Debt Dumpers 2020

[FQLover]

@kbelle8995 Yes, many years ago I had a lot of credit card debt, and a friend told me that you can just call up and ask each cardholder if they would drop a few points in interest on the card. I was nervous about doing that, embarrassed, etc. She volunteered to do it. So, she called my three cardholders, pretended to be me over the phone, and asked them if they would lower my rate. I believe two of them did, by three percentage points or something, and the last one said "no" because I had paid past the deadline once or something. This was 15 or 20 years ago so I don't remember the details, but that was the end of that story. Two successes out of three tries. She was on the phone about a total of 15 minutes for me. She told me that all they can do is say "no."
Well worth the effort!

I second using Dave Ramsey's book to help you get out of the mess and on top of things. I worked his steps and got out of debt that I had had for years. It is the snowball method. A banker that I talked to at the time called it "The 3 M method: minimize, minimize, maximize."
Same idea, and it works!

 

[pblack]

Merry christmas eve, eve friends! And happy hanukah to those of you who celebrate! I hope everyone has a fabulous holiday! Just thought I'd share my current favorite view before it gets taken all down within the next couple weeks.

Also welcome to all the new debt dumpers!

 

[Birdie dog]

Hey, I'm checking in for the first time in forever. Still holding myself accountable and I'm hoping for an even better 2020. Firstly, I paid off a couple cards and have continued to pay down balances all year. Overall, I'd say I did "pretty well". I had a falter in October and absolutely went overboard. I should have posted here and hoped you'd talk me down but I didn't. However, with OT, the overboard is almost paid down and I continue to pay off the rest of my debt.

We had a semi-catastrophe in November. Our heating/air system died and had to be replaced. Luckily, I'd put enough in savings that I paid for the new unit in cash so that was great. What wasn't great was I had my DCL transatlantic cruise to pay off this month (I'm in a 10-A cheap seat but super looking forward to it) and ended up a little short due to the cash outlay in November. Luckily I ended up with only about $1000 over on my Disney Visa so I'll pay that off before the zero interest is up. I also (I think for the first time in my adult life) stayed totally on track with Christmas shopping and won't have a penny on my CCs after Christmas to make up.

All in all it's a win, though I could have done better. Right now my goals are replenishing my savings account, adding another 2% to my 4-03 B (I'm already contributing 16%). and hopefully finishing paying down debt in 2020. I will also work on making myself a bit more accountable and I'll try to check in here more often when I start having the nagging feeling I'm overspending. ( I tend to do it in a big way and then stop-I'm sure it's some sort of psychological crutch).

I'm hoping we all have a successful 2020 and Happy Holidays everyone!

 

[dayvewc]

Well, I have my appointments set. Hearing appointment is for 10 a.m. in January 7th, and the muscle/skeletal appointment is for 2 p.m. that afternoon. Two weeks until the appointments to determine just how "broken" I've been the past 16 1/2 years.

I am soooooooooooo ready. Except that this is only the appointments. I'll still have to wait months to hear the decisions.

 

[pblack]

But at least it's a step in the right direction @dayvewc !

 

[FQLover]

@pblack I love, love your decorations! I am a fan of multi-color lights, too. I think that the glow they give in the dark is just so soft and magical. I love the large ornament balls you hung from your garland, too. I just called my DD in to look at your picture. She loved it, too! Merry Christmas Eve (almost) to you, too.

 

[kbelle8995]

Any good financial debt podcasts out there?

 

[MantaRider]

I'm a little disheartened feeling like my debts are more severe than what others face. I have 48k in Student Loan Debt, 9,800 in a 401k loan, and I'm only able to contribute 2% to retirement right now. Hopefully I can pay off the 401k loan next year, and then return my retirement contributions to 10%, but the Student Loans feel insurmountable.

My Wife and I live with our In Laws right now, and that would allow me to save a lot more if we stayed, but it's so frustrating and difficult we will most likely move out next year. Is anyone else just 'stuck' with their student loans? We have a nice savings going separate from everything else that our 'rent' money is going towards, so that will give us a few months worth of expenses for emergencies. But especially with moving back out next year, my Student Loans will realistically never be paid off. I have them on a 30 year plan right now, I had to refinance them from a 20 year plan to save money due to some unexpected medical expenses this year.

Basically coming here I feel like other people are so far ahead of me I will never catch up

 

[FQLover]

@MantaRider But many people here on this board are a lot older than you and have already worked through the debt years. Then there are people of all years who still have a lot of debt, and then there are the young whipper-snappers here who have gotten their financial acts together very well. We are all different! Whether you stay on the thread or not, you still have the debt, so why not stay on board and see how the many wise folks here can help you choose some options or figure some things out as you go along?

Regarding student loans, it may just end up being a monthly expense forever, but you have an education and hopefully you are not going to default on the payments. They just become another bill to pay that doesn't go away like utility, insurance, rent, etc. Keep paying down everything else. Do you know about Dave Ramsey's snowball method of debt reduction?

