Dumping Debt with Dave Ramsey/FPU Club - Mothering Forums

Forum Jump: 
 
Thread Tools
Old 09-18-2007, 05:54 PM - Thread Starter
 
rosie_plus_one's Avatar
 
Join Date: Aug 2005
Posts: 557
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I see so many people on this forum mentioning Dave Ramsey and how they are doing his baby steps. I thought maybe a thread for people in the process would be nice; we can ask questions, hold each other accountable, brag about successes, etc.

Maybe anyone interested can do a brief introduction, and mention where they are at on his plan. I'll start -

I am enrolled in FPU, class three is this Wednesday, which I won't be able to attend but DP will be able to. We are in major financial trouble right now. We had some legal stuff come up that cost about $2,000, with a possibility for more costs in a few weeks. At the same time, we had some car issues to the tune of $1000. Fortunately, DP got an accident settlement check that we disbursed to a few key people but we still have a lot of digging out to do.

We have $500 in our emergency fund and we're plugging away on it. We are having a very difficult time establishing a clear budget because DP is working a filler job at a restaurant that is just barely covering rent, let alone all the other bills.

Looking forward to getting WEIRD with some of you!
rosie_plus_one is offline  
Sponsored Links
Advertisement
 
Old 09-18-2007, 10:01 PM
 
Denvergirlie's Avatar
 
Join Date: Oct 2005
Location: Foothills west of Denver
Posts: 2,042
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Here is a great board that is only dave, it might give you more of that gazelle focus in getting rid of that debt!

http://www.llnoe.com/
Living like no one else

There are forums for each of the step including a pre-baby step1 which sounds as if that might be more your speed at the moment if you need to get current on bills.

As for us, we are in baby step 2 and it's going gang busters! Will be debt free by July 2008! - That will be about 30K gone in about 18 months (knock on wood)

Just remember, it's a process and you didn't get this way overnight, so your not going to get out of it overnight.

Best of luck to you!
Denvergirlie is offline  
Old 09-18-2007, 11:47 PM
mtm
 
mtm's Avatar
 
Join Date: Dec 2003
Posts: 1,467
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
We've got our emergency fund and have paid off $4000 in debt over the past year. More important we don't add to our debt anymore. We'll be another year to 18 months paying off the rest of our credit card debt but it sure feels good to see it going down.
mtm is offline  
Old 09-19-2007, 02:58 AM
 
Aufilia's Avatar
 
Join Date: Jul 2007
Location: Seattle, WA
Posts: 1,832
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 2 Post(s)
We already have BS1, and BS3 (which I refuse to dump in pursuit of BS2, because I'm the primary breadwinner and we're going to TTC next year, and unpaid maternity leave after that -- so I think that qualifies for the "Storm Cloud on the Horizon" clause). So we are working on BS2 by dumping a small part of our savings and all available income. I'm not sure when we'll pay off everything because I haven't finalized a few things in my mind, like is DD's college fund DS2 or DS4?

Erin, mom to DD (1/06) and DS (10/09)
Aufilia is offline  
Old 09-19-2007, 06:45 AM
 
phathui5's Avatar
 
Join Date: Jan 2002
Location: Oregon
Posts: 17,019
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
We're working on getting current with out past due bills and doing BS1 at the same time. Most of our debt payments are overdue because we got tripped up paying for dh's car. What happened was that in February, dh's work switched from giving him a car payment to providing company cars. We were already in a car loan we couldn't afford to get out of (owed more than it was worth) and making the payment messed up our budget. Now dh has taken a weekend job to pay it off, so we're working on getting caught up.

Midwife (CPM, LDM) and homeschooling mama to:
14yo ds   11yo dd  9yo ds and 7yo ds and 2yo ds  
phathui5 is offline  
Old 09-19-2007, 08:13 PM
 
Evansmama's Avatar
 
Join Date: May 2007
Location: My Truth
Posts: 179
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
MY DH just bought the book today. We are going to do a budget this weekend and hopefully ge thte book read. I will update as we progress. WE could also do a mentorship type thing. IE: people who have completed several steps could mentor people who are just starting? Just a thought....
Evansmama is offline  
Old 09-19-2007, 08:39 PM
 
Sara Badger's Avatar
 
Join Date: Jul 2006
Location: Grand Rapids MI
Posts: 247
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I love this thread we are waiting on the book and then we will be jumping in! We are currently 10,000 debted to dentist bills and 7000 to a car and misc. Right now we are one paycheck behind and have been for all of 2007 so we are so looking forward to being a step ahead! We are also moving to a better cost of living in a couple months!!
Sara Badger is offline  
Old 09-19-2007, 09:40 PM
 
alleyoop's Avatar
 
Join Date: Sep 2007
Posts: 43
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
We have been working on paying down debt since January and have paid off an enormous amount of $ in back taxes, property taxes, estimated taxes, and credit cards. We have about $2,500 left on the last credit card (should be done by December) and are current on all the taxes. We are hoping that we will go into next year not owing any taxes and we are not using credit cards anymore. We still have a truck loan that we will get to next year. We have an $1,100 emergency fund that I would like to build up to at least $2,000.

