Debt Dumpers - 2019

[piccolopat]

A question for the group. I saw that a PP listed their mortgage as a debt. I have always considered my mortgage a living expense. Just wondering how other catagorize their mortgages? I also want to wish everyone the best in achieving their goals in 2019.

I looked at my mortgage as a debt until our equity was greater than the remaining debt. Now I think of it more as just a monthly living expense. It's still really a debt until fully paid off, but knowing that the mortgage would be fully paid off if I sold the house today is a nice feeling.

 

[Sadeesmom]

In looking at your list, the ortho is the smallest bill. Are you paying interest on that at all? If so I'd attack that and get rid of it early. That's a good sized chunk you could apply to cc#4, in addition to the min. payment due.

Yeah, it’s more of a “she has braces for 12 months-you pay for 12 months” no financing, no discount for paying ahead kind of deal. It’s honestly the least of my worries since I built it into my FSA. I pay it and then put in the reimbursement and get it back 24 hours later (only thing making it easier would be if they had debit cards, but they don’t). Having this done will really only help a year from now when my FSA contributions from my paycheck drop and my paychecks go up.

 

[barkley]

I've often thought of trying to pay off the mortgage early and probably should add some to the payment to be applied directly to principle however I also like adding to savings each month too. I know what the right thing to do is, I just need to do it. Maybe this year?

we were at this point a few years ago. i like to save but the idea of a fully paid off mortgage was so desirable. i would play with those mortgage calculators and see how much faster we could pay ours off with extra money (even a little amount each month) it was so tempting....

i finally decided to run the numbers and decide what i was comfortable with as a minimum number to go into savings each month, the rest i allocated to extra principle mortgage payments. i set up our banking so that my savings was auto paid each month out of checking and then set up the extra payment to mortgage as an auto pay as well (made sure w/our lender it would go to principle vs. interest). WHAT A CHARGE to see that principle balance lowering so much faster, so much so it encouraged me to start throwing any extra monies we came across (tiny raises, extra money left over from our budget, odd rebate checks...) at that mortgage. it made all the difference in the world.

 

[AmyAnne]

we were at this point a few years ago. i like to save but the idea of a fully paid off mortgage was so desirable. i would play with those mortgage calculators and see how much faster we could pay ours off with extra money (even a little amount each month) it was so tempting....

i finally decided to run the numbers and decide what i was comfortable with as a minimum number to go into savings each month, the rest i allocated to extra principle mortgage payments. i set up our banking so that my savings was auto paid each month out of checking and then set up the extra payment to mortgage as an auto pay as well (made sure w/our lender it would go to principle vs. interest). WHAT A CHARGE to see that principle balance lowering so much faster, so much so it encouraged me to start throwing any extra monies we came across (tiny raises, extra money left over from our budget, odd rebate checks...) at that mortgage. it made all the difference in the world.

This is an interesting question that I've considered too. Until this year, I factored in being able to deduct the interest on our taxes but I don't think that's going to be happening this year or in foreseeable years. The interest rate on our mortgage is 2.75 percent so slightly more than what we are earning in our Ally CDs. Waiting to see what taxes are before deciding to change course and dump the savings into the mortgage payments.

 

[barkley]

I looked at my mortgage as a debt until our equity was greater than the remaining debt. Now I think of it more as just a monthly living expense. It's still really a debt until fully paid off, but knowing that the mortgage would be fully paid off if I sold the house today is a nice feeling.

the only thing that frightens me about this perspective is the fact that a home is only worth what someone will and can actually pay you to purchase it (and then what's left over after associated selling expenses/taxes which in our state run at about 10% of the sale price). i know that homes traditionally go up in value but the housing bubble burst had such a strong impact it's still a cautionary tale about how someone's perceived equity in a home can disappear overnight and then take years and years to recover-if ever.

the homes in the neighborhood i lived in up till '06 are currently just getting their values back to the level they were at in '03 (so before housing prices in that area started going crazy). the only people that would have any equity in them would be pre '03 owners or those that came in during the really bad times and got them for pennies on the dollar (less than they sold for new in '99). the neighborhood i'm in now has been pretty steady over the years but we've seen some wild short term fluctuations in value, and right now it's on a downward b/c of a couple of 'desperation' sales with massive price drops (comp sales drive the market). for me it's always a wait and watch game.

