Debt Dumpers - 2015

[Ava]

Thanks! And yes, it was a lot in one year and there is really more that I could add to the list, but I think that it got the point across that 2014 was a little rough for us financially! Thanks for the idea on the defensive driving. Any little bit of savings helps, plus it never hurts for us adults to brush up on our skills a little bit!

Another idea on the car insurance, I remember when I first started driving my dad got a small discount on the premium for me because I was a good student. (I'm not sure what the specific requirement was, I want to say a B average.) If your DS does well in school, it'd be worth inquiring about with your insurance company.

As for going to Disney while still paying down debt... that's what I'm going to be trying to do this year. We have a trip booked for August (free dining bounce back) with both of our mothers, and I'm determined to still go. I lost my dad unexpectedly in 2014 and there were so many things he wanted to do with my kids that we never got around to, so I'm not putting off making memories for the kids with my mom and MIL. I used to do a few rewards programs that I slacked off on a lot last year (lost over $30 if had built up on one of them due to inactivity and I'm still annoyed with myself for that) so I'm getting back on them this year to make extra cash towards Disney. Every little bit helps!

 

[MAJPLO]

YNAB question- wha t do you with combination purchases? For instance, a charge at target might include toiletries and gifts and clothes. Or a trip to Costco would be food, books, clothes, household items, office supplies. So how do you enter/categorize that single shopping charge? Do you look at the receipt and enter a portion for grocery and a portion for household?or what? I've been watching the videos but I haven't gotten to anything about this yet. I've read some of the forums but haven't felt comfortable posting just yet.

Also, for those of you who use cloudsync and dropbox to access and enter from mobile devices, how the heck does that work? As a first timer should I maybe hold off on the mobile access for now until we get the hang of it?

Any advice much appreciated!

 

[SirDuff]

YNAB question- wha t do you with combination purchases? For instance, a charge at target might include toiletries and gifts and clothes. Or a trip to Costco would be food, books, clothes, household items, office supplies. So how do you enter/categorize that single shopping charge? Do you look at the receipt and enter a portion for grocery and a portion for household?or what? I've been watching the videos but I haven't gotten to anything about this yet. I've read some of the forums but haven't felt comfortable posting just yet.

Yup. There is an option to "split" the category. You put in the total amount first and then, you can choose the categories you want and put in the appropriate amount. I think it starts with two categories but you can add more lines/categories. You just take the numbers from your receipt.

Or you can just dump it in one category if the numbers are small enough not to make much difference (or if you often buy two categories together - you can just it all into one category and alternate the categories each time.

Also, for those of you who use cloudsync and dropbox to access and enter from mobile devices, how the heck does that work? As a first timer should I maybe hold off on the mobile access for now until we get the hang of it?

Any advice much appreciated!

You could hold off, but I really like the mobile version for cash purchases (especially smaller ones without a receipt). I recall it being fairly straightforward to set-up (just follow the instructions), but it has been a while since I did it. Mine is set-up to automatically link whenever I open my mobile version on WiFi (I don't have YNAB set-up to use my cellular data plan). Sorry, I cannot be more help (I really just don't remember the setting it up bit).

 

[Deffenm]

I am excited, I sat down today and made budget. I need to review with DH this weekend to make sure we are on same page. I also called my Insurance company and will be doing policy review with them in hopes of finding ways to save money on our insurance. I called my gym to find out how to cancel my membership on Feb. 1st. I will be stopping by there tonight to fill out cancellation forms. That will save us $90 a month. The company I work for has free gym, plus we have treadmill and weights at home so no reason to pay for gym.

I completed several surveys and will receive $18 in the mail in the next week. Paid off loan on 12/31/14 so will have extra $150 a month to put towards debt.

I will be moving to all cash for groceries to ensure I stay in budget and don't add extra things to cart. Then any money I don't spend will go towards debt.

I feel really good about my plan I just hope DH agrees with the plan and will help me by not spending any unnecssary money on eating out.

 

[hmack]

Deffenm - I'm excited for you!

