Dumping Debt with Dave Ramsey/FPU Club - Page 3

[rosie_plus_one]

Originally Posted by MSAX

Can someone explain the logic of tghe $1000 emergency fund before pying dow debt? I have everything current and we are payin down debt but no EF right now so I wonder if instead of $1000 to the cc this month I should save it?

Thanks!

You need a little cushion in case Life happens!! We're trying to get off the credit cards, so you need a little fund so that when your brakes go out on your car unexpectedly, you don't have to swipe Mr. Visa to pay for it!

Also, you would be amazed at how much better you sleep at night with a grand in the bank! We have had it before, and now only have half, and it's a marked difference in how comfortable I feel with our finances.

[mtm]

mimie, that sick feeling lessened for me once we could see where our money was going, find ways to cut, etc. Once we had a budget and saw how long it would take to pay things off and started doing it, I felt a lot less anxiety.

[alleyoop]

We paid $350 to our cc debt this week but DH used the card , so we are up $250 down $350.

And Rosie, can you correct my screen name in your accountability thread? It's alleyoop - not allepoop. Thanks.

[angela1435]

allepoop.........:

Sorry, couldn't help myself............

[rosie_plus_one]

Originally Posted by alleyoop

We paid $350 to our cc debt this week but DH used the card , so we are up $250 down $350.

And Rosie, can you correct my screen name in your accountability thread? It's alleyoop - not allepoop. Thanks.

I AM SO SORRY!!! I was trying so hard when I did that not to mess up anyone's name! Good grief.

So should I update you to $2400 left to pay off?

May I ask what he charged to the CC? (I'm curious because we have this same problem in my house, but it's usually because I underestimated a budget category.)

[rosie_plus_one]

Oh also - I'd love to add more info to our chart for everyone! Let me know how much of the $1,000 you have saved so far, or let me know how much debt you have left to pay off!

[alleyoop]

Originally Posted by rosie_plus_one

I AM SO SORRY!!! I was trying so hard when I did that not to mess up anyone's name! Good grief.

So should I update you to $2400 left to pay off?

May I ask what he charged to the CC? (I'm curious because we have this same problem in my house, but it's usually because I underestimated a budget category.)

He charged tile for our downstairs at Home Depot. All agreed on and budgeted items (we were flooded out in April and had to replace the flooring downstairs), but he left his debit card at home. DH was supposed to write a check to the credit card immediately since we had the cash,but did not, in fact never did until the bill just came in. And then the money went to some other expense.

I'm seriously angry at his irresponsibility but that is the way he is about money. Our getting-out-of-the-hole work this year had been mostly my doing and I have come to realize that I have to gently pressure him, and constantly do it, to stay on course. Ugh.

And thanks for the correction!

[mrskennedy]

We're saving the EF. But we basically don't have anything now. For us it was more important that we pay my tuition now instead of waiting 2 years. If you knew what we're dealing with, you'd get it... Anyway, the amount of EF we have depends on whether DH does anything stupid again (he paid a collections bill before we planned to and also ran up our cell phone bill, but we're canceling it tomorrow), and also on how much the fuel oil bill is. But yeah. We're working on the EF. And I'm also going down to the cheapest sattelite package we can get. It will cost less than breaking the contract.

[gratefulbambina]

We are just starting and I'm still reading the book. I have done BS1 and now working on BS2. I'm trying to find monies and sell things to cover a quick $1175 that I owe on dr bills, small credit cards and the such. Then I plan on really snowballing my other debts. After the first chunk of dept is gone, the next that is due is a Equity loan that is the 3rd high paying amount that I pay each month. I'm excited about this because I'll be paying whatever extra I can until the end of the year & then our tax return will pay this off with money left over. After that it will give me $152 extra a month to put towards my next bill plus the extra money that I was putting on it.

My main problems right now is I have never done a budget and it seems SO difficult to me. Also I majorily over spend at the grocery store and I'm going to find some threads on grocery story budgeting. I also am having a problem still buying unnecessary items or items for birthdays/Christmas spontaneously and I've put stuff on Credit cards instead of using my debit. I'm really trying to start fresh here it just seems old habits are hard to kill.

Did you guys actually cut up your cards??

[rosie_plus_one]

Pre Baby Step 1

evansmama
Sara Badger
mimie

Baby Step 1

rosie_plus_one (500/1000)
Miasmamma
Nitenites
phathui5
mrskennedy

Baby Step 2

Denvergirlie 30K by July 2008
mtm 4K to date, 12-18 months left
aufilia (BS3 completed - TTC)
alleyoop 2500 CC to go!
excitedtobeamom
angela1435
aircantu1 $16,591.54 left!!
Adamsmama
dealic $3,000 LOC left!!
gratefulbambina

Baby Step "Limbo"

beansmama

[rosie_plus_one]

When DP gets his paycheck this Friday, I am going to cut up our cards.

I'm going to try to convince him to cash his check and split it up amongst envelopes - he is definitely a person who needs a "blow money" envelope that has a limited amount of money in it. I am shocked sometimes at how much money he spends on pretty much nothing.

[phathui5]

Dave Ramsey on YouTube:

Dumping Debt

Part 1
http://www.youtube.com/watch?v=GWEUC...elated&search=

Part 2
http://www.youtube.com/watch?v=eVhVNq7-Og0&NR=1

Part 3
http://www.youtube.com/watch?v=6JSFI...elated&search=

Part 5

http://www.youtube.com/watch?v=uyrqa...elated&search=

Part 6

http://www.youtube.com/watch?v=dvQXLA9lRyE&NR=1

[dealic]

Can I please ask a favour of the list keeper? Can you please change my debt listing amont to $3000 LOC? I have a bad psychological reaction to seeing the car thrown into the total debt. I KNOW it is debt, but I need to be done with student debt. I've been moving towards clearing the LOC and other student debt for 2 years, and I can't handle seeing it go back to the start. I will roll the car in after I celebrate being done the other.

[rosie_plus_one]

Boy there isn't much more boring video than watching him answer telephone calls on his radio show! I love listening to his show but watching him twiddle his thumbs while the lady talks is a little dull.

Thanks for linking that!

Rebecca - Happy to!

[dealic]

Thanks! Its purely psychological, but "making progress" is what keeps me going.

[phathui5]

Where are you watching him answer calls on the radio show? (I didn't link that did I)

I thought I was linking FPU video.

[rosie_plus_one]

You did, I just started clicking around wildly and found a clip of him answering a woman's call during a Marriage & $$$ theme hour. It was a bit dry.

His TV show starts soon, anyone know what channel? Fox something I think.

[gratefulbambina]

Our debt right now is at $29,695.67. I will be able to get rid of 6 debts this month which is over 1/2 of who we owe to however these are the tiny medical bills and a couple small credit cards before hitting the BIG ones, but it still gets me really motivated. Are we going to run running totals each month?

[usandthegirls]

We are in BS1 and feeling very good about it.

[Killick]

We just got the book today and are in BS1. We have always been current on our bills, so we didn't have to do that one. We have almost nearly the full 1K. Should have it by the end of October. We also have the budget already done. Then comes the hard part. The debt snowball, but we will make it work.