August was a month off - we went camping for two weeks and I barely paid down debt but it was all planned and we didn't spend any more money than we had. September has been good and it is a nice feeling to be back in debt- paying mode. I really want to get our family in a good financial place and I hope by the end of this year we will be well on our way.

One thing I did that really helped me was set up the budget forms as a spreadsheet on Excel. Every month I budget out the money and allocate accordingly when bill paying time rolls around. If I feel like buying something, it is very apparent if I have the extra money or not.
alleyoop is offline  
Old 09-20-2007, 04:37 PM
 
Miasmamma's Avatar
 
Join Date: Sep 2006
Location: Defying gravity
Posts: 1,313
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
We just did a brief overview of Dave's book at church last Wednesday, and hopefully in Jan we will start a FPU. I hope to have our Emergency Fund completely funded by then, and hopefully one or two cards paid off by then. We do have most of our CC debt put into a plan with Consumer Credit Counseling, but once we pay off the little stuff, I can add that to the payment that I pay them every month and that will work that down super fast. Then I just need to start on my student loans. I am not looking forward to that.

Erin, mom to Amelia Rose:, 6/15/06 and Lily Grace, 6/7/09; wife to Phil since 10/9/04
Miasmamma is offline  
Old 09-20-2007, 06:56 PM
 
beansmama's Avatar
 
Join Date: Aug 2007
Posts: 1,169
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
We are huge TMMO fans in this house.

We are debt free, have a 6 month emergency fund - and right now we are working on baby step 3b (i think that's it???) saving up for a house! We plan on building on my parents lot and we'll need at least $85k for purchasing the land/materials/etc. My dads a contractor and builds houses for a living, so we are going to do the whole thing ourselves - so it may actually be cheaper!

I love Dave!!! If it wasn't for the TMMO we'd be *screwed* right now...Dh lost his job in april and we went from making 40K/a year (although that was a VERY recent raise) to less than $16k/year on unemployment insurance.

Since we have our emergency fund and some extra house money in place DH is able to not work and instead go back to school (atleast for this year - he may need a part time job next year).

Dave rocks!
beansmama is offline  
Old 09-21-2007, 02:10 PM
 
angela1435's Avatar
 
Join Date: May 2007
Posts: 223
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Hi! I just read the book. We are in WAY over our heads. We are behind on bills, have a bounced check that we need to pay and not enough money to do it all. Blahhhhhhhh.........quick question. Ok, the first step is the emergency fund...........should i pay off things like a bounced chech from 6 months ago, old accounts in collections, things like that before or after that? Should it be included in the debt snowball? I am confused about that part.

Angela married to the love of my life Mommy to Summer Hailey and Evan
angela1435 is offline  
Old 09-21-2007, 03:30 PM
 
Miasmamma's Avatar
 
Join Date: Sep 2006
Location: Defying gravity
Posts: 1,313
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Your pre-baby step should be to get current on your bills and do a budget. Then get your emergency fund, then start your snowball. I went to www.llnoe.com and got some great tips. I know that I was getting frustrated b/c I wanted to start paying stuff right away, but you really can't do that unless you have a budget in place. And you need that emergency fund b/c something will happen and falling back on cc's is a huge step back.

Erin, mom to Amelia Rose:, 6/15/06 and Lily Grace, 6/7/09; wife to Phil since 10/9/04
Miasmamma is offline  
Old 09-21-2007, 05:34 PM - Thread Starter
 
rosie_plus_one's Avatar
 
Join Date: Aug 2005
Posts: 557
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Well it sounds like there are quite a few of us working his plan right now! Great!

Pre Baby Step 1

pathui5
evansmama
Sara Badger
angela1435


Baby Step 1


rosie_plus_one (500/1000)
Miasmamma
Nitenites


Baby Step 2


Denvergirlie 30K by July 2008
mtm 4K to date, 12-18 months left
aufilia (BS3 completed - TTC)
allepoop 2500 CC to go!
excitedtobeamom

Baby Step 3

beansmama saving for house building!
rosie_plus_one is offline  
Old 09-21-2007, 05:38 PM - Thread Starter
 
rosie_plus_one's Avatar
 
Join Date: Aug 2005
Posts: 557
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Please let me know if I didn't get anyone in the right spot. Now we can all try to move up the steps!

