*The Dave Ramsey 'Baby Steps' Thread*

[WDW_fan_in_TX]

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If you are in the app or on the website, toggle the "spent" to "remaining" to see what you have left or vice versa. On the app, the options are at the top of your screen.

Oh yea, I've got that. I realize it tells you what's left in the categories. But it doesn't link to the bank, so you don't know what's left in the bank account. So that's why I keep both ED and a spreadsheet. Easier for me to do it that way.

 

[WDW_fan_in_TX]

Small update:
Step 1 complete as we hit our EF goal.
Step 2 has begun. We've started by completely paying off both credit cards. That'll free up $60/month extra to push toward the bank loan ($2k). Hopefully by paying $300/month instead of $200/month, we can knock it off a month earlier than expected.

 

[ruadisneyfan2]

Small update:
Step 1 complete as we hit our EF goal.
Step 2 has begun. We've started by completely paying off both credit cards. That'll free up $60/month extra to push toward the bank loan ($2k). Hopefully by paying $300/month instead of $200/month, we can knock it off a month earlier than expected.

Small update? That is a HUGE step! Congratulations!! Woo hoo!!

 

[ruadisneyfan2]

When I first started following DR and paid off my first cc, I kept logging in just to see it say $0 balance.

 

[Turn the Page]

When I first started following DR and paid off my first cc, I kept logging in just to see it say $0 balance.

When I paid the final balance off mine I paid it directly through the cc website vs my banks online bill pay like I usually did just so I could click the button that said "pay card balance." Silly? Maybe. But it gave me a thrill

 

[WDW_fan_in_TX]

When I paid the final balance off mine I paid it directly through the cc website vs my banks online bill pay like I usually did just so I could click the button that said "pay card balance." Silly? Maybe. But it gave me a thrill

That's what I did. I don't use Bill Pay through my bank on anything. I just went to the website, clicked pay my bill and clicked pay balance. But as I said, I'll keep an eye on it over the next few days.

 

[WDW_fan_in_TX]

Small update? That is a HUGE step! Congratulations!! Woo hoo!!

Well, small for the majority of folks. Most folks have thousands in CC debt/payments. So the amount was small. That's what I mean.

 

[ruadisneyfan2]

“The journey of a thousand miles begins with one step.”
- Lao Tzu

 

[FreeTime]

Awesome work @WDW_fan_in_TX it is all about those baby steps. I’ve been thinking about you and your shoes quite a bit as I increase my steps. If you want to have a small celebration for reaching a paid off of one debt milestone, I encourage you to go and find a lower cost entry level walking shoe as I know you are striving to increase your steps. Again, awesome work!

 

[WDW_fan_in_TX]

Awesome work @WDW_fan_in_TX it is all about those baby steps. I’ve been thinking about you and your shoes quite a bit as I increase my steps. If you want to have a small celebration for reaching a paid off of one debt milestone, I encourage you to go and find a lower cost entry level walking shoe as I know you are striving to increase your steps. Again, awesome work!

Thanks. I don't want to go crazy because the end game is still paying off debt. And anything we use counteracts that end goal. But we did both take $200 each to buy necessary items. For me, it was jeans and tennis shoes. For DW it's work clothes and work shoes. Neither of us have bought work/dressy clothes/shoes in probably 10 years.

So, I bought 2 pair of new shoes yesterday. I went to 6 different shoe stores before finally going to an Under Armor store and finding 2 pairs that cost the same amount as 1 pair of Nike. And the 2 pair I've had for 11 years was Under Armor. So I fell in love with them. And I've got 2 pairs of jeans in my Amazon cart right now. But after that little bit of enjoyment, it's time to get back to work. Next step is the bank loan ($2k). And DW found her pair of work shoes at the same store. Hers were only $30. So she's still got some left, but we just ran out of time looking for tennis shoes for me.

 

[barkley]

Well, small for the majority of folks. Most folks have thousands in CC debt/payments. So the amount was small. That's what I mean.

you are doing SO well-you just really need to consider changing your mindset about credit card debt from what has been sold to the public about it being the norm. in reality less than half of adults in the u.s. have credit card debt. recent reporting from the federal reserve showed 54% of Americans carry ZERO month to month balances on credit cards. bankrate's most recent reporting supports these numbers.

keep chugging on with that payoff and then resist bogus peer pressure fed to us by the credit card companies to slip back into using them for non emergent purposes.

 

[WDW_fan_in_TX]

you are doing SO well-you just really need to consider changing your mindset about credit card debt from what has been sold to the public about it being the norm. in reality less than half of adults in the u.s. have credit card debt. recent reporting from the federal reserve showed 54% of Americans carry ZERO month to month balances on credit cards. bankrate's most recent reporting supports these numbers.

keep chugging on with that payoff and then resist bogus peer pressure fed to us by the credit card companies to slip back into using them for non emergent purposes.

