Debt Dumpers 2020

This is what made sense to me, to just pay it all at once to principal-only. Then I read somewhere about how making extra payments each month is better than lump sum. I must have had it confused. Yes, the less time your principal balance is at a higher amount, the less interest you pay. For that reason, I always pay our mortgage extra early, around 20th-25th. When I signed up for autopay several years ago, it was around the 5th of the month and I called them to ask why they haven't taken my payment. They said I have a 10 day grace period and it won't be marked late. Still, you are waiting too long and it will result in more interest being charged. They actually took the money on the 10th. I dropped that auto pay crap like a hot potato.
Just from paying dh's truck payment a week early for 4 years, (back in the coupon book days) the last coupon said we will bill you. It was $50 less than the other months and they told me it was from paying early. That was a used truck for 4 years. Imagine the impact that has over 15 or 30 on the cost of a house!

For everyone that doesn't know, this same principle applies toward credit cards. Interest is based on your average daily balance, so making a payment as soon as your statement becomes available = less interest being charged versus waiting to pay until the due date. Obviously this is only if you carry a balance, if you are paying it in full each month than it doesn't matter since you won't get charged interest. But if you are carrying a balance than make the payment as early as you can to reduce the amount of interest you are accruing.

@imbatman I'm so sorry your SO had this happen. Good luck with everything and I hope he can get unemployment to make up the difference in pay.

In personal news, we cancelled our October WDW trip. With everything that is having to be eliminated due to Covid19 (fireworks, parades, character meet and greets, dining plan, Fastpass+, etc) we just can't justify the cost versus what we would be getting. We are hoping there will be a vaccine early next year so we can go in Fall 2021 instead, but we will wait and see. Still keeping our DCL trip for November for now since we don't know yet what restrictions and changes will be made with the cruises. In good news the refund from the WDW trip, which was paid off, will cover the rest of the balance we owed for the cruise!
 
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DH was laid off to PT today. I'm heartbroken. Between scheduling all of the new Dr. appointments and stress of this weekend, I didn't expect this. I need to sit down at the computer tonight and work a new budget up. I'm so grateful that I held off on paying off the CC. Would've left us cash strapped until the end of June. Not something I need to worry about with Stanford on Thursday. My oldest was also practically laid off because she works evenings at Target.

So I'm going to head home after work, make some killer nachos, and drink a Pepsi before I take a deep breath and work on the budget. Again. Really waiting for a million dollars to fall from the sky...

It'll all work out. I put the cart before the horse here. At least I caught it before it crushed me.

So sorry you're dealing with this. I hope you're doing ok today.
 
My dog had his long awaited canine ophthalmology appointment this morning. I saw a small nodule in his eye back in January and have been keeping an eye on it ever since. He originally had an appointment to have it checked back in March, but it was moved due to the pandemic. He finally went today and the vet said he has a benign limbal melanoma. Fortunately, they're pretty harmless when caught early and it hasn't been giving him any issues. If untreated it can put pressure on the eye and cause vision loss. So we're doing a laser treatment and scraping of it on Thursday to head off any issues. It's about $800, which isn't terrible and a small price to pay for him to otherwise be in good health. I'm going to try to work it into this month's budget instead of pulling from savings.
 
Given the current economic situation, does it make more sense now to hoard cash, rather than rapidly pay down debt?
 


:hug: I'm sorry you're going through this now.
If it's related to Covid, he should be able to apply for unemployment for having reduced hours.
@imbatman I'm so sorry your SO had this happen. Good luck with everything and I hope he can get unemployment to make up the difference in pay.
Thanks! I feel so much better after putting everything down into a budget sheet. I made it super conservative in case he doesn't get approved. Right now, there is such a massive back-up. Figured if I erred on the side of not getting it, we'd be better off. Good news is that I should still be able to pay new medical bills and still become debt free by January! AND our mortgage statement was delivered yesterday and we're under $50K!

Stay safe, everyone. I have a CHP officer friend who will be helping me get to Stanford if he's not on calls. Never did I think I'd have to ask him to plot me a course on back streets to avoid violent protests.
 
Thanks! I feel so much better after putting everything down into a budget sheet. I made it super conservative in case he doesn't get approved. Right now, there is such a massive back-up. Figured if I erred on the side of not getting it, we'd be better off. Good news is that I should still be able to pay new medical bills and still become debt free by January! AND our mortgage statement was delivered yesterday and we're under $50K!

