Author Topic: Should we be paying down debts?  (Read 5147 times)

Bearblastbeats

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Re: Should we be paying down debts?
« Reply #50 on: March 26, 2020, 10:35:41 AM »
I don't know what dog supplies are for you - but it doesn't need more than the cheapest dry food in a huge bag, and possibly the cheapest flea medicine [ which you can wash the dog regularly [ preferrably a bath where it is mostly submerged] to reduce that expense.  Supplement its food with your left over table scraps. Have something thats left-over a day beyond what you are comfortable with eating yourself... - yummy for dog - they are genetically built to eat sporadically, and meat that is not refrigeratted in the wild. No Onions or grapes.

  Forget that bankruptcy stuff. Do the method of paying your smallest loans 1st, Then "snowball " the others.  You can dig out of this.

 Look into banking with a local credit union if you aren't already. Get your paycheck direct deposited there if possible. After a couple months approach them for a consolidation loan.  My Credit union offers a "signature' loan [ no collateral at about 10% ] . Thats 1/2 the interest rate of what you are paying currently.

 Track ALL your spending on a sheet of paper taped to your $1000+ refridgerator.  Believe me, having it in black and white in a place you look at every day will help.  We put 6 Categories down on our sheet - Wife - Husband - Kid [ her allowance spending ] - Food - House Expenses - Restaurant [ we budget $100 a month, but you don't get this category for obvious reasons ] .   Fudge putting it into a spreadsheet, you need it in your face every Day !  Change it at the beginning of each month. Don't leave ANything off, no cheating. When you pay off a credit card , put it on there in bold big letters and colors.

 There are lots of folks on this board who have been in the position you are. Persistance. You "lifestyle inflated" to fill up the house, now hunker down and deal with it. You can get all the unsecured debt [ except student loan maybe] knocked out in less than 2 years.


Thanks for this insight. The spending sheet is a good idea for sure!

Edit: just so it be known, We haven't stepped inside a restaurant since the boy was born, other than for a birthday dinner which was paid for by someone else other than us.

Edit 2: Kohl's put me on a 2 month no payment and no late fee program, which I could call in 2 months and extend. Best Buy keeps disconnecting the call, figures as much because its Citibank.. I've been on hold now for over an hour with chase. woof.
« Last Edit: March 26, 2020, 10:51:07 AM by Bearblastbeats »

six-car-habit

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Re: Should we be paying down debts?
« Reply #51 on: March 26, 2020, 10:51:55 AM »
BearBlast - i added a paragraph to my last diatribe on Reply # 49.  Read + Think about it please. MAny of us have screwed up. Maybe it makes overcoming the financial obstacles, we put in our own way, that much sweeter. Not many of us have had good spending / saving / investing habits , all our lives like some folks on the board. Wishing you luck, is the wrong perspective, so I am wishing you persistance !       
« Last Edit: March 26, 2020, 10:54:34 AM by six-car-habit »

KBecks

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Re: Should we be paying down debts?
« Reply #52 on: March 26, 2020, 11:15:05 AM »
You have to cut up your credit cards.  All the credit cards.

Bearblastbeats

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Re: Should we be paying down debts?
« Reply #53 on: March 26, 2020, 01:28:30 PM »
And just like that NH is now part of the shut down.

This is effective until May 4th.

Looks like I won't be able to do those flooring gigs either since Home Depots are closed?

lhamo

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Re: Should we be paying down debts?
« Reply #54 on: March 26, 2020, 02:08:11 PM »
Deep breaths.

Check with your mortgage holder and utility company -- many are offering reduced or delayed payment options.

Try using the chat function to communicate with those companies that have it.  Might be more efficient than using the phone at this time.  You can probably have a couple of chat windows open at one time.

You might still be able to take deliveries of supplies from Home Depot or other sources.  Construction is still considered essential services in some places, or allowed as long as social distancing rules can be followed.  Don't assume anything -- check first before you cancel those jobs. 

the_fixer

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Re: Should we be paying down debts?
« Reply #55 on: March 26, 2020, 02:10:46 PM »
And just like that NH is now part of the shut down.

This is effective until May 4th.

