Author Topic: Newbie: How to dig out of the giant hole we are in  (Read 22466 times)

teen persuasion

  • Handlebar Stache
  • *****
  • Posts: 1057
Re: Newbie: How to dig out of the giant hole we are in
« Reply #50 on: March 02, 2016, 06:20:45 AM »
Just throwing this idea out there for discussion: what is the story on the student loans?  Could the OP go on some form of ICR to gain the breathing room to attack the higher rate debt first?  After that is gone, then attack the student loans.

little_brown_dog

  • Pencil Stache
  • ****
  • Posts: 915
Re: Newbie: How to dig out of the giant hole we are in
« Reply #51 on: March 02, 2016, 07:31:26 AM »
Just throwing this idea out there for discussion: what is the story on the student loans?  Could the OP go on some form of ICR to gain the breathing room to attack the higher rate debt first?  After that is gone, then attack the student loans.

I think IBR only takes into account your income/family size/student loan debt, and not consumer debts when calculating your monthly payment. If so, they probably wouldn't be eligible since their income is so high. Similarly, I don't think deferment and forbearance would be options (I suspect that overdoing it on consumer spending wouldn't count as legitimate "economic hardship" as defined by the federal government).

FrugalFan

  • Pencil Stache
  • ****
  • Posts: 910
Re: Newbie: How to dig out of the giant hole we are in
« Reply #52 on: March 02, 2016, 07:56:43 AM »
OP, you are courageous to post here and hopefully this will mark the moment when you turn your life around. You have received a lot of great advice so far. My first comment is that this is crazy hair on fire emergency debt!!! But, you make good money and I am confident you can turn this around!

A couple of key points:
1. As teen persuasion pointed out, your current budget has you about $1100 short every month (you forgot to include the mortgage in your total monthly debt obligations) so not only can you not get ahead on your debt, your debt is likely increasing by that much each month. Your first priority should be to come up with a revised budget where your expenses are less than your monthly take-home pay and you apply any difference to your debt. Since your credit card rates are all similar, I would do a version of the debt snowball and pay the smallest balances first so that you can use the extra cash flow from the minimum payments to pay off the next smallest one and so on.

2. Your retirement benefits are actually very good! That is less than what we are aiming for and we are planning a very comfortable retirement with a lot of travel. However, as you probably realize, you need to get rid of all the debt first. That $6000 per month can't even pay for all your debt obligations, let alone your living expenses. So, if you can just get rid of this debt, you will be just fine in retirement even if you don't have extra 401k savings (though I would keep saving for the tax benefit).

Normally I would agree with justajane to not worry about the car loans and moving to a different house on your income, but when I saw that you are $1000 in the red each month, I think these drastic measures might be necessary. Question about car loans - if you sell the car do you have to pay off the loan or can you carry it? If you can keep the loan, I  think it makes sense to sell the cars and get cheaper and more fuel efficient cars which would reduce your fuel payments and your insurance payments. Net gain each month. As for the house, it can be expensive to move, so it would only make sense if you can greatly reduce your housing expenses by doing so. I would definitely consider refinancing to a 30-year mortgage to allow more monthly cash toward debt repayment.

MountainFlower

  • Bristles
  • ***
  • Posts: 277
  • Location: Colorado Mountains
Re: Newbie: How to dig out of the giant hole we are in
« Reply #53 on: March 02, 2016, 10:29:42 AM »
To the OP, try doing your taxes in another program to see if you get the same amount.  Try Taxact online.  It's free until you file. 

What is your credit like?  If it's decent, I would get a HELOC ASAP to pay down loans and also help your tax bill.  Sofi.com refinances debt, not just student debt.  Prosper or lending club might also be something to look into.  Find some way to reduce those interest rates. 

Add a column in your spreadsheet that shows how much interest you paid on each loan last month.  It will shock and motivate you like crazy to find a way to payoff what you can and refinance what you can.  Even your car loans seem high.  Try to work with a credit union. 

