to keep our needs for heating and cooling at a comfortable temperature but all other needless items are unplugged or turned off.

Good Luck

 

[albertamommyof4]

Once you start working on your debt and start a budget, you can go through your montly expenses to see where you can cut back.

I have found so many ways to lower our monthy bills on this thread and others here on the Budget Board.

I rarely use my cloths dryer or dish washer anymore (there are just two of us)I have this goal of keeping my electric bill under $100.00 a month. I still manage to keep our needs for heating and cooling at a comfortable temperature but all other needless items are unplugged or turned off.

Good Luck

well i took hubbies lowest paycheck amounts and that is what i will be using , but i know that starting in Jan we will have a extra $88 a month as we no longer have to pay alberta health care so a bonus, what ever is left in the account at the end of the month will probably transfered to savings until we pay off something .
As far as cuttting stuff back, some stuff will be hard as we are a family of 6 lol. We do run the dryer as it winter right now and will be till probably end of march begginning of april and we can't hang clothes outside as rental property dont like it. We have hung in bathroom but as much laundry as we do it is easy to dry. Doing dishes we do use the dishwasher but for bigger stuff we hand wash.
We try to always remember to turn off the lights and tv etc when not using and we do keep the thermastat down at night.
I know that on the budget i estimated high for vehicle gas/ and vehiclke expenses but who knows when gas prices are going to skyrocket again lol. so we will save here . We are definatly going to cut back on eating out and try to eat out at like costco as they are cheaper, i have a set amount for this and i think it should cover eating out 2 times a month maybe 3 whcih i think is going to be plenty.
I am also in the process of potty trainning my little one so i will sve some money not having to buy diapers lol.
Hoopefully i can stick to all of this lol

 

[paulasillars]

Hi all, just joining in here. I've just also joined up for the "no buy january" thread too - I figure they go well together

Our only debt is a mortgage on a lifestyle block. We have broken it into 4 chunks of $35,000 with the aim to pay off one chunk per year over the next four years. We can do it if we cut down on misc carp and keep other expenses as low as possible. I think I've finally convinced DH that he really needs to think about every purchase and whether its worth extending the payback time on the mortgage.

Chunk 1 is currently at $17,500 (down from $35,000 at 7th August 2008) and minimum payment per fortnight is $152.02. However if we pay only the minimum on that chunk, it'll take 20-25 years to pay it off - no thanks! We've done really well on chunk 1 as I did a lot of overtime to earn some extra cash but with the economy at a standstill now, we are going to have to do it out of our fortnightly pays as chances of overtime are slim.

Chunks 2-4 are still over $34,800 each and we are unable to pay additional on those at this time other than the fortnightly payments which are about $135 each. Our goal is to pay off chunk 1 by August 7 which is when we can start making additional payments on chunk 2.

I'm also working on a getting a small amount of savings in my account - just in case...

 

[NeverlandClub23]

Can I join? Let's just say I had a good time for about 4-5 years courtesy of credit cards. I owe about $18k in credit card debt. It's all on low or no interest cards, I pay more than the minimum, I still have a 720 credit score, I've never missed a payment, but it still very overwhelming and embarrassing. Luckily, I have learned from all of this and will never use credit cards again. Ever. I'm so sick of being in debt and having nothing to show for it. It will take me about 3 years to get out from under it (according to the financial plan thing I did on bankrate.com-that really put it into perspective; I put in everything I owe and interest rates and then it tells you how much to pay on each one and when you should be out of debt-FOR FREE). Anyways, I have a question. I've been dating a guy for about a year and he doesn't know how much debt I have. I feel embarrassed to tell him (but I, of course, want to tell him before we start talking marriage) but really when should I tell him? I don't want to tell him later and then he thinks I was hiding it from him or that I still have a problem. Thanks for letting me talk and for any advice!

Here's to a debt reduced 2009!!!

 

[minnie1928]

Anyways, I have a question. I've been dating a guy for about a year and he doesn't know how much debt I have. I feel embarrassed to tell him (but I, of course, want to tell him before we start talking marriage) but really when should I tell him? I don't want to tell him later and then he thinks I was hiding it from him or that I still have a problem. Thanks for letting me talk and for any advice!

Here's to a debt reduced 2009!!!

You've been together a year, so why not tell him as a part of your New Year's resolutions? Tell him that you have decided to knock out your CC debt and that you could use his moral support. If the conversation leads to a dollar amount and you are comfortable telling him, then do so.

 

[paulasillars]

Anyways, I have a question. I've been dating a guy for about a year and he doesn't know how much debt I have. I feel embarrassed to tell him (but I, of course, want to tell him before we start talking marriage) but really when should I tell him? I don't want to tell him later and then he thinks I was hiding it from him or that I still have a problem. Thanks for letting me talk and for any advice!

Here's to a debt reduced 2009!!!

Isn't spending techniques one of the major causes of arguments in a relationship? Have you any feel for how he handles his budget, it may give you some idea of whether to discuss it now or further down the track once you have made a significant dent in it?

On the bright side, at least if he still loves you after you tell him, he isn't a gold digger For richer, for poorer etc

My DH and I had very different ways of spending our cash, he was of the opinion that if it was there, it was for spending. I'm the opposite, I'm a great saver and he's seen that giving up the little things gets you the bigger results. He has the odd relapse now and again but is much better than he was.