Looks like I won't be able to do those flooring gigs either since Home Depots are closed?
Are the home depots actually closed?

I believe around here they are considered essential for health and safety. Think about plumbing, heating and ETC.


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Peachtea

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Re: Should we be paying down debts?
« Reply #56 on: March 26, 2020, 08:09:40 PM »
IL is in a shelter in place but Home Depot is open as an essential business, so your side hustle should be fine as long as people donít cancel to avoid contact.

Comcast - You need to know what you want before you talk to them. On your phone (so it doesnít register your WiFi connection) enter a random address in your neighborhood on xfinitys site to see what the new customer deals are. Select see all offers. Narrow to internet only. Somewhere in there, likely smooshed between two expensive options, is the 25 mbps performance started pick. This is what you want to switch too and thatís the price you want it at. I.e. I entered a random Manchester address (no idea if thatís your city, just an example) and 25 mbps is $49.95. This option is often more a stable price than the boost they bundle with cable to make it feel like itís cheaper to bundle, b/c those are promo rates for 1 year and then get jacked up. Call Comcast ask to switch to 25 mbps and drop cable. If they wonít honor the lower price, ask to cancel. If they still donít lower it, cancel your internet, once itís effective wait a day or two, have GF sign up for new customer rate under her name. Make sure you sign up for autopay and e billing to get the $10 discount. Also make sure you are not using their router. Buy your own, theyíre like $100 at Best Buy and saves you $15/month in equipment fees.

Verizon - when you get that side job money, use part of it to pay off the $125 phone if youíre not otherwise on contract so you can switch to a Verizon mnvo. Red pocket can run on Verizonís network and has plans as low as $10/month. (Coworkers mom in rural Indiana has great success with this.) or check out total wireless if your phone isnít red pocket compatible for some reason (check on their site not outdated forums, b/c theyíve increased amount of compatible phones. This will help with cash flow.

Electricity - anyway you can cut this back? We lowered ours $10/month in a small apt by unplugging everything we could and only plugging in when using (including the TV), turning off lights, and only using the drier for sheets. Hang drying is really worth it.

Thatís a lot of space to not address what you should be paying on debt, but itís because reducing your expenses increases cash flow to pay them down and really shouldnít be overlooked. Even $25/ month in savings will help wipe out the lower cc amounts and snowball your cash flow.

For your GFs employment. If she hasnít been officially laid off, but has no hours and no pay, have her tell them she needs docs to show lay-off for unemployment or they need to pay her, with or without hours. Then, if they donít pay her, she can collect unemployment which is now (assuming house passes the bill tmrw) going to be extra generous and should help out a lot. I *think* part timers became eligible under first relief act and now theyíll also get an extra $600 a week in benefits regardless of prior income. (Assuming I sorted all the messy news coverage of these bills and their status correctly.)

Also howís a good time to call insurance companies for cheaper rates if you havenít already done that.

Bearblastbeats

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Re: Should we be paying down debts?
« Reply #57 on: March 27, 2020, 06:18:26 AM »
So to update.

My company is deemed an essential business for manufacturing.

I called a few more creditors and they granted a push back with no fees for 1-2 months. I'll just need to call back when the period ends to extend if needed.

The typical dog food I get is blue buffalo at around $55 a bag for 24#. This was a clearance item last night so I picked up 3 bags for $25 ea. This is 3 months worth of food for him.

We stocked up on diapers, insulin & needles for me, and another ~2 weeks worth of food. So we have plenty of food and supplies for the month.

I plan to start doing the demo part of the job tonight or tomorrow and hopefully the actual job starting next week. This will give us some breathing room for the remainder of the month.

lhamo

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Re: Should we be paying down debts?
« Reply #58 on: March 27, 2020, 08:51:40 AM »
Glad you are seeing some rays of sun poking out behind all those clouds.

Can your SO check with some of the local stores and see if they need people for stocking?  A lot of stores are reducing their open hours, so it wouldn't necessarily be an all night shift.   

the_fixer

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Re: Should we be paying down debts?
« Reply #59 on: March 27, 2020, 09:10:23 AM »
Do not let your guard down yet you are still in the middle of an emergency. Delaying the payments will likely still be building interest so keep cutting expenses to the bone and get any work the two of you can.