I don't know how the OP can get rid of those cars.  They would have to come up with cash or a new loan to fund the upside down amount,  they don't have the money to go out and buy a $5000 car, and they have to get to work.  I don't see a way around keeping them as much as it costs to drive that truck to work.   Maybe I'm short sighted.  Thank goodness gas is cheap right now. 

Good luck to the OP.  You can do this.   


mm1970

  • Walrus Stache
  • *******
  • Posts: 6673
Re: Newbie: How to dig out of the giant hole we are in
« Reply #54 on: March 02, 2016, 02:32:20 PM »
Quote
For example, no dental and vision insurance, no beauty expenses, no internet, no entertainment that isn't free, and for the love of Christ NO CABLE and NO LAWN SERVICE!

Um, they are in their 50's.  I would not recommend canceling dental or vision.

Cassie

  • Walrus Stache
  • *******
  • Posts: 5668
Re: Newbie: How to dig out of the giant hole we are in
« Reply #55 on: March 02, 2016, 04:30:32 PM »
You can't keep a car loan if you don't have the loan. YOu have to pay if off when selling it.  I would keep the house because the equity is protected by the homestead provision. I would cut back everything else and snowball the debt as others have mentioned.  I would not turn unsecured debt (CC'S) into secured debt by taking out a HELOC, etc. If you fail to pay they take the house.  You could downsize and put all the house $ back into the new home and then have more monthly $ for debt. I would quit saving in my 401K with those pensions and just try to get out of debt so you can retire. YOu can live on your retirement income you will be getting if you have no CC debt, etc.

ChicagoGirl

  • 5 O'Clock Shadow
  • *
  • Posts: 84
Re: Newbie: How to dig out of the giant hole we are in
« Reply #56 on: March 02, 2016, 11:36:06 PM »
OP, once you get some of the big decisions made financially, I would encourage you to think about how your relationship with money will change in regards to your adult-children & grandchildren. I know as parents/grandparents you want to give as much as you can, but you may need to change your love-language when it comes to gifts, vacations and activities:

- There are some great threads on the forum about free activities you could do with your grandkids. 
- There are other forum threads about homemade gifts for the holidays.
- In the past were you hosting all the holidays and supplying all the food or treating everyone to restaurant dinners? Maybe find alternatives like a potluck dinner, etc.   
- Find a special way of celebrating each grandkid's birthday in a way that doesn't require you to buy anything. 

Have you discussed with your spouse how much or how little you want to disclose to your children about your financial situation? You don't have to tell your kids all of the dollar amounts owed...but a little insight and they will understand. 

Is your spouse on board with all of the changes needed to change your financial outlook? (There are great threads here about getting a spouse on-board if he isn't yet).





OldStachesRule

  • 5 O'Clock Shadow
  • *
  • Posts: 9
  • Location: Paradise, USA
Re: Newbie: How to dig out of the giant hole we are in
« Reply #57 on: March 03, 2016, 01:58:47 AM »
Hair on fire is too soft of a phrase for your situation.  A better characterization is that your entire body is stuck in the exhaust of a jet engine.

Some thoughts...

- First order of business is to admit to each other that you and/or your husband have a spending problem.  Join a support group.  Next I would call a meeting with immediate family, explain the situation, and state all non-essential spending stops immediately including entertainment, holidays, bdays, gifts, etc.  They will understand.  Do the same with all your friends via email and explain in vague terms if you want.

- Going forward, the issue of accountability comes to mind.  Perhaps regular updates to the MMM forum will help keep your feet to the fire.

-I would not sell the house.  The additional stress of prepping, listing, keeping it clean, accommodate showings, and selling costs are not worth it at this time.  Moreover, you do not have the cash to cover the security deposit and 1st month rent, which needs to be paid prior to closing.  Don't explore refinancing.   Your interest is great and most likely you wouldn't be approved so don't waste your time and energy.

