My Not so DW right now wants to sell our SSR points

[arthur06]

If you are using a CC to pay medical and household bills, you almost HAVE to sell.

Some people are in the position that if they don't eat out as often, then can afford there DVC. However, you don't seem to be in that position.

best of luck, sell for now, and maybe join again when the time is right!

 

[rowbear]

How many points? I ask because I see many who buy hundreds of points and that is pretty dangerous to do. We have a small 120 pt. contract and I often want to add on, but then I see threads like this and think to myself having a small amount of points is a good thing.

It is all about what you can afford. You should never take out a loan for anything that you do not feel you can pay off early and preferably half the time. This means you can absorb some blows to income without them being devastating. We financed 300 points for 7 years and paid them off in 4 years.

 

[crisi]

When you start dieting, someone will tell you "nothing tastes as good as thin feels" - I think they are exaggerating a little, but not by much.

When you start debt reduction, its a similar thing. For the wants in life, you'll discover that they are so much more enjoyable when you don't have the stress of debt over your head. Its amazing how much more money we have now that we don't pay interest - its also amazing how much we make each year in interest and dividends - it adds up fast! And not having to worry - in this economy that is SUCH a great feeling to know our house isn't going to be foreclosed on - the mortgage is paid.

Its delayed gratification - something most of us aren't good at. But see it through and you'll find that its liberating.

You might enjoy the budget board as you reduce your debt and try and live within your means. You might also enjoy Dave Ramsey (I don't, but a lot of people find him inspiring).

 

[rowbear]

When you start dieting, someone will tell you "nothing tastes as good as thin feels" - I think they are exaggerating a little, but not by much.

When you start debt reduction, its a similar thing. For the wants in life, you'll discover that they are so much more enjoyable when you don't have the stress of debt over your head. Its amazing how much more money we have now that we don't pay interest - its also amazing how much we make each year in interest and dividends - it adds up fast! And not having to worry - in this economy that is SUCH a great feeling to know our house isn't going to be foreclosed on - the mortgage is paid.

Its delayed gratification - something most of us aren't good at. But see it through and you'll find that its liberating.

You might enjoy the budget board as you reduce your debt and try and live within your means. You might also enjoy Dave Ramsey (I don't, but a lot of people find him inspiring).

Agreed. What we do is have short term rewards mixed in with our long-term goal of retiring at 55. Right now we plan to spend about a thousand dollars upgrading 2 of our TVs. We can afford to do it now but that is not how we operate. By dragging out the purchase we get to enjoy thinking about it, talking about it, and reseaching it. Plus we know that the price of the TVs we want will continue to drop. But the point is to delay it so it spaces out the rewards and it reinforces our good habits of being patient and avoiding instant gratification.

Most likely in a few months a sale will happen or an offer for free shipping and we will decide the time is right to pull the trigger

 

[arthur06]

I agree with PP's! A couple of years back I went thru a seperation and custody battle. While all that was going my mortgage adjusted...up of course! I remember when the bank started calling...Life Stunk...

I managed to keep my house, credit cards were a major hit as were student loans. I met a great lady who helped...two incomes always does! But at the time, my priorities more then my house and loans were my son! I am blessed to have a good job with good pay, as does DW! We never would of bought DVC 3 years ago! We paid over $10,000 of to a lawyer in under a year!

We righted our ship, our credit score at times doesn't seem to go up fast enough! We have not been late on any payment in over 2 years! I save over $300 per month to savings, 6% of Pay to 401(k), 15% of bonus to 401(k)! Interest is a great thing if its working for you!

Hang tough! Be frugal, there were many nights that supper was grilled cheese! The pay offs are worth it!

 

[Mickey'sApprentice]

Have you considered a debt consolidation service that negotiates with your creditors and allows you to pay much less interest? My SiL did that. I guess it is working she hasn't gotten to daylight yet but she is getting close I think.

PLEASE be careful. This is often not a good option. Many debt consolidation companies have large hidden fees, and are no more able to cut your cost than you are. They can almost be called a scam.

