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#31 of 51 Old 05-13-2011, 10:51 AM
 
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Originally Posted by mythik View Post

 

I was thinking of pulling out my pension in a few years and going back to school.  Would it be better to take out loans instead?

 

 



From what I always hear on the radio it is better to pull pension than take out loans if it completely unavoidable, but if you can save up for it and pay as much off as possible as you go that's even better.

 

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#32 of 51 Old 05-13-2011, 11:20 AM
 
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Also wanted to add that sometimes I had a hard time "finding" money in our budget, but built up a cash saving anyways by just putting aside money and therefore spending less. Like, when we did a cash envelope system all the change automatically went into our cash savings fund, which would add up to sometimes $25 in a month. On top of that I would just here and there stick some money into it. If I took $40 to the grocery store and came back with $7 I'd put a $5 bill in. I also took things to re-sale shops or had garage sales. Those things were huge in building our cash savings (which we just blew through during our move --BUT better than using credit cards!!).  At one point our savings was at $2000, and a huge chunk of that was just putting money aside out of our regular "food" or other budgets and just forgetting about it. We also bought a new guitar ($1200) for my dh that way.

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#33 of 51 Old 05-13-2011, 03:11 PM
 
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Congrats, GBG, and others making progress!  We entered our second half of the budget month today and things look really good.  The first half of the month is tight, but that's because the mortgage and almost all the other bills are due except for utilities.  We didn't have to worry about the gas money, though because I knew how much to set aside!  Dh also reminded me that a little more than a year ago, we didn't have any spending money the first part of the month and it was always hugely stressful because of our debt load.  I took over finances at that time and we are doing so much better, because I know what's going on and can communicate it to dh.  He can be a terrible communicator. ;)  Every month has gotten a little better, a little easier.  

 

I just transferred our last CC back to one that I'd paid off because I got a 0% interest offer.  I'd saved this card until last because it had an awesome interest rate.  And then two months ago I discovered it was an introductory rate and it went up higher than any of the others had been.  We'd had this card so long I didn't ever consider that it could be, I just figured we got that great rate through our Credit Union.  Anyway, I should have this one paid off within the year of the 0%, and the 5% transfer fee is less than the old APR.  I'll have to wait until next month to send our snowball payment.  I just put it in savings for the meantime.  My plan is to pay it down to $800 next month and just pay the minimum until Sept while we work on the house for the summer.  Then I'll start snowballing it again until it is paid off next winter. 


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#34 of 51 Old 05-13-2011, 04:39 PM
 
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What does Dave say about balance transfers? I just realized that my smallest balance card has a 25% interest rate! I should be able to pay it off by February but that doesn't take into account all the interest. Should I tranfer it to a 0% intro rate card?


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#35 of 51 Old 05-13-2011, 07:57 PM
 
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Well, we finally made it to LA!!  We did have to use the CCs (I knew we would) but stayed on budget with what we planned to spend and should have most of it paid off by October.  It is so nice to be in our own place again!!  Now to just wait for DH to come home from deployment *grumble*


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#36 of 51 Old 05-13-2011, 08:56 PM
 
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trekkinggirl... we paid off a cc really quick by transferring it to a 0% percent interest card.  Def. do it.  It was completely worth it, IMO.

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#37 of 51 Old 05-14-2011, 04:02 PM
 
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I second the transfer - just take into account any fees and if you can pay off the balance before the expiration date of the terms.  

DH & I have done that several times with CCs to keep our rates low while trying to pay off the balance.  smile.gif


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#38 of 51 Old 05-15-2011, 01:11 PM
 
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So I got an offer in the mail yesterday from citibank for 0% intro apr for 18 months and then 13.99% variable after that. I plan on having the card I'm thinking of transfering paid off in ten months. That gives me an 8 month window in case it takes me longer. Right now I'm paying  25% in interest but for some reason opening a new card just feels like a step backwards. I'm going to see what DH thinks about it.


