It will take us 4 years to get out of debt

[JodiR]

My dh has a 1995 Corsica and it has around 225,000 miles. It has needed some work done on it but it has been an overall good car. Still running.

 

[JodiR]

It could be awhile for me to be out of debt also. But if I waited for 4 years to go on a Disney trip, my dd's would be too old to want to go. I have gone twice before, but if I go again (hopefully this summer) it will be our last.

 

[crisi]

Yeah, it took years. I think that's why so many of us are "debt free evangenicals" cause we all know what life was like before, how hard it was to get out, and how much better life is now.

It will actually go surprisingly fast. Do everything you can, ever dollar just makes it go faster, and the paying down the debt part is really the worst, if you bite the bullet hard and can do it in three years (no Disney, no dining out, budget grocery shopping, limit shopping, buy what you can secondhand), it will be that much easier.

Don't forget that all that STUFF you spent money on over the years is probably sitting around your house garage saleable. One of my relatives made $1200 on her garage sale last summer. (She's a "I'm so broke, I never buy anything!" person, which has us all wondering what she sold for $1200!)

 

[HunnyPots]

There's no reason you should worry about your cars not lasting; heck, those are new cars to us! My husband drives a 1993 model and my mini van is a 1999 and both still going strong. Routine maintenence and small repairs will save you a bundle over the price of a new car. We don't even think about replacement until we hit the 200,000 mile mark.

 

[HenDuck]

We've got 5 years left on a 6-year car loan for DH's car and some smallish CC debt.

So I'm looking at at least the same amount of time as you. My goal is demolish the CC debt by next year, take a budget trip to WDW in the summer of '09, then tackle the car debt. I am hoping we can get the car paid off by 2011, but that will take some serious discipline.

As for auto longevity - I specifically bought a Toyota (2002 Highlander) for its reliability and build quality. I fully expect it to make it to 2012 and/or 150,000 miles without a major problem.

My mother passed on her Toyota to us during the early years of our marriage and I think it was 20 years old when we had it towed away for good.

As for the debt, I try to remind myself that it will be paid off and that I can still enjoy life while I pay it off. We have cut back on a lot of things, including vacations, but we won't completely deprive ourselves. Our trip to WDW next year HAS to be a budget trip, but we are going so that DS (7) will have an opportunity to share it with his grandparents while they can still enjoy it too.

Good luck, keep your head up, and stay on the Budget Boards for encouragement!

 

[dsanner106]

Wow, I am jealous, your cars would be a step up for us. We have 4 , the new one being a 1999 model. Our lowest mileage is 154,000. And they all still drive well. If you keep them up, the minor repairs are far less than a car payment would amount to. Start your debt snowball, and start looking for every extra dollar you can save or make and add it in. you would be amazed how creative you can be if you are driven to pay these things off.

Drew

 

[lacy1101]

It could be awhile for me to be out of debt also. But if I waited for 4 years to go on a Disney trip, my dd's would be too old to want to go. I have gone twice before, but if I go again (hopefully this summer) it will be our last.

This is me. If we waited until we were out of debt to return to Disney, our kids would be in college! I know we could pay our debt off quicker without the trips, but I can't sacrifice that special time with my kids (while they still want to go with us!).

Be assured, though, it will be paid for in cash - no charging. We're saving now for our trip in May '09.

 

[mla1977]

I just recently looked over all of my credit cards. I plan on paying off one by the end of the year. To do that I will probably need to ask for a rate reduction. As long as it goes away, I will feel much better. I am taking a trip to DLR next month, but it is a budget trip too since DBF has a conference out there and we are using his dad's associate rate for our hotel in Anaheim. The only thing that I will be doing this year aside from that is my Tae Kwon Do tournaments, but that is worked into my regular budgets.

 

[ceecee]

We have kept almost all our cars for 10 years or more. There is lots of research out there about building wealth and automobile ownership. The longer you keep your car, the better. Both our cars have nearly 95000 miles and we fully expect to reach at least 150000 with them. Cars (for the most part) if well maintained last forever.