Save every penny and when things start to stabilize you can throw some money at it.

How much interest is that Home Depot credit card going to hit you with? Any chance you can pay that off before the zero interest expires?


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Bearblastbeats

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Re: Should we be paying down debts?
« Reply #60 on: March 27, 2020, 09:16:48 AM »
Do not let your guard down yet you are still in the middle of an emergency. Delaying the payments will likely still be building interest so keep cutting expenses to the bone and get any work the two of you can.

Save every penny and when things start to stabilize you can throw some money at it.

How much interest is that Home Depot credit card going to hit you with? Any chance you can pay that off before the zero interest expires?


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So my plan was this:

For all the minimums that are being pushed out, I was going to save them up and see what card I can pay off.

I was also thinking since Verizon, Comcast, my DCU auto Loan & personal loan, and my mortgage are waiving any late fees, maybe I should take those payments and put them towards more of the debts that are due? That's daring, I wouldn't do it with my mortgage because that would be to risky, but I could just avoid the others for a month and deal with those later.

wellactually

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Re: Should we be paying down debts?
« Reply #61 on: March 27, 2020, 09:46:16 AM »
Do not make this more complicated. Waiving late fees is not the same as deferred payments. Pay everything that is due this month because you have the ability to do so.

You also don't need to save up to pay off a card. Just make sure your extra payments are going to principle and not pre-payment of future minimums.

As soon as possible, sell the vehicle.

slappy

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Re: Should we be paying down debts?
« Reply #62 on: March 27, 2020, 09:48:33 AM »
How about a roommate? Something to bring in some income.

Bearblastbeats

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Re: Should we be paying down debts?
« Reply #63 on: March 27, 2020, 10:15:47 AM »
How about a roommate? Something to bring in some income.

No. I've tried this before on multiple occasions. Especially now being this whole social distancing thing and having my baby at home. I already had a high standard of cleanliness and now its more extreme, most people can't stand my standards and I in return can't deal with their lack of.

the_fixer

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Re: Should we be paying down debts?
« Reply #64 on: March 27, 2020, 01:51:51 PM »
I think I would pass on the late fee waiver offers. I know people that have received that offer then found out later the while the company waived the late fee they still reported the account as late and impacted their credit.

If your credit score drops it can cause your insurance to go up, interest rates and other things to change and even employment issues for some people.

I agree do not try to get fancy work on getting that income up.


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Bearblastbeats

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Re: Should we be paying down debts?
« Reply #65 on: March 27, 2020, 02:22:37 PM »
I think I would pass on the late fee waiver offers. I know people that have received that offer then found out later the while the company waived the late fee they still reported the account as late and impacted their credit.

If your credit score drops it can cause your insurance to go up, interest rates and other things to change and even employment issues for some people.

I agree do not try to get fancy work on getting that income up.


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I like the Dave Ramsey's advice of the for walls.

JetBlast

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Re: Should we be paying down debts?
« Reply #66 on: March 28, 2020, 09:33:59 AM »

Comcast - You need to know what you want before you talk to them. On your phone (so it doesnít register your WiFi connection) enter a random address in your neighborhood on xfinitys site to see what the new customer deals are. Select see all offers. Narrow to internet only. Somewhere in there, likely smooshed between two expensive options, is the 25 mbps performance started pick. This is what you want to switch too and thatís the price you want it at. I.e. I entered a random Manchester address (no idea if thatís your city, just an example) and 25 mbps is $49.95. This option is often more a stable price than the boost they bundle with cable to make it feel like itís cheaper to bundle, b/c those are promo rates for 1 year and then get jacked up. Call Comcast ask to switch to 25 mbps and drop cable. If they wonít honor the lower price, ask to cancel. If they still donít lower it, cancel your internet, once itís effective wait a day or two, have GF sign up for new customer rate under her name. Make sure you sign up for autopay and e billing to get the $10 discount. Also make sure you are not using their router. Buy your own, theyíre like $100 at Best Buy and saves you $15/month in equipment fees.


I was going to mention this but Peachtea already got to most of what I was going to say.  Comcast is screwing you with that double play. 