We got a paycheck yesterday that was quite a bit more than expected, so that's great news! We'll definitely be in the clear for getting everything paid this month without having to dip into that $500 in savings. DP got hired for a full time job, so I'm hoping to start putting his restaurant money into savings. I also got offered a child care position for a weekly NA meeting, so I jumped on it! Should add up to $100 extra each month. Chuggin' along, can't wait to get those CC balances down!!
rosie_plus_one is offline  
Old 09-21-2007, 07:01 PM
 
Denvergirlie's Avatar
 
Join Date: Oct 2005
Location: Foothills west of Denver
Posts: 2,042
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by angela1435 View Post
Ok, the first step is the emergency fund...........should i pay off things like a bounced chech from 6 months ago, old accounts in collections, things like that before or after that? Should it be included in the debt snowball? I am confused about that part.
I would consider these debts, one to be placed into the debt snowball. The things you want to get current are monthly revolving debts... water, gas, electric, mortage/ rent, credit cards, car loans, etc. Anything that is still "open" and hasn't been closed, those you get current. The get that EF in place and then snowball, snowball, snowball.

Best of luck to you!
Denvergirlie is offline  
Old 09-24-2007, 01:05 AM
 
Nitenites's Avatar
 
Join Date: Jan 2003
Posts: 1,018
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Add me in! We're in baby step one - just read the book this weekend.

Proud Catholic, homeschooling, RN-student mama of
DS 10 reading.gif  DS 8 fencing.gif DS 5, DD 3 energy.gif and a new DS  belly.gif 3/2011
Nitenites is offline  
Old 09-25-2007, 01:33 AM
 
excitedtobeamom's Avatar
 
Join Date: Jan 2004
Posts: 810
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
We are in BS2 and chugging along. Good luck everyone!

Homeschooling Momma to DD 8 years old, DS 7 years old, DS born 03/11 by adoptionheart-1.gif , waiting for DD born 07/10 and two furry labs. Wife to my wonderful husband of 12 years.
excitedtobeamom is offline  
Old 09-25-2007, 02:05 AM
 
phathui5's Avatar
 
Join Date: Jan 2002
Location: Oregon
Posts: 17,019
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Dh has been interviewing for an commercial lighting/ energy auditor job that would increase our income considerably. Obviously this would make paying off debt easier.

:

Midwife (CPM, LDM) and homeschooling mama to:
14yo ds   11yo dd  9yo ds and 7yo ds and 2yo ds  
phathui5 is offline  
Old 09-25-2007, 02:06 AM
 
phathui5's Avatar
 
Join Date: Jan 2002
Location: Oregon
Posts: 17,019
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
What exactly is Pre-baby step 1?

Midwife (CPM, LDM) and homeschooling mama to:
14yo ds   11yo dd  9yo ds and 7yo ds and 2yo ds  
phathui5 is offline  
Old 09-25-2007, 10:57 AM
 
LEAW's Avatar
 
Join Date: Aug 2004
Location: The batcave...
Posts: 2,606
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
BS1 is saving an emergency fund of $1000.

Before you can do this, you need to be current on your bills (leave sleepers alone, but you need to have your regular bills up to date - not being behind on the utilities and such) and set up a budget that names every dollar earned so that you have something to stick to.

That's pre-BS1.

Erin, you need to put college savings for the kids in BS5.

I'm on BS2, we have one credit card and a student loan to go!

Lisa, mama to Lauren, Elliot, angel Marion, and baby due in the fall.
LEAW is offline  
Old 09-25-2007, 11:03 AM
 
Denvergirlie's Avatar
 
Join Date: Oct 2005
Location: Foothills west of Denver
Posts: 2,042
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Just for everyone's reference. I did add in pre-baby step 1 - which I called baby step "0" and also added in BS 3b for those of us that do not yet own homes but want to.


Dave Ramsey - Baby Steps

0-- Get current on your bills
1 -- $1,000 to start an Emergency Fund
2 -- Pay off all debt using the Debt Snowball
3 -- Three to six months of expenses in savings
3b --- If you don't have a house and want to buy one, this is where you save for the downpayment
4 -- Invest 15 percent of household income into Roth IRAs and pre-tax retirement
5 -- College funding for children
6 -- Pay off home early
7 -- Build wealth and give! --- Invest in mutual funds and real estate
Denvergirlie is offline  
Old 09-25-2007, 05:40 PM - Thread Starter
 
rosie_plus_one's Avatar
 
Join Date: Aug 2005
Posts: 557
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
That's great Denvergirlie! Thanks.

I added our two new-comers, and if anyone wants to give me new balances on their emergency fund or amount of debt paid off/left to pay off, I'd love to add it!

DP started a great full-time position last Thursday, so a lot of stress has come off my shoulders. He also got some grant money for a treatment program he needs to go through, so it cut the bill by about 75% and I think we can make payments on it.

