Getting out of debt in AUGUST!! - Mothering Forums
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#1 of 54 Old 08-04-2011, 10:54 AM - Thread Starter
 
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Do you want to get out of debt? Start living on a budget? Be able to start saving? Then this is the thread for you! Some of us use Dave Ramsey's method but please join us even if you're following someone else/your own plan. All are welcome!

 

Here's DR's plan:

Pre-Step 1: Get current on your debts and do a budget
0.1 No new borrowing.
0.2 Talk with spouse and get him/her on the same page as you concerning finances.
0.3 Do a written budget
0.4 Temporarily stop all retirement contributions
0.5 Get current on all the basics (Shelter, Food, Utilities, Basic clothing)
0.6 Amputate "toys" (bikes, boats, ATV's etc) to help snowball
0.7 Cut lifestyle (Cut cable, cell, extras, eating out) and/or get a second job to raise $1000 EF.
0.8 Get current on ALL bills

BS1 $1,000 to start an Emergency Fund
1.1 Chop up/freeze CC's (You have an EF now)
1.2 Get Health insurance NOW if in the US
1.3 Get Life insurance NOW if you have considerable debt/your family couldn't make it financially if you died.
1.4 Amputate cars that you can't pay off within 24 months

BS2 Pay off all debt using the Debt Snowball
2.0 Do the debt snowball, paying all your debts from lowest BALANCE to highest.

BS3 Three to six months of expenses in savings
3.1 Start car replacement fund
3.2 Save up 20% for home purchase OR pay down existing mortgage to the point you can drop PMI.
3.3 Start furniture or other non-essential stuff replacement fund

BS4 Invest 15 percent of household income for retirement

BS5 College funding for children

BS6 Pay off home early

BS7 Build wealth and give! Invest in mutual funds and real estate

Here's the link to Dave Ramsey's website: http://www.daveramsey.com or if you want a good DR discussion forum, www.llnoe.com is good but hardcore. Gail vax Oxlade's Til Debt do Us Part is great tv show, very motivating. Her website is: http://gailvazoxlade.com/blog Others like Suze Orman or Mary Hunt, really doesn't matter whose method you use, just start the process to getting out of debt.


Laurie, wife to guitar.gifDH (Aug/04), mom tobikenew.gifDS1 (Nov/05) and bfinfant.gifDS2 (June/12).

 

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#2 of 54 Old 08-04-2011, 11:10 AM
 
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Thank you, eirual!  I agree, July slipped by too fast, and I'm afraid August will fly faster!

 

Our progress:  In July we completed BS1.  We are about 2-3 months from completing BS2, except for my dh's student loan which I'm sort of ignoring for now.  We need to replace our vehicles before they die, so I have started on BS3.1.  My goals this month are another $330 in our car fund and tie up as many of our house projects as possible since DH goes back to school this month.  He's starting his last year, and thankfully has managed to get four needed classes for his degree, and please God, will finish the spring semester if the classes fall in the right timing.  It's been difficult since he only can use after work hours.  

 

I have one kid's back to school clothes purchased, the oldest and most expensive.  I'm planning to buy material and sew pants for my younger boys, for their uniforms and my daughter is staying home doing a virtual charter, and always has an abundance of hand-me-downs anyway.  School supplies will be shopped for in a few weeks.  


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#3 of 54 Old 08-04-2011, 11:44 AM
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Congrats on completing BS1!

 

Sadly, I need to get bumped to PreStep 1:(  Hope to get some good progress between now and Thanksgiving/Christmas time though..

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#4 of 54 Old 08-04-2011, 11:52 AM
 
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Happy August everyone!!! Yesterday I sent off payment for two of the three special assessments on our condo, which is currently rented.  Very happy about that!  Later this month, I expect to pay off the balance owed on the 401(k) loan I have.  This is what debt we had (not included our mortgages) as of the beginning of July:

 

B of A Credit Card: $3,971.75

Amex Credit Card: $5,552.60

Chase Credit Card: $2,000.00

401(k) Loan:          $2,341.09

School Loan #1:   $19,256.13

School Loan #2:     $3,743,89

Plumbing As'ment: $3,729.88

 

Window As'ment:   $842.89 joy.gif

Boiler As'ment:      $1036.09 joy.gif

 

We also switched to an envelope system last pay period and that helped immensely with our overspending.  We had money left over in the Kid Activity, Kid Treats and Dining Out envelopes!