-If your Visa allows, transfer the other 5 cc balances into it.  You will have 1 monthly payment at the lowest interest rate instead of 6 at loan shark rates.  If that's not an option, swallow your pride and ask to borrow money from family or friends to consolidate.

-The cars and associated carrying costs are absolutely killing you.  I don't understand how they can be underwater.  Did you overpay or put nothing down?  I would take both cars to every dealer in town and say you want to trade both in for two of the cheapest used cars in their lot, throw in any cash you can scrap up, and see where it goes.  Negotiate as if your life depends on it and hopefully you come out with lower monthly payments and balances.

-Most 401K plans allow two loans.  See if you can secure a 4th 401K loan to either (1)  pay off two or all three of the other 401K loans or (2) consolidate high interest rate cc if the balance transfer is not an option.

- Your game plan is a good start but not aggressive enough for your situation.  Find more low hanging fruit.

Best of luck to you and remember that others have dug out of bigger holes than yours.

StacheInAFlash

  • Stubble
  • **
  • Posts: 137
  • Location: Midwest
Re: Newbie: How to dig out of the giant hole we are in
« Reply #58 on: March 03, 2016, 07:07:26 AM »
-The cars and associated carrying costs are absolutely killing you.  I don't understand how they can be underwater.  Did you overpay or put nothing down? 

Most likely by rolling one car loan into another after doing a trade-in, and then repeating the process. Dealerships are all too happy to get you out of one underwater vehicle loan and into another even bigger one. End up needing to borrow $40k to buy a $30k vehicle, and the cycle just continues.

To the OP, thanks for addressing the RR pension. With 72K a year in "guaranteed" retirement, you're lucky in the sense that you aren't totally screwed given your age, high debt, and low savings. Most people would be. Rather than focusing on paying down debt while also saving for retirement, you really just need to pay down debt while learning to live within your means. Many people on these forums are or are planning on retiring in their 30s and 40s on half that amount or less per year, so keep that in perspective. What you need to do is not all that difficult! Just put your head down and start digging.

Zamboni

  • Handlebar Stache
  • *****
  • Posts: 2398
Re: Newbie: How to dig out of the giant hole we are in
« Reply #59 on: March 05, 2016, 08:17:17 PM »
Quote
For example, no dental and vision insurance, no beauty expenses, no internet, no entertainment that isn't free, and for the love of Christ NO CABLE and NO LAWN SERVICE!

Um, they are in their 50's.  I would not recommend canceling dental or vision.

I recommended that because often, at least in my experience, these plans do not really save folks money. After calling my dentist office and carefully going over the plan my company offers versus the services I need, we were able to determine that the dental plan saves me absolutely nothing at all. My company also offers vision insurance, but that plan only allows a new pair of glasses every two years. So, I sign up for it every other year and get new glasses. Without the need for glasses, or in the year when they won't cover new glasses anyway, it is actually cheaper to just pay for my own exams. Obviously employers offer different plans and your mileage may vary, but every expenses needs to be examined by the OP to determine if they are getting their money's worth, and that includes things like insurance.

I wonder if we will ever hear from OP again?

CBMoneyTalk

  • 5 O'Clock Shadow
  • *
  • Posts: 4
Re: Newbie: How to dig out of the giant hole we are in
« Reply #60 on: March 06, 2016, 11:13:09 AM »
My update

First, I would like to thank everyone for their input.  it has been great advice. 

We were able to secure a lower interest loan for $35K and used it to pay off the high interest consolidation loan and 3 of the credit cards (JC Penney, Amazon, and Discover.  That also let us skip a payment from the consolidation loan ($1167), which we used to pay off the Lane Bryant and Best Buy cards and previous year IRS bill.  The new loan is $746 a month vs $1167 and wiped out credit card payments/IRS of $540, saving us $961 a month.

