I'm getting out of debt, with the snowball method. Wanna play? - Page 5 - Mothering Forums

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#121 of 302 Old 11-08-2006, 11:32 AM
 
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Originally Posted by lisa2976 View Post
Kleine, ooh bummer, but YES, you are doing it, and you are doing it right.. just think, you could have been in a situation where you weren't able to pay for those things, and ended up putting it on a cc and making more debt instead. You are making progress!
Exactly! Step one is to not acquire any more debt . . .that is major and you have accomplished that! The next step is to get rid of what you have. Baby steps!

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#122 of 302 Old 11-08-2006, 06:46 PM
 
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Exactly! Step one is to not acquire any more debt . . .that is major and you have accomplished that! The next step is to get rid of what you have. Baby steps!
The truck will cost $1000 to fix. : That's a BIG baby step to overcome. I am going to go take out my frustration on the chicken I need to cut up for dinner.
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#123 of 302 Old 11-08-2006, 08:02 PM
 
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Ooooo, I'll play! I'll have to go back through the whole thread, but I just used the snowball calculator at www.whatsthecost.com and are doing our snowball by interest rate and not size. We will save $20,000 to $30,000 just by snowballing that way! wowzers!

I'm so darn excited to start this. By putting in $900 per month we should be debt free in 9-10 years. This sounds awful, but considering how many years we've been doing nothing, it shouldn't bee TOO bad. Plus any extra can go to debt and pay it off faster!
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#124 of 302 Old 11-08-2006, 11:56 PM
 
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The past few months have been really hard. We've had a lot of extra expenses. Just when I manage to save $300 extra dollars (and it took me awhile) and I thought we were turning things around slowly....bam hit again by life.
Do you have a baby fund of $1000 set up? We got that done before starting the snowball. It makes so we don't have to worry as much about the unexpected expenses that happen each month. It took me three months to get it all the way up.

Shane - Homeschooling mom to three boys (12, 1-, 8) and living the open life with my husband.

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#125 of 302 Old 11-09-2006, 01:34 AM
 
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Originally Posted by Kleine Hexe View Post
The truck will cost $1000 to fix. : That's a BIG baby step to overcome. I am going to go take out my frustration on the chicken I need to cut up for dinner.
UGH! Any chance you can get rid of one car?

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#126 of 302 Old 11-12-2006, 05:04 AM
 
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hi
i work 2 jobs : and dh is a student. we definitely count as low, low income. but i have a plan:
canadian student loans.
you see, in canada student loans don't start having interest until a year or so after the student finishes school. and we get a certain % of the loan amount in grants if we are low income or have kids. sooooo....
we're getting the maximum amount of student loan we can. so that we get as much as possible in grant money. they calculate how much to give based on a few things and one is the bank balance, so the emptier our accounts are the more we get. so we recently got a killer deal on a house. so whenever our bank balance gets above 500$ we put the money on the mortgage. that way we always look broke. but then we get more loan & grant money. so we put that on the mortgage, too. when dh finishes school we will sell the house and for sure get a chunk of change more than we paid for it, and hopefully it will have a lot of the mortgage paid off already. so we'll use the proceeds from that to pay off the student loans before they start gathering interest. then we will save for a huge down payment and buy a little bit of land, build a house, get chickens and a goat...
it feels so good to have a plan. when little things come up and we can't pay them right away because our bank balance is so low that sucks, but in the end we're going to win.
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#127 of 302 Old 11-13-2006, 02:08 PM
 
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Oh, I am so onboard with this one. We have enough debt that it's making life VERY uncomfortable.

Quote:
I'm in. I just got Dave Ramsey's book. Here's to out of debt and buying a house in 2008 well that's my goal at least!
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#128 of 302 Old 11-14-2006, 12:17 AM
 
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UGH! Any chance you can get rid of one car?

No, we live far away from everything so walking or biking anywhere is not really possible. DH has a commute of 47 miles on way for work so I could not drive him there and back. It would cost double the gas and I'm not driving him to work at 5:30 am.
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#129 of 302 Old 11-14-2006, 05:50 PM
 
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Subbing....
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#130 of 302 Old 11-15-2006, 04:55 AM
 
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We just got off of Cobra and will be saving over $600 to pay on other bills. Also as a cancer patient there is a fund that will pay up to $1000.00 for any bill per year ( credit card,rent, etc) so I'm getting a bill mostly paid. So excited and so happy to pay off my bills!
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#131 of 302 Old 11-15-2006, 10:41 AM
 
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Hey all!