 

Additionally, we received the return of my overpayment into FICA (I switched jobs last year and the withdrawals had to start all over).  With that, we bought tickets for the kids and I to go on vacation with my mom - she pays for the house (and sent me $200 to help with our expenses.  Love her!!), put money aside for the balance of their tuition due in August and money aside for my husband's tuition which will also be due in August.

 

We also changed our mobile phone plan, which we consistently went over on, sometimes to the tune of $225 total.  Now we're on the unlimited data and phone package for $140.

 

Getting better!


Mama to add 10/05; ds 3/09, and two angels
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#5 of 54 Old 08-04-2011, 01:40 PM
 
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Jumping in.

 

We are back to BS1 this month.  Dh's family has had a lot going on so he's been traveling back and forth from VA to SC pretty much every other weekend the last couple months and that has eaten into our budget quite a bit.  Hopefully things will be back to normal soon and we can get back on plan.  I have a job interview tomorrow and I'm crossing my fingers that they can give me nights and weekends so I can work opposite dh and we won't have to put dd2 in day care.  We really need the extra $$ to go towards paying off debt.  We could be on BS3 in under a year if everything works out!

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#6 of 54 Old 08-04-2011, 04:21 PM
 
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it feels like we are so past the point of not making it..... my DH is so frustrated he wants to let the car get repo'd and stop paying the cards. We are still paying $200 a mo to our smallest card and it should be paid off by Feb. I had to use some of our BEF because I only had 30 hours on my last paycheck instead of 50 because business has been so slow. To make matters worse, I injured my back and am now out on disability and who knows how long or when they will decide to pay me. I might have to get surgery, but at least I have health insurance so that should only cost $100 co pay. My BEF is now down to $100 and I think I just entered emergency mode w the disabilty and being out of work.

 

the real problem is that our rent is way more than we can afford, but it really is the cheapest aound here. At least I have my faith and despite all of what I'm going through, I'm sure we'll make it.


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#7 of 54 Old 08-05-2011, 02:31 PM
 
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I feel like since we got out of baby step 2 things have been slow moving.  I think part of that was due to lack of desire.  Also because we splurged on some things to celebrate being out of debt.  Now we're realizing it's time to get serious again.  As of right now, we have about $3500 in savings.  I was hoping to get kinda crazy with our savings this month - much like we did when we were paying off my student loans, but then our car required a $500 repair.  Ugh.  I am hoping that we will still be able to put $600 in savings, but we'll see.  Thinking that we might be saving for a car sooner than I was hoping to...

 

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#8 of 54 Old 08-05-2011, 05:58 PM
 
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Quote:
Originally Posted by imamomx2 View Post
 Thinking that we might be saving for a car sooner than I was hoping to...

 


 

Yeah, having to save for a vehicle really slows down progress!  My financial tracking program projects that we'd be through BS3 in a year if we continue saving what I have been the last couple months.  Sad fact is, most of that is going into the new car fund for now.  I'm also worried about dh's vehicle which is acting like the transmission may be failing.  I really didn't want to have to replace two vehicles next year!


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#9 of 54 Old 08-05-2011, 06:04 PM
 
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At least I have my faith and despite all of what I'm going through, I'm sure we'll make it.



We've lived through many years where it seemed we only got by on faith and hope.  Take heart in the progress you're making on that one card.  It seemed like the first one was the hardest!  We only really got going when we could use our tax refund to pay one card off, and then we could snowball.  Now, we are so used to living on so very, very little that saving a large chunk of our income is fairly easy.  No one misses it.  We're living better now than we ever have.  You'll get there, just keep making baby steps.  

 

I hope your back feels better soon!


Mom to eight!!  Our twin girls arrived 3-3-2011.

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#10 of 54 Old 08-05-2011, 06:31 PM
 
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thanks mylilmonkeys

 

how long have you been pluggin away? I was thinkin we had started our out of debt journey around the same time? I've only been at it for a few months.


