Debt Dumpers 2021

[justadreamaway77]

This doesn't really apply to you at this point, but for anyone with kids who are younger and are still actively funding college savings, consider a Coverdell Education Savings Account instead of, or in addition to, a 529. This is more important in some states than others, but many states have lousy investment options in their 529 plans. The Coverdell functions in almost the same way but it lets you pick whatever stocks or mutual funds you want. It has a $2,000 annual contribution limit per student, so we fund our Coverdell to the max and then any extra savings we do goes to the 529.

You can also look at other state 529's even if you do not live there. I live in Ohio and our 529's are open to those that live out of state and the 529's can be used for any school nationwide....not just Ohio schools. We started our twins' accounts right after they were born and our money has almost doubled. My Aunt in Texas did extensive research on state run 529's and she started Ohio ones for her grandchildren who live in Colorado because it was the best she could find in returns and flexibility.

 

[Jen and Ashwin]

That's why we have reduced our retirement savings when we've needed to and, albeit late in the game compared to some people, started 529s for our kids. We've been able to pay for DS20's first two years of college without any loans and DH has planned it out so, barring anything unforeseen, we should be able to do the same for his remaining two years and DS18's four years. We both had loans for college and grad school and would like to be able to give them a fresh start in "real life" without those payments.

And to another recent thread I just caught up on - there's no way we would have been able to save enough to pay off our mortgage when our kids were small. We only opened the 529s seven years ago, when they were already in middle school and I went back to work full time (was freelancing part time before that). And we certainly didn't put close to 20% down on our house. We bought when DS20 was a baby and when we refinanced a few years later we were able to get rid of the PMI. We have five years left on the mortgage and our goal is to get it paid off before DH (who is nine years older than I am) retires.

Edited to add, it helps that DS20 got a renewable scholarship for part of his tuition and DS18 has already received a couple of one-time scholarships. I made them apply for EVERYTHING they qualified for. There's money out there, you just need to find it.

One of my life goals is to pay my kid's college expenses. At least undergraduate, but hopefully graduate school as well if they choose to continue on. We have been saving monthly in 529 accounts for each kid since birth and plan to increase the monthly savings once they are no longer in childcare. I have also asked my parents and siblings to give money for their college funds instead of or in addition to other gifts. The great market returns have really been growing their accounts recently.

 

[imbatman]

Then I found this thread. It has turned our lives around.

This.

Never been so grateful for a bunch of strangers to cheer me on and post banana dances for. We are not debt free yet, but we are CC debt free. We have a little savings. And while I wish I could've financed my kids' college, there is also some "skin in the game" for them to take out the loan. We agreed to help pay back the loan, IF they get the grades. I refuse to be like a friend of mine who financed his daughter's 4 year degree and she works at Trader Joe's...by choice.

Last week was a terrible week for me. The short version: my dad passed away and there's family drama. It really has brought home the need for having a trust (a will at minimum). I didn't have to worry about missing a CC payment. I know that sounds so random, but a year ago, I was making the deadlines by the skin of my teeth. So having that burden removed was truly a blessing.

With my dad passing brings a new chapter in our lives. We will be moving from the 20 acres we shared with them (we were on 5 next to their 15) due to the upkeep. It won't be next week, but we know it'll be within a year. We'd like to downsize (square footage wise) and have a second house/apartment for my mom (because I love her and she'll always have a home with me). And just to make my life more crazy, I am looking at going into business for myself.

 

[Gr8t Fan]

This.

Never been so grateful for a bunch of strangers to cheer me on and post banana dances for. We are not debt free yet, but we are CC debt free. We have a little savings. And while I wish I could've financed my kids' college, there is also some "skin in the game" for them to take out the loan. We agreed to help pay back the loan, IF they get the grades. I refuse to be like a friend of mine who financed his daughter's 4 year degree and she works at Trader Joe's...by choice.

Last week was a terrible week for me. The short version: my dad passed away and there's family drama. It really has brought home the need for having a trust (a will at minimum). I didn't have to worry about missing a CC payment. I know that sounds so random, but a year ago, I was making the deadlines by the skin of my teeth. So having that burden removed was truly a blessing.