The only thing about the new job is that they pay on the 5th and the 20th. We've only ever gotten paid each Friday, so I'm not really used to budgeting this way. I wrote out a zero based budget for October, and I'm hoping to go over it with DP tonight or tomorrow night.

Financial Peace University tonight! Week 4, which I think is Dumping Debt!!
rosie_plus_one is offline  
Old 09-25-2007, 11:56 PM
 
phathui5's Avatar
 
Join Date: Jan 2002
Location: Oregon
Posts: 17,019
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Tell us all about the class tonight, Rosie.

Midwife (CPM, LDM) and homeschooling mama to:
14yo ds   11yo dd  9yo ds and 7yo ds and 2yo ds  
phathui5 is offline  
Old 09-26-2007, 12:48 PM
 
angela1435's Avatar
 
Join Date: May 2007
Posts: 223
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Just checking in!! Ok, so I guess I am in pre-babystep 1. I am bahind on a few bills so............... But I am going to add the collections to the snowball so it shouldn't take me long to get the bills current. Then I can start saving for the baby emergency fund!! I can't wait. I am so excited. I just need to get my hubby on board......haven't talked to him about it because he is in the navy and out to sea for a few more weeks. I think this is mostly going to be on me because he is gone a lot.

Ok, I have a question.............we are expecting a baby in January and we have things that need to be bought......it is hard to save and then pay off debt when we have big things we need to buy......any advice on that??

Angela married to the love of my life Mommy to Summer Hailey and Evan
angela1435 is offline  
Old 09-26-2007, 05:18 PM - Thread Starter
 
rosie_plus_one's Avatar
 
Join Date: Aug 2005
Posts: 557
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by phathui5 View Post
Tell us all about the class tonight, Rosie.
Turns out I got my dates wrong, and last night's class was on "Buying Big, Big Bargains," which though it was interesting, was NOT what I was wanting to hear about!! I'm not buying anything until we get the emergency fund up to a grand and get a few personal loans paid off.


Quote:
Originally Posted by angela1435 View Post
Ok, I have a question.............we are expecting a baby in January and we have things that need to be bought......it is hard to save and then pay off debt when we have big things we need to buy......any advice on that??
Dave generally advises that you put your debt snowball on hold, and build a huge savings account instead. He calls it a "storm on the horizon." When I was pregnant, I estimated how long I would be out of work for, and figured out how much money that was, and decided I wanted to save a little more than that. Well, that's assuming you are a WOHM I guess. If you aren't, then I would save for any insurance bills you will have and your purchases.

Save extra though!
rosie_plus_one is offline  
Old 09-26-2007, 09:31 PM
 
Adamsmama's Avatar
 
Join Date: Oct 2003
Posts: 4,264
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I think we are on BS2...need to go check. We have the EF, budget and our starting the snowball. We are so happy about it, too!!!
Adamsmama is offline  
Old 09-27-2007, 02:27 AM
 
aircantu1's Avatar
 
Join Date: May 2002
Location: Texas
Posts: 557
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
We're big Dave Ramsey fans. We're in BS2 (again ) and have $16,591.54 to go. We've paid off $51,075.74 so far. The remaining debt is my husband's car loan -- I'd just assume we sell the darn thing and be done with it but we're pretty upside down on it and it's a Honda with only 45,000 Miles so it should last another million years. It makes sense to keep it -- I'm just impatient and want to be done with debt!
aircantu1 is offline  
Old 09-27-2007, 11:16 AM
 
guest^'s Avatar
 
Join Date: Oct 2002
Posts: 1,796
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Feeling hopeless, so am subbing and :.

Thanks,
mp:
guest^ is offline  
Old 09-27-2007, 04:07 PM
 
beansmama's Avatar
 
Join Date: Aug 2007
Posts: 1,169
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Well, i don't think i'm at baby step 3b anymore...we are now focusing ALL of our savings towards being able to survive next year...so the savings for the house are on hold. I want to save enough to not have to eat into the measly $8k we have for the house fund so we still have SOMETHING saved for it!

So um, i don't think i'm technically ON a babystep, lol...but i still feel like i'm following the "plan" (not getting into debt/living under my means!).

So i'm in baby step 3b "limbo"
beansmama is offline  
Old 09-27-2007, 05:42 PM - Thread Starter
 
rosie_plus_one's Avatar
 
Join Date: Aug 2005
Posts: 557
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by mamapoppins View Post
Feeling hopeless, so am subbing and :.

Thanks,
mp:
Do you have his books? It is incredibly empowering to just develop a plan! Whenever I start feeling bummed about our money, I look at our budgets, or write out what I think is going to happen over the next week or two, and it really makes me feel better to at least *know* what's going on.

You can also go to his webpage and listen to his daily show live - it's great!
rosie_plus_one is offline  
 
User Tag List

Thread Tools


Forum Jump: 

Posting Rules  
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off