The one thing I'd add is that you want to talk to the customer retention people when you call Comcast.  The first person you speak to likely has limited options as to what they can offer.  Customer retention has more leeway to extend promotional offers or work with you to lower your bill.

slappy

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Re: Should we be paying down debts?
« Reply #67 on: March 29, 2020, 04:42:18 PM »
IL is in a shelter in place but Home Depot is open as an essential business, so your side hustle should be fine as long as people donít cancel to avoid contact.

Comcast - You need to know what you want before you talk to them. On your phone (so it doesnít register your WiFi connection) enter a random address in your neighborhood on xfinitys site to see what the new customer deals are. Select see all offers. Narrow to internet only. Somewhere in there, likely smooshed between two expensive options, is the 25 mbps performance started pick. This is what you want to switch too and thatís the price you want it at. I.e. I entered a random Manchester address (no idea if thatís your city, just an example) and 25 mbps is $49.95. This option is often more a stable price than the boost they bundle with cable to make it feel like itís cheaper to bundle, b/c those are promo rates for 1 year and then get jacked up. Call Comcast ask to switch to 25 mbps and drop cable. If they wonít honor the lower price, ask to cancel. If they still donít lower it, cancel your internet, once itís effective wait a day or two, have GF sign up for new customer rate under her name. Make sure you sign up for autopay and e billing to get the $10 discount. Also make sure you are not using their router. Buy your own, theyíre like $100 at Best Buy and saves you $15/month in equipment fees.

Verizon - when you get that side job money, use part of it to pay off the $125 phone if youíre not otherwise on contract so you can switch to a Verizon mnvo. Red pocket can run on Verizonís network and has plans as low as $10/month. (Coworkers mom in rural Indiana has great success with this.) or check out total wireless if your phone isnít red pocket compatible for some reason (check on their site not outdated forums, b/c theyíve increased amount of compatible phones. This will help with cash flow.

Electricity - anyway you can cut this back? We lowered ours $10/month in a small apt by unplugging everything we could and only plugging in when using (including the TV), turning off lights, and only using the drier for sheets. Hang drying is really worth it.

Thatís a lot of space to not address what you should be paying on debt, but itís because reducing your expenses increases cash flow to pay them down and really shouldnít be overlooked. Even $25/ month in savings will help wipe out the lower cc amounts and snowball your cash flow.

For your GFs employment. If she hasnít been officially laid off, but has no hours and no pay, have her tell them she needs docs to show lay-off for unemployment or they need to pay her, with or without hours. Then, if they donít pay her, she can collect unemployment which is now (assuming house passes the bill tmrw) going to be extra generous and should help out a lot. I *think* part timers became eligible under first relief act and now theyíll also get an extra $600 a week in benefits regardless of prior income. (Assuming I sorted all the messy news coverage of these bills and their status correctly.)

Also howís a good time to call insurance companies for cheaper rates if you havenít already done that.


Re: Comcast-I live in his general area and this is the exact option I have. I did have to fight for it. At first they told me it didn't exist. But I WFH full time (at least for now) and have had very few issues, so it's perfectly fine.

Peachtea

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Re: Should we be paying down debts?
« Reply #68 on: March 30, 2020, 02:55:16 PM »
IL is in a shelter in place but Home Depot is open as an essential business, so your side hustle should be fine as long as people donít cancel to avoid contact.

Comcast - You need to know what you want before you talk to them. On your phone (so it doesnít register your WiFi connection) enter a random address in your neighborhood on xfinitys site to see what the new customer deals are. Select see all offers. Narrow to internet only. Somewhere in there, likely smooshed between two expensive options, is the 25 mbps performance started pick. This is what you want to switch too and thatís the price you want it at. I.e. I entered a random Manchester address (no idea if thatís your city, just an example) and 25 mbps is $49.95. This option is often more a stable price than the boost they bundle with cable to make it feel like itís cheaper to bundle, b/c those are promo rates for 1 year and then get jacked up. Call Comcast ask to switch to 25 mbps and drop cable. If they wonít honor the lower price, ask to cancel. If they still donít lower it, cancel your internet, once itís effective wait a day or two, have GF sign up for new customer rate under her name. Make sure you sign up for autopay and e billing to get the $10 discount. Also make sure you are not using their router. Buy your own, theyíre like $100 at Best Buy and saves you $15/month in equipment fees.

