Debt Dumpers - 2016

[bcwife76]

Oh my gosh, no more after Christmas shopping for supplies for me either! We also have enough wrapping paper for a family of 4 (plus any other people I buy for for Christmas) for the next 4 or 5 years as well!! Oops.

As for our debt load, we have a HELOC which is currently at 3.4% and a car loan at 0%. The car loan is not a priority because it's at zero interest so it's just another monthly bill. We never carry a balance on any of our cards but if they can't be paid in full.....that's where the HELOC comes in. We've been tinkering around with our Mint app for the past couple of weeks so ready to start with gusto on that for January 1st!

 

[gracie1]

Hahaha, I'll gladly trade in the 10 medical bills for a partridge in a pear tree

The appliance loan is the one with interest. The balance is $2,139.93 and the interest is 9%. That is the next one on our list to snowball into to. Right now we are finishing off the Discover credit card (22% interest!). It has $568.91 to go and then all of that will go into the appliance loan.

Lol!! That really is not bad interest at all! I thought it would be like 24%. On the personal loan is it an installment loan each month? I Don't want you to think I'm being nosy - I was just thinking that once discover is paid off if you tackle the small $750 loan that would be paid off sooner and then you would have both of their amounts to put towards the furniture - or pay off the one in collections?

 

[tarheel618]

Im in. I have to pay down some debt this year. As I pay down the debt, I want to roll the payments into my retirement plan. Im use to paying the payment so I will continue to pay myself instead. I also want to plan better for Christmas next year.

 

[ariel1025]

Lol!! That really is not bad interest at all! I thought it would be like 24%. On the personal loan is it an installment loan each month? I Don't want you to think I'm being nosy - I was just thinking that once discover is paid off if you tackle the small $750 loan that would be paid off sooner and then you would have both of their amounts to put towards the furniture - or pay off the one in collections?

No worries, I don't think you're being nosy. I appreciate all the ideas and suggestions to help me better plan out the best payoff method

The personal loan is a monthly payment, but at 0% interest. So, while I like the idea of a larger payment, I'm also trying to eliminate as much interest as possible.

I definitely want to get the collection paid off as soon as possible to get it to stop having (as much of) a negative effect on my credit score. But after the holidays I'm going to go over to the office in person to try to get them to drop the portion of charges for the modem since I have proof of buying it from Best Buy. They are accusing me of renting it and never returning it. Thank goodness that I have "hoarding" issues when it comes to keeping receipts for everything haha! I'm going to try to fight the cable boxes they are accusing me of keeping as well, but I'm sure that's a lost cause since I have no way to prove it

Im in. I have to pay down some debt this year. As I pay down the debt, I want to roll the payments into my retirement plan. Im use to paying the payment so I will continue to pay myself instead. I also want to plan better for Christmas next year.

I need to plan better for Christmas next year as well. Good luck to you!

 

[LinderInWonderland]

I'm in, too! I posted some on the 2015 thread, but I learned a TON from it!

My debt reduction plan is still in effect and on track to be completely out of credit card debt by the beginning of 2018 and we'll also have two loans paid off by then as well. Just in time to buy a new car, but we will be in a much better place financially.

I learned about YNAB! from the last thread and we are building our buffer. We are going slower on it than most, but I need to have savings AND debt reduction going so I don't need to wipe out my available credit if an emergency happens. Fortunately, we moved to a cheaper apartment where DH no longer has to commute (I have to now, but work pays for my commute). Our gasoline costs dropped from $300/mo to $100!

Can't wait to learn more from everyone!

Edit to add my goals for 2016:

1. DSIL is extremely generous and taking DH and I to WDW in May. We only need to pay for souvenirs and 'extras'. Since we bought A LOT of stuff on the last trip, I have much smaller ideas of what I really want to buy on this trip, but we want to treat DSIL to something not on the DDP as well as buy gifts for our families. Still, my goal is to pay cash for anything we get, so we are using Swagbucks to earn gift cards and DH gets an extra check in April that we will use for the trip.

2. Save at least $1500 in the emergency fund and $1500 in the buffer. I just got a raise, so part of the raise will go directly to the buffer each month. DH will also get an extra check in September, so that will go to the buffer as well as anything I can sneak over there.

3. Pay cash for our trip home to MA. I haven't been home since 2013 and DH hasn't been back to MA with me since we got married in 2009. This starts our plan of me going home every year and him coming with every other (I get a lot more vacation time than him.)

 

[gracie1]

The personal loan is a monthly payment, but at 0% interest. So, while I like the idea of a larger payment, I'm also trying to eliminate as much interest as possible.

I definitely want to get the collection paid off as soon as possible to get it to stop having (as much of) a negative effect on my credit score. But after the holidays I'm going to go over to the office in person to try to get them to drop the portion of charges for the modem since I have proof of buying it from Best Buy. They are accusing me of renting it and never returning it. Thank goodness that I have "hoarding" issues when it comes to keeping receipts for everything haha! I'm going to try to fight the cable boxes they are accusing me of keeping as well, but I'm sure that's a lost cause since I have no way to prove it

that is great not to have interest on the loan!! I think that's a good idea to stop into the store and see about getting it dropped - even if they won't maybe reduce it. when they set everything up at your house do you have that receipt? They should have listed the boxes and serial numbers on them.