We have cancelled all subscriptions to cable, entertainment budget and lowered our internet to $49.00 a month.  savings $142 a month

As for the cars, our plan is to pay them down to the point of being able to sell them.  At that time we will get cheaper cars that get good gas mileage. 

Regarding our dental and vision insurance.  The dental insurance pays 100% for 2 cleanings and X-rays per year for each family member.  Everyone in the family wears contacts or glasses, our vision insurance pays for glasses every 12 months plus the annual exam.  Rarely do we pay out of pocket for either of those unless someone gets a cavity.  This past year my husband needed a crown which the insurance only pays 50% on.

I am taking a different route to work.  Takes me about 15 minutes longer, but I avoid the tollway, saving $40 a month.

We switched electric companies and from what I can tell it should save us about $150 a month.  We will see when I get the first bill in.

Groceries have been lowered to $100 a week, saving us $400 a month.

Picked up a used lawn mower for $25 - landscaping contract cancelled - savings $120 a month

Installed water saver shower heads, not letting water run, and we are only running the dishwasher when we have a full load, hoping to save on the water bill.

I am shopping for new car and homeowners insurance, hoping to cut those bills as well.

One of the student loans ($550) was for my oldest daughter.  It was a parent plus loan and she is now paying that instead of us. - Savings $550 a month

So far our monthly expenses have been reduced by over 2K.

My husband and I had a heart to heart talk.  I am a spender and previously he had nothing to do with the finances.  it was all on my shoulders, which was a really bad idea.  He had no clue as to how far in debt we are.  I need someone to be accountable for.  We have cancelled our credit card accounts with the exception of one Visa.  It is locked up in a safe and given the key to my daughter who lives in another city.  The debit card is only allowed to be used for fueling our vehicles.  Everything else we pay for with cash.  We spent yesterday cleaning out the garage and have a ton of stuff on craigslist to sell.  Today I am cleaning out my office and kitchen.  Selling everything we don't have to have.  I read the Dave Ramsey Total Money Makeover book this week and we are gathering our $1000.00 mini emergency fund by selling things and not spending.  I have done a debt snowball and from what I can see we should be completed debt free in less than 36 months by cutting back to the bare bones.  No clothing, no gifts, no vacations or dining out.  We are a united team on this and I believe that as a team we can make it. 

Thank you for all of your input

former player

  • Magnum Stache
  • ******
  • Posts: 4436
  • Location: Avalon
Re: Newbie: How to dig out of the giant hole we are in
« Reply #61 on: March 06, 2016, 11:22:15 AM »
Firstly, thank you for coming back to tell us what is happening.

And secondly, you are seriously badass for taking all the advice you have had on the chin, for making all those changes (congratulations in particular on getting the refinancing your debt) and for having a plan to get out of date within 36 months.  I hope you continue to come back with updates so we can all cheer you on your way.

FrugalFan

  • Pencil Stache
  • ****
  • Posts: 910
Re: Newbie: How to dig out of the giant hole we are in
« Reply #62 on: March 06, 2016, 11:24:39 AM »
Wow, this is amazing! Huge changes! And it's so great to hear that you and your husband are united in this goal. I suggest you start tracking your net worth on a monthly basis. Seeing that number increase will help you stick through the tough times.

Kris

  • Magnum Stache
  • ******
  • Posts: 4293
Re: Newbie: How to dig out of the giant hole we are in
« Reply #63 on: March 06, 2016, 11:33:36 AM »
This is fantastic. You are doing what you need to do.

Cassie

  • Walrus Stache
  • *******
  • Posts: 5668
Re: Newbie: How to dig out of the giant hole we are in
« Reply #64 on: March 06, 2016, 11:49:57 AM »
Great job!

