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accmom
01-02-2010, 10:05:44 AM
Debt Cutters
How much debt do you need to reduce?
12000.00 How did you get in debt?
need new vehicles and other misc expenses You've accrued debt. What are the main factors that keep you from reducing it now?
budget but slowly working on cutting them Have you created a budget?
yes List your top 5 budget busters?
pay off credit cards, pay off truck loans, actually start an emergency savings fund, try to pay cash for most items What is your plan to get out of debt?
pay off each one at a time by paying extra each payday List your debt with balance, monthly payment, and interest rates.
car loan 432.20 per month 8.9%, credit cards 250.00 per month 11.9% How much will you try to reduce your debt by this year?
8,000.00 What kind of support do you need from fellow Debt Cutters to help keep you on track?
keep plugging away and not get discouraged. Ways to save more money to help pay off debt

2mnyteens
01-02-2010, 12:50:28 PM
That is a high vehicle payment! Are you aiming to pay the car or cc off first? Have you done the math to see how much you need to pay toward the principals to get them paid off quickly? You can do it if you keep plugging away!
Julie

nirwin24
01-02-2010, 01:30:48 PM
Sounds like you're a little overwhelmed, but you've got it right to pay them off one at a time with extra money each payday. This way you can focus on just one and have the reward of paying off one at a time and add that first minimum payment towards paying off the second debt.

I would suggest paying off the one with the lowest balance first and forget the interest rates. Having the reward and success of paying off a few with smaller balances will far outweigh saving a hundred dollars or so on interest.

I have faith that you'll be able to get rid of all $12,000 this year!

accmom
01-02-2010, 01:59:19 PM
The truck payment is that high because we had to swallow the extra amount when we had to sell our oldest daughters car for nonpayment, she is 21. We were dumb enough to cosign for the loan and then she quit her job, took a traveling sales job but never sent money back for her bills. This includes car payment, insurance, and cell phone. We cut her phone off and made her sell the car but we had to take a $2500 hit and add it to my loan.
I am a SAHM of 5 children, 2 grown and 1 special needs child. My husband is currently active duty military but is retiring in June. I am hoping to get half the debt paid off by not eating out at all so we have less debt when he does retire. Our biggest goal this year is to make sure my husband has a job once he retires, sell the house if need to relocate for a job.

accmom
01-02-2010, 02:02:21 PM
How do I do the math to figure out how to pay off the prinicpal?
The 12,000 debt does not include mortgage or home equity loan as my DH pays this out of savings. This is my debt I accrued on credit cards and truck loan. These get paid out of the operating income I receive twice a month.

spork
01-02-2010, 02:03:03 PM
I would suggest moving 'creating emergency fund' to the top of the list. Or at least a small $500-$1000 set aside to take care of unexpected expenses so that you do not have to put those on the credit cards and undo the balance-reducing you are working so hard at. I actually used mine for Christmas this year and it is the first year in I don't know how long that I did not have to put one red cent on credit. Now I will pay only minimum payments until I have that $1,000 built back up. Good luck, you can do it!

nirwin24
01-02-2010, 02:27:18 PM
How do I do the math to figure out how to pay off the prinicpal?
The 12,000 debt does not include mortgage or home equity loan as my DH pays this out of savings. This is my debt I accrued on credit cards and truck loan. These get paid out of the operating income I receive twice a month.


I have a debt snowball spreadsheet in excel I could email to you. You put the balance of the debt, the interest rate, the minimum required payment, and then you decide the order you want to pay them off in.

You also decide how much extra income you have to pay towards debt. This spreadsheet will calculate for you how long it will take to pay off certain debts depending on what order you put them in and how much extra you have each month to send in on payments. PM me your Email and I can share it with you.

accmom
01-02-2010, 05:00:03 PM
I would suggest moving 'creating emergency fund' to the top of the list. Or at least a small $500-$1000 set aside to take care of unexpected expenses so that you do not have to put those on the credit cards and undo the balance-reducing you are working so hard at. I actually used mine for Christmas this year and it is the first year in I don't know how long that I did not have to put one red cent on credit. Now I will pay only minimum payments until I have that $1,000 built back up. Good luck, you can do it!
How exciting to not use credit for Christmas. This is one goal for this year is to not use my store/regular credit cards. I will add emergency fund at the top of the list.
Thanks

2mnyteens
01-02-2010, 07:40:41 PM
Accmom, I totally understand where you're coming from with helping a grown child to your own detriment. I've been there and done that - still do it sometimes :( But you can take care of this. Good luck! Julie

accmom
01-03-2010, 06:53:18 AM
Debt Cutters
How much debt do you need to reduce?
12000.00 How did you get in debt?
need new vehicles and other misc expenses You've accrued debt. What are the main factors that keep you from reducing it now?
budget but slowly working on cutting them Have you created a budget?
yes List your top 5 budget busters?
pay off credit cards, pay off truck loans, actually start an emergency savings fund, try to pay cash for most items What is your plan to get out of debt?
pay off each one at a time by paying extra each payday List your debt with balance, monthly payment, and interest rates.
car loan 432.20 per month 8.9%, credit cards 250.00 per month 11.9% How much will you try to reduce your debt by this year?
8,000.00 What kind of support do you need from fellow Debt Cutters to help keep you on track?
keep plugging away and not get discouraged. Ways to save more money to help pay off debt
I just looked over my first post and realized I didn't put the truck loan amount which is 20,000. The 12,000 is in credit card debt. My husband also reminded me we have a 10,000-1 year same as cash credit load for the new A/C and heat pump we had to get, the old one died-it was 14 years old.
So I guess now that I am putting it all down on paper, it is even more daunting than I realized with a total of 42,000 in debt not 12,000.
I am going to think positive and just keep trying and not get discouraged.

motherofmolly
01-03-2010, 07:02:13 AM
you can do it!! take it slowly and dont overwelm yourself.

definately get an emergency fund started.

for christmas this year, we paid cash for it (first time) but we also decided not to go big with dh's gift or my gift...i think we spent $100 total for two gifts. the kids, i collected stuff thru the year, and used wags rr for some other items.

the best thing to do, is not charge on those credit cards. ask yourself "do i need it or just want it".

you can do it!!