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#39 of 51 Old 05-16-2011, 07:34 AM
 
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Also double check to make sure the current card you have is not managed by CITIbank already as you can't do a balance transfer from 1 citibank card to another.  Ahh the lessons I have learned with the balance transfer game :)

Update from us - we just got our tax return from the Feds (we had to paper file, since we donated a car last year.  which was like joy.gif, but the filing was angry.gif)  Game plan is to put 2k directly to our loan balance (we took out a 20K personal 5-year loan from the bank (at 4%) to pay off and consolidate various CC card balances) and put 1k back to our saving/emergency stash.  Then we'll have our state returns (1K) and do the with that and finally my tuition reimbursement (2K).  So in like a month we will have put 5K to the principal on this loan!! I'm so excited!!

 

Now we're trying to decide whether to keep or donate DH's car (1994 Subaru legacy wagon) which needs a bit of work, but we never use it anymore...so I think the answer is obvious.  I'm nervous because it feels like a safety net just in case anything goes wrong with our Prius.

 

Finally we're trying to sell the remaining items we have for Craigslist, otherwise most of it is going to be donated (except for the crib & mattress) by the end of the month.  I'm done with the clutter in my house and basement.

 

 


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#40 of 51 Old 05-18-2011, 07:23 PM
 
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well I'm finally a grown up making grown up decisions.....I took out a life insurance policy.

 

still building the baby emergency fund

paid four times the minimum payment on my smallest balance card today. making baby baby steps


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#41 of 51 Old 05-22-2011, 10:28 PM
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BS2 Pay off all debt using the Debt Snowball

2.0 Do the debt snowball, paying all your debts from lowest BALANCE to highest.

We are on 2.0.  I had a heart-to-heart about debt with DH and it took him a while to really get that I am serious about tackling our debt.  He sees debt as cash-flow, so as long as we can make all of our payments, we are OK.  I look at it as total amount owed, and consider the interest we will pay at the end.  So yes, we are fine, month to month, but we don't really get ahead.  

 

It's been really hard adjusting to not spending money on things.  I did not realize how much I shopped.  Sometimes online.  Or I can go to Target and blow a few hundred and have no idea what I really bought.  So this has involved a big shift for me.  I'm trying to live the "reduce" part of the "reduce, reuse, recycle" mantra but did not realize what a consumer I am.  I'm trying.  I've really gotten into thrift shopping and had some fun with that.  I get the experience of shopping, but it's more thrilling because it is a hunt.  And I'm reducing my consumption and reusing, so it's a win-win.

 

We just bought a new house for about 1/2 the price of our current house.  We are doing this to reduce our debt & payments.  The neighborhood is not my ideal, but we plan to live there for 5 years, live cheaply, and then see where we are.  The house is nice and the yard is amazing, so maybe we just never leave our house.

 

The house was a bargain because it's in bad shape, so we had to take out more debt to get some work done.  We are doing some ourselves but with full time jobs and two young kids, not much time for that.  

 

So we really can't start on the next step until we move into the new place and sell this place.  So I am in debt limbo.

 

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#42 of 51 Old 05-28-2011, 10:37 PM
 
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$50 more went to the BEF this week. Still pluggin away!

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#43 of 51 Old 05-29-2011, 08:23 AM - Thread Starter
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MsFortune, you're doing great, learning not to shop is a huge step. Congrats on the new house!
 

trekkingril, how close are  you to filling the bef?

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#44 of 51 Old 05-29-2011, 04:02 PM
 
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I still need about $700. Not a lot of wiggle room right now. I'm only working 25 hours a week since my baby is still so young (4mo old).

 

We have been trying to spend $100 on groceries per week. In the past we would skip grocery shopping often and end up eating fast food (yuck).

 

DH isn't ready to live on a written budget which makes it hard to know how much money I can safely tuck away. At least he has curbed his spending.

 

Also we decided to pay at least $200 per month on our smallest CC (we were paying $50) so that it's paid off by tax season. We are hoping for a nice tax return next year. This way the tax return can go towards CC#2.

 

I'm confident I would already have the BEF if I had been strictly following Dave. My DH has other ideas and only skimmed TTMM. It's more important that I have a good relationship with DH than a strict plan. At least we have a plan now instaed of blindly spending and hoping nothing comes up that we can't afford to deal with.