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#11 of 54 Old 08-06-2011, 04:37 AM
 
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it feels like we are so past the point of not making it..... my DH is so frustrated he wants to let the car get repo'd and stop paying the cards. We are still paying $200 a mo to our smallest card and it should be paid off by Feb. I had to use some of our BEF because I only had 30 hours on my last paycheck instead of 50 because business has been so slow. To make matters worse, I injured my back and am now out on disability and who knows how long or when they will decide to pay me. I might have to get surgery, but at least I have health insurance so that should only cost $100 co pay. My BEF is now down to $100 and I think I just entered emergency mode w the disabilty and being out of work.

 

the real problem is that our rent is way more than we can afford, but it really is the cheapest aound here. At least I have my faith and despite all of what I'm going through, I'm sure we'll make it.


I really feel for you.  My husband and I were in very difficult times five or six years ago - and I remember feeling like the stress and financial burdens were suffocating.  I'll be praying that a breath of fresh air will come your way soon.

 

 

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#12 of 54 Old 08-06-2011, 04:40 AM
 
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We've lived through many years where it seemed we only got by on faith and hope.  Take heart in the progress you're making on that one card.  It seemed like the first one was the hardest!  We only really got going when we could use our tax refund to pay one card off, and then we could snowball.  Now, we are so used to living on so very, very little that saving a large chunk of our income is fairly easy.  No one misses it.  We're living better now than we ever have.  You'll get there, just keep making baby steps.  

 

I hope your back feels better soon!



 



Quote:
Originally Posted by mylilmonkeys View Post




 

Yeah, having to save for a vehicle really slows down progress!  My financial tracking program projects that we'd be through BS3 in a year if we continue saving what I have been the last couple months.  Sad fact is, most of that is going into the new car fund for now.  I'm also worried about dh's vehicle which is acting like the transmission may be failing.  I really didn't want to have to replace two vehicles next year!


At few years ago we were saving and saving for a down payment for our house when suddenly my saturn broke in our daycare worker's driveway, and it was beyond repair.  And then our sebring needed a new transmission.  Ah!  We emptied our savings buying a car and repairing our other.  It was so frustrating, but at least we had the cash in the bank!  Good luck.  Let's hope and pray our cars last longer than we fear. :)

 

 

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#13 of 54 Old 08-06-2011, 09:54 AM
 
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thanks Imamomx2


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#14 of 54 Old 08-06-2011, 10:57 AM
 
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trekkingirl - It's a rather complicated answer.  My husband was in charge of the finances for many years, and really didn't know what he was doing.  He didn't want to communicate about it either, so while I knew we were in a bad place, I didn't know the details or amount, but I was sick and tired of the phone calls on late bills, and threats of utility shut offs, etc.  I finally insisted strongly enough that we sit down and look at everything together and then took over the management of it about 2 years ago.  It was a bumpy few months since more was going out than coming in, until our tax refund that following winter.  I took half of that and was able to pay off our two medium sized balances and the rest went to the house.  From there, I took everything we had and put it towards the debts, probably too much on some occasions, but we made it work.  Then I started snowballing.  I got the lowest balance paid off next, a month or two later.  I just did what looked like it would work, mostly trying to free up the greatest amount of cash the fastest I could.  I didn't know about Dave Ramsey's method until coming here several months ago, so I didn't start an EF.  I put money into savings when I could, but it would often come right back out the next month.  We had the advantage of finally both being on the same page, and I made sure to communicate everything as I went.  Also, since our CCs had been maxed or nearly so for so long, we had also gotten used to living without charging stuff.  I started posting here when we got down to the last card and I was trying to figure out our next step.  Then I decided to focus more on the EF.  DH did not get any sort of raise for about the last three years, and then they recently rewrote their employee contracts and fired a couple employees.  He drives routes and earns partial commission, so his income has gone up a few hundred dollars a pay check the last couple months.  All that went straight to the EF, so it didn't take too long to build.  Plus we still have a ton of work to get this house up to saleable condition.  We're trying to move in the next 1-2 years.  So currently, I have one balance left at 0%, and just completed our EF.  We just finished reading TMM so we'll try to stick to that plan for the most part.

 

We don't have a lot of income, since we are a family of 10 on a single income.  But the advantage of having lived on such a tight shoestring for years means that we're used to having no spending money and making due.  So the little bit I budget for spending goes a long way and I'm now saving what used to go to CC payments.  It really does get easier once you make headway on that first one.