... cut to shorten ...


Re: Comcast-I live in his general area and this is the exact option I have. I did have to fight for it. At first they told me it didn't exist. But I WFH full time (at least for now) and have had very few issues, so it's perfectly fine.

Yeah, weíre on that plan in Chicago. We just moved and I had to search for it; I signed up online to avoid the sales pitch. Luckily ours is much cheaper, $20/ month with autopay and billing. My husband and I have both been WFH with covid-19. No problems with two people using vpn and streaming pandora at the same time. Also no problems streaming Netflix or etc on fire stick while also internetting on tablets.

Bearblastbeats

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Re: Should we be paying down debts?
« Reply #69 on: April 12, 2020, 04:03:40 PM »
Happy Easter everyone.

Wanted to check in.

Recieved my stimulus check, $1700. Got paid for that floor gig, $1500.

(IRS still owes me $588,according to them)

All credit cards have been deferred. Best Buy promotion balance of $1600 pushed back to October. Remainder due Nov. 2021.

I could pay off all of chase right now and start hammering on kohl's and cap one.

Suggestions?

Peachtea

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Re: Should we be paying down debts?
« Reply #70 on: April 12, 2020, 05:13:44 PM »
Paying off your lowest three credit cards frees up more monthly income than paying off the chase card. Home Depot $444 + cap one $746.94 + $862.52 ollo = $2,053 and $28+$45+$28 in minimum payments = $101 extra a month vs Chase $1,998 and a $60 minimum. You need to focus on freeing up cash flow to snowball the debt. Thatís more important than interest rate right now. Or pay off the Kohlís card $2,345 to have $117/month to put towards paying off the other cards.

Again, I highly recommend you pay the $125 off for your phone and then switched to red pocket cdma plan or total wireless. Both run on Verizonís network. You can cut your cell payment in half (at least) and have another $40+ a month to put towards debt payoff.

If you have no savings, keep $1000 and put it in a new, separate savings account, separate from your checking account bank. That way if you have an emergency you donít have to resort to a credit card again but arenít tempted to dip in for regular spending.

Best of luck!

former player

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Re: Should we be paying down debts?
« Reply #71 on: April 13, 2020, 02:12:10 AM »
Good for you getting the extra money coming in.  Peachtea's advice on what to do with it is golden and following it should be the next thing you do after reading this thread.

Bettersafe

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Re: Should we be paying down debts?
« Reply #72 on: April 13, 2020, 04:23:00 AM »
Do as Peachtea recommended.

And I wanted to add some words of encouragement. You stept up to the problem and are working hard to tackle it. Yes, there maybe still things to look into, change, etc but at least you're doing something and as Rome wasn't build in one day, you also can't change everything at once.
So, keep up the good work and taking the advice given here!



Bearblastbeats

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Re: Should we be paying down debts?
« Reply #73 on: April 13, 2020, 02:39:14 PM »
I did exactly that. My GF also took her $1200 and paid off a few of her cards as well. She is still waiting to get any unemployment so I told her to hold onto a few hundred.


Breadwinner

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Re: Should we be paying down debts?
« Reply #74 on: April 15, 2020, 08:59:56 AM »
If you have Comcast, you should qualify for Xfinity mobile cell service with free talk and text. Just donít use Data and it can be really cheap. We pay less than $10 a month for the taxes on 3 cell phones. You can use WiFi instead of Data.

Bearblastbeats

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Re: Should we be paying down debts?
« Reply #75 on: April 29, 2020, 06:54:05 AM »
Update.


I have about $1600 extra to pay off one more cc.

Amount Owed          Interest Rate           Category           Bill
$257.23                  0% until Aug            Credit Card        Best Buy (deferred ~$50 interest)
$1,288.40               0% until Dec            Credit Card        Synchrony (deferred ~$250 interest)
$1,496.80               24.65%                   Credit Card        Cap One #1
$1,645.38               0% until Oct             Credit Card        Best Buy (deferred ~$500 interest)
$2,036.09               23.74%                   Credit Card        Chase Credit
$2,050.74               0% until Nov '21       Credit Card        Best Buy (deferred ~$500 interest)
$2,345.99               26.74%                   Credit Card        Kohls Charge


I am thinking of paying all the Cap One #1 ($25/m) or the Chase ($60/m).