 

[dodukes]

Yay! I feel that 2015 was a great year, i managed to pay off c couple little cards and also save like 6k, i know I shouldn't be saving with debt but i like to have my cash fund in case. Anyway so for 2016 I would like to pay off my amex card and a couple of other little ones so that in 2017 i can fully tackle (and i expect to start in 2016) my citi that is just super loaded from some medical stuff i had to charge a few years ago. looking forward to 2016 very much and i already have my spreadsheet for 2016 going

 

[Jen and Ashwin]

After reading through the posts so far, it has made me think about my current goals for this year a little more.

I stated before that we want to pay off all of DH's $10,000 in student loans. The money for this will come once DH gets a job. He got his US work authorization recently (Canadian citizen), so once he is employed we plan to chug all of his earnings into the loans until it is gone. The nice thing is that the foreign exchange rate is in our favor too.

In addition to that, I also have several balances that are on 0% credit cards that will all be paid off by November 2016, including our wedding bands (done this month!), a treadmill (October) and 2 sewing machines (February and November). I have already gone in and scheduled the payments for each card from now until the final payoff date, so it's completely automated. Another goal that I have is to rebuild my emergency fund. I used to have a 3 month buffer of funds, but this got raided for wedding and honeymoon expenses. I would like to get to 1.5 months expenses by the end of the year. I am currently saving 16.5% into retirement accounts but want to up that savings rate to 18% by the end of the year once some of the credit cards are paid off.

Some of the things that I am doing to reach these goals is to sell left over wedding stuff on eBay, Facebook and Craigslist. DH and I will also be cleaning the house over our winter break, so maybe I will find more things to sell too. I have also evaluated our spending and cut out some recurring expenses that we don't need. I am trying to be frugal in general and not be tempted to buy things that we really don't need. I look forward to learning other ideas from everyone to help with reaching my goals.

 

[SirDuff]

I have been lurking around this thread on and off for a couple of months. I definitely need to dump some debt pronto! I'm a solo mum of 3 from Australia desperately trying to pay off the DL holiday I overextended for but badly needed in 2014. I know there will be some differences in some financial options discussed on here between the two countries - but is it still cool for me to join in?

A number of are Canadian (though for me, that's only for about six weeks - then I move to the US for a new job!). Anyway, there may be more differences between US/Australia than US/Canada, but there are definitely US/Canada differences and we are welcome here. So, definitely cool for you to join!

 

[hmwinter85]

I’m in. I lurked on the 2015 thread for most of last year, but it’s time to get serious. I think actually joining in the conversation will help keep my accountable. I was able to finally come up with a budget and tracking method that works for me which has been a huge help.

For 2016 I’d like to:

-Pay off a small personal loan from my in-laws. We had to borrow money from them to pay for a few months of health insurance when I lost my job right after the birth of my son. They told us not to worry about paying them back, but I really hate having that out there.

-Pay off 1 of our 2 cc balances totally close to $11000 over the two cards. I’m not even sure how this happened which is the most embarrassing part I think.

-Put aside enough money throughout the year to cover Christmas 2016. Christmas is my weakness. I can say no all year long to extras, but come Christmas time I know I go overboard. I’ve tried to cut back and it never works. I always have a budget in mind for gifts but I’ve never really tracked just how much I spend on everything related to the holidays (gifts, food, wrappings, pictures, cards, ect) until this year. Boy was that an eye opening experience. So going into 2016 I know how much I really need to have the Christmas I want and a plan to save it so it’s not a shock again next year.

 

[Angeejoe]

Thanks @gracie1 for starting our new 2016 thread! Looks like a lot of great newbies to join along!!!

 

[stayhomemom77]

I'm in as well...though still at the point where I'm no longer dumping debt but in phase two, where I'm trying to build up savings.

My general goals are:

1. Build an emergency fund of $3000, then $6000, then $9000. This represents one, two and three months of basic expenses. On a related note, I am also working on building up 1, 3 and 6 months of food storage. I haven't decided if I will adjust the emergency fund money or not. We budget $500 a month for food, toiletries and cleaning supplies, so once I get my three months' worth of food storage, I could decrease the cash savings to $2500, $5000, and $7500. I'm leaving it as is for now with the proviso that I could alter it later in the year.

2. Build up a Murphy Fund. I want to set aside my emergency money for what I consider to be an actual emergency and not just a sudden large expense. I've decided to anticipate car/appliance repairs and replacements as Murphy Money expenses and am going to save accordingly. This fund would potentially be revolving, in that I would have to pay out things as the expenses come up (if they do, in fact come up). My first goal is to get this fund to $1000, then $2000 and finally $4000.

3. Save for a house. DH and I are considering a new build. In this area, houses are are fairly expensive and we are aiming for 10% down. Our income tax refund goes towards this goal in full as well as whatever else we can pull together each month. This is the big one. It will take 2-3 years to meet this goal. We need about $40,000 in total. I'd like to surpass the $10,000 mark by the end of 2016 but $15,000 would be better.