We keep ours forever too, my husband is determined to get 200,000 on his Oldsmobile (1997) and he's at 186,000! We only put $600.00 of repairs in it last year. My 1999 Windstar is at 115,000, it's repair bills were $3000.00 but then it IS a Ford!

 

[RayJay]

We used to be the kind of family that had no debt (except for mortgage). If I did buy something on credit, like furniture, we would pay it off within a couple of months.

I don't know what happened to us over the last few years, but our debt is just insane now. I feel it is all of a sudden out of control, so I'm getting into the "snowball effect" method of debt reduction.

I figured it out yesterday, and it will take 4 years to get completely out of debt (except for mortgage). I will not reduce our small savings (lol), but I'll reduce our retirement savings for the 4 years down to 4% (company will match). I'm still trying to figure out if we can get any Disney trips in...lol...I know that should be the first thing we cut out!!

4 years just seems soooo long from now. I don't think our cars will last that long, they're 2000 & 2002.

Just wondering if anyone else got themselves into such a huge debt like us, and it's going to take YEARS to get out?

Hi Alice,

Yep, Debt free here and it took me 4 to 5 very painful years to get out, and I did some really stupid things, I'm am always interested when someone posts these kind of posts, cause it was us and I know it can be done, so GO FOR IT.

I didn't cut back my 401k cause I robbed from it once and it broke my heart but everyone's way is different, the main thing is get out, sometimes it doesn't matter how you do it, just to keep on following thru, hence the word painful. Anyway I could type all night on this subject.

Best of Luck to you and your family.
RayJay

 

[eyeheartgoofy]

Four years is not so long! You can do it ... maybe it will even be a bit quicker than 4 years once you get into the swing of things!

I remember, in the late fall of 1997 formulating a plan to have us debt free by 2000. It seemed like a huge task ... we met our goal in November 1999 ... an entire month ahead of schedule! Three monts later we went on a cruise to celebrate.

 

[Jordans_Mommie]

I am in the same boat as you. I have mostly auto and student loan debt. I do have about 2k in cc debt. I have given myself 4 years to pay mine off as well. You can do it!

I considered giving up my trip to Disney, but decided against it. My son and I have had a tough year with divorce and illness. I have a very demanding job and it takes me away from him more than I would like, so I am not willing to sacrifice this special trip. The good thing is, I have been saving for it and we will pay with cash. This will be our last big ticket trip until we are out of debt though.

 

[KKB]

We used to be the kind of family that had no debt (except for mortgage). If I did buy something on credit, like furniture, we would pay it off within a couple of months.

I don't know what happened to us over the last few years, but our debt is just insane now. I feel it is all of a sudden out of control, so I'm getting into the "snowball effect" method of debt reduction.

I figured it out yesterday, and it will take 4 years to get completely out of debt (except for mortgage). I will not reduce our small savings (lol), but I'll reduce our retirement savings for the 4 years down to 4% (company will match). I'm still trying to figure out if we can get any Disney trips in...lol...I know that should be the first thing we cut out!!

4 years just seems soooo long from now. I don't think our cars will last that long, they're 2000 & 2002.

Just wondering if anyone else got themselves into such a huge debt like us, and it's going to take YEARS to get out?

A couple of tips...do NOT reduce your company matched retirement. That is FREE money...you should be contributing max funds at all times, if possible.

Yes...hold out on trips for now. We normally take a large trip each year, but we are starting graduate school so it will be CHEAP short trips for awhile!

2000 and 2002 vehicles should last you FINE for 4 more years! We have 2001 and 2002 vehicles, and anticipate replacements in 2011 and 2013 (all will be over 100K miles also). BUT if they continue to be reliable, we may keep on trucking!