I need to chuck about $300 a month at best buy before Oct, unless I consider this an option to pay off right now to avoid that interest.


Suggestions?


« Last Edit: April 29, 2020, 08:11:56 AM by Bearblastbeats »

the_fixer

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Should we be paying down debts?
« Reply #76 on: April 29, 2020, 07:34:03 AM »
Personally I would get rid of the small Best Buy that the 0% is going to expire in Aug. Aug will be here pretty quick.

Then I would look at one of the following

The synchrony that would free up $49 per month

Or the other Best Buy that the 0% expires in Oct

-

Glad to see you making progress. How is it going with side hustles, extra flooring gigs? Has the GF been able to find work?


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« Last Edit: April 29, 2020, 07:35:54 AM by the_fixer »

former player

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Re: Should we be paying down debts?
« Reply #77 on: April 29, 2020, 07:38:16 AM »
I'd pay off the whole of the Cap One#1 to see the back of it for once and all and put the remaining hundred on the Kohls Charge, which has the slightly higher interest rate.

(I'm assuming the higher payment on the Chase Credit as against the Cap One is because the minimum payback of capital is higher rather than some funky way the interest is calculated).

But you need to be sure that your cash flow over the next few months is going to be good for you to either pay off the Aug/Oct/Nov/Dec deferrals or your credit score will be sufficiently improved for you to get some worthwhile transfer offers.

Bearblastbeats

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Re: Should we be paying down debts?
« Reply #78 on: April 29, 2020, 07:46:28 AM »
Personally I would get rid of the small Best Buy that the 0% is going to expire in Aug. Aug will be here pretty quick.

Then I would look at one of the following

The synchrony that would free up $49 per month

Or the other Best Buy that the 0% expires in Oct

-

Glad to see you making progress. How is it going with side hustles, extra flooring gigs? Has the GF been able to find work?


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Things are coming up Millhouse! I haven't had a day off in 6 weeks, just cranking out as much work as I can get. Nicer weather means more flooring gigs. GF hasn't done much to find work atm because a lot of places are on a hiring freeze. Still no unemployment for her either.

Bearblastbeats

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Re: Should we be paying down debts?
« Reply #79 on: April 29, 2020, 07:49:35 AM »
I'd pay off the whole of the Cap One#1 to see the back of it for once and all and put the remaining hundred on the Kohls Charge, which has the slightly higher interest rate.

(I'm assuming the higher payment on the Chase Credit as against the Cap One is because the minimum payback of capital is higher rather than some funky way the interest is calculated).

But you need to be sure that your cash flow over the next few months is going to be good for you to either pay off the Aug/Oct/Nov/Dec deferrals or your credit score will be sufficiently improved for you to get some worthwhile transfer offers.

I'll pay the Cap One now. My score has been improving weekly from the pay offs already, so sometime in July I will look into a transfer if I hadn't got the cash. But by July I should have a few more flooring jobs from my brother or other friends.

Thanks!

the_fixer

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Re: Should we be paying down debts?
« Reply #80 on: April 29, 2020, 07:50:17 AM »
Awesome, it is great that you have been able to get the extra work!

I know it sucks right now but things are really about to start moving for you if you can keep the foot on the gas.


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Bearblastbeats

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Re: Should we be paying down debts?
« Reply #81 on: April 29, 2020, 07:52:34 AM »
Awesome, it is great that you have been able to get the extra work!

I know it sucks right now but things are really about to start moving for you if you can keep the foot on the gas.


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Thanks! We also built a 4x8 raised vegetable garden bed over the weekend, so the GF and babe are now going to be mending to that and hopefully see the fruits of their labor soon!