So, for the 2016 specific goals:

1. Emergency fund $4000 (I am close to this right now and should have the full amount by the end of January. At that point, I will put the fund on pause and work on building up the Murphy money.)

2. Murphy Fund $2000 (Just brought the car in for repairs and it wiped out the little I had managed to put together for this fund. So, I am starting from zero again. I have $100 a month set to automatically transfer into this account each month. I'd like to put extra cash towards it each month by being under budget in other categories and shifting the money there. If I can average $75 a month doing this, I can make my goal.)

3. House savings $15,000 (I am starting from zero on this one...the emergency fund was the priority for the past couple of months but the bulk of our designated savings will be going to this account from now on. I should easily reach $10,000 by the end of the year but I'm setting myself the challenge of getting to fifteen to see if I can stretch myself.)

 

[ariel1025]

After reading through the posts so far, it has made me think about my current goals for this year a little more.

I stated before that we want to pay off all of DH's $10,000 in student loans. The money for this will come once DH gets a job. He got his US work authorization recently (Canadian citizen), so once he is employed we plan to chug all of his earnings into the loans until it is gone. The nice thing is that the foreign exchange rate is in our favor too.

In addition to that, I also have several balances that are on 0% credit cards that will all be paid off by November 2016, including our wedding bands (done this month!), a treadmill (October) and 2 sewing machines (February and November). I have already gone in and scheduled the payments for each card from now until the final payoff date, so it's completely automated. Another goal that I have is to rebuild my emergency fund. I used to have a 3 month buffer of funds, but this got raided for wedding and honeymoon expenses. I would like to get to 1.5 months expenses by the end of the year. I am currently saving 16.5% into retirement accounts but want to up that savings rate to 18% by the end of the year once some of the credit cards are paid off.

Some of the things that I am doing to reach these goals is to sell left over wedding stuff on eBay, Facebook and Craigslist. DH and I will also be cleaning the house over our winter break, so maybe I will find more things to sell too. I have also evaluated our spending and cut out some recurring expenses that we don't need. I am trying to be frugal in general and not be tempted to buy things that we really don't need. I look forward to learning other ideas from everyone to help with reaching my goals.

Great goals and starting plan to make extra money! I would imagine with Pinterest/DIY being so huge that you will pretty easily make money selling your left over wedding items

 

[Jen and Ashwin]

Great goals and starting plan to make extra money! I would imagine with Pinterest/DIY being so huge that you will pretty easily make money selling your left over wedding items

I sold quite a bit right when I first posted items, but then it tapered off. Probably because I wasn't bumping my posts regularly enough. My goal is to be more persistent with it until everything sells. Its all really nice stuff and looked amazing at the wedding, so I am hoping it gets another life for someone else's big day rather than gathering dust in my basement.

 

[chicagodisneyfan]

I'm in - 2014 and 2015 we crazy financially - I was paying three mortgages - ours, his parents, and my parents. So I racked up some credit card debt/car loan while helping our families out as we refused to cut back. In retrospect I probably should have had a little less fun!
Just got a $25,000 bonus at work which will help but have about an additional $50,000 I want to pay off this year. I have allocated $4,000-$5,000 a month towards debt reduction so if all goes well I should be clear this time next year.
However FIL may have cancer - and has crap insurance - so this plan could go to hell if we have to help them.

 

[hollybearsmom]

I need to jump in with both feet. Lots of medical back bills, student loans, and a car. Don't even know what I owe. January means getting my credit reports and trying to write it all down. Probably go the Dave Ramsey route for repayment unless I find something else that I can really get onboard with.
Have at least two major expenses coming in16 so need to plan for those too so I don't go further down the hole for them.

 

[dayvewc]

I need to jump in with both feet. Lots of medical back bills, student loans, and a car. Don't even know what I owe. January means getting my credit reports and trying to write it all down. Probably go the Dave Ramsey route for repayment unless I find something else that I can really get onboard with.
Have at least two major expenses coming in16 so need to plan for those too so I don't go further down the hole for them.

If I can make a suggestion - don't get all your credit reports in January. You get one free report each year from each credit agency. Space them out (Experian in January, Transunion in May, and the other one in September). They will all have slightly different information in them, but the biggest part will be the same. This way, you can see how things are changing as you go through the year, and can help keep you focused knowing that you'll be pulling a report again in a couple of months.

 

[Dentam]

I also have a couple of cc's that give me my credit score with each monthly statement. That's pretty handy as well and I don't pay extra for it.

 

[goodmorningbelle]

I'm in too. I have two credit cards with large balances and I want to knock as much of the balance as I can off one of them this year. I started YNAB as well a few months ago, and it's already helpful. I'm excited to see what 2016 will bring!

 

[hollybearsmom]

If I can make a suggestion - don't get all your credit reports in January. You get one free report each year from each credit agency. Space them out (Experian in January, Transunion in May, and the other one in September). They will all have slightly different information in them, but the biggest part will be the same. This way, you can see how things are changing as you go through the year, and can help keep you focused knowing that you'll be pulling a report again in a couple of months.

Thanks! I wouldn't have known that!