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Getting Out of Debt in November 2013 - Page 2

post #21 of 48
Thread Starter 

With our dog we spend about $150-200 per year at the vet for his yearly "checkup" and shots (costs I am sure vary widely depending on where you live and if you opt out of certain shots etc...) There's always at least one unscheduled visit to the vet per year for him (about $70 usually) - we live in the country - he gets into things ;-)  We spend about $100 per year on toys and treats for him (we are pretty indulgent, I am sure this could be much less)

 

That works out to be about $30-32 per month for us. That's with putting the dog food in with the people food - which we do because my partner buys the dog food at the grocery store when he shops for the family.

post #22 of 48
Realized I hadn't responded to a couple of comments...

@pollyanna02, I hesitate to use any more savings to pay a big chunk of the credit card. I've used some to pay off recent bigger charges here and there. But the savings is our emergency fund & it's pretty much equivalent to only 2-3 months of expenses or about 5 months' worth of rent right now. I just set up an autopay of $100 to the CC bimonthly so at least there's that. I also have an automatic transfer set up of $150/mo to savings but maybe I should pay more to the CC for now?

Re: cash flow plan, I'll look around and see of I can find some kind of template. It's hard because my DH is notorious for spending money without checking to see what's going on with our bank account.
post #23 of 48
What is the interest rate like on your credit card debt?
post #24 of 48
It's pretty low for a CC - 6% I think? I have to double check. I just realized DH also has a 1400 balance on a line of credit from a credit union...and massive student loans. (Those I did know about.)
post #25 of 48
How massive? Just commiserating here, we are currently "ignoring" 25k of student loans because I'm hoping to have some of it forgiven for public service work or whatever, teaching... But that's probably not a wise choice. Probably save a bunch if we just continued to "go gazelle" and pay off the student loan.

Usually I'd suggest that you use your savings to pay off debt, but at 6% that's like a student loan. The way I see it, when you're paying low interest rates the most important thing is determining what makes you feel powerful. For me, that means a healthy savings account. I know it would probably be smarter to use our 10k to pay off half my student loans, but then I'd feel like we have no safety net. Plus, seeing 10+k in the bank just FEELS good, you know?
post #26 of 48

well while you are paying off the debt all money should be going into the debt once you have the 1k EF so every thing over that should go to debt.

the 100 bi monthly and the 150/m your having put in savings should all go toward the same debt work the snow ball :)

post #27 of 48
Putting the whole $350 into debt makes sense to me, but no way would I reduce our EF to $1000, at least not unless it was for a true emergency! That doesn't even cover a month of rent where we live (and we are in a modest 2/2 in half of a duplex). We've been in debt with no EF before and having a little safety net is a huge relief. For various reasons if something drastic happened I really need that to be there.

Now that I get the snowball idea - we are also still paying off the copay on our hospital bill from DD's birth over a year ago but there is less than $600 left to go. Paying that off would free up $100/mo. Then we have to pay off our washer and dryer but I think that should go pretty quickly. And THEN the CC!

The student loans are all my DH's and they are 3x what you have, kitteh! I found out the extent of them long after the fact. My DH has some real issues around spending and managing money and most of those student loans were not good judgement calls. We have jointly paid off several debts he's incurred without my, let's say, participation! Obviously they affect us as a family but I feel like I'm enabling him if I keep putting myself in charge of efforts to bail him/us out. So I'm ignoring them for now too...but I don't really know what else to do about it.
post #28 of 48

just so you know student loans never go away. i kept putting them off because money was tight but the yr the IRS took my whole tax refund got me going on paying them off.  and you have the right idea the whole 350 toward the smallest debt and work your way up while adding more to the snowball. :). also you might look into takinga FPU class and drag your husband there if you think you can. it might help to get the both of you on the same page.