Someone mentioned subbing...I found out I can sub on the local paper route and get paid $50 a day during the week and $125 on the weekend. I'm going to do this a couple of days a week and any $ earned will go towards our snowball. Not looking forward to getting up at 3 am but anything to get rid of this mountain of debt we have!
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#132 of 302 Old 11-16-2006, 01:54 AM
 
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Well, I managed to tell DH that we should not put the truck repair cost on a cc. We found someone to fix for $585 instead of $1,000 so saved some there. I used money I set aside for our house payment. That means our house pmt will have to come out of one paycheck. Ouch. So it will be *tight* the next three weeks. Not that it isn't always tight....it'll be even tighter. The main thing is that we did not pay with our cc!
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#133 of 302 Old 11-16-2006, 02:06 AM
 
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Kleine Hexe,
I've been there. We almost bounced checks last month. But managed to not u se the cc to pull us out. I did borrow money from mom but hey it's almost Christmas and I'll pay her back. We have adoption expenses totalling about 3-600 in the next two months to save up for. My mom is paying the big one of 850 for finalization. She's worth every penny but it's going to be tight tight tight til March here. LOL
Congrats on changing your mentality. That's what it's all about. No more snakes.

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#134 of 302 Old 11-18-2006, 06:32 PM
 
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We owe about 25k on cc and 2nd as well as couple hundred in educational fees for the public school.

I will pay the ed fees off first because they are so small. We have the $1000 in the bank which is more relief than I can tell you. It really gives you some peace of mind.

I think the most important aspect to making this whole thing work is really changing how you live. It is also the hardest part.

Good luck to everyone.
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#135 of 302 Old 11-28-2006, 01:15 AM
 
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I know I haven't posted to this thread much, but I've been reading all along, and today I paid off our first card!! I'm so excited!!!! I had chosen that one as first because it had the lowest balance AND the highest interest rate, but now I'm not sure if I should tackle the next highest balance or the next highest interest rate. Oh well, I have a month to decide before the next bill comes!

Now that my snowball is rolling, I can't wait to see the next one paid off, and when they're all done (probably in a year unless we get some money back at tax-time) we'll tackle the student loan! Woo-hoooo!!!!
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#136 of 302 Old 11-28-2006, 01:27 AM
 
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Congrats Msjd. I know what it feels like. We are on a countdown as well. I just paid off one store card, cut it up and will from now on pay for clothes in cash. This month I hope to pay off at least two cards. Good luck and keep us posted! Yeah
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#137 of 302 Old 11-28-2006, 07:57 AM
 
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I had an unexpected thing happen when I paid off the Target card. It was just the store card, not the Target Visa they offer, with a $300 limit. A month after I paid it off, I got a notice that they've automatically switched me over to the Target Visa and increased my limit to $3100. : I didn't WANT that. I didn't ASK for that. And now I'm wondering how it's going to affect our credit ... even if we never ever use it. I mean, that's $2800 more in *available* credit we have open. Isn't that looked upon negatively? I'm kinda mad they did that.

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#138 of 302 Old 11-28-2006, 11:26 AM
 
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heathenmom--can you just cancel the card?
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#139 of 302 Old 11-28-2006, 11:26 AM
 
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heathenmom, it is not seen as a bad thing (all the time) when you have open but unused credit. In fact, I've been told by some that it's good to have open crdit without a balance. It shows that you can have credit and be responsible with it. It is bad when you have credit and it is all maxed out. That is not good. Credit scores do not like maxed out credit.....even if you only own one credit card. Three open cards with no balance is better than having only one card but it is maxed.

You can also call Target and close it.









We get paid three times next month. I'm so excited to send extra money to the van!
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#140 of 302 Old 11-28-2006, 11:55 AM
 
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Originally Posted by Kleine Hexe View Post
We get paid three times next month. I'm so excited to send extra money to the van!
YAY you!! I always love those months, too.

I probably will cancel the card ... not sure yet. I hadn't thought about the open-but-not-used credit being viewed as responsible. I really, really don't like having open accounts out there that I don't intend to use, ya know? It just ticks me off that they can just "upgrade" myaccount without my permission.

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#141 of 302 Old 11-28-2006, 04:21 PM
 
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I'm wishing for one of Dave Ramsay's books this Christmas.
What libraries have books? our local libraries aren't very well stocked
I'm going to make a plan and try to get DH onboard.
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#142 of 302 Old 11-28-2006, 11:26 PM
 
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Don't forget inter-library loan to get books not in your local library. I request everything through the inter-library system online through my local library. Now, getting the time to read is another story. I spend a lot of time listening to the archived radio shows.