 

[barkley]

This is an interesting question that I've considered too. Until this year, I factored in being able to deduct the interest on our taxes but I don't think that's going to be happening this year or in foreseeable years. The interest rate on our mortgage is 2.75 percent so slightly more than what we are earning in our Ally CDs. Waiting to see what taxes are before deciding to change course and dump the savings into the mortgage payments.

taxes this year will be so interesting to watch. i think back to what i paid in state taxes when we lived in california and so much of being able to afford to own a home was the way we could deduct certain expenses. with some deductions totally eliminated and others severely capped i know people who have been on the fence about getting out of high tax states when they retire-they are now much more seriously considering it (we'll be watching in our area to see if soon to be retirees start snapping up homes in anticipation that the prices will increase w/other retiree buyer competition).

 

[piccolopat]

the only thing that frightens me about this perspective is the fact that a home is only worth what someone will and can actually pay you to purchase it (and then what's left over after associated selling expenses/taxes which in our state run at about 10% of the sale price). i know that homes traditionally go up in value but the housing bubble burst had such a strong impact it's still a cautionary tale about how someone's perceived equity in a home can disappear overnight and then take years and years to recover-if ever.

the homes in the neighborhood i lived in up till '06 are currently just getting their values back to the level they were at in '03 (so before housing prices in that area started going crazy). the only people that would have any equity in them would be pre '03 owners or those that came in during the really bad times and got them for pennies on the dollar (less than they sold for new in '99). the neighborhood i'm in now has been pretty steady over the years but we've seen some wild short term fluctuations in value, and right now it's on a downward b/c of a couple of 'desperation' sales with massive price drops (comp sales drive the market). for me it's always a wait and watch game.

Of course market conditions play a big part in how much equity you really have in your home. It's important to keep track of what homes are going for in your area and to never buy more house than what you can afford even in a downturn market. For me personally, I started to feel a bit less worried about the mortgage once I passed the debt to equity threshold. However, it wasn't until my savings passed the amount I still owe on my mortgage that my outlook really changed.

 

[piccolopat]

taxes this year will be so interesting to watch. i think back to what i paid in state taxes when we lived in california and so much of being able to afford to own a home was the way we could deduct certain expenses. with some deductions totally eliminated and others severely capped i know people who have been on the fence about getting out of high tax states when they retire-they are now much more seriously considering it (we'll be watching in our area to see if soon to be retirees start snapping up homes in anticipation that the prices will increase w/other retiree buyer competition).

DH and I were already planning a move to a state with lower taxes than we have here in NY. The SALT cap has removed all doubt from our minds that moving is in our best interest. Now to decide where to go...

 

[tzolkin]

A question for the group. I saw that a PP listed their mortgage as a debt. I have always considered my mortgage a living expense.

I consider the mortgage to be a debt, but it does feel like a different type of debt than other things (especially credit cards). Probably because it is a practical living expense (since most non-homeowners would be paying rent anyway).

DH and I are working toward being debt free in the next five years and the majority (96%) of that debt is mortgage. (We were “debt free except for mortgage” for many years but took out a small partial loan on a vehicle last year.)

 

[princessesintraining]

Mortgages are a debt. It might not have the same urgency to be paid off that credit cards, cars, or student loans, but it’s still a debt. We are working to get our mortgage paid way down before our kids go to college in several years. After checking our balance today and seeing how much in interest we paid this year, we can’t wait to get rid of it.
I’m hoping to get a full time job this year to help with our goal, all while still saving for retirement and college funds.