With my dad passing brings a new chapter in our lives. We will be moving from the 20 acres we shared with them (we were on 5 next to their 15) due to the upkeep. It won't be next week, but we know it'll be within a year. We'd like to downsize (square footage wise) and have a second house/apartment for my mom (because I love her and she'll always have a home with me). And just to make my life more crazy, I am looking at going into business for myself.

So sorry to hear about your dad passing and the family drama it brought.

 

[piglet1979]

This.

Never been so grateful for a bunch of strangers to cheer me on and post banana dances for. We are not debt free yet, but we are CC debt free. We have a little savings. And while I wish I could've financed my kids' college, there is also some "skin in the game" for them to take out the loan. We agreed to help pay back the loan, IF they get the grades. I refuse to be like a friend of mine who financed his daughter's 4 year degree and she works at Trader Joe's...by choice.

Last week was a terrible week for me. The short version: my dad passed away and there's family drama. It really has brought home the need for having a trust (a will at minimum). I didn't have to worry about missing a CC payment. I know that sounds so random, but a year ago, I was making the deadlines by the skin of my teeth. So having that burden removed was truly a blessing.

With my dad passing brings a new chapter in our lives. We will be moving from the 20 acres we shared with them (we were on 5 next to their 15) due to the upkeep. It won't be next week, but we know it'll be within a year. We'd like to downsize (square footage wise) and have a second house/apartment for my mom (because I love her and she'll always have a home with me). And just to make my life more crazy, I am looking at going into business for myself.

I am so sorry for the passing of your father.

 

[PhoenixStrength]

@imbatman I'm sorry to hear about the loss of your father.

 

[Tygerlilly]

Sorry for your loss @imbatman

 

[Nettlelondon]

Sorry for your loss, ensuing drama and the upheavel that will now follow. But sending love that it all turns out to not be too challenging to get through the practical bits.

 

[Jen and Ashwin]

This.

Never been so grateful for a bunch of strangers to cheer me on and post banana dances for. We are not debt free yet, but we are CC debt free. We have a little savings. And while I wish I could've financed my kids' college, there is also some "skin in the game" for them to take out the loan. We agreed to help pay back the loan, IF they get the grades. I refuse to be like a friend of mine who financed his daughter's 4 year degree and she works at Trader Joe's...by choice.

Last week was a terrible week for me. The short version: my dad passed away and there's family drama. It really has brought home the need for having a trust (a will at minimum). I didn't have to worry about missing a CC payment. I know that sounds so random, but a year ago, I was making the deadlines by the skin of my teeth. So having that burden removed was truly a blessing.

With my dad passing brings a new chapter in our lives. We will be moving from the 20 acres we shared with them (we were on 5 next to their 15) due to the upkeep. It won't be next week, but we know it'll be within a year. We'd like to downsize (square footage wise) and have a second house/apartment for my mom (because I love her and she'll always have a home with me). And just to make my life more crazy, I am looking at going into business for myself.

Condolences on your father's passing. May his memory always be a blessing.

 

[jen7233]

@imbatman, sorry for your loss.

I can understand that sometimes when one's family passes, besides the loss and the immediate few weeks, after there's the other things that can sometimes be issues regarding property, wills, estate, etc. that need to be dealt with. It happened with my father, and we are still in probate over two years.

Hope you find peace, and that time slowly makes things better.

 

[elgerber]

I know you talk about bonuses and overtime pay sometimes - know that a mortgage lender won't look at that when looking at your income - your mortgage approval will be based off your base pay, so if the $60,000 you are talking about includes any bonuses or OT, I think you would have a really hard time getting approved for a $300,000 mortgage even if you have 20% down. You might want to make an appointment with a mortgage lender at your bank just to talk about what would be a realistic price range to be looking for a house in.

This is untrue. I process mortgages for a living, and if you have a two year history of bonuses/OT, and a verification from your employer that they are likely to continue, then yes, we use OT and bonuses all the time for qualifying people.

As to the original question, unless someone is selling their current home with proceeds to use for a down payment (and sometimes not even then), I almost never have a new purchase file these days under 95%, occasionally 90%. And we do have zero down programs, but they are state grant specific programs.

 

[ruadisneyfan2]

This.