It's not a competition, by the way. This thread is wonderfully supportive. No one's circumstances are the same. Some people had college paid for by their parents. Some people received an inheritance. Some people have higher or lower costs of living, salaries, etc. We encourage each other with the steps each person/family is taking. We can gather info people share here, listen to suggestions, or just get encouraged by people who have walked our steps and are further down the path. That can be motivating rather than disheartening.

Hope to see you posting on the thread again!

 

[trenty]

I'm a little disheartened feeling like my debts are more severe than what others face. I have 48k in Student Loan Debt, 9,800 in a 401k loan, and I'm only able to contribute 2% to retirement right now. Hopefully I can pay off the 401k loan next year, and then return my retirement contributions to 10%, but the Student Loans feel insurmountable.

My Wife and I live with our In Laws right now, and that would allow me to save a lot more if we stayed, but it's so frustrating and difficult we will most likely move out next year. Is anyone else just 'stuck' with their student loans? We have a nice savings going separate from everything else that our 'rent' money is going towards, so that will give us a few months worth of expenses for emergencies. But especially with moving back out next year, my Student Loans will realistically never be paid off. I have them on a 30 year plan right now, I had to refinance them from a 20 year plan to save money due to some unexpected medical expenses this year.

Basically coming here I feel like other people are so far ahead of me I will never catch up

Read TOTAL MONEY MAKEOVER. Even if you do not agree with everything there, follow the babysteps plan. It works. People with a lot more debt than you have come out of it following this program.

 

[trenty]

Any good financial debt podcasts out there?

Dave Ramsey has one.

 

[kbelle8995]

Dave Ramsey has one.

Excellent. I will search for it on spotify

 

[MantaRider]

@MantaRider But many people here on this board are a lot older than you and have already worked through the debt years. Then there are people of all years who still have a lot of debt, and then there are the young whipper-snappers here who have gotten their financial acts together very well. We are all different! Whether you stay on the thread or not, you still have the debt, so why not stay on board and see how the many wise folks here can help you choose some options or figure some things out as you go along?

Regarding student loans, it may just end up being a monthly expense forever, but you have an education and hopefully you are not going to default on the payments. They just become another bill to pay that doesn't go away like utility, insurance, rent, etc. Keep paying down everything else. Do you know about Dave Ramsey's snowball method of debt reduction?

It's not a competition, by the way. This thread is wonderfully supportive. No one's circumstances are the same. Some people had college paid for by their parents. Some people received an inheritance. Some people have higher or lower costs of living, salaries, etc. We encourage each other with the steps each person/family is taking. We can gather info people share here, listen to suggestions, or just get encouraged by people who have walked our steps and are further down the path. That can be motivating rather than disheartening.

Hope to see you posting on the thread again!

Someone's parents are welcome to pay for my student loans anytime!

Hah and I know, I've done the math, my standard of living - loan payments is better than it would have been if I didn't have school. I'm just frustrated by life right now. I was diagnosed Bipolar Disorder this year and have gone through a series of major life shakeups and changes, and my previously good plan was derailed by it all. Recovery feels really slow at times.

 

[jen7233]

Any good financial debt podcasts out there?

I listen to some Ramsey Solutions podcasts (Dave Ramsey, Chris Hogan, Rachel Cruz). They have the same message, so already know what will be said before an answer is given if you've listened long enough. Also Suze Orman, and her messaging is a bit different take.

 

[pblack]

@pblack I love, love your decorations! I am a fan of multi-color lights, too. I think that the glow they give in the dark is just so soft and magical. I love the large ornament balls you hung from your garland, too. I just called my DD in to look at your picture. She loved it, too! Merry Christmas Eve (almost) to you, too.

Thank you! I love multi color lights and I would totally leave them up all year long if my DH wouldn't look at me like I was crazy haha. I'm not sure if you can really tell in the last pic, but the three bigger ornaments on my garland are all disney. I've attached a close up of each. Merry christmas to you!

 

[barkley]

I was diagnosed Bipolar Disorder this year and have gone through a series of major life shakeups and changes, and my previously good plan was derailed by it all. Recovery feels really slow at times.

sorry for the diagnosis but if it helps at all-even with these kinds of challenges it is possible, a step at a time to become debt free. we had allot of debt when i became suddenly and totally disabled in my early 40's (also had two little kids to support). we kept scratching away at it-literally any extra couple of dollars leftover in a given month was thrown at debt, then at a mortgage. we were doing well then WHAM dh is diagnosed with a TBI that disables him permanently. several steps backwards financially/new debt accrued but while it took more years than we anticipated we got out from under all our debt. i'm on this thread to stay that way and look to save more.

i agree with the suggestion to look at the student loans as a 'utility', just an ongoing expense. work on the other debt, get an emergency fund in place (dave ramsey talks about this) and create a realistic budget for now and when you plan to move out. keep in mind all the expenses of living on your own and try to minimize them as much as possible.

one step at a time, one day at a time.