 

[Holly Quinlan]

Not starting the year out so well. just lost 2 days pay due to having the flu and DH just took DS to dentist he has a tooth that's coming in wrong and rubbing against another tooth so the one tooth has to be pulled and a spacer put in and the other one needs filled. $950

 

[lehmaac]

In addition to my 3 CCs on which I have been carrying a balance, I have a few other CCs that I use for everyday purchases. Up to this point, I have been paying these cards in full each month. I set the due date to the last possible day of the month, charge all my purchases throughout the month, then *usually* I have enough cash to pay off the cards when they come due. (I have had to take from savings enough times recently that my savings is down to nearly nothing, which is part of what made me realize I need to make a change.)

I would suggest that if you're not able to easily payoff the balance every month, it's not in fact an everyday card. I would also suggest:

1) Payoff the balances on the everyday cards (avoid the extra expense of interest)
2) Get rid of all but 1 everyday/emergency card
3) Set a firm limit on how much you will allow yourself to charge each month that is significantly below what you can afford.
4) Lower that amount each month, slowly transitioning yourself to a cash budget and building up your savings again.

It can be tough and slow, but you'll feel like $1M when you break the cycle! Good Luck!

 

[lehmaac]

We bought our dream house 2 years ago and as we've been turning it into our dream home we ran up a couple 0% offers. A poorly planned 2013 tax year depleted some savings. I have a rule that I can't make firm WDW plans if I have outstanding consumer debt. I really want to go back this Fall, so I managed to pay off the 0% cards last month and paid off the car loan for good measure. It meant not taking a holiday trip, but now I have a new countdown and getting rid of all the payments makes me feel lighter than Tink Those payments are now rolling into savings. I plan to check-in for inspiration to keep me on the right path.

 

[ruadisneyfan2]

I would suggest that if you're not able to easily payoff the balance every month, it's not in fact an everyday card. I would also suggest:

1) Payoff the balances on the everyday cards (avoid the extra expense of interest)
2) Get rid of all but 1 everyday/emergency card
3) Set a firm limit on how much you will allow yourself to charge each month that is significantly below what you can afford.
4) Lower that amount each month, slowly transitioning yourself to a cash budget and building up your savings again.

It can be tough and slow, but you'll feel like $1M when you break the cycle! Good Luck!

I agree. I do have 1 everyday card but it would be hard to keep on top of if I had more than 1. Occasionally it's hard to pay off. If that happens I siphon off my snowball til I get caught up. I really HATE when I have to do that so I try not to. Still sometimes things come up that I just have to take care of.

I have a few cards with no balance at all on that I almost never use but I don't want to close them out. Closing them would increase my total debt to available credit ratio (or whatever it's called) Basically it would artificially looked like I'm maxed out of my credit.

I hate to give up that everyday card because it's through SWA and without it we'd never get to go anywhere until everything is paid off. It earns enough SWA points that approx. every 1.5 - 2 months I earn a one way flight to FL.
For our summer vacation out west, I got 3 RT flights free for 4 of us.
For our 4 nt WDW quickie in mid Jan, just ds14 and me, I only had to pay for my return, $119. We rented DVC points so the 4 nt stay was just $506. Total.
It keeps me sane though I know it will take that much longer to pay off bills. I feel if I deprive myself too much, I'll get burned out and lose my momentum.
Luv that SWA card.

 

[gracie1]

I agree. I do have 1 everyday card but it would be hard to keep on top of if I had more than 1. Occasionally it's hard to pay off. If that happens I siphon off my snowball til I get caught up. I really HATE when I have to do that so I try not to. Still sometimes things come up that I just have to take care of.

I have a few cards with no balance at all on that I almost never use but I don't want to close them out. Closing them would increase my total debt to available credit ratio (or whatever it's called) Basically it would artificially looked like I'm maxed out of my credit.

I hate to give up that everyday card because it's through SWA and without it we'd never get to go anywhere until everything is paid off. It earns enough SWA points that approx. every 1.5 - 2 months I earn a one way flight to FL.
For our summer vacation out west, I got 3 RT flights free for 4 of us.
For our 4 nt WDW quickie in mid Jan, just ds14 and me, I only had to pay for my return, $119. We rented DVC points so the 4 nt stay was just $506. Total.
It keeps me sane though I know it will take that much longer to pay off bills. I feel if I deprive myself too much, I'll get burned out and lose my momentum.
Luv that SWA card.

