Dumping Debt with Dave Ramsey/DECEMBER - Mothering Forums

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Old 12-01-2007, 02:43 AM - Thread Starter
 
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Hope it was ok to start a new monthly thread!

Oh yeah, I had a question too....
Do CC go before car payments or are all debts debts and go from lowest to highest no matter what? Example....we have a $350 CC...which would go first (and hopefully fast!) and then the truck we owe 5K on and we have an 7K CC. Paying off the truck would free up a $240 payment a month. Freeing up the 7K card would free up only $112. We'll have a decent tax return and may be able to pay off the entire truck....and then we could sell it, get a beater and put the selling money towards the bigger card? Is that not the right order of "rules?"

Also about taxes....we continously keep getting a huge refund each year (like 5K)....personally I'd rather have that throughout the year. That's over $400 a month, yk? But we already claim "married/4" Hmmm........ Having extra a month would help to pay down debt.

Desiree

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Old 12-01-2007, 03:02 AM
 
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hi,
I want to sub and try to keep up.

I have recently been hospitalized and haven't been working much. even with our insurance, our co-pays, out of pockets,etc. are killing us. I truly don't think we are going to be able to pay our mortgage this month for the first time ever!!! We have been trying hard to keep our credit good because we want to put this house on the market and move to something cheaper. But if we miss mortgage payments, I know it can kill your credit, one site (maybe live like no one else?) said that it can lower it 100 points!!! Ouch! So we are thinking we may have to put in on the credit card:to keep the credit scores looking good.

I look forwardto after the christmas season, tax season, etc. and when I am back on my feet and ready to get back to work with DR's stuff, we were working hard on getting rid of the debt, keeping our 1000 in the bank, using the envelopes, but all that has kind of gone outthe window for the time being.

I posted my budget last month, working onthis months, I am going to hop over to the other forum and ask some questions about reducing energy bills for the winter, that's a huge expense for us here in PA, we are all electric, it kills us!
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Old 12-01-2007, 03:02 AM
 
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Dave always says go from the smallest debt to the largest. He also says don't get a huge tax refund. That would make your snowball a lot bigger. Getting a big tax refund is like loaning all that money interest free to the government.

My husband uses their calculators to figure out how much to claim for taxes so that we don't owe anything but we get very little back:
http://www.paycheckcity.com/

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.
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Old 12-01-2007, 03:22 AM - Thread Starter
 
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Barb- Can you call and see if they will defer it a month? Especially around this time of year, I am sure they would be willing to do so. I've paid a few days late before (accident, my bank took longer than it should have to send) and I got a "late fee" attached but it didnt damage our credit at all.

That's tough, mama...hang in there!

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Dave always says go from the smallest debt to the largest. He also says don't get a huge tax refund. That would make your snowball a lot bigger. Getting a big tax refund is like loaning all that money interest free to the government.

My husband uses their calculators to figure out how much to claim for taxes so that we don't owe anything but we get very little back:
http://www.paycheckcity.com/
Thank you, I'll try that!! Our friends claim like 8 and they only have 3 kids and they still dont have to pay but just dont get any back.

Desiree

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Old 12-01-2007, 10:56 AM
 
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Originally Posted by excitedtobeamom View Post
Dave always says go from the smallest debt to the largest. He also says don't get a huge tax refund. That would make your snowball a lot bigger. Getting a big tax refund is like loaning all that money interest free to the government.
My husband uses their calculators to figure out how much to claim for taxes so that we don't owe anything but we get very little back:
http://www.paycheckcity.com/

Definitely get your withholding changed so you don't have a large tax refund.
My DP is self employed and we pay A LOT of money to his self employement taxes, it sucks.

Thanks for starting the December thread DesireeH!!
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Old 12-01-2007, 11:35 AM
 
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Hi!

Barb - I am sorry to hear of your troubles. I would definitely look into seeing if they will let you miss or defer a payment. I'm in Canada, but most mortgages I have looked into seem to offer that feature. It can't hurt to ask.

Yesterday was payday, and a momentous payday it was: we now owe hundreds rather than thousands of dollars! My LOC is now at $900! I was able to move some money around (deposit some cash I had been given) and add another $100 to it, exceeding even my highest lofty goals! We should have no problem paying it off by the end of the year! 2008 is a clean slate!
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Old 12-01-2007, 11:44 AM
 
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I'm in! I just finished reading Total Money Makeover and we are on our way. We have some minor medical debts that we are going to pay this month and then start chugging at the ccs.

I think Dave would say to get rid of the truck, btw. He is VERY against car debt.
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Old 12-01-2007, 12:09 PM
 
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subbing I'm going to be starting full force Jan 1
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Old 12-01-2007, 12:45 PM
 
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Hey all!

We are finished Baby Step 1!!!!! As of yesterday, our Basic Emergency Fund if at $1000. We are moving on to step two.