As an aside, we paid off the mortgage on our first home after only 6 years - his parents were so impressed they decided to take a leaf from our book and starting getting serious about their one - they were only making minimum payments so in their mid-50s they were still paying a mortgage on two very good incomes. Needless to say they soon had it paid off with very little effort.

Good luck anyway with whatever you decide.

 

[8 Ears]

Forgot to post that we are down to 2 payments on DH's truck! OK a little over 2. If we can swing 2 payments of $335. we will pay it off a full month early!! Not a lot but boys does it feel WONDERful!

Found out yesterday that DH's next 3 paychecks will have bonuses in them and also that he has very old severance check "in the mail" , wahoo! Maybe we will be able to be totally debt free this year!

Then we are also waiting on income tax returns to post. Of course that money is spent but it will nearly pay off 2 medical bills

How are others doing?

 

[8 Ears]

Ok DH got another portion of his severance from eons ago. That is going to pay off 5 medical bills.

Then this morning (why on a Thursday I am not sure but any how)
I checked and our state refund is in. That I will be able to pay off 2 more medical bills!! It will also leave us with just over $400.00. I am sure it will need to go towards something but not sure what it will be right now.

On the bummer side, I ran out of checks. I knew I was getting low and kept saying "I'll do it tomorrow". Yes I have them ordered. Well now I am out and this $$$$ is burning a hole in my pocket. I know I have got to get it out or I will widdle it away.

So I was thinking about doing money orders, but how much will they cost? My Mom said something about going to the bank but how much will that cost? What do you suggest?

How is everyone else doing with their refunds?

 

[ess]

Ok DH got another portion of his severance from eons ago. That is going to pay off 5 medical bills.

Then this morning (why on a Thursday I am not sure but any how)
I checked and our state refund is in. That I will be able to pay off 2 more medical bills!! It will also leave us with just over $400.00. I am sure it will need to go towards something but not sure what it will be right now.

On the bummer side, I ran out of checks. I knew I was getting low and kept saying "I'll do it tomorrow". Yes I have them ordered. Well now I am out and this $$$$ is burning a hole in my pocket. I know I have got to get it out or I will widdle it away.

So I was thinking about doing money orders, but how much will they cost? My Mom said something about going to the bank but how much will that cost? What do you suggest?

How is everyone else doing with their refunds?

Don't go to the bank for a money order they cost to much. Go to the Post Office or Walmart for them they are much cheaper.

 

[Shmily1]

Ok DH got another portion of his severance from eons ago. That is going to pay off 5 medical bills.

Then this morning (why on a Thursday I am not sure but any how)
I checked and our state refund is in. That I will be able to pay off 2 more medical bills!! It will also leave us with just over $400.00. I am sure it will need to go towards something but not sure what it will be right now.

On the bummer side, I ran out of checks. I knew I was getting low and kept saying "I'll do it tomorrow". Yes I have them ordered. Well now I am out and this $$$$ is burning a hole in my pocket. I know I have got to get it out or I will widdle it away.

So I was thinking about doing money orders, but how much will they cost? My Mom said something about going to the bank but how much will that cost? What do you suggest?

How is everyone else doing with their refunds?

We have convenience stores called Flash Foods (I'm not sure if those are everywhere or not) but their MOs are only .59. Our bank also does "cashier's" or convenience checks for $1.

I got my state refund back and paid for DS19's b-day present. Federal is due tomorrow and I hope to pay off another bill with it. Looking forward to not having these bills but it still seems something comes up every time I get some money in.

 

[8 Ears]

Thanks for the responses! After my Mom telling me to check with them I found out the the bank where I have my checking account will do 1 free check for each account I have there per day. Going back tomorrow to take care of it.

On the flip side, I know what you mean shimly1, just getting a bunch of medical bills paid off and took DS 14 to dentist today and he needs ALL 4 wisdom teeth pulled, has several cavities and they want him to have a night time mouth guard!!

Little vent coming on, DH does not want to go back to "The World" until we are debt free. I have tried to explain to him that we never REALLY will be! We are close, only 2 vehicle payments (1 only has 2 left on it), the other one will be paid off in December. There are 4 of us in this house, with 2 being male teenagers. When they heck will we be debt free?!?!?!?! We do not have any credit card debt

OK, phew, feel a little better.........

 

[Shmily1]

Thanks for the responses! After my Mom telling me to check with them I found out the the bank where I have my checking account will do 1 free check for each account I have there per day. Going back tomorrow to take care of it.

On the flip side, I know what you mean shimly1, just getting a bunch of medical bills paid off and took DS 14 to dentist today and he needs ALL 4 wisdom teeth pulled, has several cavities and they want him to have a night time mouth guard!!

Little vent coming on, DH does not want to go back to "The World" until we are debt free. I have tried to explain to him that we never REALLY will be! We are close, only 2 vehicle payments (1 only has 2 left on it), the other one will be paid off in December. There are 4 of us in this house, with 2 being male teenagers. When they heck will we be debt free?!?!?!?! We do not have any credit card debt

OK, phew, feel a little better.........

I have DS19 and DD17 so trust me when I say, the endless cha-ching never ends!!!!