Author Topic: Reader Case Study-NEED/Want to turn it around in 2014 Thanks for no face pops!  (Read 17236 times)

MrsPete

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Will have a second look.  I don't agree though that a thimble of spit is better than nothing, it is nothing. When we embrace EBAY, it will be more for shining a light on our free spending habits.  I like making chunky payments, not snowflaking.  I vow for 2014 to take one bill and start spitting at it. 
Like I said, this is a rookie mistake.  And math is math, and math says something isn't nothing, even if it's a small something. 

As I said, paying off $4000 in debt is good, but paying off $4400 would've been a little better.  You do what you can with your main salary, and you look for small extras too.  That's how you move beyond the rookie mistakes. 

pbkmaine

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If you are in a high tax bracket and itemize, donating can be just as effective as selling. And de cluttering can have another effect, too. For many people, getting rid of stuff helps with stress. DH and I moved to a smaller house 18 months ago. I took the opportunity to donate a huge amount of stuff. Now I only have what I use, and it has improved the quality of my life.

Villanelle

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Will have a second look.  I don't agree though that a thimble of spit is better than nothing, it is nothing. When we embrace EBAY, it will be more for shining a light on our free spending habits.  I like making chunky payments, not snowflaking.  I vow for 2014 to take one bill and start spitting at it. 
Like I said, this is a rookie mistake.  And math is math, and math says something isn't nothing, even if it's a small something. 

As I said, paying off $4000 in debt is good, but paying off $4400 would've been a little better.  You do what you can with your main salary, and you look for small extras too.  That's how you move beyond the rookie mistakes.

Yes.  Also, this isn't just about paying off the debt.  If that's all you do, you'll be back where you are in a few years time.  It's also, and perhaps far more importantly, about changing your mindset.  When you allow yourself to have thoughts like "it's only a little, so it doesn't count", you allow yourself to continue to see your money in those terms.  If selling an item for $25 is no big deal, then buying one isn't, either.  If your debt isn't really such an emergency that you need to do whatever you can think of, then where's the harm in buying those cute shoes that are on a super crazy sale? 

Even the notion that you prefer chunky payments over snowflakes is just allowing yourself to fall back on the irrational, emotion-driven decision making that got you here.  I've you've got $5, send it to a card.  Saving it until you have $50 allows interest to accrue.

You'll need to run the numbers, but it might be smartest to move the lease buy out to the top of the list of priorities, reducing payments on everything else to the minimums.

If, of course, it isn't, then put everything toward the highest interest CC.

krenwren

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Even the notion that you prefer chunky payments over snowflakes is just allowing yourself to fall back on the irrational, emotion-driven decision making that got you here.  I've you've got $5, send it to a card.  Saving it until you have $50 allows interest to accrue.

You'll need to run the numbers, but it might be smartest to move the lease buy out to the top of the list of priorities, reducing payments on everything else to the minimums.

If, of course, it isn't, then put everything toward the highest interest CC.

OK OK uncle, i say uncle!!! My goal will be to put any extra onto my one of my debt, I'll pick the remainder of a interest free loan for kitchen cabinets. It's interest free until March 2014 and I owe 2450 on it.  I have been paying $400 towards it every month but will need to up the ante to get it paid off before the interest kicks in. 
I think I will focus on the lease for the CC.  With my husband not working, it's a hunk of expensive steel just sitting in the driveway.  Looking on KBB, I could get $24000 for it, leaving me with $11000 to come up with to get it paid off.  It is the most bothersome of all my debt and represents the worst of our terrible habits.

MrsPete

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If you are in a high tax bracket and itemize, donating can be just as effective as selling. And de cluttering can have another effect, too. For many people, getting rid of stuff helps with stress. DH and I moved to a smaller house 18 months ago. I took the opportunity to donate a huge amount of stuff. Now I only have what I use, and it has improved the quality of my life.
Very good point. 


Even the notion that you prefer chunky payments over snowflakes is just allowing yourself to fall back on the irrational, emotion-driven decision making that got you here.  I've you've got $5, send it to a card.  Saving it until you have $50 allows interest to accrue.

You'll need to run the numbers, but it might be smartest to move the lease buy out to the top of the list of priorities, reducing payments on everything else to the minimums.

If, of course, it isn't, then put everything toward the highest interest CC.

OK OK uncle, i say uncle!!! My goal will be to put any extra onto my one of my debt, I'll pick the remainder of a interest free loan for kitchen cabinets. It's interest free until March 2014 and I owe 2450 on it.  I have been paying $400 towards it every month but will need to up the ante to get it paid off before the interest kicks in. 
I think I will focus on the lease for the CC.  With my husband not working, it's a hunk of expensive steel just sitting in the driveway.  Looking on KBB, I could get $24000 for it, leaving me with $11000 to come up with to get it paid off.  It is the most bothersome of all my debt and represents the worst of our terrible habits.
You're learning, even if you did have to be bullied into listening!  You'll see a difference as your balances go down. 

Beware, too, of things like interest free loans on items like kitchen cabinets, that is, things that can wait.  If you can't save for it up front, how can you expect to pay it back?  And you always pay a premium for such things.  They aren't really giving you a no-cost-to-them loan. 

krenwren

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Beware, too, of things like interest free loans on items like kitchen cabinets, that is, things that can wait.  If you can't save for it up front, how can you expect to pay it back?  And you always pay a premium for such things.  They aren't really giving you a no-cost-to-them loan.

The deed was already done.  I thought "same as cash" would be better than credit card that would linger forever.  I managed to payoff all the renovations we did last year before interest kicked in, the cabinets are the last to pay off.  Our new philosophy will be to save then spend.  What a concept. 

I have packed up three bags of clothes for goodwill.  Should help with the tax man. 
Thanks @mrspete for keeping me on point!!!!

krenwren

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Another 1278.24 down!  Remaining CC debt belongs to two separate cards, each about $14000.  The kitchen cabinet loan has 2050 on it.  That will end the year at 1250.
That plus the VW CC lease are going to OBLITERATED in 2014. 
2015--Parent Plus loans
All the while whittling away at the mortgage.

footenote

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*highfive*