CBMoneyTalk

  • 5 O'Clock Shadow
  • *
  • Posts: 4
Re: Newbie: How to dig out of the giant hole we are in
« Reply #65 on: March 06, 2016, 12:01:27 PM »
Thank you.  Didn't mean to be gone for so long, I just had my head down working on this mess we created.   Working hard to dig out.

justajane

  • Handlebar Stache
  • *****
  • Posts: 2147
  • Location: Midwest
Re: Newbie: How to dig out of the giant hole we are in
« Reply #66 on: March 06, 2016, 12:30:13 PM »
I'm so impressed by all the changes you have made. Well done!

reginna

  • Stubble
  • **
  • Posts: 173
Re: Newbie: How to dig out of the giant hole we are in
« Reply #67 on: March 06, 2016, 12:37:13 PM »
CB, you and your family are doing great! Major changes that will immediately give you breathing room but also long time security.
Congratulations!!

PharmaStache

  • Bristles
  • ***
  • Posts: 260
  • Location: Canada
  • Peg City 'Stache
Re: Newbie: How to dig out of the giant hole we are in
« Reply #68 on: March 06, 2016, 01:02:32 PM »
Great news!  Keep updating us on your progress.

Jim2001

  • Stubble
  • **
  • Posts: 203
  • Location: Los Angeles, CA
Re: Newbie: How to dig out of the giant hole we are in
« Reply #69 on: March 06, 2016, 01:24:54 PM »
Congratulations on making the changes needed to turn things around!

pbkmaine

  • Walrus Stache
  • *******
  • Posts: 8332
  • Age: 63
  • Location: The Villages, Florida
Re: Newbie: How to dig out of the giant hole we are in
« Reply #70 on: March 06, 2016, 01:52:34 PM »
Good for you!

wenchsenior

  • Handlebar Stache
  • *****
  • Posts: 2159
Re: Newbie: How to dig out of the giant hole we are in
« Reply #71 on: March 06, 2016, 01:59:11 PM »
NICE GOING!!!   I have two comments as you start down this road. First, there will be times when you feel like wavering, or you just start to slip up again. That is normal, but you will need to watch for it and recognize that you can't let it slide. Like anything else hard, this needs to be gradual building of new habits. Don't use occasional slip ups as excuses to 'fall off the wagon'. You WILL make progress.

The other comment is that if you keep a good attitude toward this, namely that it is a painful but in the long term positive learning experience, you can come out feeling much more in control of your life, and with more confidence that you can handle the temptation to overspend going forward. When my husband and I were digging out of debt, I was sometimes miserable. However, a few years into it I really started to appreciate the discipline, self awareness, and skills we had attained from the process. Now I'm glad we had to go through that challenge.

deeshen13

  • 5 O'Clock Shadow
  • *
  • Posts: 93
Re: Newbie: How to dig out of the giant hole we are in
« Reply #72 on: March 06, 2016, 02:02:42 PM »
First, props to everybody giving sound advice to get things turned around, as well as to you for taking it on the chin with a great attitude and going after it!

Second, vision can be an important thing to have when certain days/things seem insurmountable.  If it were me, I would close my eyes and envision the day that I am debt free, having sustainable habits, am frugal, and more minimalist.  Over time you will realize those things are not deprivation, they are liberating and feel fucking awesome!

With ten years to retirement, and hefty retirement pensions and social security, you guys can still have a great life ahead of you.

Don't underestimate the power of creating these good habits; things will start to snowball (favorably, finally) once you do.  If you have free-time check out "The Power of Habit" for a great read.

Good luck, and please keep us posted throughout the process!

EDIT: wenchsenior just beat me to it, with a lot of the same thoughts! :)

Debts_of_Despair

  • Pencil Stache
  • ****
  • Posts: 535
  • Location: NY
Re: Newbie: How to dig out of the giant hole we are in
« Reply #73 on: March 06, 2016, 03:01:15 PM »
My two cents: this is really not that bad of a situation.  You have a spending problem, not an income problem.  It's much easier to fix the later than the former.  There is SO MUCH low hanging fruit in your situation.  If you can get your family on board with a good plan, I think you could easily climb out of that hole (minus the mortgage) in three years or less.
« Last Edit: March 06, 2016, 03:03:47 PM by Debts_of_Despair »

obstinate

  • Pencil Stache
  • ****
  • Posts: 887
Re: Newbie: How to dig out of the giant hole we are in
« Reply #74 on: March 06, 2016, 04:04:09 PM »
Great. So many people refuse to change, but you have taken our proposals and run with them. I hope that this greatly improves your prosperity and security in the future.