Never been so grateful for a bunch of strangers to cheer me on and post banana dances for. We are not debt free yet, but we are CC debt free. We have a little savings. And while I wish I could've financed my kids' college, there is also some "skin in the game" for them to take out the loan. We agreed to help pay back the loan, IF they get the grades. I refuse to be like a friend of mine who financed his daughter's 4 year degree and she works at Trader Joe's...by choice.

Last week was a terrible week for me. The short version: my dad passed away and there's family drama. It really has brought home the need for having a trust (a will at minimum). I didn't have to worry about missing a CC payment. I know that sounds so random, but a year ago, I was making the deadlines by the skin of my teeth. So having that burden removed was truly a blessing.

With my dad passing brings a new chapter in our lives. We will be moving from the 20 acres we shared with them (we were on 5 next to their 15) due to the upkeep. It won't be next week, but we know it'll be within a year. We'd like to downsize (square footage wise) and have a second house/apartment for my mom (because I love her and she'll always have a home with me). And just to make my life more crazy, I am looking at going into business for myself.

I'm so sorry for your loss. Wishing you peace of mind and strength to get through the times to come.

 

[jackers]

Imbatman, I’m so sorry for your loss.

 

[DisneyHardin]

This is untrue. I process mortgages for a living, and if you have a two year history of bonuses/OT, and a verification from your employer that they are likely to continue, then yes, we use OT and bonuses all the time for qualifying people.

I apologize for incorrect information. A good friend of mine wasn't able to get a loan because a huge amount of her pay is OT and the bank she used told her they only look at base pay. I will have to tell her to shop around other banks. Thanks for the info.

 

[elgerber]

I apologize for incorrect information. A good friend of mine wasn't able to get a loan because a huge amount of her pay is OT and the bank she used told her they only look at base pay. I will have to tell her to shop around other banks. Thanks for the info.

Yes, for sure shop around! Unless she doesn't have a two year history of OT, there is really no reason they should not use it.

 

[imbatman]

I bought a new vacuum today. My old one was heavy and I've always hated it. You know you're an adult when you get super excited about a new vacuum that picks up pet hair!

GUYS!!! My vacuum is AMAZING! Was equally impressed and mortified when I put it to the test last night. (Bissell Pet Hair Eraser Turbo Rewind Upright Vacuum Cleaner, 27909)

 

[jen7233]

GUYS!!! My vacuum is AMAZING! Was equally impressed and mortified when I put it to the test last night. (Bissell Pet Hair Eraser Turbo Rewind Upright Vacuum Cleaner, 27909)

I saved it on my Amazon list I've been looking at vacuums for another, my dog's hair is like a cactus!

 

[PhoenixStrength]

GUYS!!! My vacuum is AMAZING! Was equally impressed and mortified when I put it to the test last night. (Bissell Pet Hair Eraser Turbo Rewind Upright Vacuum Cleaner, 27909)

We LOVE Bissell's vacuums! We have always had one because we always have pets and they are amazing at getting pet hair up. The attachments always work great too for furniture and the like.

 

[ruadisneyfan2]

I love how they suction but I'm grossed out with bagless vacuums and the dustcloud created when you empty the cannister. I wish they had it in a bagged version.

 

[Eureka]

This.

Never been so grateful for a bunch of strangers to cheer me on and post banana dances for. We are not debt free yet, but we are CC debt free. We have a little savings. And while I wish I could've financed my kids' college, there is also some "skin in the game" for them to take out the loan. We agreed to help pay back the loan, IF they get the grades. I refuse to be like a friend of mine who financed his daughter's 4 year degree and she works at Trader Joe's...by choice.

Last week was a terrible week for me. The short version: my dad passed away and there's family drama. It really has brought home the need for having a trust (a will at minimum). I didn't have to worry about missing a CC payment. I know that sounds so random, but a year ago, I was making the deadlines by the skin of my teeth. So having that burden removed was truly a blessing.

With my dad passing brings a new chapter in our lives. We will be moving from the 20 acres we shared with them (we were on 5 next to their 15) due to the upkeep. It won't be next week, but we know it'll be within a year. We'd like to downsize (square footage wise) and have a second house/apartment for my mom (because I love her and she'll always have a home with me). And just to make my life more crazy, I am looking at going into business for myself.

I’m sorry to hear about your dad. May his memory be a blessing.