Stay safe, everyone. I have a CHP officer friend who will be helping me get to Stanford if he's not on calls. Never did I think I'd have to ask him to plot me a course on back streets to avoid violent protests.
Sorry to hear about the layoff must be so stressful. On the roads, that's something scary to think about, just driving down the road to get from point A to B, and being down the highway and being trapped or things hurled off the sides or bridges. I'm not quite a stone's throw from DC here, but I could bike there if so desired, but not doing that. Makes me think of Sarah Palin "I see Russia from my house!"
My dog had his long awaited canine ophthalmology appointment this morning. I saw a small nodule in his eye back in January and have been keeping an eye on it ever since. He originally had an appointment to have it checked back in March, but it was moved due to the pandemic. He finally went today and the vet said he has a benign limbal melanoma. Fortunately, they're pretty harmless when caught early and it hasn't been giving him any issues. If untreated it can put pressure on the eye and cause vision loss. So we're doing a laser treatment and scraping of it on Thursday to head off any issues. It's about $800, which isn't terrible and a small price to pay for him to otherwise be in good health. I'm going to try to work it into this month's budget instead of pulling from savings.
Hope he is better after that. Glad you caught it early. I haven't had a large vet bill since Jan/Feb, so I've had a chance to get my vet bill savings up, knock on wood no further things for some time. Mine had a bad streak for a while with what seemed like constant vet bills and health issues, one thing after another it seemed, and then a turnaround. Has been having good health for the last several months!
 


In personal news, we cancelled our October WDW trip. With everything that is having to be eliminated due to Covid19 (fireworks, parades, character meet and greets, dining plan, Fastpass+, etc) we just can't justify the cost versus what we would be getting. We are hoping there will be a vaccine early next year so we can go in Fall 2021 instead, but we will wait and see. Still keeping our DCL trip for November for now since we don't know yet what restrictions and changes will be made with the cruises. In good news the refund from the WDW trip, which was paid off, will cover the rest of the balance we owed for the cruise!
We have an August trip that was rescheduled from spring, and I am honestly on the fence not wanting to go. Waiting to hear how this new system works and trying to think how it would feel to go during a time of change, is hard to consider. I'm leaning towards not going and saving tickets for next year and would pay the difference of increased ticket price. We cancelled a cruise we had this year with RC out of Port Canaveral, so the only thing on the table travel this year that may be left is WDW, and honestly I'm close to scrapping that, too.
 
I got my settlement from the VA yesterday. By the end of the week, I will be debt free except for my mortgage AND have a decent chunk set aside for emergencies and retirement. My snowball is now divided between fully funding my Roth IRA, saving for my next vehicle (cause I know I'll need one in the next couple of years), my vacation and happiness fund, and beefing up my emergency fund.

Now, if Disney will just open up their reservation system so I can get my reservations modified. I have exactly one week I will be able to go this summer based on their new timeline to reopen, and dang it, I need some escape and celebration.
 
I got my settlement from the VA yesterday. By the end of the week, I will be debt free except for my mortgage AND have a decent chunk set aside for emergencies and retirement. My snowball is now divided between fully funding my Roth IRA, saving for my next vehicle (cause I know I'll need one in the next couple of years), my vacation and happiness fund, and beefing up my emergency fund.

Now, if Disney will just open up their reservation system so I can get my reservations modified. I have exactly one week I will be able to go this summer based on their new timeline to reopen, and dang it, I need some escape and celebration.

That's great news!! Congrats!!
 
I got my settlement from the VA yesterday. By the end of the week, I will be debt free except for my mortgage AND have a decent chunk set aside for emergencies and retirement. My snowball is now divided between fully funding my Roth IRA, saving for my next vehicle (cause I know I'll need one in the next couple of years), my vacation and happiness fund, and beefing up my emergency fund.

Now, if Disney will just open up their reservation system so I can get my reservations modified. I have exactly one week I will be able to go this summer based on their new timeline to reopen, and dang it, I need some escape and celebration.
I'm so excited for you!!!
 