BlueHouse

  • Magnum Stache
  • ******
  • Posts: 3049
  • Location: WDC
Re: Newbie: How to dig out of the giant hole we are in
« Reply #75 on: March 06, 2016, 05:20:04 PM »
So impressive the changes you've made!  You've made some significant changes and not just the easy ones.  Really very impressed with your progress.   

MMMaybe

  • Bristles
  • ***
  • Posts: 387
Re: Newbie: How to dig out of the giant hole we are in
« Reply #76 on: March 06, 2016, 06:08:55 PM »
Awesome update. I'm really impressed by the changes you've made!

jengod

  • Handlebar Stache
  • *****
  • Posts: 1208
  • Location: Near LAX
Re: Newbie: How to dig out of the giant hole we are in
« Reply #77 on: March 06, 2016, 07:57:05 PM »
You are doing GREAT.

Have fun at the garage sale. Arrow signs help a lot with turnout on the day (meaning a path of arrows pointing the way to your sale from the nearest major thoroughfares). Advertise on Craigslist, Nextdoor and any other local messages a week or more in advance as well.

lhamo

  • Walrus Stache
  • *******
  • Posts: 9644
  • Location: Seattle
Re: Newbie: How to dig out of the giant hole we are in
« Reply #78 on: March 06, 2016, 08:30:12 PM »
Wow -- impressive turnaround!  Great job.

Since you are taking the TMMO approach, you might want to start downloading and listening to Dave Ramsey's podcasts - he posts 3 hours every day (well, after they cut out some of the sponsorship stuff it is about 40 min x3).  They typically have one "debt free scream" every hour, and those are really inspirational/motivational.  I'm not even in debt (except a mortgage) and I love to hear them!

Keep up the good work and good luck selling off the extra stuff and completing your 1k emergency fund


horsepoor

  • Magnum Stache
  • ******
  • Posts: 3110
  • Location: At the Barn
  • Horses: for sanity & poverty!
Re: Newbie: How to dig out of the giant hole we are in
« Reply #79 on: March 06, 2016, 09:17:59 PM »
Great update.  Go! Go! Go!

StacheInAFlash

  • Stubble
  • **
  • Posts: 137
  • Location: Midwest
Re: Newbie: How to dig out of the giant hole we are in
« Reply #80 on: March 07, 2016, 08:10:13 AM »
Awesome update! Congrats on all those major changes you've made. Seriously bad ass!

PARedbeard

  • Stubble
  • **
  • Posts: 152
  • Location: Pennsylvania
Re: Newbie: How to dig out of the giant hole we are in
« Reply #81 on: March 07, 2016, 09:05:01 AM »
You're on the road now!

2Birds1Stone

  • Walrus Stache
  • *******
  • Posts: 5501
  • Age: 32
  • Location: Earth
  • K Thnx Bye
Re: Newbie: How to dig out of the giant hole we are in
« Reply #82 on: March 07, 2016, 09:26:23 AM »
That is some amazing progress in a short period! 36 months will fly by and you will be amazed at how quickly your egg grows when you take that debt repayment $$ and toss it towards investments.

DebtFreeBy25

  • Stubble
  • **
  • Posts: 239
  • Age: 32
  • Location: Appalachian and...tolerating it
Re: Newbie: How to dig out of the giant hole we are in
« Reply #83 on: March 07, 2016, 10:55:49 AM »
So far our monthly expenses have been reduced by over 2K.