I'm going to list the steps here for anyone who doesn't know:

$1,000 to start an Emergency Fund
Pay off all debt using the Debt Snowball
Three to six months of expenses in savings
Invest 15 percent of household income into Roth IRAs and pre-tax retirement
College funding for children
Pay off home early
Build wealth and give!
Invest in mutual funds and real estate

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Old 12-01-2007, 12:50 PM
 
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: still need the book from the library, but will probably start in january (this month i'm concentating on the grocery budget).
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Old 12-01-2007, 01:33 PM
 
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Hey all!

We are finished Baby Step 1!!!!! As of yesterday, our Basic Emergency Fund if at $1000. We are moving on to step two.
::
::::

Yay! Congratulations!
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Old 12-01-2007, 03:07 PM
 
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We are finished Baby Step 1!!!!! As of yesterday, our Basic Emergency Fund if at $1000. We are moving on to step two.
WTG!!!!!!!!!!!!!!!!!
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Old 12-01-2007, 03:15 PM
 
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Debt is :
HSBC : 0/600.00 PAID Nov 1st
Best buy :0/484.00 PAID Dec 1st
household :993.00/1041.00 (we had this down and then a annually fee was charged)
Providian :1174.00/1253.00
medical bill for DD theraphy was 120.00 when we started the plan now PAID Nov 1st
Verizon cell phone 360.00 canceled our cell phones this is our cancel fee
Greenbriar appartments 1300.00/1500.00
School loan 4222.00/4462.00
Car 7065.00/7673.00

Just paid off best buy YEAH!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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Old 12-01-2007, 03:17 PM - Thread Starter
 
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We are finished Baby Step 1!!!!! As of yesterday, our Basic Emergency Fund if at $1000. We are moving on to step two.
YAY!!!!!!!!!!!!!!!!!

Quote:
Just paid off best buy YEAH!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Congrats!

Desiree

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Old 12-01-2007, 05:22 PM
 
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Wow congratulations for those hitting their goals! Especially during this holiday season, yeah!!!!

We also have car debt, a very "stupid tax". My husband bought his car and took out the full amount it was worth at the time, 17K, it is now only worth about 10K. We found out we could sell it for that, then take a personal loan out for the 7K. Which would save us about 200.00/month. BUTTTTTT, we don't have any money saved for a new car to replace, so we are kind of stuck with the payments for now, not sure what else, we definitely need two cars and we need something decent, he puts about 30K or miles on per year.

We were able to get rid of our 12 passenger van which was paid off and use that money to get a cheap minivan which definitely saves us money on gas, I drive alot too, most of my clients are rural.
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Old 12-01-2007, 05:29 PM - Thread Starter
 
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I feel ya, Barb. I have a LEASE (aka FLEECE, hahahaa) on a 06 car. Dumb I know. Daphne's carseat wouldnt fit in our "old" paid off car (which was a cute 99 VW passat that I miss) so when she was 2 days old, we leased this. LAME. We didnt think that plan out well. It's $290 a month payment (versus $400 something if we bought instead of leased.) But now I dont think there is a way out until its time to turn it in (June 08). I cant figure that out from the book too. He says how dumb leasing is but doesnt say what to do if you already did it! LOL

Desiree

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Old 12-01-2007, 05:33 PM
 
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But now I dont think there is a way out until its time to turn it in (June 08). I cant figure that out from the book too. He says how dumb leasing is but doesnt say what to do if you already did it! LOL
Call or email his show! That is a great question to find out an answer to.
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Old 12-01-2007, 05:39 PM - Thread Starter
 
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He's on Myspace too. LOL I should Myspace him! LOL

Desiree

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Old 12-01-2007, 05:43 PM
 
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We finished Baby Step #1 yesterday! I am so excited that we are finally on our way. Now it's time to tackle our debt - at the same time as remodeling our new house to get it ready to move into. This is going to be a long, slow process for us, but I'm excited to finally get started.

Lauren
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Old 12-01-2007, 05:48 PM - Thread Starter
 
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Congrats Lauren!!

Okay, emailed Dave. Let's see what happens. LOL

Sold more stuff on TP today. Have $70 already towards that $200 car tag bill. WOOT! I listed a bunch of baby stuff on Craigslist today too and a few other household things. I dont think we'll have to dip into the fund afterall! I have a photoshoot today too, that should help a bit.

Desiree

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Old 12-01-2007, 07:01 PM
 
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We finished Baby Step #1 yesterday! I am so excited that we are finally on our way. Now it's time to tackle our debt - at the same time as remodeling our new house to get it ready to move into. This is going to be a long, slow process for us, but I'm excited to finally get started.
Congratulations!


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Old 12-01-2007, 07:19 PM
 
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Wtg everyone, it seems like lots of people are actrully meeting goals . I had to pay off best buy now or the money would of be spent so thats what I did . I am so glad to be one debt lighter .