post #29 of 48

Getting your partner on the same page about money is so important. My DH got all excited last night when one of his credit cards sent him a notice saying he had a balance increase.  "See now we have more of a safely net."  Um, no, credit cards are a curse and scourge and I do not want to spend anymore money from a credit card.  It has been almost 2 years since we started following the Dave Ramsey way and there are still things, especially having open credit card accounts and a "good credit score" that DH just doesn't agree with me on. We do live by our cash flow plan and that is what keeps me financially sane.  We are also good at discussing purchases so that there is not a "surprise" that shows up on either the bank statement or a credit card that I thought was paid off.

post #30 of 48

subbing

post #31 of 48

Just saw this giveaway on Dave Ramsey's facebook page.  Check it out http://www.daveramsey.com/giveaway

post #32 of 48

thanks lilac, I entered his giveaway!!!!

post #33 of 48

You can enter his giveaway once every 24 hours and each week they pick a winner for some cash and the other prizes. I read through the terms and conditions and the amount of cash increases each week and the other prizes change.

post #34 of 48

i'm really hoping to win this weeks because i have someone to give the other 2500 to :). my mom's roommate has been paying down a sears bill for the past 2 yrs and still has 1850 left on it it is his only debt and i would love it if he could pay it off.

post #35 of 48

I am not sure who I would give the "friend money" to if I was to win. I would want to give it to someone for whom it would make the most good.  So many of my friends continue to live the "I will pay off the credit card later" lifestyle, have no budget, and no plan to get out of debt.

post #36 of 48
I have several friends who could really use the money if I were to win (heck, who couldn't?) but I have one in particular that I encouraged to enter and we would pick one another. She has supported me and I have her through lots of financial ups and downs by listening, encouraging, understanding, and sometimes sharing resources. Honestly, she could use the money however makes sense to her but I think she would use it to eliminate debt and it would definitely bless her family.
Fingers crossed for all of us!
And lilacvioletiris, you could always share with a Mothering "friend" - ;-) ha ha ha
post #37 of 48

dziejen, I had actually thought of that since those of you on this thread are actively working toward a debt free lifestyle and working through the baby steps.  One of my acquaintances had actually won money from a Dave Ramsey giveaway several years ago and it was enough to pay off their mortgage. I don't remember what the whole deal was, I think something about writing an essay about what their biggest debt was that was holding them back from giving as much as they would like or something. I hope someone I know wins something this time too.

post #38 of 48

Things I've done towards getting out of debt so far this week:

 

Spent more time thinking about a realistic budget for us

Spent $40 on groceries (way less than usual) and ate at home for nearly all of the week

Refreshed and updated my Mint account and realized how off track we've been!

Sorted through bills and unopened mail and made preliminary list of debts/bills owed with account info, due dates, numbers, etc.

 

My next steps are to

 

1. Try to have a conversation with my DH about a budget we can both live with and a debt repayment strategy (we have very, very different views and habits regarding money and it's extremely hard to get on the same page about finances)

2. Make cash flow chart

3. Make a list in Excel of debts and overdue bills & rank in order of priority

4. Revise our budget to optimize repayment of debts

5. Call payees as needed to make payments & arrangements

 

Feeling a little more optimistic.

post #39 of 48

part of the DR plan is that when the budget is made the couple sits down and the other person looks at it and changes something. i have been watching some DR youtube videos about relating with money.

as a single parent i really have no one but myself to account to.

post #40 of 48

esinedeggplant, looks like an excellent list to begin with. Getting your DH on board is important. My DH wants to do all the accounting in his head and not write it down, but he knows that it makes me "happy and docile" to have a spreadsheet where I account for each expenditure and each incoming amount of money. Knowing where your money flows is so important to figure out where to "stop the leaks" in your finances.

 

Having my spreadsheet with my "debt snowball" has been encouraging to me too. I have it set up so it takes into account the interest rate and the payment amount I will make each month so I have a date for each different debt that I am paying off. Each month it gets recalculated a bit (automatically because of the equations in the spreadsheet) based on how many days I actually waited to pay the bill. It is amazing to see how 50 cents on the first bill can turn into a couple of dollars saved on the last bill as I go through my spreadsheet to determine the amount of my last payment.

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