I'm getting out of debt, with the snowball method. Wanna play? - Page 9 - Mothering Forums
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#241 of 302 Old 02-05-2007, 04:30 PM
 
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I'm so happy... they waived the fees 'just this once'. Whew! :

Amy- we're getting a huge refund too. Our CPA friend does our taxes for us and he said it's the biggest return he's ever seen. It's going to pay off three debts and buy a replacement for our drafty old front door... and our new digital camera, the old one wasn't taking pictures of the moving children . Enjoy your refund, it's fun getting it and paying things off.
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#242 of 302 Old 02-05-2007, 05:17 PM
 
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I'm glad they reversed the fees. I like credit unions. They are usually more willing to work with you.

Once the van is paid off I don't know which debt to attack next. I guess according to snowball rules it should be the student loan because that's the next lowest. I think that is what we will do. We'll see.
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#243 of 302 Old 02-05-2007, 05:33 PM
 
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Yeah, I like pretty much everything about CU except they're busy so I usually have to wait at the drive-thru. My kids did great going in there today, but I wouldn't want to go in on a regular basis.

I'm going to sit down and figure out all our debt (excl the house and van) so I can figure out what percentage we're paying off.
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#244 of 302 Old 02-05-2007, 07:41 PM
 
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yeah we (read me) just filed our returns!!! darn things are so confusing! military is domiciled here but taxed there but not taxed in your domiciled state because its military pay....or something like that. : : :

so 1-2 weeks and we be rich!! well for a day anyways...

i almost just stopped and wanted to go to a CPA but I figured that i would just be blowing our money. we got $6k which is 2x what i planned but it had actually gone down $600 b/c of the side jobs dh and i had...which was only $5k more than his normal job. oh well! i just hope next year its just as big! dang 2 kids make a huge difference!

by by debt!! car debt, cc debt, dell debt, tv debt! all gone in 2 weeks! :


good job getting the CU to wave those fees. i had always heard that CU's were less jammed than reg. banks.

enter the crazed woman who checks the bank 5 gazillion times a day...
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#245 of 302 Old 02-05-2007, 08:32 PM
 
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Yay on the fee reversal!

In terms of $, we are just so-so, but I am feeling better about it.

CC debt is not reduced by much-- not nearly as much as I'd planned-- but I have hope. With our tax refund, DH's bonus and raise, things are looking better. I think our budget will FINALLY have more breathing room (we had to be so exact before, and we weren't!) , we will be able to increase our cc payment and get it paid off in 2 years. That will be the end of the debt minus the mortgage.

My main concern now is our car. I have been thinking about selling it to get a minivan since we'll be having 3 DC soon (I'd aim for no cost difference-- we'd get one with the same miles as our car) . . .but that may just be asking for trouble. I have no idea if a new "used" one would be as reliable, AND I don't know what upcoming problems our current car has. There is money in the budget for repairs but what if it is a huge one? That would eat away at the bigger cushion we have established.

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#246 of 302 Old 02-06-2007, 01:02 AM
 
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busybusymommma, that's great that you had the fees waived.

Well in January we had the usual bills to pay, plus we paid off the furniture store bill. Today DH paid $800 at Home Depot and we'll finish paying that when our tax return comes in. We're still waiting for his yearly income statement to come in so we can actually do our taxes. I think that in Canada our filing deadline is a month later than the US.
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#247 of 302 Old 02-07-2007, 12:17 PM
 
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Unless I totally messed up our tax returns, we are doing even better than I thought and we don't owe the state either. I'll be paying off the car in March, adding a little bit to the emergency fund, paying for DH's bow (he picked it out and it's a little more affordable than I budgeted for in my head) and even having some left over to pay ahead on the next big thing (Capital One).

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#248 of 302 Old 02-07-2007, 09:27 PM
 
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I know I'm a little late here, but we REALLY need to do this! We are LDS and a similar method has been suggested by our leaders. We have 7 credit cards, student loans, a car loan and a mortgage. Not to mention a 10,000 + loan from DH's grandpa that we'll have to pay back at some point. We just got several bonuses, tax money and some moving expenses reimbursed so I think that almost all of it will be going toward our debt. I'll update soon!
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#249 of 302 Old 02-07-2007, 10:59 PM
 
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I am new to this thread and wanted to ask how do you tackle the big debts like Home, home equity, and student loans? We have made significant strides this year by getting rid of all credit cards and car loans. However, we are now at a point that we need to save for a new car, home improvements and the kids college. How do you pay off debt and save? It seems like a daunting task when they are all such big ticket items.:
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#250 of 302 Old 02-08-2007, 06:07 PM
 
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Originally Posted by celrae View Post
I am new to this thread and wanted to ask how do you tackle the big debts like Home, home equity, and student loans? We have made significant strides this year by getting rid of all credit cards and car loans. However, we are now at a point that we need to save for a new car, home improvements and the kids college. How do you pay off debt and save? It seems like a daunting task when they are all such big ticket items.:
For saving for a new car, you should put the amount that you were previously paying for your car loan into a savings account. Once you can move it into something that pays higher interest, I would do that so you can get to your goal a little faster.