I think I may have to look into the sw cc. I have a rewards card I use through my insurance company but it seems like forever before anything starts to accumulate. For example - last year I had massive dental expenses into the thousands, also used it for car and house insurance payments (dental was in 2013) and after all that I only have earned $229 in rewards. Would you have gotten a lot more with sw?

 

[jillbur]

I really need to join in on this!

We have CC debt that I want to pay down as fast as possible. I didn't realize how much CC debt we had until today when I sat and started a new YNAB budget. Between DH going back to school, me starting a new job which left me without a paycheck for a month, and needing to spend a lot out of pocket for new clothes (which I bought second hand, but still adds up) and supplies (teacher here) for the new job, I overspent on the CC and am now paying for it.

Thanks for the support and I can't wait to see how great we all do!

Jill

 

[ruadisneyfan2]

I think I may have to look into the sw cc. I have a rewards card I use through my insurance company but it seems like forever before anything starts to accumulate. For example - last year I had massive dental expenses into the thousands, also used it for car and house insurance payments (dental was in 2013) and after all that I only have earned $229 in rewards. Would you have gotten a lot more with sw?

Oh yes. Though I guess it depends how much you use it. I put everything on it except our mortgage (incl. property taxes & HO ins.), dh's truck payment and a few utilities that charge a fee to pay by cc.
Below is a copy of my RR account showing my earnings for SW visa for the year. Dec of course is usually higher. This doesn't show additional points earned by beginning online purchases through the SWA shopping mall. Also any hotel stay or car rental usually earns points too. I also do e-rewards which is a survey company. Once I save up $100 in e-rewards I cash them in for 2400 SWA points.

Rapid Rewards Credit Card 12/28/2014 +5,507
Rapid Rewards Credit Card 11/28/2014 +4,694
Rapid Rewards Credit Card 10/28/2014 +3,800
Rapid Rewards Credit Card 09/28/2014 +8,012
Rapid Rewards Credit Card 08/27/2014 +6,020
Rapid Rewards Credit Card 07/28/2014 +4,286
Rapid Rewards Credit Card 06/27/2014 +4,730
Rapid Rewards Credit Card 05/28/2014 +5,111
Rapid Rewards Credit Card 04/28/2014 +9,629
Rapid Rewards Credit Card 03/28/2014 +3,329
Rapid Rewards Credit Card 02/28/2014 +3,494
Rapid Rewards Credit Card 01/28/2014 +3,138

Total: 61,750 pts.

For us the average one way flight to MCO is around 5000-7000 points so this is a lot of free flights.
Every April (the card's anniversary) they give 3000 bonus points too.
When I signed up the AF was only $59 so I'm locked into that. Now it's $69 for the regular card and I think $99 for the premier card. That earns more pts per $ and offers a larger anniversary bonus.
hth

 

[ruadisneyfan2]

For any of you with high medical/dental bills, does your work offer a Flexible Spending Account? This allows you to have $ taken out of your pay, up to $2500/year (This amounts to $96 if you're paid biweekly.)
They give you a special cc that can only be used to make medical/dental/prescription expenses.
It sounds like a PITA but it lets you pay those expenses pre-tax instead of with your net pay. To get that back in your paycheck would only get you around $65 so it helps stretch your medical $$$.

The first time we tried it we did a little $600/year trial run and it was used up by May. lol
The next year both kids went into braces so that ate up my $2500 and dh's 2500 too.

For 2015 we're trying 1500. The nice part is that the whole year's designated amount is there on Jan 1 so no need to wait for it to accumulate to start using it. The negative aspect is that if you over-estimate and have some left over, you lose it. My employer gives us an extension to use it by March 15 of the next year but dh's is firm with Dec. 31 deadline.

I've been at my job over 24 years and never bothered with the FSA until lately. We're on our 4th year and love it.

