Justagirlnamedstormy's Personal debt cutter thread

[justagirlnamedStormy]

Debt Cutters

How much debt do you need to reduce?

Total: around $52,000

How did you get in debt?

Honestly, being an IDIOT. Blowing Student loans I didn't really need on things I didn't need.

You've accrued debt. What are the main factors that keep you from reducing it now?

Low paying job; saving up money to move so I can get a better job

Have you created a budget?

Yes- $40 a month to live on; $300 to company stock (aka my savings acct.); the rest to bills/debt pay off

List your top 5 budget busters?

small impulse purchases (ex- coke and chips out of the machine at work for snack $1.50/day adds up), buying lunch, makeup, doing things w/ the bf

What is your plan to get out of debt?

Packing my lunch and snack the night before so I don't eat out so much, just sticking to my budget in general. I plan to pay off all my debt except for the 46,000 in main student loans since those payments are deferred and the interest on that hasn't started being accrued

List your debt with balance, monthly payment, and interest rates.
rough breakdown:
Car- $3,000 (340/mnth)
Probation- $1,000 (250/mnth)
Rehab- $1,000 (not through yet, current bill is at $14,000 but the state pays 95% of it). I plan to have enough in savings that when I'm through I can pay it in one lump sum
Main Student loans- $46,000 (payments are currently deferred... once I get the rest of the debt payed off and I move I plan to start paying this. I'm under a plan that the payments will be based on my income)
add. Student loan- $1,500 ($50/mnth)

How much will you try to reduce your debt by this year?

aiming for $6,000 (plus saving up $5,000 to move)

What kind of support do you need from fellow Debt Cutters to help keep you on track?

Helping me stick to my budget.

[puakinikini]

Good for you for putting it all out there. I think the first step in tackling debt is to make conscious and conscientious decisions about money. It sounds like you are on your way to meeting your goals.

[nateNnatsmommy]

Stormy, does your company match your retirement contributions?

[justagirlnamedStormy]

Stormy, does your company match your retirement contributions?

I'm not sure about the retirement. I'm pretty sure they do, I'm just not sure what amount.

Since I don't plan on being with this company (Walmart) much longer, I don't put any money into a 401K. I invest mine in company stock and they match it 15%. So I have $150 taken out of every paycheck and put into stock. I get paid twice monthly so per month I put in $300 and they put in $45.

[ladywaterwind]

Stormy, be careful with that stock option. I was a WM employee once and put in a bit as well.

They take out $35 for a maintenance fee, which I believe is a yearly fee. And WM stock keeps falling. After learning about all this, and putting in every check for 3 years, I left with $35 out of it all. Granted, I believe I only did the minimum of $2 every check, but it was still a nice chunk I put in to see nothing out of it.

[nateNnatsmommy]

Honestly I don't think I'd be putting so much (or any) money each month into buying their stock - if anything I'd find a much more stable retirement investment to put the money into, or I'd just sock it all toward paying down that debt and getting in a better situation.

[justagirlnamedStormy]

Stormy, be careful with that stock option. I was a WM employee once and put in a bit as well.

They take out $35 for a maintenance fee, which I believe is a yearly fee. And WM stock keeps falling. After learning about all this, and putting in every check for 3 years, I left with $35 out of it all. Granted, I believe I only did the minimum of $2 every check, but it was still a nice chunk I put in to see nothing out of it.

Thanks for the warning. I have had stock over a year and haven't had any maintenance fees. I do know it is about $20ish every time you withdraw stocks.

WM stock has stayed pretty stable for the past year. It has been btwn $49 and $55. The way I look at it, even if I loose a little bit of money, Walmart matches 15% of what I put in.. so its the "extra" money I'm losing. So far I've actually made money off the stock.

I think stock is my best option. Its easy to put in, and its accessible if I HAVE to use it, but its not so easily accessible that I'm tempted to spend it.

The money that I have in stock is my "moving fund". The town I'm currently in doesn't have any opportunities in my career field. By moving to a larger city, I will be able to get a salaried job and pay off all my debts much, much more easily.

[justagirlnamedStormy]

Randomly got a bill in the mail today... a bill from 2004! When I lived in an apt with roommates the phone was in my name and I got stuck with the last bill of $50. The statement I got today said they would take $25 and call it even. So I guess i'll be paying the phone bill from 2004 when I get paid.

[cupunlvr]

I would not be putting so much into stock given the debt load that you are carrying, maybe just the minimum amount to get the company match. You don't make money on stock until you sell it and then you pay taxes on your gain. You are likely paying some interest on your debts. It makes more sense to pay down the debt, stocks are not a sure thing ever, the fact that you will be paying interest on your debt until such time as you pay it off IS a sure thing. Just a FYI you can usually "roll over" 401K investments to a new job if they offer a 401K plan. Good luck!

[justagirlnamedStormy]

The stocks are how I'm saving up to move. I'm only buying company stock and WM stock stays stable.

I will be moving and I want to make sure I have enough money saved up when I move that I don't have to go further into debt, even if I don't find a job immediately. If I continue to live in this town, I will not be able to get out of debt in a reasonable amount of time. There are no job opprotunites worth having. By moving to a larger city, I will be able to get a salaried job and make at least 3x what I'm making now.

On Feb. 1st I started my $40 a month challenge. Basically the only cash I will spend on anything besides bills will be $40/mnth. I will be keeping up progress of it on my blog (see my sig).

Yesterday I went to the library and checked out several books on money management and rebuilding credit.