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

post #81 of 309
Quote:
Originally Posted by phathui5 View Post
QOTD: If you had to come up with $1000 by Monday, how would you do it?

(Then why not do it and apply it to your Baby Step?)
Hmm, not sure I could, I've pretty much sold everything but the kids already hehe.

I could probably come up with a few hundred. Thanks for the motivation!
post #82 of 309

Car Repair

So, I finally took the van in for repairs. As of last June it needed a new blower and such for the AC/heating unit. Well, as of yesterday it now needs: Brakes, rack and pinion, lots of pumps things, tires, timing belt, and the AC/heating unit stuff. They quoted me over $4500 of repairs. The van is worth $4000. It is not looking pretty so not in great condition. Good thing is that is is still running great. I don't see, hear, or feel any of these defects. Well, so I told the dealer that I don't want any of it done and called the local car shop. They said they could do it for less. I'm taking it in tomorrow and we are hoping that with the $1000 that we have save for the van that we can at least get the brakes done. Though we are not sure if we should do the timing belt first. I don't know what to put ahead of what. So, we get to fix our beater until we can save for a newer car. We are thinking about three years. We also need to do the roof on the house. It is great that we don't have to deal with bs#2 but this sucks.

Be well,

Shane
post #83 of 309
Hum...well we might be moving. We actually got an offer on our house LOL

Not sure if we will take it we would have to go into debt a bit to get out of debt more so after LOL...hum...( yes this is why I'm up so late ) :
post #84 of 309
Quote:
Originally Posted by shanetedissac View Post
So, I finally took the van in for repairs. As of last June it needed a new blower and such for the AC/heating unit. Well, as of yesterday it now needs: Brakes, rack and pinion, lots of pumps things, tires, timing belt, and the AC/heating unit stuff. They quoted me over $4500 of repairs. The van is worth $4000. It is not looking pretty so not in great condition. Good thing is that is is still running great. I don't see, hear, or feel any of these defects. Well, so I told the dealer that I don't want any of it done and called the local car shop. They said they could do it for less. I'm taking it in tomorrow and we are hoping that with the $1000 that we have save for the van that we can at least get the brakes done. Though we are not sure if we should do the timing belt first. I don't know what to put ahead of what. ..................................
Be well,

Shane
Not sure about the the other stuff mentioned but I would suggest the brakes and timing belt if you can do them both. It is always good to have brakes working of course and worse case senerio if the timing belt broke(like what happened to me a few years back) the car well basically 'cut out' or not respond to the gas pedal but it should have enough movement that you can pull over.

I was lucky when mine burst, It was around a blind corner, then it just went and my car slowed, then a big concrete truck came around the corner saw me, blew his horn and tried to stop, thank goodness it had a very small dirt path to the side that I turned the car onto and parked. I was close to home so I just walk home(20-25mins up a steep hill) and my father took care of the rest.
post #85 of 309
Quote:
Originally Posted by phathui5 View Post
brandyshea!

Have you read The Total Money Makeover?
I haven't, but I've read a lot on his website. I have a finance degree and an MBA and interned with a financial advisor, so I'm not really sure if there's anything the book can teach me that I don't already know. I just need to start putting the steps into action! We already live pretty frugally. I'm going to start cleaning out and ebaying things!
post #86 of 309
Thread Starter 
QOTD: Why do you want to be debt-free?

I want to be debt free because I want to actually have money left over at the end of the month. I'm tired of having a zillion bills to pay. I'm tired of knowing that most of the payment that I send is going to interest. I want dh and I to feel like we're free to pursue other things if we want to, school, different careers, etc.
post #87 of 309
Thread Starter 
Oh, and I paid off Best Buy yesterday and sent $600 to the Room Store, so now we look like this:

BS1: DONE!!
BS2:
$466 Capital One- killed!!!
$614 Van loan - killed!!!
$1091 Best Buy- killed!!!

$700/$1770 Midwife
$600/$2184 HSBC Retail Services
$4249.63 Needed to get out of Truck loan- sitting in savings until we decide whether to sell it or keep it
post #88 of 309
Quote:
Originally Posted by phathui5 View Post
QOTD: Why do you want to be debt-free?
.
So we can realize a goal of homesteading in the mountains, so we don't feel tied to banks and lenders, etc., so we can look at life from a more "What do you want to do? " perspective than a "What do I have to do to survive?" one
post #89 of 309
Quote:
Originally Posted by phathui5 View Post
QOTD: Why do you want to be debt-free?
So we can live like no one else.