Our written budget is showing us that we have more money to put to debt. Now that we have really cut everything out things look clear! We have also set up a reward for when we pay off the credit card. We will take our monthly payment and spend it on the family. We are planning on bowling and eating out. We have $2500 to go and putting $200 each month. Looking forward to the end of the month to see how much more extra we can send.

Shane - Homeschooling mom to three boys (12, 1-, 8) and living the open life with my husband.

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#143 of 302 Old 11-29-2006, 02:48 AM
 
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We both got extra big paychecks this week (holiday pay I guess, added an extra day) plus some extra we had saved to send with this paycheck, so we were able to send $600 to a $722 CC bill! Next month it'll be another $0 on our chart!
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#144 of 302 Old 11-29-2006, 07:01 AM
 
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We both got extra big paychecks this week (holiday pay I guess, added an extra day) plus some extra we had saved to send with this paycheck, so we were able to send $600 to a $722 CC bill! Next month it'll be another $0 on our chart!
Congratulations, that's fantastic!!

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#145 of 302 Old 11-29-2006, 11:48 AM
 
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I've been playing, just not posting. I sold a horse last week (great home, good match with new owner) so I can totally pay off one debt. DH has some retro pay coming next month, I have a holiday bonus coming and we should be out of all consumer debt by 3/07 or so. Still have some Student loans to pay off.

Amy at Stone Fence Farm
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#146 of 302 Old 11-29-2006, 12:05 PM
 
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I probably will cancel the card ... not sure yet. I hadn't thought about the open-but-not-used credit being viewed as responsible. I really, really don't like having open accounts out there that I don't intend to use, ya know? It just ticks me off that they can just "upgrade" myaccount without my permission.

Yeah, it's irksome. I have a cc through my credit union and they don't up the limit unless I applied for an increase. I've had it for many years and I've almost never used it. It has a zero balance. It is in my name only. I keep it open for two reasons. First, is so that I have credit with something in my name only and second, so that I can have it in the event of a true horrible emergency.
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#147 of 302 Old 11-29-2006, 12:44 PM
 
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We used this method, but with a modification:

We found a credit card that was 0% interest for one full year, without balance transfer fees. We moved $10,000 in debt to that card and faithfully paid the $200 a month minimum payment. While doing that, we also paid the additional $400 a month into an interest bearing money market account. When we received our tax refund, we put that money in the money market acocunt, too.

At the end of 11 months, we had saved enough to pay off the debt. (We also paid off our van over this same period.)


We earned $230 interest in the money market and saved $1700 interest (by sitting on a 0% credit card).

Had we simply paid it off, we would have carried another nearly $2000 of debt.

They key and trick to this, of course, is to faithfully pay the bill every month to avoid late fees and rate changes. If we had missed a single payment, our interest rate would have shot back to 18%.
Aside from a $2500 remodeling debt (sitting on a 0% credit card till March) and our house, we are debt free.

It is such a magnificent feeling!
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#148 of 302 Old 11-29-2006, 04:55 PM
 
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I just worked through the december budget. We won't make much of a dent in the cc, but will not have to put any more Christmas on cc. I am estimating we will only have HEL by end of April. HEL will be at least 18 mos. The light is getting brighter!
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#149 of 302 Old 11-29-2006, 05:48 PM
 
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Originally Posted by Kleine Hexe View Post
Well, I managed to tell DH that we should not put the truck repair cost on a cc. We found someone to fix for $585 instead of $1,000 so saved some there. I used money I set aside for our house payment. That means our house pmt will have to come out of one paycheck. Ouch. So it will be *tight* the next three weeks. Not that it isn't always tight....it'll be even tighter. The main thing is that we did not pay with our cc!
AWESOME!!!!!!!

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#150 of 302 Old 11-30-2006, 12:12 AM
 
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I want to join in a little late, we don't have huge dept but have to pay down some of the smaller items quickly for our home loan to get closed on...

we have a cc that i settled for $457 the owed amount was $680 with all the intrested, ect. It will be paid for friday by my paycheck.

then we need to pay off dh's cc that we owe $516 on, not bad, but we hope to pay it off with his pay check the following friday.

then we need to pay down our car loan (only loan left) by $500 so if we do some ebaying and dh works some task force (police overtime for ticket writing) he should get paid enought that we can pay this off with his next check as well.

Then we will have only one car loan and our home loan (but not till we close on it )... ALL CC GONE! only ONE car loan, and that's it, that will feel so good! 1.5 weeks i need this closed up and in the hole!
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