Getting out of Debt in JULY!! - Page 2

[nyssaneala]

Originally Posted by AnkaJones 
 We paid off >70% of our >100k student loan debt over the past year, but moved last month and totally lost all our focus -- eating out, frivolous spending, etc. 

Anyway, here's to getting gazelle intense again!!!

Anka

That's awesome! Congrats! Our goal for student loans is to pay off one loan each year, which would take 4 years, since there is one loan for each year of medical school! Although I'm hoping it will happen a little faster than that. We are just at the point now that we can start making payments on top of the minimum monthly payment. We also plan on doing the matching retirement contributions, we will be eligible starting in January. I disagree with DR on that front as well.

[eirual]

Pogo,

In regards to DH. Some approaches to consider, if you haven't already:

• Put a concrete number on all of your debt and break it down over 3-5 years to see how much that means you have to put towards it per month.
• Calculate your net worths (value of everything you own - total of debt = net worth)
• Ask him what his goals are/where he'd like to be in 3 or 5 years and work the numbers so he has a roadmap to get there....even if you go astray/fall short, you're still heading in the right direction. If he doesn't have any goals, share yours.
• Let him know explicity that this is important to you and you want his help (this was no meek discussion for us, I was so frustrated with DH's lack of care and flawed thinking in regards to finances that it amounted to a full-blown argument and finished with him agreeing to try it just for a month....3 years later we're still doing it)
• Compromise on the side-job/personal spending money (in breaking down the funds, you could even do Plan A where you put away a bit less, but have more for personal fun and a Plan B where you go gazelle). DH has side-jobs and easily feels entitled to that money. I consent to some small splurges as long as the bulk of it has gone towards bills and what NEEDS to be paid.
• Create a visual chart...a pathway or road or rocket or flower or whatever with where you are now to where you want to be, with the spaces equally divided so you can colour in and visually represent your progress and goals.
• Ask for a one-month trial run doing it your way.

I hope you can find a way to make this all work, because it does sound awfully messy for now. Just remember even if you can't make everything work perfectly, you can still work towards the goals you set for yourself. Some years, just not incurring more debt is all we can do. Good Luck, mama!

I'll look into your other consolodation posts to get a better idea of where you stand. I don't think it's wrong to consolodate as long as you make a commitment to stop borrowing and have a plan to attack that monster figure (lots of baby goals so you can still feel that success).

[Wolfcat]

Ok, after two years of financial rollercoastering, dh has a new job that will increase our household income by about $1400/month. This will almost double our take-home. Yay!

[trekkingirl]

that's awesome news wolfcat!

$1564.74 in my EF! Pretty happy to finally have a savings for the first time in 10 years of marriage.

Wish I could say that I've been focused on paying down debt. I have been focusing more on saving for a house. Although being debt free will free the grip of the mortgage so I will try to pay down the debt before I get locked into a house.

Edited by trekkingirl - 7/26/12 at 7:41pm

[Pogo0685]

Originally Posted by eirual 

Pogo,

In regards to DH. Some approaches to consider, if you haven't already:

• Put a concrete number on all of your debt and break it down over 3-5 years to see how much that means you have to put towards it per month.
• Calculate your net worths (value of everything you own - total of debt = net worth)
• Ask him what his goals are/where he'd like to be in 3 or 5 years and work the numbers so he has a roadmap to get there....even if you go astray/fall short, you're still heading in the right direction. If he doesn't have any goals, share yours.
• Let him know explicity that this is important to you and you want his help (this was no meek discussion for us, I was so frustrated with DH's lack of care and flawed thinking in regards to finances that it amounted to a full-blown argument and finished with him agreeing to try it just for a month....3 years later we're still doing it)
• Compromise on the side-job/personal spending money (in breaking down the funds, you could even do Plan A where you put away a bit less, but have more for personal fun and a Plan B where you go gazelle). DH has side-jobs and easily feels entitled to that money. I consent to some small splurges as long as the bulk of it has gone towards bills and what NEEDS to be paid.
• Create a visual chart...a pathway or road or rocket or flower or whatever with where you are now to where you want to be, with the spaces equally divided so you can colour in and visually represent your progress and goals.
• Ask for a one-month trial run doing it your way.

I hope you can find a way to make this all work, because it does sound awfully messy for now. Just remember even if you can't make everything work perfectly, you can still work towards the goals you set for yourself. Some years, just not incurring more debt is all we can do. Good Luck, mama!

