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Dumping Debt and Building Wealth with Dave Ramsey~ FEBRUARY - Page 5

post #81 of 240
Quote:
Originally Posted by famousmockngbrd View Post

lalaland40, the student loan people are surprisingly flexible. They are just happy you aren't defaulting, which apparently is what most people do. You can call them and tell them you want to pay it back, but you have a kid and you're strapped for cash, and they will lower your payments AND your interest, a lot of times. If you can make lump payments, like when you get your tax check, they will defer payments, and sometimes they will even cut you a deal. For instance, I was in default of a small (1800) student loan. I finally contacted them and agreed to make small payments of $50 a month. After a few years of this, the student loan people contacted me and asked if I wanted to settle the debt for $485 - at the time I owed about $900. I said hell yeah, lol. So be aware you can propose a settlement yourself, and they may take it.
Thanks, I can actually pay the minimum on my student loans. They are being moved around because they were sold. Looking at the lump sum total is upsetting to me just because it seems like they will never be paid off. I like looking at them individually much better because I can certainly pay off the smallest before the end of time.
post #82 of 240
Quote:
Originally Posted by shanetedissac View Post
Welcome!

check out dave's web site

www.daveramsey.com
Ha. Thanks for the link! I was looking on there today, but for some reason I missed the baby steps
post #83 of 240
Hi ladies! Sounds like there's a lot of progress being made here! January was our first "Dave" month and our budget was . . . busted. We failed to plan for some specific things we knew were coming--ie, a visit from the MIL meant more running around, so our tight gasoline budget didn't work, and we got our last lawyer's bill for a few hundred, but it all worked out ok.

We're doing something just a little different than the strict Dave plan for our budget, but I found it on another Dave site and it works pretty well so far. We're doing "month ahead budgeting." I always have extra income the first of the year from holiday pay, overtime, etc so over a couple paychecks, it was enough to cover a month's expenses.

So, when we sat down to do February's budget, we were only allowed to count January's income (whatever was left.) As the paychecks come in this month, they will be set aside and then the total of those will go towards March's budget as income. Yes, we float the money for a month, but there's no question of which check a bill comes out of and it gives us the peace of mind of a slightly larger emergency fund. The envelopes are funded, the extra has been mailed off to the credit card company, and there was enough "extra" to catch up a couple of our sinking funds like car insurance (I get to mail off a check for the remaining three months tomorrow ) and our property insurance.

My only downer right now is that we have a HUGE tax return coming--not intentional, but a result of only working half the year but having taxes withheld at the normal rate AND an adoption tax credit. We don't, however, have a birth certificate for babe yet, nor a SSN, so we have to wait a few weeks until his tax ID number shows up so we can file. It irks me to know I'm paying the credit card company interest during that time because it will ALL be paid off as soon as the tax return arrives. :

So--here's my status

BS#0 - already done
BS#1 - done + month ahead budgeting
BS#2 - approx $60k, aiming to get $36k done this year!
BS#3 - not there yet
BS#4 - Still contributing company match. Not willing to stop.
BS#5:- Nothing yet--babe is still young though, so we'll catch up!
BS#6:- Can't wait!
post #84 of 240
Okay so you can add me now


0-- Get current on bills - Just about, this was the first month we weren't able to make a bill
1 -- $0/$1,000 to start an Emergency Fund - Starting
2 -- $0/$7450 Pay off all debt using the Debt Snowball - Ring, Capital One, Capital One, Chase, Discover, Us Bank; will have Ring, and both Capital Ones paid off completely in a week and the other three will be very low.
3 -- Three to six months of expenses in savings
4 -- Invest 15 percent of household income into Roth IRAs and pre-tax retirement
5 -- College funding for children
6 -- Paid down mortgage n/a
7 -- Invest in mutual funds and real estate
post #85 of 240
Joining! I've been using Dave's program for about a year but got behind!

We are getting ~$10k within the next 7 days-6 months from taxes, overtime, etc.

We have to pay off some medical bills and much of the cc and start our emergency fund. We will use $3500 of this to help buy a house this summer.

For feb. I haven't paid bills with debt yet, so:

1. $0/1000
2. $0/$37k (including car and student loans). Will be ~$4800/37k by end of month,
3. 0
4. 8% being taken out right now
5. College funding free for my kids, will save for extras like study abroad later
8. No home yet!
9. n/a
10. n/a
post #86 of 240
Thread Starter 
Quote:
Originally Posted by APBTLuv View Post
We sold some things on eBay and made enough to pay off the smallest CC plus some. I cant wait to find out what my tax return will be, if it is what I think it will be it will take care of 2/3 of the rest of our debt and it should only be a couple more months till everything else is paid off
That is wonderful!