Debt, even small debt, is a burden. It's weight I never want to carry again.
post #90 of 309
Quote:
Originally Posted by phathui5 View Post
QOTD: Why do you want to be debt-free?
Because I hate the feeling of so many bills hanging over our heads every month. I want security to know that if my husband or I lose our job, we won't have to go into panic mode!
post #91 of 309
Quote:
Originally Posted by phathui5 View Post
QOTD: Why do you want to be debt-free?

well we're a litltle different in that IF we ever had enough money to pay off our mortgage...i wouldn't i would INVEST it into my dream work. only after i have enough money to not know what to do with it will i get rid of our mortg.

as for the other debt...theres no need for it. banks are RICH enough. since we are young we don't have much debt in the first place. 2 cars and a mortgage. getting our cars paid off gives us $500 a month more to invest in ourselves!
post #92 of 309
So I need your advise..

My above post I said we got an offer. we will have to bring $4000 to closing costs and then owe about $3000 so that would have to go on a CC...

WWYD? We could then get a cheaper place and pay it off plus the rest...Or stay here and do it slower plus a home loan..
post #93 of 309
Are the buyers not paying closing costs? I'm surprised that the costs would be so high for the seller. Typically, I've never paid more than a couple hundred dollars when I've sold a house.

Does that mean you will have to finance $7000 to sell your house? Personally, I would keep the house and work on my debt snowball at a slower rate. When the debt was paid off, I would start a "sell the house fund" and avoid the interest costs. I don't think I would sell the house {if I could afford the payments) and incur more debt just to do the snowball faster.
post #94 of 309
Quote:
Originally Posted by TanyaS View Post
Are the buyers not paying closing costs? I'm surprised that the costs would be so high for the seller. Typically, I've never paid more than a couple hundred dollars when I've sold a house.

Does that mean you will have to finance $7000 to sell your house? Personally, I would keep the house and work on my debt snowball at a slower rate. When the debt was paid off, I would start a "sell the house fund" and avoid the interest costs. I don't think I would sell the house {if I could afford the payments) and incur more debt just to do the snowball faster.
Its not just to snowball faster. Also one issue was refi to add in CC debt and college stuff a couple years ago...really we are making a profit, we just have to repay our old debt.

We have about $4800 saved so not all would be on the CC

the housing market is going down ...part of me would rather get out before our house is worth even less
post #95 of 309

I'd like to be debt free, because I like the freedom that brings.
post #96 of 309
Quote:
Originally Posted by shanetedissac View Post
So, I finally took the van in for repairs. As of last June it needed a new blower and such for the AC/heating unit. Well, as of yesterday it now needs: Brakes, rack and pinion, lots of pumps things, tires, timing belt, and the AC/heating unit stuff. They quoted me over $4500 of repairs. The van is worth $4000. It is not looking pretty so not in great condition. Good thing is that is is still running great. I don't see, hear, or feel any of these defects. Well, so I told the dealer that I don't want any of it done and called the local car shop. They said they could do it for less. I'm taking it in tomorrow and we are hoping that with the $1000 that we have save for the van that we can at least get the brakes done. Though we are not sure if we should do the timing belt first. I don't know what to put ahead of what. So, we get to fix our beater until we can save for a newer car. We are thinking about three years. We also need to do the roof on the house. It is great that we don't have to deal with bs#2 but this sucks.

Be well,

Shane

Can your DH do some of the repairs? DH has saved us alot on car maintenance and repairs and he knew 0 about it in the beginning.
post #97 of 309
Thread Starter 
dhinderliter,

Why not get rid of your mortgage? As long as you have a mortgage, you don't really own your house. If something happens to your income, you can lose your home. While investing makes more sense from a numbers perspective, paying it off makes more real world sense. With it paid off, your house is safe.
post #98 of 309
Quote:
Originally Posted by phathui5 View Post
QOTD: Why do you want to be debt-free?
I'm also tired of paying bills. DH makes a low six figure income but we're in debt up to our eyeballs from buying "stuff". It is just absurd and really quite embarassing when I look at our finances from a broad perspective.

Quote:
Originally Posted by phathui5 View Post
Oh, and I paid off Best Buy yesterday and sent $600 to the Room Store, so now we look like this:

BS1: DONE!!
BS2:
$466 Capital One- killed!!!
$614 Van loan - killed!!!
$1091 Best Buy- should be killed!!!

$700/$1770 Midwife
$600/$2184 HSBC Retail Services
$4249.63 Needed to get out of Truck loan- sitting in savings until we decide whether to sell it or keep it
Congrats! We killed Best Buy earlier this year and it did feel good.
post #99 of 309
Quote:
Originally Posted by p1gg1e View Post
Its not just to snowball faster. Also one issue was refi to add in CC debt and college stuff a couple years ago...really we are making a profit, we just have to repay our old debt.

We have about $4800 saved so not all would be on the CC

the housing market is going down ...part of me would rather get out before our house is worth even less
If you don't *need* to get out then I'd stay. I'm in Arizona which is I think the third hardest hit area as far as the housing "crisis" goes and we were originally going to move in January of 2009. We're pushing that back 18-24 months to give things time to settle.

Do you have the luxury of time on your side?
post #100 of 309
Thread Starter 
Now I'm dying to come up with the other $1070 to pay off the midwife. That's the next one on our list.
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