Peachtea

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Re: Should we be paying down debts?
« Reply #82 on: April 29, 2020, 05:11:01 PM »
Your doing great, keep it up! If you havenít already paid cap one, I would actually do as the_fixer suggested and pay the small Best Buy + the synchrony card. That frees up more money than cap one ($49 vs $25), which gives you more to put towards extra payments next month. That plus the payments you no longer have on the three you paid off earlier this month is an extra $150 youíll have next month! Outside of your extra jobs, youíre so tight on cash flow, that itís really important to focus on what frees up the most monthly money.

life_travel

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Re: Should we be paying down debts?
« Reply #83 on: April 29, 2020, 05:15:37 PM »
Just wanted to say, you are doing great! We were in your situation in 2009 juggling multiple cards due to failed business ( so living off cards for a while), finally in 2017 we paid everything off , we started tracking every cent via YNAB and made the decision to not ever be in credit card debt again.
It's been the best feeling!! You'll get there!  you seem to have the desire and focus to change your life.

Bearblastbeats

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Re: Should we be paying down debts?
« Reply #84 on: April 30, 2020, 06:56:38 AM »
thanks @Peachtea and @life_travel for the kind words.

I paid the cap one car, it felt great to get rid of this one. I tracked how long I have had it and it was since 2014 when I opened it. wooof.

I do have $2500 left in reserves now but am holding onto this for the time being.

Rosy

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Re: Should we be paying down debts?
« Reply #85 on: April 30, 2020, 08:10:40 AM »
You are so lucky to keep on working and having the skills and opportunity to do well-paying side jobs on top of that.

Fixing your budget isn't all that hard (although it hurts while you are in the middle of straightening things out:). Consider this your new normal:).

Remember one thing from this experience - the second you started paying attention and "chose" to take control and "re-direct" your money to deal with debt - it all started moving in the right direction.
... and this in the middle of economic depression during a global pandemic - you are doing it!

Timing is everything, glad to see you took immediate action - if you'd let it slide just a bit longer ... imagine the consequences.
Hold on to your emergency money and don't get tempted to use it for anything but an emergency.


You might have been hanging about on MMM without living the MMM lifestyle - but I bet something stuck and opened your eyes to your hair on fire debt:).
Look like you are winning the race after all.
Next step - become totally debt free and start saving and investing seriously.

I get the feeling that your gf is not entirely on board - her cc's need to get to zero just like yours and hopefully you will be able to refinance the house in the near future - after talking to more MMM smarty pants to find the best option.
Good going so far - the stars have aligned themselves for you - take full advantage of every opportunity! Be proud of yourself and keep at it!

lhamo

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Re: Should we be paying down debts?
« Reply #86 on: April 30, 2020, 08:57:48 AM »
Gentle suggestion:

If any of the items that were purchased with that Kohls card are clothes that still have tags on them or are still in decent shape, your SO could try reselling them on Ebay or elsewhere.  She won't get what she paid for them, but it would be a little bit of extra money to help pay that one off.  And Ebay selling is something you can juggle while looking after a kid.

FIRE 20/20

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Re: Should we be paying down debts?
« Reply #87 on: May 02, 2020, 03:44:57 PM »
Most people who come here asking for advice take a few face punches and leave.  You've not only stuck around but it looks like you're making difficult changes and are on the right path.  I'm really envious of your ability to find work and bump your income even at the cost of 6 weeks of hard work without a day off.  If you keep it up for a little while longer you should be able to get the remaining accounts paid off with the concomitant monthly outflows eliminated.  That's when the tide really turns - without the snowball of debt and interest throwing dirt on you while you try to climb out of the hole it gets a LOT easier.  It also feels absolutely amazing to have no debts other than the mortgage, and you should be able to get there fairly soon. 

So, great job!  If you keep it up you and your family will be in a much better position long term. 

Bearblastbeats

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Re: Should we be paying down debts?
« Reply #88 on: May 08, 2020, 07:17:55 AM »
Another update:

I really hate to say this but this pandemic has been great for my finances. I just put another $1000 towards that BestBuy debt mountain. GF was able to collect her UI for the past 2 months totalling ~$4000, so now she is attacking her debt mountain with a hot and fiery vengeance!

My buddy came over last night and provided me a nice quarantine skin fade, so I'm feeling fresher than ever.

Feeling good, feeling great.

Feeling great, feeling good, how are you?