You should have a good sized snowball if you paid off all your plastic and your car loans - it seems slow, but imagine how much slower it would be if you were just making your minimum payment on those big things!
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#251 of 302 Old 02-08-2007, 06:15 PM
 
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We're getting a little over $5000 from our refund this year. I am a little bit torn between two options, and I'd like to run them by you guys for some help.

List of Debt:

Sound CC $2400 $45 payment
Rose Wells $2000 $30
Capital 1 $1000 $30
B of Amer $550 $25
Jason Wells $300 $25


Car $4500 $150 payment, plus full insurance $100/month


* Option 1: Pay off Jason Wells, B of A, Rose Wells, and Sound for a total of $5,250. We would have an additional $125/month to allocate towards debt, and we would only have my Capital 1 card and the car left to pay off.


* Option 2: Pay off the car and hopefully the two smallest credit cards with a little extra money we could put together. It would free up $200/month, plus we could cut the insurance back and maybe have a $50/month savings there. Also, at this point, I drive a POS and Jason drives the car with the loan on it. We had hoped to replace my car before this baby is due, but I can't have another car loan in my name and he can't sign for it. By paying off his car, we would be one step closer to being able to buy a car for me, which we have some money set aside for but would probably need to finance a few thousand of.


I don't want to go into more debt, and that's what it feels like would be likely by doing Option #2, because we would be able to take out another car loan, maybe before we were ready to. However, there is a bit of a safety issue with my car that I can't get out of my head.

I think I'd like to do Option 1, and I have a feeling you will all tell me to do that, but I wanted to make sure.

TIA!!
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#252 of 302 Old 02-08-2007, 06:22 PM
 
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* Option 1: Pay off Jason Wells, B of A, Rose Wells, and Sound for a total of $5,250. We would have an additional $125/month to allocate towards debt, and we would only have my Capital 1 card and the car left to pay off.
this is what i would do, then use those min. payments of the paid off cars to pay off the Cap 1 card, then the car.

Momma to K ('01), E ('03) and A ('07)
Acting as a Gestational Surrogate for my cousin, EDD Jan 17th
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#253 of 302 Old 02-08-2007, 08:24 PM
 
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I would pay off the CC debt 1st and when that is done try saving for another car. Also, keeping full coverage on your car if it is in good working order and fairly new is good idea. I think keeping full coverage until you have a savings for a new car is a smart idea, it is too risky not to be protected.
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#254 of 302 Old 02-08-2007, 08:41 PM
 
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* Option 1: Pay off Jason Wells, B of A, Rose Wells, and Sound for a total of $5,250. We would have an additional $125/month to allocate towards debt, and we would only have my Capital 1 card and the car left to pay off.
Yeah, I'd go with option #1.

For a myriad of reasons. One of which is that unsecured debt (i.e. not against a car/house/something you could sell to cancel the debt) is evil. :

Or you could sorta fudge with option #1 and put $1000 or so aside in a just-in-case car fund. Like if your POS totally dies, $1000 might be able to get you an okay car that gets from point A to point B (even if it does look hideous or is older than dirt). Or you'd have it as an emergency fund.

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#255 of 302 Old 02-08-2007, 10:57 PM
 
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Slightly OT here, but seems like a good thread to share this on!

I've been reading about buying/selling cars, and it seems that financing is the real way you lose money. You should always go in as a cash paying customer because then you have the upper hand no matter what.

To do this, let's say you get a loan on a car for 4 years. Keep the car for 8 years. The first 4 years you spend paying off the loan. The next 4 years you put that same payment into the BANK for a car fund. At the end of the 8 years, you can buy a car (if you so choose) as a cash paying customer.

I thought this was a great idea-- not one I can apply now since we have cc debt (but no car debt)-- but one I will use once it is gone!

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#256 of 302 Old 02-09-2007, 06:58 PM
 
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If that car lasts for another 4 years. We drive a lot! Now that our van is paid off I'm really hoping to drive it as long as I can. I like the idea of sending that payment to the savings acct but I also really like the idea of paying off my two ccs and student loan.