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#15 of 54 Old 08-07-2011, 12:35 AM
 
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Oh ok, I see why it seemed things were going a lot smoother and a lot faster in your neck of the woods. Wow, a family of ten! That must be hard on the pocketbook. My DH is helping me with getting out of debt but I haven't been able to get him to live on a budget. Things are real tight, and I guess that's why I'm not pushing the issue. It's not like there is anything to blow money on. He called me to apologize for spending $10 on his lunch at work the other day. I told him it was fine and he said no I was only supposed to spend $6


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#16 of 54 Old 08-07-2011, 10:34 AM - Thread Starter
 
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Trekkingirl, I wish you all the best- it does seem like a lot to trudge through. I hope some major "ah-ha!" moment is quick to come your way and be your light at the end of the tunnel.

 

For us, we're still far from stable financially-speaking. I've been out of work this summer, and come September I'll return to work and DH will be starting back to school (again). I have a rough idea of what my income will be, but until you see what you net, it's hard to feel comfortable in your projected budget. Things are going to be tighter than what I was hoping for- there will be NO wiggle room. We'll have to play it smart and both look for ways to bring in some extra income. We'll have to see what DH's schedule is like too, he's hoping he'll have the time to work part time which would make a HUGE difference. 

 

I'm super happy we've opted for our tiny 1BR apartment though- any higher rent and we'd have to borrow to make it work.

 

I've made it my goal to "find" more money and so far, so good. We've ditched our phone ($20/mo) for Magic Jack ($30/yr), we've switched auto insurance companies ($104/mo to $87/mo.) and are looking to switch over home, and life insurance as well (which are both cheaper through this new insurance company, not to mention discounts for having more insurance with one company)....so that should hopefully save another ~$20ish/mo. I paid to cancel my gym membership which I haven't used in 3 mos ($40/mo...and believe you me, I am DONE with ANYTHING that requires a contract!!). Next up: cheaper cell phone option ($15/mo, but some how I keep going over, even though I feel I hardly use the thing so it ends up being $30-$45/mo which is flaming ridiculous!). Total monthly savings to date: $75/mo...joy.gif


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#17 of 54 Old 08-08-2011, 07:52 AM
 
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jumping back in and re-subscribing to get back on the bandwagon of savings and moving ourselves out of debt!!


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#18 of 54 Old 08-08-2011, 08:27 AM - Thread Starter
 
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thumb.gif, ktg!

 

Today I set up automatic savings deposits for the $75 we'll be saving so it doesn't flutter away.


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#19 of 54 Old 08-08-2011, 08:34 AM - Thread Starter
 
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Oh, and a little VENT!!

 

When calling the phone company to cancel our service (after multiple price increases and crappy call quality and customer service) all of a sudden they're saying they'll try to improve their service and will put us back down to the $9.99/mo yadda yadda yadda...

 

When companies take you for a ride, then want to please you only when you threaten taking your business elsewhere, it drives me batty! Why not offer your customers the best only because it's fair and it's what they deserve? This whole, take 'em for what they've got, and only cave when they threaten to walk thing irks me....makes me wonder how much of my money they've already taken if they can offer me the same thing for significantly less once I raise a stink. argh....

 

Goes to show it NEVER hurts to ask for price reductions or if that's the best they can offer and to stay on top of/protest price increases. I was actually kind of okay with the price increase because they said they were upgrading their equipment to provide better service, but I never noticed any improvement, which was the breaking point for us and lead us to take our business elsewhere.


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#20 of 54 Old 08-08-2011, 10:58 AM
 
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I had the opposite experience!

 

I canceled my cable because I don't like what they offer and it costs way too much. It was starting to have a negative impact on my kids. Anyways, so I called and took off the $40 per mo for my cable and the woman on the phone says....that's fine but your $25 internet is now going to cost you $47 for the same service. faint.gif

 

I laughed and said wow you guys are really funny. 12 years of being a good customer without one late payment and that's the thanks I get? Good riddens. Now I need to find a better internet provider with a decent price. Any ideas? 


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#21 of 54 Old 08-08-2011, 12:24 PM - Thread Starter
 
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Do you live close to neighbours by chance? We live in a 4-plex and I've been considering getting in touch with the other residents to see if they're interested in getting a monthly unlimited plan (~$60/mo but divided by 4=$15/household). Mind you they probably all have other services bundled. We pay $48/mo for internet though....brutal, really. That's all that we get though- no cable or satellite or commercial home phone. 