The key is to REALLY look at your budget...HOW did that debt creep up in the first place. We write down everything we spend. We regularly analyze...is our money slipping out of our hands? What is TRULY important to spend on, and what are our financial goals? Friday night date is VERY important to DH & I...it doesn't have to be expensive, but it must be budgeted for. We only buy big items to replace worn out/broken items. Furniture/electronics/appliances only bought when we can get years w/ no interest. We plan on vehicles lasting a good 10 years. Travel is very important, so we budget for it. Kids activities are very important, but we still remain fairly frugal on this one. Clothing almost always purchased on sale, preferably clearance. Food is on sale/coupons, eating mostly chicken and lean burger (though been catching a load of cheap meat at Super Target marked down as expiring soon...thank goodness for freezers!) Love Starbucks, but I could not stomach $5/day...it is an occasional treat. (but I have a friend for whom this is "essential"--but I wonder about their debt.... )
SORRY...I babble...sit down, analyze the budget...where can you cut...what small treats can you include...it is SO worth it!
GOOD LUCK!

 

[alicenwonder99]

The key is to REALLY look at your budget...HOW did that debt creep up in the first place. We write down everything we spend. We regularly analyze...is our money slipping out of our hands? What is TRULY important to spend on, and what are our financial goals? Friday night date is VERY important to DH & I...it doesn't have to be expensive, but it must be budgeted for. We only buy big items to replace worn out/broken items. Furniture/electronics/appliances only bought when we can get years w/ no interest. We plan on vehicles lasting a good 10 years. Travel is very important, so we budget for it. Kids activities are very important, but we still remain fairly frugal on this one. Clothing almost always purchased on sale, preferably clearance. Food is on sale/coupons, eating mostly chicken and lean burger (though been catching a load of cheap meat at Super Target marked down as expiring soon...thank goodness for freezers!) Love Starbucks, but I could not stomach $5/day...it is an occasional treat. (but I have a friend for whom this is "essential"--but I wonder about their debt.... )
SORRY...I babble...sit down, analyze the budget...where can you cut...what small treats can you include...it is SO worth it!
GOOD LUCK!

Hi, OP here!!

Thanks everyone for their words of encouragement. We used to live like the above, then stopped when our income jumped up considerably. I think that's what our problem was. I figured if we had a 6 figure income, I could stop cutting coupons and shopping the clearance items! Couple that with huge medical bills, and just living above our means...well, you get the picture.

Right after Thanksgiving, I started cutting my coupons again, shopping in the clearance sections again, and we're following our budgets (well, trying hard to).

It just sickens me that I allowed our family to get into this mess. I say ME because I'm the one who takes care of the bills and the finances.

Thanks!!!

 

[dsanner106]

I work with someone who "must" stop at starbucks 3 times a day, but can't find the money to fund her IRA this year. I did the math, and she spent a little over 4000.00 at starbucks last year..... enough to fully fund her IRA. It is all about priorities and paying attention to what we spend.

D

 

[ceecee]

I work with someone who "must" stop at starbucks 3 times a day, but can't find the money to fund her IRA this year. I did the math, and she spent a little over 4000.00 at starbucks last year..... enough to fully fund her IRA. It is all about priorities and paying attention to what we spend.

D

$4000.00 on Starbucks??? I'll stick with Folgers! I think the trick is once your income goes up and you have no debt, you need to continue in the "frugal" habits that you make while paying down debt and watch your savings accumulate. I will never stop shopping clearance (it gives me a rush!!) and will use a few coupons each week as well. I agree with the above poster...don't stop the 401K especially the matched part.

 

[EthansMom]

It took 7 years of careful budgeting for DH and I to pay off all of our debt (except the mortgage). It isn't easy, but it can be done. And it feels soooo good when you pay off that last debt!

Best of Luck to all of those folks working to pay down their debts!