I'll look into your other consolodation posts to get a better idea of where you stand. I don't think it's wrong to consolodate as long as you make a commitment to stop borrowing and have a plan to attack that monster figure (lots of baby goals so you can still feel that success).

Some of this I have tried, some I have not. I don't even know how to calculate what the value of what we own is. I am sure its not going to be a lot though. We have slowly been making headway on it, last night he actually asked me if I could find a way for him to buy some brewing supplies he needs so he can make some beer for when my Aunt comes to visit next month. And because of the nice way he asked I told him that as long as it was under $50 I would figure out a way to make it work (partly because he did a side job yesterday and made at least $40 so far and is going back today to do more) and then he asked if there was any way I could figure out how to let him have $100 in October so he can but something he needs at a gun show. I told him I would work on it. So I feel that because he is asking nicely and actually asking me he is starting to come around. But then yesterday we also got into an arguement because I traded for a bird cage that I know he loved, and it cost me no money at all, with the thought of we would get birds for it sometime in the next 6 months to a year, at the earliest December and I told him this when I got it but he wants the birds NOW. He has been bugging me every day about when we are going to get them and what kind we are going to get. I feel we have enough on our plate right now with the animals we have and with me expecting a baby, and I do almost all of the animals care myself so I don't want to add birds to the mix. He feels that they are only going to cost a few dollars a month for food and that I should just let him go buy them. And while it may only cost $10 a month for food, the birds are $20 each and we will probably get 5 or 6 because its a HUGE cage so thats $100 or more we dont have plus the fact of me having to feed and water them daily and clean their cages. So we are making some progress and then we go back to the "but I want it NOW". I have made the calendar for next month that shows all the bills and when they are due, and I started putting how much is actually owed and the minimum payment so hopefully he will see that as motivation instead of just saying oh $25 isnt a lot of money and instead he will hopefully see and say to himself "OMG $25 a month will never pay off this $1,222 balance". So we will see how that works out. 

AnkaJones - Oh my gosh that is so inspiring that you paid off so much! 

WolfCat - That is wonderful news! the great thing about being smart with your money is that instead of blowing your extra money you will now be able to save even more!

Trekkinggirl - That is quite a big chunk of money you have saved up! Congratulations! I hope to have a savings by the time I am married for 10 years! We will be married for 4 years next month, so I have a few years to go.

[lilacvioletiris]

Pogo, doesn't always seem like one step forward, two steps back somedays? I bought a used smart phone the other day because of a convention I am going to where using one will be super handy. Now DH wants one now too.  Our cell phone contract won't allow an upgrade until middle September so he was looking on craigslist like I had been.  Just wait DH until you are working some more overtime again. I paid for mine from some extra teaching I did this summer.  Balance is probably the most important thing and it is good to see that your DH is getting just a little bit better at that with some of his other wants.

AFM, Big chunk of money sent to the U.S. Department of Homeland Security and yes I had to spell it out exactly on our check - no "USDHS or DHS".  Getting DH his ten year green card and saving for his citizenship paperwork (hopefully next summer so I am no longer required to sponsor him, which if I quit my job to stay home with kids gets a little dicey).  Such a relief to have that paperwork out the door.  Hoping that all goes well with immigration and we don't have to go for an interview.

[kitteh]

lilacviolet, I thought that once you have the first permanent resident card, you no longer have to have a sponsor? DH just got his10 year green card a few months ago, and I was unemployed for about 6 months while we were going through removal of conditions and it was no problem. DH wants to go for citizenship right away. I think he was hoping that it would somehow magically work out so that he could vote in the November elections, but that time frame is totally unrealistic. So I think we are going to wait until our finances are in much better order before throwing more money at the US government.

We are still plugging away. We have just under $2,000 on a credit card at 0% interest and I'd love to just pay it all off with savings to be rid of it, but that doesn't make any sense because we're not paying interest. So instead we continue to pay about $250/month toward it and it should be gone by early next year.

Other than that debt, we've got my student loans to pay off, which are over 20k. I'm kind of ignoring those right now, paying on the IBR and hoping to use the loan forgiveness program for teachers to help reduce the amount we owe. I just hate having this debt still.

Currently have $6,000 in savings and hopefully we'll be able to pump up the monthly contribution so that we are at or above $12k by next summer. Just gotta keep plugging away.