Quote:
Originally Posted by all in green View Post
Jaime, thanks so much for keeping this up!

Well, I had my EBF up to $396.57/1000.00, but then we had a plumbing emergency this weekend and now the EBF is down to $85.28. It felt sooooo good to have the emergency fund there and to be able to pay the bill with a check instead of a credit card that I am almost not upset about having yet another plumbing issue yet again.

So, here's where we're at:
Step #0: Done.
Step #1: $85.28/$1000.00
Isn't it nice to have that money instead of reaching for a credit card?

Quote:
Originally Posted by mom2dea View Post
Well I am finally able to update I have had major sick kids here and just not can think clearly.

Jamie if you can update me that would be great

Sarah from SC
BS#0 - done
BS#1 - done
BS#2 - Just paid off 1 card and 3100.00 towards Dh student loan !!! We have 1000.0 left on the student loan and his car will be paid of Friday and our other CC will be paid off on Monday so we only have that Student laon left
BS#3-Have not started yet will in March
BS#3.5 (have house)
BS#4- contributing 3% This is for my sanity
BS#5- college We are starting a small amount After the Student laon is paid off
BS#6- pay off home 125,000.00 We do pay 120 extra every month and have done this sence day 1
I've got you updated

Quote:
Originally Posted by organic-momma View Post
How do you keep your spirits up when it feels like you're not going ANYWHERE? DH just got a raise, but then when his paycheque came he is actually now making less because he's in a higher tax bracket! grrr, so now my budget is all out of whack. I work contract and didn't get as much work last month as I expected so my cheque will also be $300 less.

I want to keep the momentum and determination up but it's hard when it feels like we're not going anywhere. And DH is the king of being able to justify purchases, he can't understand the "sacrifice now so we don't have to later" mentality.
I am sorry, htat sounds very frustrating!

Quote:
Originally Posted by lalaland42 View Post
*sigh* My student loans are being moved around and consolidated. I just received my new student loan repayment schedule and if I just pay the minimum, I will be paying $10,000 in interest in the next 10 years. DD will also be 12 by the time I pay them off if I follow the schedule. It is depressing just thinking about it, I *have* to get these things paid off.

A couple of days ago I sold a box of cat 5 cable (1000 feet) for $50. That is going to cc debt.
Yep, I am the same way, they have me on the 10 year repayment plan. I am hoping it wont take that long, thanks to the snowball

Quote:
Originally Posted by Piglet68 View Post
I've been out of town for a few days so I'm just catching up on this thread.
Jaime, you can add this to my status:

BS0 -- N/A (bills were current)
BS1 -- Done.
BS2 -- Currently have two low-interest debts and one small student loan (I've been paying into it for years and it's almost done). We're reversing this step with BS3.5.
BS3 -- Done. (Three months' worth)
BS3.5 -- Goal is to save 30% of DH's salary by December 31, 2008. With this we'll pay off all debts and put the rest towards a downpayment. As someone else said: we "want to own a house so badly, we can taste it"!
BS4 -- Doing this already.
BS5 -- My father is doing this for both of my kids; his idea, a (generous) gift.
BS6 -- Hope to one day!
BS7 -- More hoping!
Glad you had fun, and I have you updated

Quote:
Originally Posted by TanyaS View Post
Jaime, you have me listed on BS3 in the OP.

Here's where I am:

TanyaS in
BS#0: DONE
BS 1 DONE
BS 2 working on
Fixed it

Quote:
Originally Posted by my2girlz View Post
I have a question. Does it make more sense to pay for auto insurance monthly or every 6 months. There is a "fee" of $2/month if you decide to pay monthly. I'm currently transfering the amount into a savings account and will pay it when I receive the bill in June. Or does it make more sense to start paying monthly in June and use the money ($68/month) now to pay down debt. Did that make sense? I'm being interrupted by my 3.5 year old.
I set aside the amount each month to pay 4 times a year. That is our only option with our company, 4 times a year. I don't think I would want to pay an extra $2 a month to pay each month, I am cheap

Quote:
Originally Posted by cdahlgrd View Post
I am joining! I have been taking the finances over again, after a 2 1/2 year hiatus because of twins, and . . . well, it isn't pretty

#0 in proress
#1 in progress
#2 3 credit cards, 1 student loan, van loan

We are saving for retirement, but all 401K and just adding onto our debt. So I am trying to get dh to drop this down to 5% and use the other 10% to pay off our debt, etc.
Welcome!! Glad to see you here