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#45 of 51 Old 05-30-2011, 01:16 PM
 
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old medical bills are on schedule to be paid off by the end of June !!    :)  all but about $200 paid at this point.    I do have a bill in collections that wasn't properly billed to insurance and they ignored me when I asked them to redo it so this summer I may try to dispute it.  The insurance company even called them to ask them to send a bill.

 

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#46 of 51 Old 06-03-2011, 07:56 PM
 
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Getting out of debt in JUNE?? Sheepish.gif


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#47 of 51 Old 06-05-2011, 04:02 PM
 
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got my CC bill today and it was really good to see the balance go down a little. Hasn't gone anywhere but up for a loooooooooooooong looooooooooooong time! Still pluggin away at the BEF too. About half way there now. I'm really tempted to just throw it all at the CC but I'm sure murphy would strike if I did that. It's such a slow process but I am finally starting to make a tiny bit of headway.


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#48 of 51 Old 06-05-2011, 05:42 PM
 
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Awesome, Trekkingirl! 

 

Sometimes I wish I had a fast forward button because the waiting is the hardest part! But you're certainly heading in the right direction with the right attitude and mind-set.

 

Definitely keep plugging away on the BEF- it gives you the POWER to take life as it comes at you, and that is an amazing feeling.


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#49 of 51 Old 06-05-2011, 07:36 PM
 
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Joining the thread:

 

I have been working since the end of December on my Credit Score. It started at 570 and it's all the way up to 637. I need it to be 640 to buy my parents' house.

 

I've been contacting the creditors on my credit report. I invested $20/mo on a credit tracking program that I am very happy with. I'm getting my medical bills paid off and then I will open my first credit card in almost 15 years. (I decided to do so because I'm so afraid of running it up and going backwards that I believe I'm in a good place to have the mindset to pay it off. It will be used for business expenses ONLY.)

 

My bf will be going to full time with a raise at the end of the month, so we will be able to afford to pay even more bills, even faster... Yay!


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#50 of 51 Old 06-07-2011, 08:10 AM
 
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I don't post here too often, but we're certainly making progress! We just paid the last of some hospital debt I acquired fall of last year. That was so nice, and will free up $329 a month! More exciting is what is due to happen next month...

 

WE WILL BE DONE PAYING OFF OUR CREDIT CARDS!!!

 

We started November of 2009 with around $25,000 in credit card debt. The first 13 months we deprived ourselves of EVERYTHING unnecessary to take out a major chunk of the debt. I went a little insane this past Christmas, and ended up buying WAY too much! Since then, we've let ourselves spend a little on unnecessary things, as it was obvious that I was losing my mind. We probably could have been done with the credit card debt in March, had this not happened, but I'm pretty proud of us nonetheless... with the addition of the hospital bills, we will have paid off $28,000 in 21 months. It seemed so insurmountable when we first started! I can't believe we did it.

 

From here on out, we are done with Dave... for the time being at least. We will be saving up a down payment on a house before paying off our cars. We are aiming for having a $30k payment by September of 2012.


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#51 of 51 Old 06-07-2011, 02:09 PM
 
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resque that is just the motivation I needed to hear today! congrats on getting to where you want to be. Had I started in 2009 I might be where you're at and that makes me a bit sad because back then I had a roommate paying half the bills! I may be doing that again to save for a down payment on a house but right now were plugging away at our snowball and slowly building the BEF.

 

I live in such a high cost of living area. DH won't relocate even though my job would pay us $7000 to move to another area that's cheaper while keeping my same pay rate. I looked on craigs last night to see about a cheaper rental to help us get ahead. Ha what a joke! We are in the cheaper rental. We pay $1625 a mo and most places around here now are about $2200 a mo.

 

At least homes for sale have finally gone down to about $400,000. Saving 20% to put down on a house seems so unatainable so right now I'm just going to remember why we need to take baby steps. At least I have finally decided to try to get somewhere instead of just treading water.


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