Author Topic: Filling in that ugly debt hole (Read 7327 times)

former player · « **Reply #50 on:** February 12, 2023, 02:31:25 AM »

The explanation I heard for lottery winners going bankrupt is that they buy the kinds of assets that cost money to buy and to keep (cars, houses, jewellery, clothes, electronics etc.) instead of the kinds of assets that make money (stocks, shares and bonds). It's not necessarily that they spend more than they won, but that they can't afford the maintainance for what they've bought.

Congrats on nearly killing the debt, Zamboni.

zeli2033 · « **Reply #51 on:** March 04, 2023, 12:05:28 PM »

I know @Zamboni has almost crushed their debt for this gauntlet challenge (almost there!) but I can't help but join in anyway as I miss having the accountability!

There are two debts we've been working to crush in the last couple years: A HELOC we took out early 2021 when we bought our house and a 0% offer until Jan 2024 for a balance transfer we used for new furniture.

Starting Balance
HELOC: $101,000
0% CC: $12,200

Current Balance Owed (Payoff Goal)
HELOC: $20,927 (June 2023)
0% CC: $5,400 (Aug 2023)

There's a chance we might delay our payoff dates a couple months as we work on building back up our cash reserves build a little more runway while layoffs are bringing more uncertainty. The delay would most likely be for the 0% card since we have a few more months on the offer at 0%. That said, we automatically pay the cc $600/month since that was what we needed to do to hit the payoff this year. Technically suboptimal and we certainly could shift our payment strategy to funnel all extra money to the HELOC first. But at this rate, it wouldn't afford us an earlier payoff by much more than 4-6 weeks, so we aren't too fussed about it.

Excited to march toward this debt payoff goal!

Dicey · « **Reply #52 on:** March 04, 2023, 12:37:41 PM »

Quote from: zeli2033 on March 04, 2023, 12:05:28 PM

I know @Zamboni has almost crushed their debt for this gauntlet challenge (almost there!) but I can't help but join in anyway as I miss having the accountability!

There are two debts we've been working to crush in the last couple years: A HELOC we took out early 2021 when we bought our house and a 0% offer until Jan 2024 for a balance transfer we used for new furniture.

Starting Balance
HELOC: $101,000
0% CC: $12,200

Current Balance Owed (Payoff Goal)
HELOC: $20,927 (June 2023)
0% CC: $5,400 (Aug 2023)

There's a chance we might delay our payoff dates a couple months as we work on building back up our cash reserves build a little more runway while layoffs are bringing more uncertainty. The delay would most likely be for the 0% card since we have a few more months on the offer at 0%. That said, we automatically pay the cc $600/month since that was what we needed to do to hit the payoff this year. Technically suboptimal and we certainly could shift our payment strategy to funnel all extra money to the HELOC first. But at this rate, it wouldn't afford us an earlier payoff by much more than 4-6 weeks, so we aren't too fussed about it.

Excited to march toward this debt payoff goal!

This may seem counterintuitive, given the topic, but if you're worried about layoffs, you might want to start shopping for new 0% balance transfer deals. Extending your runway in uncertain times is always a wise back-up plan. Also, there will come a time when you have no balances to transfer, so you can't take advantage of that sweet, sweet, nearly free money. MPP for sure.

IIRC, Doctor of Credit is a good resource.

Zamboni · « **Reply #53 on:** March 06, 2023, 06:38:21 PM »

Good luck @zeli2033! Looks like you have made good progress already!

Cassie · « **Reply #54 on:** March 06, 2023, 07:09:10 PM »

So were you able to pay it off so fast because you were consulting? That’s amazing progress and I am happy for you.

zeli2033 · « **Reply #55 on:** March 17, 2023, 01:03:29 PM »

Quote from: zeli2033 on March 04, 2023, 12:05:28 PM

I know @Zamboni has almost crushed their debt for this gauntlet challenge (almost there!) but I can't help but join in anyway as I miss having the accountability!

There are two debts we've been working to crush in the last couple years: A HELOC we took out early 2021 when we bought our house and a 0% offer until Jan 2024 for a balance transfer we used for new furniture.

Starting Balance
HELOC: $101,000
0% CC: $12,200

Current Balance Owed (Payoff Goal)
HELOC: $20,927 (June 2023)
0% CC: $5,400 (Aug 2023)

There's a chance we might delay our payoff dates a couple months as we work on building back up our cash reserves build a little more runway while layoffs are bringing more uncertainty. The delay would most likely be for the 0% card since we have a few more months on the offer at 0%. That said, we automatically pay the cc $600/month since that was what we needed to do to hit the payoff this year. Technically suboptimal and we certainly could shift our payment strategy to funnel all extra money to the HELOC first. But at this rate, it wouldn't afford us an earlier payoff by much more than 4-6 weeks, so we aren't too fussed about it.