I got my settlement from the VA yesterday. By the end of the week, I will be debt free except for my mortgage AND have a decent chunk set aside for emergencies and retirement. My snowball is now divided between fully funding my Roth IRA, saving for my next vehicle (cause I know I'll need one in the next couple of years), my vacation and happiness fund, and beefing up my emergency fund.

Now, if Disney will just open up their reservation system so I can get my reservations modified. I have exactly one week I will be able to go this summer based on their new timeline to reopen, and dang it, I need some escape and celebration.
Sooooo Sooooo Happy for You!

498626

Hugs
Mel
 
Mid year check in for me. June 2020

So I am trying my best to stay off of online shopping,,,I am getting better.
If I can safely buy local I am doing that to support my neighbourhood.

My credit card is paid in full and I am only puting on it what I can pay off by end of the month.
I got rid of the two extra ones.(cancelled).
I'm trying to figure out which new credit card to apply for right now because the one I have earns me Westjet dollars and I have a huge bank of those right now with no possibility for travel for atleast 1-2 years.

I just finished up year 2 of going from fulltime to part time work (semi retired) and to be honest there is a honeymoon phase where I thought things would be cheaper but in reality the costs are the same.
So I have to re budget to live more within my means. I have some ideas I just have to put them down on paper.

I am undecided if I want to sell off a few of my small point contracts (DVC) right now. With the Pandemic happening I just don't see travel for me in the near future. I can afford to wait and see and my adult kids would like me to wait.

Work --schools are closed till next Sept,,we are doing online teaching.
I honestly don't know if it's not safe to work right now how that will change in by Sept.?
I guess I will wait and see how things progress. I have Rhinitis which causes me all sorts of upper airway congestion/blockage and post nasal coughing,,, so going back and getting Covid 19 is very scary for me. My students all have special needs so social distancing is not something that we are always able to do. Well one day at a time right?

GOALS
Stay healthy,,have to start walking again,,need to motivate myself somehow.
Stay within a monthly budget and NOT borrow from savings.
Take joy in the small things life has to offer.

Hugs to everyone
Mel
 
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imbatman
Hi Hon
You have gone through so much and you have been so strong!
I admire you very much. (your posts are always so encouraging for others).
Lean on you family and friends right now and know we care very much about you.
Under 50K is just awesome!!!
Safe travels!
Hugs to you
Mel
 
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For everyone that doesn't know, this same principle applies toward credit cards. Interest is based on your average daily balance, so making a payment as soon as your statement becomes available = less interest being charged versus waiting to pay until the due date.

This should be true, but this isn't true. I tried to do this with one of my credit cards, where I carried a balance for a whole month. The credit card company told me that their loan servicing system couldn't handle this pay early scenario, so it treated all payments as being made on the payment date regardless if they were paid before.

I'd do the math to verify that your credit card company can actually do what you say above. Verify that if you pay earlier in the month that you only accrue part of a month worth of interest. Don't assume your credit card company is doing the math correctly.
 
This should be true, but this isn't true. I tried to do this with one of my credit cards, where I carried a balance for a whole month. The credit card company told me that their loan servicing system couldn't handle this pay early scenario, so it treated all payments as being made on the payment date regardless if they were paid before.

I'd do the math to verify that your credit card company can actually do what you say above. Verify that if you pay earlier in the month that you only accrue part of a month worth of interest. Don't assume your credit card company is doing the math correctly.

I worked for a credit card company for 2 years in their support department, I can assure you that for at least some banks it is true. To be fair I should have (and meant to!) put that this was true for many credit cards, though I don't personally know if it is for all. Seems yours at least does not go by this. If they aren't doing it and the agreement says they are than there could be potential legal ramifications involved. I personally have 4 credit cards and 2 of the 4 even show the breakdown of daily interest on my statements.
 
This should be true, but this isn't true. I tried to do this with one of my credit cards, where I carried a balance for a whole month. The credit card company told me that their loan servicing system couldn't handle this pay early scenario, so it treated all payments as being made on the payment date regardless if they were paid before.

I'd do the math to verify that your credit card company can actually do what you say above. Verify that if you pay earlier in the month that you only accrue part of a month worth of interest. Don't assume your credit card company is doing the math correctly.

There is no excuse for a bank to not be able to calculate based on average daily balance. If they are treating all payments as being made on the payment date regardless, that is solely so they can collect maximum interest payments.
 

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