Quote:
Originally Posted by curvyred View Post
So--here's my status

BS#0 - already done
BS#1 - done + month ahead budgeting
BS#2 - approx $60k, aiming to get $36k done this year!
BS#3 - not there yet
BS#4 - Still contributing company match. Not willing to stop.
BS#5:- Nothing yet--babe is still young though, so we'll catch up!
BS#6:- Can't wait!
I have updated you

Quote:
Originally Posted by Crunchy Doula View Post
Okay so you can add me now


0-- Get current on bills - Just about, this was the first month we weren't able to make a bill
1 -- $0/$1,000 to start an Emergency Fund - Starting
2 -- $0/$7450 Pay off all debt using the Debt Snowball - Ring, Capital One, Capital One, Chase, Discover, Us Bank; will have Ring, and both Capital Ones paid off completely in a week and the other three will be very low.
3 -- Three to six months of expenses in savings
4 -- Invest 15 percent of household income into Roth IRAs and pre-tax retirement
5 -- College funding for children
6 -- Paid down mortgage n/a
7 -- Invest in mutual funds and real estate
Welcome! It is nice to see you in here

Quote:
Originally Posted by kittywitty View Post
Joining! I've been using Dave's program for about a year but got behind!

We are getting ~$10k within the next 7 days-6 months from taxes, overtime, etc.

We have to pay off some medical bills and much of the cc and start our emergency fund. We will use $3500 of this to help buy a house this summer.

For feb. I haven't paid bills with debt yet, so:

1. $0/1000
2. $0/$37k (including car and student loans). Will be ~$4800/37k by end of month,
3. 0
4. 8% being taken out right now
5. College funding free for my kids, will save for extras like study abroad later
8. No home yet!
9. n/a
10. n/a
I have you added

Well the other day I took $500 of the EF out of the bank to keep at home in the safe. It was thrilled to count out that much money. I am 29 years old and this is the first time in my life that I have savings. What a concept! When I fully fund it to $1000 I think I will take out the other $500 and keep that at home too. My bank doesn't give me the option of not having the savings tied to the checking and I don't want that temptation, you know?
post #87 of 240

The Baby Steps

http://www.daveramsey.com/etc/cms/in...ContentID=4123

0. Get caught up on all bills.
1. $1,000 to start an Emergency Fund
2. Pay off all debt using the Debt Snowball
3. Three to six months of expenses in savings
4. Invest 15 percent of household income into Roth IRAs and pre-tax retirement
5. College funding for children
6. Pay off home early
7. Build wealth and give! Invest in mutual funds and real estate
post #88 of 240
Quote:
Originally Posted by shanetedissac View Post
We do sink funds for things like this. We put the monthly payment in an envelope and then write a check when the bill comes due. Saving the monthly service fee.
We try to do this, as well, but what do you do when you're just starting up, i.e. you've been paying monthly and want to switch to every 6 mos.? If you don't have the 6 mos. payment up front, you really can't switch, can you?

Thoughts about this?

Guin
post #89 of 240
Quote:
Originally Posted by Guinevere View Post
We try to do this, as well, but what do you do when you're just starting up, i.e. you've been paying monthly and want to switch to every 6 mos.? If you don't have the 6 mos. payment up front, you really can't switch, can you?

Thoughts about this?

Guin
my only idea would be to budget really tightly for six months-- essentially paying your car insurance twice a month, once to the company and once to yourself in savings-- and then once you have your six months worth, pay the insurance company, and then continue budgeting for your car insurance monthly. or you can wait until you get a lump sum, like a tax refund and do it that way.

personally, i haven't had the opportunity to do it either way, so i pay the $2/mo "broke tax" to pay my insurance monthly.

christina
post #90 of 240
Quote:
Originally Posted by Guinevere View Post
We try to do this, as well, but what do you do when you're just starting up, i.e. you've been paying monthly and want to switch to every 6 mos.? If you don't have the 6 mos. payment up front, you really can't switch, can you?

Thoughts about this?

Guin
I started right after making a 6 month payment. It is tough to get out of the cycle. I made a point in one month to put the lump sum payment in our budget for the 6 months so we could start the sink fund. Can't quite remember how I started it. It may take a few months.