 

[dayvewc]

For any of you with high medical/dental bills, does your work offer a Flexible Spending Account? This allows you to have $ taken out of your pay, up to $2500/year (This amounts to $96 if you're paid biweekly.) They give you a special cc that can only be used to make medical/dental/prescription expenses. It sounds like a PITA but it lets you pay those expenses pre-tax instead of with your net pay. To get that back in your paycheck would only get you around $65 so it helps stretch your medical $$$. The first time we tried it we did a little $600/year trial run and it was used up by May. lol The next year both kids went into braces so that ate up my $2500 and dh's 2500 too. For 2015 we're trying 1500. The nice part is that the whole year's designated amount is there on Jan 1 so no need to wait for it to accumulate to start using it. The negative aspect is that if you over-estimate and have some left over, you lose it. My employer gives us an extension to use it by March 15 of the next year but dh's is firm with Dec. 31 deadline. I've been at my job over 24 years and never bothered with the FSA until lately. We're on our 4th year and love it.

I switched to a HSA (Health Savings Account). Basically the same as the FSA, except that the balance builds through the year, so you want to try to avoid big expenses early in the year, but has the advantage that funds roll over forever. So if you overestimate how much you'll spend, you don't lose it. Plus, it's a risk, but on mine I can actually invest in a couple of options, but I run the risk of losing my principle if I make bad choices.

 

[BernardandMissBianca]

Just remember with an FSA if you leave your job and still have money in the account you lose it. We lost $1500 this year because DH quit his job in July and It happened very quickly. I didn't have time to spend the $1500 before he left. We had never had an FSA account before and didn't know that it would be gone even though the money was 100% ours, no company matching.

 

[xchelsearae]

I'm in! Just bought a house so the appliances, furniture, and new Christmas tree has taken a toll! Yikes!

 

[fabulousfive]

Joining in this year! Last year I joined this debt dumpers group on the Dis & it changed my life!!! We dumped about 14k in debt & actually have money in checking so for the first time in forever are not living month to month. We even bought a new home and have taken some trips! With the support of this group and the start of YNAB exactly one year ago, we've had success. With that said, we spent double what I had predicted for Christmas & that was not fun to discover. It makes me realize we always have to stay on our toes and can't get too cushy with our new debt free lifestyle. So while we may not have debt, I am looking to this group to continue another year and stay afloat. I want to keep on healthy spending and focus on our financial goals. Thanks everyone for being here!!!

 

[MissManda]

I switched to a HSA (Health Savings Account). Basically the same as the FSA, except that the balance builds through the year, so you want to try to avoid big expenses early in the year, but has the advantage that funds roll over forever. So if you overestimate how much you'll spend, you don't lose it. Plus, it's a risk, but on mine I can actually invest in a couple of options, but I run the risk of losing my principle if I make bad choices.

My husband switched to an HSA this year. We weren't sure what to really expect so we hopefully are putting enough in to cover his and dependent expenses for the year. I'm using my FSA to cover me. Which will work well since I'm having a baby this month and will use up almost the entire amount right away. Interested to see how,the HSA goes.

 

[gracie1]

Joining in this year! Last year I joined this debt dumpers group on the Dis & it changed my life!!! We dumped about 14k in debt & actually have money in checking so for the first time in forever are not living month to month. We even bought a new home and have taken some trips! With the support of this group and the start of YNAB exactly one year ago, we've had success. With that said, we spent double what I had predicted for Christmas & that was not fun to discover. It makes me realize we always have to stay on our toes and can't get too cushy with our new debt free lifestyle. So while we may not have debt, I am looking to this group to continue another year and stay afloat. I want to keep on healthy spending and focus on our financial goals. Thanks everyone for being here!!!

Way to go you guys should be extremely proud of the debt you have dumped! That is awesome!!!

 

[runsandjumps]

I want to join this group too! We have been working really hard to keep expenses down, but I know I have a ways to go. Any tips on how to rebuild credit? We are now living credit card free to avoid temptation. I would love to get our credit back up there without falling into a trap. We started out paying our balances in full and then one month several years into this lifestyle we had some unexpected expenses and our savings just decimated.

We want to maintain a consumer debt free lifestyle and yet try to have good credit in case we need it.