 

[lorax123]

I also just got done reading Total money Makeover and just started the snowball affect. I can have all my debt, including 2 newer cars (2006 and 2007), our mortgage(which we just got in August of 2007), and 7 credit cards paid off in about 8 years. If I don't want to include my mortgage, it will take me 3 years. I'm so excited!
BTW, cars can last a long time if properly maintained. My mom has a 2005 Toyota Matrix that she bought brand new. She is now at 298,456 miles. She drives her car for work and goes EVERYWHERE! It is still running like new. She has never had anything major wrong with it. She has an appoinment to replace the brakes today. She's has an oil change like every 3 weeks and her belt changed frequently. So they can last a very long time! Especially Toyotas!

A 2005 with nearly 300k, already! Wow, she drives alot!!!

But I agree with a few of the posters. Car's last a long time if you take care of them and don't drive them hard. I hear so many people say 'my cars so old, it's 4 years old and has 70k on it. I have to start thinking about finding a new one.' 70k 5 years old, that's nothing!

The general unspoken rule is, you should be able to get 200k out of a vehicle with no major repairs if you follow factory service intervals.

Replacing new cars every few years, is a way a lot of people get sucked into debt. If you learn a little about maintaining your own vehicle, you'll also save LOTS of money.

 

[Jakesmom504]

I just won the Total Money Makeover book on Ebay and can't wait until it comes in. We too are in serious cc debt and have 1 big car payment that unfortunately because of stupid mistakes in the past with cars, we can't reduce, and can't get rid of because we would actually lose money. We also have mortgage debt and student loan debt but right now we just need to get out of the cc debt! It's really bad, I still have 3 years of school left so I know it will get better but if we don't do something now, we won't make it another 3 years. I too, feel guilty since I do all the finances and should have put an end to it a long time ago. I've been selling on Ebay to save up for our Disney trip figuring that little amount of money will hardly put a dent in our debt and DH works 2 jobs, I work and go to school and we barely see each other. Selling on Ebay was something I wanted to do so that we can take DS on his first trip to Disney and have some fun. 2007 was a really rough year for my whole family, had some unfortunate, unexpected events take place and I just feel like we really need something to look forward too. Even now, my bro is leaving for Iraq in 3 weeks and we are hoping nothing will go wrong and he will be back in time to go with us.
Got a little OT there but we are in the same boat, you are not alone, and actually 4 years doesn't sound that bad! I'm hoping our's isn't more than that! I just can't wait to be able to say I did it and I'm never doing it again! Good Luck!

 

[Disneyoverload42]

OK, brace yourself - including our house (which is not our biggest debt) we are over a quarter of a million (yes 250,000) in debt. DH and I both came from afluent backgrounds and when we got out on our own we really didn't know how to handle money.... I was a princess and if I wanted something I got it - Thankfully, I've grown up alot.

When we initially figured out our timeline, it was going to take us 15 years to pay it off. However, 4 years into it, we can see the light at the end of the tunnel. What you didn't figure into your equation was the little windfalls and bumps If you get a tax return (which you shouldn't!!) apply it to your debt. If you get a raise, apply it to your debt. You get a rebate apply it to your debt. We are now looking at 7 years total for 15 years of debt - 3 more years, and the closer we get the MORE frugal I become because we are SO close.

My absolute tips -

Make sure you give yourself an allowance - if you deprive yourself totally, you will fail. DH and I tried the first few months to live on $10 each a month. We would get a windfall and blow it like crazy because we were so deprived and then feel guilty afterwards.... We now have $10 a week each - which isn't much, but it is enough to not feel guilty about getting a cup of coffee or grabbing lunch on a really bad day.

Go to paycheck city or another site and figure your taxes down to where you are maximizing your paycheck, but not going to have to owe at the end of the year. We found that because we itemize, we actually can take up to 15 deductions before we owe (we have 4 kids) HOWEVER - don't because anything over 10 has to be reported by your employer to the IRS and can flag an audit.

Make sure you have a small emergency fund. Our emergency fund of a 1000 has paid for a car accident (towing and rental), 2 extensive ($900+) car repairs, and a 2 month job loss.

And we are driving 2 1999 cars with over 170K on each - I dream of the day we can walk into the dealership with $5000 and get a 60K mile car


You can do it!!!