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#22 of 54 Old 08-09-2011, 07:53 AM
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We have Comcast and every 6 months they try to bump us up to $60/month for just internet.  So we call every 6 months, complain and threaten to drop, and they drop us to the 'introductory' offer of 32/month.  Sometimes I end up paying for a month or two while it gets readjusted to the better price, but god...$60 is crazy.

 

 

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#23 of 54 Old 08-10-2011, 03:13 AM
 
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Joining late, but I really need to be back here.  We have had the most expensive month -- both of our cars have needed work and we are further in the hole than we were a month ago.  Very frustrated.  

 

We have gone into deep, deep Ramsey mode at my house.  We sold 1/2 of our belongings a year ago, so not much to sell, but we will be living super cheap till Christmas.  I estimate that I can have our debt paid off by then, if we stick to a tight budget.  

 

Credit card debt has risen:

 

CC #1     2158.47

CC #2     2826.48

 

Total cc debt......4984.95

 

 

Ugh.  Just awful.  I hate, hate, hate cc debt.  We are putting our savings goals on hold till 2012 and working like mad to be rid ourselves of the debt.  

 

My plan:

 

Pay off cc #1 with paychecks from 8/19, 9/2, 9/16 and 9/30.  Make minimums payments on cc#2.  Pay off cc#2 with paychecks from 9/30, 10/14, and 11/4.  

 

This means we will need to keep the heat off till November (normal for us) and keep our activities cheap.  Kids are doing soccer this Fall which is all ready paid for and they have cleats.  I am considering holding off on starting piano lesson until January; the kids usually start in September.  No, nix that -- I will have to postpone lessons.  The money is simply not there.  And no travel this Fall.  

 

I have an order in for our co-op food -- 25 pound bags of rice and beans, spices and nuts, etc.  This is our normal diet, so no change there.  I am working like a dog every morning to get the Fall garden in shape.  That should help ease the grocery budget.  We normally do a  big garden, so I have the garden space and seeds all ready.

 

No shopping for new baby.  I keep wandering onto high-end baby gear sites and drooling over strollers.  I don't really need one -- I have a stroller that is old, but fine and I have a nice baby carrier that will also be fine.  Just need to curb my bad case of 'I wants'.  I did find a garage sale a few weeks ago and for $20 bought a huge load of infant clothes, so baby will be all set.  

 

Talked to dh and he is completely on board.  He knows that I am very uncomfortable with debt and is helping in any way to ease the financial stress.  Love him!  

 

So, you'll be seeing a lot of me in the next few months.  blowkiss.gif

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#24 of 54 Old 08-10-2011, 08:45 AM
 
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Ruthiegirl, Dh and I also talked and will be going very tight on our budget starting next month.  I had stopped making extra payments while dh was off school to put money into the house.  I plan to have our last cc paid off in two months, we are saving for a van, plus we are about $1000 away from having our PMI automatically dropped without having to pay for an appraisal.  So he's on board and it will be a tight fall/winter for us, too.  

 

Trekkingirl - Can you budget around your DH's spending?  The key to living on a budget for us was to write down what we were already spending so we could see where the money needed to go, and not try to hard to change it but work within it.  Course, we're already used to not spending extra on Starbucks or something.  But it sounds like you guys are living similarly.  I think a working budget really is essential.  Life has gotten much easier since we had one.  

 

And lastly, a small victory for us.  This Monday was our 15th anniversary.  We celebrated quietly on Sunday, and stopped to look at TVs.  We've been wanting to get one for our bedroom since the conversion to digital, but been waiting until our debts were paid off and we could save.  I was looking to see how much we would need, but there were several models we could have bought.  The old us would have talked ourselves into it, transferred a couple hundred from our EF and intended to replace it later.  We even discussed it and I was so proud of dh sticking firmly to our plan (he's always been easy to convince).  It'll be awhile longer, but we'll be happier in the long run.  Besides, with the way electronics are almost always dropping in price, it'll probably be cheaper.


Mom to eight!!  Our twin girls arrived 3-3-2011.