I can not wait to see how everyone does . Anyone have estimated goals on things like debts payoff , emergency fund , and the like ?
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Old 12-01-2007, 07:29 PM
 
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I'm happy I just paid off $1500 in energy/yearly bills that I had put aside month to month in our Money Market. No way I could meet those bills without my monthly "bill" to myself.

Also happy 'cause we are expecting in June and so far I've paid ZERO for all the baby clothes, crib bumpers, boppi and all that for the baby. I so love Freecycle. On to learning how to make my own diapers.... with losing DH income when the baby comes, we need to stretch my paycheck as far as it will go.

Congrats to all of you making progress. We are holding steady and at Christmas that is something to be proud of.
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Old 12-01-2007, 10:15 PM
 
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Goals: Dh and I talked about it at dinner last night and we're aiming to be done Baby Step 2 by October 2008. We have to pay off:

$ 548 Capital One
$1100 Best Buy
$1400 Van loan
$2200 HSBC Retail Services
$5000 Truck loan

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Old 12-01-2007, 10:43 PM
 
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I'm going to join in. I read the November thread, and I am impressed by how well some of you are doing. I haven't read TMM, but I am familar with DR, other financial writers, and the snowball concept.

Quite honestly, I'm really embarrassed that I'm participating. We used to have very good savings and never carried a balance on our CCs. But we moved to a new house 6 months ago and have a bigger mortgage. I thought that we had budgeted well enough and that the bigger mortgage wouldn't be a problem. We even had several thousand dollars in savings, but we used it to make a few improvements around the house after we moved in. So now, rather than having a couple of months worth of living expenses in the bank, we have almost nothing and a WHOLE bunch of credit card debt. I feel SO stupid and cliche.

Anyway, DH and I sat down again last night and made up a budget. We're definitely not going to be using the CCs now. And I guess we're working on BS #1- the emergency fund.

Right now we're at $51/1000. Crap. I just want to hide.

New signature, same old me: Ann- mama of 2 boys and 2 girls, partnered to a fabulous man.
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Old 12-01-2007, 10:44 PM
 
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Mama to 9 so far:Mother of Joey (20), Dominick (13), Abigail (11), Angelo (8), Mylee (6), Delainey (3), Colton (2) and Baby 8 and Baby 9 coming sometime in July 2013.   If evolution were true, mothers would have three arms!

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Old 12-01-2007, 10:56 PM
 
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Congrats to all of you making progress. We are holding steady and at Christmas that is something to be proud of.
We are too. I'll pay off the last of the cc's with my bonus, and will find out how much of a bonus I am getting on Monday. Hopefully enough for the CC's and some money into the emergency fund.

We are up to date on all the taxes, which for us, is a big deal. DH always procrastinates on his estimated taxes but this year he has made all the payments and has the $ for the next one. I'm still trying to get him to sit down and really plan out how he spends money but he is super resistant. He'll do it but not stick to it. I'm still happy that all the taxes are paid because that means we will start next year NOT IN THE HOLE.

Good work everyone! You are all an inspiration!
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Old 12-01-2007, 10:56 PM - Thread Starter
 
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Ann- Dont feel embarrassed mama....a lot of us are in the same boat. We had 30K on CC quite a few years ago but paid that all off with the sale of our first home. Had no cc debt for 3 years and I thought "oh ya!" but then we got the stupid ARM too big mortgage and here we are again. Last year we didnt have any CC even. This year DH took a 12K pay cut by "moving up" in his company because it put him on salary and eliminated overtime. He is home more and we CAN make it work if we cut out a lot. So there are benefits and negatives. But anyways, our goal is to be out of debt by March 09. We have:
$360 Amazon card
$3100 Discover
$4800 DH's truck loan
$10,000 Citi (0% until 09/08)

We get around 5K back for tax return usually and dh is doing a side job this month. We were planning on paying off the small card and his truck with the tax return. Then selling his truck for around 7000, getting $3000 car and putting the rest to pay off Discover completely and put 1K towards the big one and having 9K ish left to pay off between spring 08 and spring 09. We'll have to figure out what to do with our lease when it's up......

Desiree

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Old 12-01-2007, 11:40 PM
 
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we're at $51/1000
**delurking**

Can someone explain what this means? I see it above, too. Thanks!

DS (6.06), DD (10.08), DD (05.11).

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Old 12-02-2007, 12:22 AM
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D_McG, that means she's saved $51 out of the 1000 emergency fund. Good job everyone, sounds like December is off to a good start for a lot of you. I'm struggling to pay cash for Christmas. Dh and I decided what we want is too expensive for Christmas (our tv is dying a slow painful death) so we're giving each other money to start a tv fund. that's a big step for us, before we just would have bought it on credit.
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