 

[afan]

Someone's parents are welcome to pay for my student loans anytime!

Hah and I know, I've done the math, my standard of living - loan payments is better than it would have been if I didn't have school. I'm just frustrated by life right now. I was diagnosed Bipolar Disorder this year and have gone through a series of major life shakeups and changes, and my previously good plan was derailed by it all. Recovery feels really slow at times.

I think it's important to concentrate on your mental health and adjusting to the new normal for you. Debit is a stress and something everyone wants to get rid of but your health is more important since the debt will still be there later.

I agree with the others about thinking of it as just another monthly payment. If you don't have low interest rates see if you can refinance them to something better since every little bit helps. I was fortunate that I was able to consolidate and refinance in 2005 after I graduated with my 2nd degree so everything was in one place with low rates. I get offers in the mail to refi and just laugh because they are more than double what my rate is now.

The other thing to consider if you aren't already doing it, is to add a couple bucks every month. I always round up to the nearest 5 or 10 on my student loan and mortgage because I like to pay more even numbers without cents and because every little bit helps. You're also less likely to notice that little extra than trying to pay an additional 50 to 100 a month if you don't have it.

 

[Owlpost23]

Hi! Decided to jump on this thread, because my finances are a mess and I have no idea what I'm doing lol. I'd also like to add that I'm 23, in school part-time, and waitress part-time, so this whole "adulting" thing is still new to me.

Personal Goals

1. Stop eating fast food- I've developed the habit of eating fast food at least once a week because it's cheap and quick, and I don't have to get out of the car. It's making me feel gross about myself.
2. Eat mindfully- I don't want to outright say "lose weight" because I struggle a lot with body image, so I want to focus more on eating healthy rather than worrying about the scale. It's better for my own sanity lol
3. Get another job- I have way too much free time. If I could get another job with daytime hours that'd be great. I applied to a bunch of places a couple days ago but haven't heard anything...
4. Take at least 6 classes- Hopefully it'll end up being more, but I screwed up my financial aid form (did the wrong year and didn't realize until spring payments were due) so I don't know if I'll be able to take classes in the spring, because if I pay for it without financial aid, it'll empty my savings and I'd rather not do that. Hopefully once the right FAFSA goes through I'll still be able to take classes...

Okay. Now it's time for the "finances." Right now I'm very lucky and still live at home, and my parents take care of most of my bills (I just have pay for my phone and student loans) BUT I am an impulse shopper who decided she needed two credit cards and took 3 trips to WDW this year despite only working about 14 hours a week... Yeah...

Money Goals

1. Pay off Mastercard- I have about $1500 on it. It's definitely doable.
2. Continue to use Swagbucks- I've made $90 bucks from it in a few months, and I've only recently become active on it. I mean it's nothing spectacular, but every penny helps.
3. Save, save, save!!!- I have about $1,000 saved right now. If I could save at least $25 a week, that would be great. My main focus this year is going to be paying off the Mastercard.
4. Buy new tires- Is this a money goal? Idk, but apparently my tires are terrible, despite my car only being 3 years old. My parents offered to pay for them upfront, but I would pay them back over time. I have to figure out where to get the best deal though.

Let your parents front you the money for tires.They're too important to put off buying-it's for their peace of mind and yours.

 

[dayvewc]

@MantaRider

Welcome. It's a ride. I've been here 6-ish years now. I've made progress, and lost it, and found nothing but support here. Student loans are a pain in the watusi, to be sure, but they are manageable, even if they never seem to go away.

The best advice that works for me is to:

• Find a plan that works for you,
• stick to it as best you can,
• accept that there will be setbacks, and
• allow yourself to be human.

Most people here like Dave Ramsey. Personally, I think he's a bit too extreme. I like his basic plans, but some of what he advocates I think is a touch unrealistic. My opinion. Most people agree with the snowball plan, even if they don't follow the rest of the Ramsey travel-guide. A lot of people also use YNAB, some use Mint, and others simply use spreadsheets. Point being, there are different options. Find the one that works for you, and you can work with.

Stick to it. The best plan in the world is pointless if you don't use it.

There will always be something that happens that is unplanned for. That's why most plans start with "build an emergency fund". It is really tempting to use that fund for something else. Pay off that small credit card, or that one bill, or just buy that one thing you want. But that's when you need a new tire, or you chip a tooth, or something else happens.

And finally, no one is perfect. We all make mistakes. That's how most of us got here. We didn't wake up one morning and decide to overextend our credit and put ourselves $100k in debt. We just didn't pay attention to what we were doing. We made mistakes. That's ok. Learn from them. Don't repeat them. Do better. Be better.

And Welcome to the family.

Just keep swimming!!!

 

[RamblingMad]

Basically coming here I feel like other people are so far ahead of me I will never catch up

My financial life really turned around for me in my 40s. It will get better. You just need to sit down with Excel and come up with a plan. This will take some time to do.