It feels SO good to have that van paid off! I have not been without a car payment since 1998. It feels great to pay off debt. Feels much better than going shopping because there is NO guilt.
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#257 of 302 Old 02-09-2007, 07:04 PM
 
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I'm excited... we received our tax refund today so I sent payments and we're now 45% out of debt (not counting the van and house). Unfortunately the the other CC is going to take a bit to get paid down since it has the highest balance but at least we're not paying $75/mo in interest on the other two CCs.
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#258 of 302 Old 02-28-2007, 12:23 AM
 
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i found out that we do in fact owe 2 years on our suv not just one... but its not horirble. it just means we won't be saving anything.

we paid off the dell acct., the star card (tv), and our small cc's are under control (no interest being paid just paid monthly)

we still have 2 car payments
suzuki 4865-2250 (tax return)-2000 (WAH check i got today!! )= $615!! which will be 3 payments :
camaro 10000 will be a while before thats paid off but i am ok with that!

thats ALL of our debt!! wahoo!!!
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#259 of 302 Old 02-28-2007, 11:19 AM
 
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8 months early. Man what a load off our backs. We're never doing that again. It had us so strapped for cash it wasn't funny. Wahoo it's gone. Now if I could just get my taxes done. Then we'll begin working on the heloc (adoption loan) and the last business cc. I can't wait til we are debt free in um 3 years...hopefully sooner though. Then the house. What a great feeling that will be. debt free just in time for the oldest to go to college.

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#260 of 302 Old 02-28-2007, 04:57 PM
 
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List of Debt:

Sound CC $2400 $45 payment Paid $2250
Rose Wells $2000 $30 Paid $1900
Capital 1 $1000 $30 Paid $50
B of Amer $550 $25 Paid in full
Jason Wells $300 $25 Paid in full


Car $4500 $150 payment, plus full insurance $100/month
I'm feeling pretty good about our progress so far!
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#261 of 302 Old 02-28-2007, 06:10 PM
 
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Our update... we've paid off 45% of our credit card debt in the last year. Whew. Hopefully we can keep chipping away at the last CC and we'll pay it off next year with our tax refund. Then we'll finally be free of CC debt.

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Originally Posted by busybusymomma View Post
  • CC#1: Paid off in 2006!
  • CC#2: $1903.08 Paid off!
  • CC#3: $1612.95 Paid off!
  • CC#4: $3841.35 (13.9% interest) went up to $4,000.28 I think dh used it for something
  • Etc Loan: $4,693.25 is down to $4,571.08
  • Van: $9,689.81 is now down to $9,385.29
  • Home: $41k ish
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#262 of 302 Old 03-01-2007, 12:21 PM
 
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Great job everyone! Slowly but surely the debt goes away.

So far we've paid off our two vehicles and now I'm working on one of our ccs. I was able to send $1161 this month! If I could manage to send $1K every month I'll have it paid off in 7 months. My snowball payment is up to $680 so if I can find a way to add another 100 or so that would be great. I would be pumped to get this cc paid off within this year. We're planning on TTC later this year so it would be wonderful to have this cc gone before a baby came. That is my goal!
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#263 of 302 Old 03-05-2007, 07:09 AM
 
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We got our tax return and sent all but $300 of it to credit cards! We paid off two of them and now have $1000 left on the last one. This is the best feeling!
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#264 of 302 Old 03-22-2007, 10:13 AM
 
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Any other snowballers still out there?

We just paid off our two smallest bills & it felt so awesome to send those payments out!

~e, wife to my sweet T partners.gif, mama to my turtleman (8) , sunshine (6 vbac.gif), and monkey (2)
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#265 of 302 Old 03-22-2007, 11:00 AM
 
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We're waiting on the tax return. Unfortunately we just had MAJOR car repairs. The snowball suffered.

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#266 of 302 Old 03-22-2007, 02:41 PM
 
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We just zeroed out our last credit card a week ago! Yay!!!!
That part of dh's college education is paid for and gone! (His dad refused to stop claiming him as a dependent for the $500 tax credit/deduction back then, so dh couldn't get any financial aid - 3 semesters of college on a card, ouch.) Car will officially be ours by Christmas if not sooner, then it's just the student loans (yes, compliments of FIL again) and the mortgage! : :

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#267 of 302 Old 03-22-2007, 03:17 PM
 
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Tax return arrived, cars are all ours. :

We have a consumer loan (call it consolidation) and Student loans left. Altogether about 30K:

Worst case we are slated to be done in 3 years (minimum payments).

I also padded the emergency fund.

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#268 of 302 Old 03-22-2007, 04:36 PM
 
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We had to pull a little from our emergency fund when we discovered our mattress was molding. But boy do you sleep better on a new mattress when you own it and aren't paying 22% interest on it!

So now we're working to get the fund back up to a grand, and then we'll turn our attention back to those CCs. Almost gone, then the car, and finally - the student loan!!

We don't own a house, and we'd like to start saving for our downpayment. Should we do that before or after the student loan?
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#269 of 302 Old 03-22-2007, 10:36 PM
 
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We're just plugging away, slowly chipping at the last CC balance. We've had to use dh's overtime recently on some home repairs but hopefully soon we'll have the repairs caught up and can get a bit more paid on the CC. I tell ya, I rue the day I got a CC.
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#270 of 302 Old 03-22-2007, 10:55 PM
 
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I tell ya, I rue the day I got a CC.

I hear ya.

~e, wife to my sweet T partners.gif, mama to my turtleman (8) , sunshine (6 vbac.gif), and monkey (2)
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