BTW, I didn't mean to suggest that you move to Alabama, I was just explaining my own situation. You are probably better off in RI because salaries are higher. That means that your debt payments would be a smaller percentage of your income there, than here.

I also like the idea of a 50 point add-on before you leave the system, BUT only if you can really afford it.

 

[Tink-n-Belle]

Selling your DVC seems like the best thing at this time.

But once you are back on your feet you can always pickup another contract.

If you look at it logically if you sell 200 points and buy them back in the future for $5 more than you sold them for its only $1000 more- which is your yearly MF. So if you don't have to pay the mf for 2010 and get to use the capital to stablize your finances- you are doing the best thing you can do.

You seem to be on the right track !! GOOD LUCK!!

 

[BEASLYBOO]

I feel your pain, this 4th of July my boss helped us celebrate by making us work it and giving us another 5% cut in pay, the third in fact since Feb. Dire times call for dire action, you can sell now and buy through resales later. Another poster put the nail on the head, instant grattification is the reason this country is in the pickle that we're in now. Very few people actually save for what they want, charge it, finance it, worry about paying for it later. This is not a morality lesson, I've been guilty of it at times but at the end of the day, I trust that both you and your wife will sleep better by meeting your obligations.

DVC will be waiting for you when times get better!

 

[rowbear]

PLEASE be careful. This is often not a good option. Many debt consolidation companies have large hidden fees, and are no more able to cut your cost than you are. They can almost be called a scam.

That is true but the OP seems like a smart person so I am sure he would check them out and make a good choice.

 

[rowbear]

Oh and to the OP:

Be thankful you have a wife that is prepared to face these tough decisions with you. I have seen other people in your shoes where one of them refused to face facts and continued to be irresponsible and hurt them financially even more. It often leads to divorce.

Just make sure you face facts with her. If there is a way to keep the DVC and cut in other areas sit down with her and figure it out. If not, you have to man up.

From my experience women are often stressed more then men over financial problems because it threatens the home. Your responsibility is not just to your creditors but to your wife. You should naturally want to protect her from this stress.

 

[boettj]

How many points? I ask because I see many who buy hundreds of points and that is pretty dangerous to do. We have a small 120 pt. contract and I often want to add on, but then I see threads like this and think to myself having a small amount of points is a good thing.

We have 175. Not a small contract like some are suggesting, but not a blown out contract. There was never a loan on DVC. We paid cash at the time. A mixture of a bonus and the sale of some stock.


Thanks for the thought.

 

[SLM]

Best wishes to you on this tough decision-it sounds like you are a young couple and keep in mind you have many years ahead of you to enjoy DVC-once you have financial security you will feel better and less stressed.

 

[boettj]

When you start dieting, someone will tell you "nothing tastes as good as thin feels" - I think they are exaggerating a little, but not by much.

When you start debt reduction, its a similar thing. For the wants in life, you'll discover that they are so much more enjoyable when you don't have the stress of debt over your head. Its amazing how much more money we have now that we don't pay interest - its also amazing how much we make each year in interest and dividends - it adds up fast! And not having to worry - in this economy that is SUCH a great feeling to know our house isn't going to be foreclosed on - the mortgage is paid.

Its delayed gratification - something most of us aren't good at. But see it through and you'll find that its liberating.

You might enjoy the budget board as you reduce your debt and try and live within your means. You might also enjoy Dave Ramsey (I don't, but a lot of people find him inspiring).

I already view the budget board. They have great stuff at times on there.


Thank you for your thought.

 

[rowbear]

We have 175. Not a small contract like some are suggesting, but not a blown out contract. There was never a loan on DVC. We paid cash at the time. A mixture of a bonus and the sale of some stock.


Thanks for the thought.

Wow that does make it tougher since it is not about saving a payment but selling something you completely own. I feel for you buddy because that would hurt.

 

[boettj]

PLEASE be careful. This is often not a good option. Many debt consolidation companies have large hidden fees, and are no more able to cut your cost than you are. They can almost be called a scam.