 

[jackers]

I consider my mortgage to be a debt, but as others have said, not an urgent one. I overpay on the principal currently and once my car is paid off, I will start throwing that money towards it as well. We are 2 years into a 30 year mortgage and at the age of 42, we definitely want to have it paid off much sooner than 30 years. The goal is to have it paid off around the time we turn 50.

 

[Southernmiss]

Our big goal for 2018 was to pay the mortgage off before November. It was 15 years after we moved in and dh and I turned 5 0 in November. We paid it off Oct 4th.

Really feels good to have it paid off!

Anyone considering it. I say do it. We got serious Jan of 2017 and doubled payments then used savings to pay the remaining balance.

Only regret is not paying it off sooner.

 

[Katie Little]

Hello!! I was recommended to this thread so here I am! My goal for 2018 (and 2017 and 2016 and 2015) was to be debt free except for my house! This year my husband and I sat down and added up the numbers and we should be mostly debt free by the end of 2019 and we've sat up a couple things to make sure it happens. Official goal be debt free except our house and car by 12/31/19. We have a weekly meeting set up where we will make goals for the following week and assess how we did previously. With me being the one who usually jumps off the wagon first, I've created a thread here to act like a journal. Just a little extra accountability. Hopefully these things will help make it happen this year - I've learned alot about myself and what motivates me in 2018 through my running journey. Hopefully I'll be able to duplicate that success with our financial goals this year.

 

[jen7233]

I have to take my car in, on New Year's driving back a piece of unavoidable flying metal debris on the interstate flew into car luckily impacting at the moment in time the undercarriage somehow the wind swept it right under though it was heading for the hood and the interstate was very busy with cars left, right, and behind so couldn't attempt to avoid the debris that was probably from an 18 wheeler. I can see from the front where it tore the undercarriage protection but not sure what else it's like underneath so will take in. I was mad at the time but thankful also it was not the windshield. Hoping it is going to be minor will be covered under warranty or otherwise insurance, will see. On the bright side, started off Jan 1 with some Roth IRA investing!

Other plan is to build up a very comfortable size emergency and sinking funds as primary focus, do not want to get caught off guard this year.

The board is having some New Year's momentum! ​

My update
Keeping myself on track and honest.

So the New Year is almost here,,,,,,I overspent on Christmas but learned from it,,,,next year Christmas is preplanned and well thought out.
Kids and granddaughter will be getting 1/3 of this years budget.(trimming the excess).


I packed the template for my WILL in my suitcase and plan to fill it out on my Holiday.
I will drop it off at the lawyers office when I get back home.(See below,,,handling someone's estate after death makes you realize why having a WILL is SUPER important).

I need to do a will, I got the template but need to make the appointment. I have so many questions though aside from the free type of will drafting, almost want to pay for legal advice on it.

Hello!! I was recommended to this thread so here I am! My goal for 2018 (and 2017 and 2016 and 2015) was to be debt free except for my house! This year my husband and I sat down and added up the numbers and we should be mostly debt free by the end of 2019 and we've sat up a couple things to make sure it happens. Official goal be debt free except our house and car by 12/31/19. We have a weekly meeting set up where we will make goals for the following week and assess how we did previously. With me being the one who usually jumps off the wagon first, I've created a thread here to act like a journal. Just a little extra accountability. Hopefully these things will help make it happen this year - I've learned alot about myself and what motivates me in 2018 through my running journey. Hopefully I'll be able to duplicate that success with our financial goals this year.

Welcome and your journal idea

Hi all, joining in! We made a budget spreadsheet for 2019 a few nights ago and I'm so excited!

To jumpstart our 2019 journey to be debt free:

Looking ahead the whole year is helpful! I haven't done that except for savings goals.

 

[DisneyMandC]

So, not debt dumping, but I rebooked our Disney trip for this September this morning when free dining came out. We're saving $887 with the new booking!