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#25 of 54 Old 08-10-2011, 01:41 PM
 
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we sort of live off a rough budget and DH and I both agree we need to rewrite it. The one we have now is from the beginning of summer and a few things have changed. We got life insurance and cancelled our cable. I was budgeting for DD school lunches as she was temporarily in public school but now that we are homeschooling again I don't have to spend the $60 per month on her school lunches. We try to keep groceries around $120 a week. DH lunches at work are $30 a week. I try to fill up on gas once a week for $50. We have two bank accounts. One is for the regular monthly expenses and the other is our spending account.


living with alopecia universalis (google it), learning alongside my children DD 2003blahblah.gif DS 2007fencing.gifDD 2011jog.gif

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#26 of 54 Old 08-11-2011, 07:43 AM - Thread Starter
 
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Ruthie, do you have a BEF saved already? Just curious since you dipped into credit and your next step is debt-repayment. If not, it really is an empowering step! If so, you can disregard this message :)

 

I've been thinking lately about creating a wardrobe "capsule" (http://www.youtube.com/watch?v=OXNnNnBgotc&feature=relmfu). I don't have a ton of clothes, but there are very few I actually enjoy. I was considering getting a few new (i.e. new-to-me, I usually buy used) pieces and figure I may as well have a well-constructed plan to get the most out of them, and to keep me focused so I don't blow what little budget I'll have to work with. I think the first capsule which has to lead from summer weather into fall will probably simply be grey, white, and black (since I'll have most of that, it won't take a lot of buying to round it out- just some jewelry and scarves and white shirts)...then I can learn where to go from there for the winter.

 

 


Laurie, wife to guitar.gifDH (Aug/04), mom tobikenew.gifDS1 (Nov/05) and bfinfant.gifDS2 (June/12).

 

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#27 of 54 Old 08-11-2011, 08:04 AM
 
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Quote:
Originally Posted by eirual View Post

Ruthie, do you have a BEF saved already? Just curious since you dipped into credit and your next step is debt-repayment. If not, it really is an empowering step! If so, you can disregard this message :)



Yes, we do.  We have been debt paying and living the Ramsey-lifestyle for a while now.  I can technically pay off the cards today with our EF.  Not using the EF and forcing ourselves to be very disciplined is better for our behavior and long term spending habits.  What I pay in interest pains me and that discomfort is a good reminder of why I do not like having debt.  These CC's and our mortgage are our only debt.  

 

I suppose we are not following the steps exactly, but this works well for us. 


Frugal, food growing mama to my four loves

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#28 of 54 Old 08-11-2011, 08:10 AM - Thread Starter
 
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I hear you. Having that cushion is comforting, I can see why you wouldn't want to dip into it. :)

 

 


Laurie, wife to guitar.gifDH (Aug/04), mom tobikenew.gifDS1 (Nov/05) and bfinfant.gifDS2 (June/12).

 

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#29 of 54 Old 08-11-2011, 01:04 PM
 
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I never made it to $1000 BEF before I had to spend what little I had on dental work. I have been selling stuff on craigs and originally that was to replenish the BEF but now that I am out of work due to my back injury......every time I sell something the money goes for TP or gas or groceries. Medical copays and prescriptions...You know, the important stuff.

 

DH and I took the time to rewrite our budget last night and it basicly affirmed the fact that living in our home is out of our means. Really, living in our county is out of our means, but it's where our jobs are. An apartment here is the same rent as our house. There is a nice RV park close to here for $800 a month and we may just get a 20 year old RV and live out of it for a few months while we bust out the debt and stack our FFEF.

 

I don't really see any other way to better ourselves. That would definately be living like no one else!


living with alopecia universalis (google it), learning alongside my children DD 2003blahblah.gif DS 2007fencing.gifDD 2011jog.gif

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#30 of 54 Old 08-12-2011, 03:22 PM
 
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Originally Posted by mylilmonkeys View Post

Our progress:  In July we completed BS1.  We are about 2-3 months from completing BS2, except for my dh's student loan which I'm sort of ignoring for now.  We need to replace our vehicles before they die, so I have started on BS3.1.  My goals this month are another $330 in our car fund and tie up as many of our house projects as possible since DH goes back to school this month.  He's starting his last year, and thankfully has managed to get four needed classes for his degree, and please God, will finish the spring semester if the classes fall in the right timing.  It's been difficult since he only can use after work hours..  