Thanks. The CCs have been paid off as of this morning. I won't close them, but I will charge something small every couple of months then pay off a few days later. Just to keep building the credit score.

 

[CoP Luv]

Thanks. The CCs have been paid off as of this morning. I won't close them, but I will charge something small every couple of months then pay off a few days later. Just to keep building the credit score.

I would encourage you and anyone else in this situation to educate themselves on how credit scores populate.

You have two very low limit, low account history cards. One with a large monthly fee attached to it.

Once debt is closed (credit cards, loans, etc) they remain on your credit history for up to ten years after closure.

Do people stop paying student loans or car loans to keep their credit score up and their credit history of paying available? No. That would be incredibly unwise, and creditors would be able to see on your credit report if you paid on time, etc even after you finished paying off a loan for up to 24 months.

What will help your credit score more is by paying the car loan, personal loan, and school loan on time. Having payments on loans more than 30 days late will damage your credit score, but not plummet it unless it is done consistently.

Please don’t make assumptions as to what will happen if you close two tiny credit allowances. Your score might go down, but as long as you keep on your other payments, it will continue to go up.

Credit scores are great if you need to take a loan out. I hope you don’t need to take any further debts on at this point for you.

Close the cards.

 

[WDW_fan_in_TX]

Please don’t make assumptions as to what will happen if you close two tiny credit allowances. Your score might go down, but as long as you keep on your other payments, it will continue to go up.

Credit scores are great if you need to take a loan out. I hope you don’t need to take any further debts on at this point for you.

Thank you for that information.

 

[barkley]

Thank you. I'm not making an assumption. I was just going off what happened last time I closed a card. My credit utilization went down, and my score tumbled to sub 500. I've worked so hard to get it back up 200 points, and I don't want to have to do that all over again. There is no might to it going down. It will plummet, and I'll start the 3-year journey over. It already has once.

And I hope I don't ever need credit cards again, either. But I have insurance on my car, and those rates are based on credit scores. I plan on buying a house one day, and I'll need a credit score for that. I'm hoping that's within 3 years but AFTER I get all debt paid off. And if that's the case, I sure can't afford for my credit score to tumble like it did when I closed my last card.

you are on the right track paying off the cards/getting ALL payments in on time (cuz besides the late fees some utilities report to the bureaus while others don't). a resource that could be VERY helpful if your ultimate goal is to buy a home is to utilize your state's (I checked-texas has one) free consumer credit and financial counseling services. they can help you formulate a plan that does not cost you in fees to maintain/improve your credit. they can also provide you with insight into programs local and statewide that help first time homebuyers that will show you where your credit needs to be at/what kind of savings you need to have in place (some of the programs allow for much less down/far better interest rates than what you imagine you would need/qualify for just looking at traditional realestate stuff online).

 

[barkley]

Thank you. I'm not making an assumption. I was just going off what happened last time I closed a card. My credit utilization went down, and my score tumbled to sub 500. I've worked so hard to get it back up 200 points, and I don't want to have to do that all over again. There is no might to it going down. It will plummet, and I'll start the 3-year journey over. It already has once.

And I hope I don't ever need credit cards again, either. But I have insurance on my car, and those rates are based on credit scores. I plan on buying a house one day, and I'll need a credit score for that. I'm hoping that's within 3 years but AFTER I get all debt paid off. And if that's the case, I sure can't afford for my credit score to tumble like it did when I closed my last card.

you are on the right track paying off the cards/getting ALL payments in on time (cuz besides the late fees some utilities report to the bureaus while others don't). a resource that could be VERY helpful if your ultimate goal is to buy a home is to utilize your state's (I checked-texas has one) free consumer credit and financial counseling services. they can help you formulate a plan that does not cost you in fees to maintain/improve your credit. they can also provide you with insight into programs local and statewide that help first time homebuyers that will show you where your credit needs to be at/what kind of savings you need to have in place (some of the programs allow for much less down/far better interest rates than what you imagine you would need/qualify for just looking at traditional realestate stuff online).

 

[WDW_fan_in_TX]

you are on the right track paying off the cards/getting ALL payments in on time (cuz besides the late fees some utilities report to the bureaus while others don't). a resource that could be VERY helpful if your ultimate goal is to buy a home is to utilize your state's (I checked-texas has one) free consumer credit and financial counseling services. they can help you formulate a plan that does not cost you in fees to maintain/improve your credit. they can also provide you with insight into programs local and statewide that help first time homebuyers that will show you where your credit needs to be at/what kind of savings you need to have in place (some of the programs allow for much less down/far better interest rates than what you imagine you would need/qualify for just looking at traditional realestate stuff online).

Great advice. Thank you so much.

 

[ruadisneyfan2]

Well, small for the majority of folks. Most folks have thousands in CC debt/payments. So the amount was small. That's what I mean.

It's not about the $ amount. It's about the perseverance and determination.