Excited to march toward this debt payoff goal!

Well things have taking a surprisingly positive turn. We received a larger-than-anticipated bonus this month and we decided to throw it at the HELOC to pay it to $0.

Current Balance Owed (Payoff Goal)
HELOC: $0 (DONE)
0% CC: $5,400 (~~Aug~~ April? 2023)

We considered holding the cash instead but when weighing all our options, it actually felt like a better a move to completely payoff the HELOC (that 9% interest rate was painful to swallow every month and no telling how much higher it was going to get). Time will tell if it was a suboptimal decision but since we are both employed, we have a nominal efund (to float a couple months) plus a sizeable available credit balance we could tap in an absolute emergency...plus of course investments if it really got dire (although this is an absolute last resort), it feels okay to make this tradeoff right now.

We're currently planning to just take care of the 0% CC since we could complete that next month, then focus on cash reserve build up (without having to account for paying the extra $600 a month we allocate toward the CC). But we have options - we could just drip pay it off since there's no interest if it's taken care of this year. The debt heat has turned down quite a bit so we will take it as it comes. So grateful for having found this community 6 years ago. Instead of relentless financial stress, we have so many more options and choices than we could ever have dreamed of even when it comes to how we pay down debt.

Zamboni · « **Reply #56 on:** March 17, 2023, 02:53:07 PM »

^Well done! Must feel great to get the weight of that rising interest rate off of your mind.

Quote from: Cassie on March 06, 2023, 07:09:10 PM

So were you able to pay it off so fast because you were consulting? That’s amazing progress and I am happy for you.

My compensation is highly erratic. The other day I showed one of kids my graph (pay & expenses vs. month for the past ten years) and she was extremely impressed. Apparently I am pretty good at "lifestyle smoothing" because she had no idea that my pay isn't just always the same. That is: I'm pretty good until I goof up and end up in an ugly debt hole! Never letting that happen again, though. Too stressful.

Cassie · « **Reply #57 on:** March 17, 2023, 03:58:24 PM »

Being retired with a pension and SS my income is stable except for when I consult and then it increases. Being in debt is stressful and it’s interesting how spending can sometimes be used to fill our emotional needs. Life is definitely complicated.

oneday · « **Reply #58 on:** March 18, 2023, 01:54:53 AM »

Good job Zeli! There were a lot of things you could have done with $21K, but you chose what sounds like a very satisfying option for yourself.

Zamboni · « **Reply #59 on:** May 17, 2023, 06:47:41 PM »

Well, the debt hole is gone, hooray! I've got some actual extra money in my regular old bank account again.

Thank you for your support while I worked on that!

Dicey · « **Reply #60 on:** May 17, 2023, 06:57:57 PM »

Congratulations!

Cassie · « **Reply #61 on:** May 17, 2023, 08:30:10 PM »

Congratulations!!

Ladychips · « **Reply #62 on:** May 17, 2023, 08:33:55 PM »

That's great Zamboni!!

oneday · « **Reply #63 on:** May 18, 2023, 12:31:24 AM »

Well done, hooray!

getsorted · « **Reply #64 on:** May 18, 2023, 05:15:19 AM »

Well done, @Zamboni !

I have also filled in my ugly debt hole. This thread must really work!

Zamboni · « **Reply #65 on:** May 19, 2023, 02:42:23 PM »

Thanks, everyone!

Yes, it was a magical thread with exactly the accountability I needed.

Adventine · « **Reply #66 on:** May 19, 2023, 03:34:17 PM »

Yay, congratulations!

Zamboni · « **Reply #67 on:** May 19, 2023, 03:43:38 PM »

Quote from: sadiesortsitout on May 18, 2023, 05:15:19 AM

Well done, @Zamboni !

I have also filled in my ugly debt hole. This thread must really work!

Good job sorting it out, Sadie!

sonofsven · « **Reply #68 on:** May 20, 2023, 11:10:37 AM »

Good job everyone dealing with the that ugly debt!
I have about $2,400 in cc debt, all on 0%, all on monthly payments that will clear the debt well before any interest hits, but I still have a hard time not just paying it off now.

Zamboni · « **Reply #69 on:** May 20, 2023, 01:48:44 PM »

^I could get money on 0% . . . but I don't, because owing money is stressful to me. Your mileage may vary.

oneday · « **Reply #70 on:** May 20, 2023, 07:00:33 PM »

Quote from: sadiesortsitout on May 18, 2023, 05:15:19 AM

Well done, @Zamboni !

I have also filled in my ugly debt hole. This thread must really work!

👏Yay you!👏

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Author Topic: Filling in that ugly debt hole (Read 7327 times)