[eirual]

Congrats, Wofcat, that's awesome news!! I'm hoping I'll be able to report the same in a year's time once DH is done school (come on, income jump!!...I really hope his schooling pays off!)

One other thing I thought of, Pogo: I heard DR talking last month about what to do if you have a sporatic income. Even if you don't, I still love his suggested method. He suggests ranking your bills in priority (i.e. you NEED a roof over your head, you NEED food, from there decide if you need most heat, savings, water, cable, internet, cell phones, new shoes, etc....want a trip to Hawaii?? Sure! Put it on the list, but it may be number 97 in the line of priorities.) Then, depending on what you bring in that month, you work your way as far down the list as you can until your money runs out. Some rough months you may only pay your rent/mortgage, other months you may make it half-way down your list. We don't have a variable income, but thinking through my priorities has helped me control all my wants. I dont' have a physical list made, but it's in my head. I've encouraged DS to do the same (instead of wanting 15 different items now and adding new ones everytime h'es at a store, he's created a list of his top wants, and then when we're at the store and he wants something new I ask him "well, right now you're saving for x, then y....is this more important or should we add it to the list and come back for it later?"

Perhaps a Wish List for your DH would help him prioritize his wants...so sure, you can have some birds, but then we won't be able to afford your brew equipment until September. It might give him some control to see his wants get ticked off the list and goals to work towards.

It definitely does sound like you're making some great progress though, so here's to hoping he sees the light and gets motivated to attack your debts and get moving forward.

[lilacvioletiris]

kitteh, glad to hear you didn't have issues with Removal of Conditions while you were unemployed. From what I understand that Affidavit of Support that I signed for my DH is in force until he becomes a US citizen or he has 40 quarters of work (usually 10 years) in the U.S.

http://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=720b0a5659083210VgnVCM100000082ca60aRCRD&vgnextchannel=720b0a5659083210VgnVCM100000082ca60aRCRD

We have created a savings account for the $680 dollars needed to become a naturalized citizen for him.  We will apply July 2013 after we have been married 3 years.  DH isn't even concerned about voting, strangely.  He says he will, but that he thinks the politicians down here only attack each other rather than have legitimate directions for new policies.

eiraul, I love the idea of a prioritized list. It is helpful to decide what comes next for any "extra" money we have that hasn't already been ear marked to pay off debt.

[Pogo0685]

eirual - that is a good idea with the list. I will have to give him the idea and see if he likes it. 

I did really good yesterday and stayed under budget with groceries ($100). The food I bought will last 2 weeks if I can do it right, I might need to go buy some more fruit this weekend, but I already have that thought out and have planned on spending $20 on it.

I did spend $12 that was not in the budget, but I made $10 they day before at the flea market and pulled the other $2 from my change jar. I bought the knitting needles I needed to finish my DS's Christmas present that I am working on. I also bought the size I will need to do the hats I am making for my DH and my Mom for Christmas so I figure the $12 was worth it, and I am sure I will be able to use them over and over again to make me some warm socks for this winter, as long as I can figure out exactly HOW to make socks....

So my planned budget for the next week is this, right now we have $426 payday is tomorrow and I plan to get about $400, we should get more but until I know for SURE we will just plan at $400 extra, so I will then have $826, house payment comes out on the 1st, that will bring us down to $167, we have one bill due before the next payday ($25) and I have budgeted $40 in gas for the week, and then the $20 for fruit so that will leave us with about $82. DH should be getting a check from his second job on the first, but I don't know how much that will be, and he has been helping a friend for extra money so he should be getting about $80 on Friday for that, and he is going out of town this weekend to help said friend at a gun show and he told me he was going to tell him he needs cash instead of being paid with products this time (last time he got paid with a keg of gunpowder... nice to have as we are re-loaders and shoot a lot but gunpowder is not going to pay the Chase off) so we will see on Sunday how much he makes from that. If all this works out like I have it in my head I will be able with no problems to pay the next 2 weeks of relentless bills that come. Is it just our household or does anyone else notice that 90% of their bills are due in the 2nd and 3rd week of the month?? I hope to be able to add $25 to my emergency fund by the end of this month. I also got the kinda good news that I will be able to work 35 hours a week now instead of the 33 I was getting, so while not really much of an increase, over the period of a month it can pay at least one bill, I figure its about an extra $80 before taxes in a month, so overall its about $50 after taxes.