 

Sounds like you're making great progress! It sucks when you have to shift gears a bit to build sinking funds, it almost feels like lost momentum. Only 2-3 months on BS2 sounds like a dream! We've been paying off debt for almost 2 years. Even though the end is in sight (sort of. We've got about $3,500 left of CC. Like you, I'm currently ignoring my ~$24K in student loan debt. GAH) It feels like we've been doing this FOREVER.



Quote:
Originally Posted by Siennaflower View Post I have a job interview tomorrow and I'm crossing my fingers that they can give me nights and weekends so I can work opposite dh and we won't have to put dd2 in day care.  We really need the extra $$ to go towards paying off debt.  We could be on BS3 in under a year if everything works out!

 

How'd the job interview go? Hope the job search works out for you, quickly! DH and I do the opposite schedules thing right now too in order to avoid childcare costs. I hate it, but I  keep reminding myself that it is a temporary necessity until our finances are in better shape.

 



Quote:
Originally Posted by eirual View Post

I've made it my goal to "find" more money and so far, so good. We've ditched our phone ($20/mo) for Magic Jack ($30/yr), we've switched auto insurance companies ($104/mo to $87/mo.) and are looking to switch over home, and life insurance as well (which are both cheaper through this new insurance company, not to mention discounts for having more insurance with one company)....so that should hopefully save another ~$20ish/mo. I paid to cancel my gym membership which I haven't used in 3 mos ($40/mo...and believe you me, I am DONE with ANYTHING that requires a contract!!). Next up: cheaper cell phone option ($15/mo, but some how I keep going over, even though I feel I hardly use the thing so it ends up being $30-$45/mo which is flaming ridiculous!). Total monthly savings to date: $75/mo...joy.gif


WTG "finding" that extra money every month. $75 is significant! And very smart to have that amount automatically put into savings each month. We've learned our lesson there too, it's just too easy to let the extra money slip through our hands, so we try to take our hands out of the equation and save the extras before we even get a chance to "see" it.

 



Quote:
Originally Posted by _ktg_ View Post

jumping back in and re-subscribing to get back on the bandwagon of savings and moving ourselves out of debt!!
 

Welcome back and good luck!


 

Quote:

Originally Posted by Ruthiegirl View Post

I can technically pay off the cards today with our EF.  Not using the EF and forcing ourselves to be very disciplined is better for our behavior and long term spending habits.  What I pay in interest pains me and that discomfort is a good reminder of why I do not like having debt.  These CC's and our mortgage are our only debt.  

 

I suppose we are not following the steps exactly, but this works well for us. 

I definitely hear you there. We're not following Dave Ramsey to the letter either. We have about $1300 in our EF right now and we're funding it little by little (between $50 and $100 a month). Having a growing savings makes me feel more at ease and sets up good long-term habits for us.

 

We had a great month in July. Managed to throw $800 at the credit cards, which currently look like this:

 

BofA--$2091 at 6.99%

Citi--$1525 at 0%

 

I also got my student loans consolidated at 6.5% and on an Income Based Repayment plan, so that is positive. I'm trying to decide if we are going to immediately try going "gazelle" on the student loans after the CC is gone, or if we're going to let those "sit" for a while while we move forward with other areas. Right now we're sharing an apartment in an area that has great public transportation, so we don't need a car. But in 8 or 9 months our lease is up and we're going to find our own little one bedroom. We have to save up for the move and possibly for a car, depending on the location of our next apt.I'm leaning towards "ignoring" it and just paying the minimum IBR for a while.

 

DH got a raise of $1/hour which is great. We've got our auto-savings set up to take an extra $150/mo starting in October. This month we're using the extra money for CC. Things are really tight this weekend, though. DH gets paid on Monday. Right now we have $30 in the checking account, and DH should bring home around $20-$40 a night in tips, which should just barely get us through the weekend. We need some groceries, though. And I'm really hoping our life insurance premiums aren't deducted this weekend, cause that is $40. We're trying to make it through til Monday without touching the EF.


Married 12/08 to Chilean DH and mama to DD 2/2/10. We're a bilingual home and we familybed1.gif and toddler.gif

 

Expecting #2 in late June!

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