BTW, I didn't mean to suggest that you move to Alabama, I was just explaining my own situation. You are probably better off in RI because salaries are higher. That means that your debt payments would be a smaller percentage of your income there, than here.

I also like the idea of a 50 point add-on before you leave the system, BUT only if you can really afford it.

I don't plan to get involved with a debt consolidation company. Like you have stated, many are not what they appear.

I understood your point about cost of living in Alabama. Honestly, it's been something we have looked at many times. Right now it does not work for us, but who knows what the future holds.

The 50 point add-on will not work for us. I'll need the full power of the money from the sale. That will significantly hit our bills. I am extremely aggressive at paying our bills. Once I get some overhead to work with, our bills will start to melt away.


Thank you

 

[boettj]

I feel your pain, this 4th of July my boss helped us celebrate by making us work it and giving us another 5% cut in pay, the third in fact since Feb.

Wow, I was pissed at a measly 5%. I am sorry to hear this. One thing about my 5% paycutt is that I am happy to still have a job.

Dire times call for dire action, you can sell now and buy through resales later. Another poster put the nail on the head, instant grattification is the reason this country is in the pickle that we're in now. Very few people actually save for what they want, charge it, finance it, worry about paying for it later. This is not a morality lesson, I've been guilty of it at times but at the end of the day, I trust that both you and your wife will sleep better by meeting your obligations.

DVC will be waiting for you when times get better!

I made this realization about a year and a half ago. Since then I have been making minor headway. Then we had few essential items that hit us. A water heater for example. There was no way around this. I got rid of my truck which only got 22mpg and picked up an Accord that gets 32mpg. This was in October of 2007. Long before the price of gas went through the roof.

So here we are today, still floating along. With our heads just out of water. I don't even want to think about what would happen if I lost my job. One thing is for sure, I'd work at MaCdonald's and another job if need to pay the mortgage and put food on the table.


Thank you

 

[lugnut33]

We have 175. Not a small contract like some are suggesting, but not a blown out contract. There was never a loan on DVC. We paid cash at the time. A mixture of a bonus and the sale of some stock.


Thanks for the thought.

Yeah, that's not a very big contract. I wouldn't consider that overextending yourself.

Is the problem going to be paying the dues which are around $800? The major expense of a DVC is actually taking the vacation. Can you wait around for 2-3 years and let the points accumulate? Two years from now you might need a nice long vacation.

 

[boettj]

Yeah, that's not a very big contract. I wouldn't consider that overextending yourself.

Is the problem going to be paying the dues which are around $800? The major expense of a DVC is actually taking the vacation. Can you wait around for 2-3 years and let the points accumulate? Two years from now you might need a nice long vacation.

The over extension is a combination of three credit cards, two car loans, a mortgage and a HELOC.


Selling the DVC would give of the option of paying off one of the car loans and one of the credit cards.


Thank you

 

[AnimalPrincess]

Hi There,

You are my DH and I am your DW. We are in a bad situation as well but for us it is the monthly payments as we financed. We also have 170 points. I brought selling up to DH again last week and he said absolutly NO WAY (and he hardly ever says that). He says that w/o DVC we would not vacation, which is probably true. Also the market right now for DVC is not good being a seller, plus we bought when we were CM's and now that we are not we would not be able to get that discount again. I can see his line of reasoning but that extra $200 a month would really help. We have decided to rent for the next year or two and that will still ehlp us out. Best of luck to you and your family!

 

[Mickey'sApprentice]

I don't plan to get involved with a debt consolidation company. Like you have stated, many are not what they appear.

I understood your point about cost of living in Alabama. Honestly, it's been something we have looked at many times. Right now it does not work for us, but who knows what the future holds.

The 50 point add-on will not work for us. I'll need the full power of the money from the sale. That will significantly hit our bills. I am extremely aggressive at paying our bills. Once I get some overhead to work with, our bills will start to melt away.

Thank you

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