Be well,
post #91 of 240
We finally got a check today for some work that DH did over New Years to the tune of $2K that we'd kinda forgotten about (he's an independant contractor)..."forgotten about" really meaning that we didn't count it into our regular budget so it is "extra" income. You can bet that we'll be putting it toward our MC which will put our total below $15K for the FIRST TIME IN 5 YEARS!!!! I had to share with people who'd understand!!!
post #92 of 240
Quote:
Originally Posted by CeciMami View Post
We finally got a check today for some work that DH did over New Years to the tune of $2K that we'd kinda forgotten about (he's an independant contractor)..."forgotten about" really meaning that we didn't count it into our regular budget so it is "extra" income. You can bet that we'll be putting it toward our MC which will put our total below $15K for the FIRST TIME IN 5 YEARS!!!! I had to share with people who'd understand!!!
That's fantastic!
post #93 of 240
Quote:
Originally Posted by CeciMami View Post
We finally got a check today for some work that DH did over New Years to the tune of $2K that we'd kinda forgotten about (he's an independant contractor)..."forgotten about" really meaning that we didn't count it into our regular budget so it is "extra" income. You can bet that we'll be putting it toward our MC which will put our total below $15K for the FIRST TIME IN 5 YEARS!!!! I had to share with people who'd understand!!!
Awesome!
post #94 of 240
Quote:
We try to do this, as well, but what do you do when you're just starting up, i.e. you've been paying monthly and want to switch to every 6 mos.? If you don't have the 6 mos. payment up front, you really can't switch, can you?
We used extra money in the budget in lieu of a snowball payment. It IS hard, but if you think of that as part of your snowball, it helps. We pay our real estate taxes separately as well, so that was a big one, but we prioritized building up our sinking funds (knowing we had some extra income in January) and now we're clear to put ALL the extra money towards a snowball payment.

Our fee is $4 a month, so we're saving almost $50 a year in service fees.
post #95 of 240
Quote:
Originally Posted by CeciMami View Post
We finally got a check today for some work that DH did over New Years to the tune of $2K that we'd kinda forgotten about (he's an independant contractor)..."forgotten about" really meaning that we didn't count it into our regular budget so it is "extra" income. You can bet that we'll be putting it toward our MC which will put our total below $15K for the FIRST TIME IN 5 YEARS!!!! I had to share with people who'd understand!!!
That is so great! We got a check the other day for $34 from my mothers estate (she passed when I was 17). No clue what it was for but a little suprise.

Be well,
post #96 of 240
Thread Starter 
Quote:
Originally Posted by CeciMami View Post
We finally got a check today for some work that DH did over New Years to the tune of $2K that we'd kinda forgotten about (he's an independant contractor)..."forgotten about" really meaning that we didn't count it into our regular budget so it is "extra" income. You can bet that we'll be putting it toward our MC which will put our total below $15K for the FIRST TIME IN 5 YEARS!!!! I had to share with people who'd understand!!!
Oh wow that is awesome!! What a great feeling!!


Okay, so I have to admit that I am puzzled by tax refunds. It seems that a lot of people in my life and around the message boards here get really large tax refunds. Like a friend who says "Oh we are getting $5000 back this year!"

Uh, maybe I am just in a much lower bracket than I thought, but DH and I are lucky to get $900 back. I was a bit dissapointed because I was dreaming of a large refund to pay off a credit card, then reality happened At least Dave would be happy that we get a smallish refund back But yep, I was seriously depressed when DH told me the amount last night.
post #97 of 240
Quote:
Originally Posted by ~*Jaime View Post
Oh wow that is awesome!! What a great feeling!!


Okay, so I have to admit that I am puzzled by tax refunds. It seems that a lot of people in my life and around the message boards here get really large tax refunds. Like a friend who says "Oh we are getting $5000 back this year!"

Uh, maybe I am just in a much lower bracket than I thought, but DH and I are lucky to get $900 back. I was a bit dissapointed because I was dreaming of a large refund to pay off a credit card, then reality happened At least Dave would be happy that we get a smallish refund back But yep, I was seriously depressed when DH told me the amount last night.
Kids. We get $3000 earned income credit and $1000 for each child. We have the bare minimum withheld from our pay (actually, nothing is withheld since that is the bracket we are in).
post #98 of 240
Thread Starter 
*ahem*

Ladies, may I have your attention please?

Right now, a mere 4 miles from my house, an envelope is sitting in a box with my name on it. In that envelope, which my coworker has so kindly placed in my box, is a paycheck. And in that paycheck is enough money to finish fully funding my EF AND provides some leftover to start on my debt snowball *I don't know exactly how much since my schedule got messed up last payperiod when I covered for someone so I have no clue how much it will be until I actually see it tomorrow*.

::::

Okay, I'll stop now But I am beyond excited!

Thank you DR and thank you to this wonderful and supportive thread!!!

So on Monday morning I will be getting the other $500 to lock up at home and I will sleep better knowing that I have an EF
post #99 of 240
WOOOOOOOOOO, YAAAAAAAAAAAAAAAAAY, GOOOO JAAAAIIIIIMMMMEEEEE!

::::
post #100 of 240
Jaime...you rock dude!
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