 

[aprilchem]

I've enjoyed reading everyone's posts, and would love to jump in!

My goals for 2019:
1. To keep doing my monthly, written budget that I've been doing, but to track daily expenses so I don't go over. I'm great about the budgeting, but not great about recording every expense.
2. For DH and I to each put $2000 into savings every month. We each have an online savings account that we add to, in addition to our joint savings - they're used as our 6-month emergency fund and also to cover any expenses that come up. I know we need to have a part of our house re-roofed this year, we need to plan for a bathroom renovation, the house needs painted, and we'll have other expenses that come up, and I want to be prepared and not have to dip into the 6-month savings.
3. To put another $500-$750 a month into the vacation fund. We're doing a week in Orlando in March (not visiting parks, and it's mostly paid for by my work because I'm going there for a conference so it'll be a cheap vacation), but we're also planning to go to Hawaii for several weeks in July-August. I'd like to have that all paid off, in cash, before we go. I'm doing some extra work at my job that should pay for both of these in full, but I want to save for them as if that money wasn't coming.
4. Beef up DD9's college fund. Her brothers have about 3x what she has because the ILs gave us some "seed" money when they were born, but they didn't do it for her. I want to triple what I'm putting in to her account each month to try to make up the difference.
5. Increase retirement savings. I currently save 15% of my pay, but DH is only saving 3% of his. I'd like him to increase to at least 10% so we can max out our Roth IRA this year.
4. Pay off DH's car. We have a loan on it that's at 0% so it's not costing us anything, but I don't like having it out there. DH doesn't care about this so much, but it bothers me!
5. Not financial, but I want to lose a significant amount of weight in 2019; my goal is to lose at least 20% of my weight by the end of the year.

Hopefully I'll be able to report positive progress on these goals this year!

 

[imbatman]

Whatever you do, don't pay in cash or you might end up pulling that knife out of your back a 2nd time.

Paypal is my friend.

I didn't think of that! That is very good advice. Money order, certified check, photocopy endorsed check.....something. smh, for sure.

Yeah, I've been smacking my head since last week.

I've worked the payments into our budget, so that is done. He sent me a message to the tune of "You've been quiet lately." I didn't respond.

Financially, we are still on track for the year. I could've used that money to dump quicker, but it is what it is. Thank God it wasn't more. I'm glad being on this board allows me to vent, but remain accountable. My ship is still pointed toward Debt Free living. My attitude was kicked, but not broken. I will learn from this and move on, wiser and with more caution. It is true about having the ones you love the most hurt more deeply. Cutting ties with family is never easy.

 

[Eureka]

Had to buy a new washing machine on 12/31. Sigh. It's coming on Friday. We have the money in savings and had a gift card for part of it, but it was not how I planned to start my year!

 

[DLgal]

Had to buy a new washing machine on 12/31. Sigh. It's coming on Friday. We have the money in savings and had a gift card for part of it, but it was not how I planned to start my year!

It's not how you started the year, it's how you ended the year.

Think positively.

 

[DLgal]

Paypal is my friend.


Yeah, I've been smacking my head since last week.

I've worked the payments into our budget, so that is done. He sent me a message to the tune of "You've been quiet lately." I didn't respond.

Financially, we are still on track for the year. I could've used that money to dump quicker, but it is what it is. Thank God it wasn't more. I'm glad being on this board allows me to vent, but remain accountable. My ship is still pointed toward Debt Free living. My attitude was kicked, but not broken. I will learn from this and move on, wiser and with more caution. It is true about having the ones you love the most hurt more deeply. Cutting ties with family is never easy.

Did you already go on this trip? If so, honest question...why are you paying him anything? If the agreement was that the points were a gift, and he didn't discuss a payment with you prior to the trip, I wouldn't give him one cent. If you are going to cut ties anyway, why do it after paying him? Cut ties now and give him nothing. If you haven't taken the trip yet and it's too late to rebook a hotel, I understand why you need to pay him.