My husband and I had a heart to heart talk.  I am a spender and previously he had nothing to do with the finances.  it was all on my shoulders, which was a really bad idea.  He had no clue as to how far in debt we are.  I need someone to be accountable for.  We have cancelled our credit card accounts with the exception of one Visa.  It is locked up in a safe and given the key to my daughter who lives in another city.  The debit card is only allowed to be used for fueling our vehicles.  Everything else we pay for with cash.  We spent yesterday cleaning out the garage and have a ton of stuff on craigslist to sell.  Today I am cleaning out my office and kitchen.  Selling everything we don't have to have.  I read the Dave Ramsey Total Money Makeover book this week and we are gathering our $1000.00 mini emergency fund by selling things and not spending.  I have done a debt snowball and from what I can see we should be completed debt free in less than 36 months by cutting back to the bare bones.  No clothing, no gifts, no vacations or dining out.  We are a united team on this and I believe that as a team we can make it. 

This is excellent progress! Keep doing what you're doing, and you'll see amazing progress in only a few years.

Here's a quick story for inspiration: I started with nothing. Actually worse than nothing, I finished grad school at 21 with $10k of student loan debt from undergrad. (I did have a $7k emergency fund saved up from working as much as I could while I was in school.) When I married my husband a few years later, we moved for my job, which only paid $34k a year, and he was unable to find a job in our new location. We were in a tough situation financially with my student loans, his student loans ($30k), a mortgage ($26k on a foreclosure after a $14k down payment) and only one low income. We saved as much as we could using the no budget/"spend as a little as you can" method in order to pay down debt as quickly as possible and renovated and flipped the house. I was able to become completely debt free (including purchasing a home in cash) by 25 even though my salary was still under $37k, and my husband was unemployed for 2 years. What's really crazy is that after reading some of the stories on this forum I realize that I could have done better. Now 6 years and several additional financial challenges after our debt's high water mark (2010), our total net worth is ~$300k.

pdxmonkey

  • Bristles
  • ***
  • Posts: 333
Re: Newbie: How to dig out of the giant hole we are in
« Reply #84 on: March 07, 2016, 08:24:19 PM »
I am impressed you have made so many changes in such a short time. Keep coming back to let us know how things are going, whether they be good or bad. I'd be interested to know after a couple weeks or a month which changes you are finding most difficult and which are the easiest.

dess1313

  • Bristles
  • ***
  • Posts: 441
  • Location: Manitoba Canada
Re: Newbie: How to dig out of the giant hole we are in
« Reply #85 on: March 07, 2016, 09:21:49 PM »
CB that is FANTASTIC NEWS.  Great job!!!  Humongous turn around

Some ideas going forward.  Make a poster or some other diagram that as you pay off debt, you can visualize each chunk being paid off.  put it in a common area on your house where you see it regularly.  Visual reminders can be really encouraging especially as you make more progress.  i did it when i was saving for my car and every time i'd want to spend on something stupid i'd try to remind myself of it.  I stuck my picture of it with boxes i'd fill in on my fridge.  each box was a $1000 dollar. sure felt good every time i filled in even part of a box!!!

Also, pick a goal/vacation/reward for yourselves at the end.  you don't need to pick it today, but talk it over and put a big picture of it where you can see it.  Once its paid off, you can use that monthly payment to fund your reward.  might help keep you on track with that dangling at the end of this

Nate R

  • Bristles
  • ***
  • Posts: 341
  • Age: 34
  • Location: Milwaukee, WI (Bay View)
Re: Newbie: How to dig out of the giant hole we are in
« Reply #86 on: March 08, 2016, 08:48:58 AM »
The fact that you realized the mess you have and are taking responsibility to change what you can is AWESOME! I'm impressed!

Keep at it!

We're slowly turning our ship around as well, (albeit a smaller ship), and just remember, it's a process, and won't all be fixed/done/better overnight. But those daily decisions DO add up!