Getting Out of Debt in 2009 - What are your financial plans?

[amys]

woohoo - I just got signed up for the DR weekly series at a local church. Very excited here - can't wait to see how far I get - maybe I can get those "last 6 months" off my back

[cheles2kids]

I actually have a couple of 'financial goals' for '09.

1. Build up our emergency fund.
2. Work on my stockpile, I'm hoping to have an entire year's worth.
3. Pay off two of our last three bills (These equal $4500.00)
4. Begin saving for a "new to us" car.

If I can accomplish these 4 goals, this year will be a total success to me!

[bellsandbabies]

When my DH and I got married we decieded that we wanted to get out of Debt fast. Instead of giving ourselves a year to get out of debt, we decided to do it a different way. It took us 4 years to be completely out of debt, as of 2008. Here is how We did it:

First of all, we were both working. I had a steady job and he owned his own business so his income was not as steady. So we decided that I would take care of ALL the bills and necessities ect.. and he would Pay off debt. That was the sole purpose of his income. We started out with the LOWEST debt first which were the credit cards. We would put ourselves on a "Spending Freeze" which we would not spend money on frivolous things and not eat out and just be really tight with our money. Once we would pay one item off, we would celebrate with a dinner out or weekend trip.

Because we started with the smallest first, we were able to celebrate fairly quickly which motivated us for the next debt to pay off.

By our first anniversary all of our Credit Cards were paid off.

We then moved to the vehicles. We continued the same way and paid mine off first which had the lower payoff and then his.

Our biggest debt was my DH's student loans which were over $50,000!!! We took a vacation, then tackled his debt. Amazingly we were able to get that paid off fairly quickly, thanks to my DH having a very good year with his business.

So, by the end of 2008 we were completely debt free!!!! Now I get a break from paying the bills and we are planing a trip to Vegas!!!

During this time, we had a baby and purchased our first home and I became a Work from home mommy. I would not have been able to work from home part time and we would not have gotten such a nice home had we been in debt!

It is such a wonderful feeling being out of debt!!!!

This year our goal is to build up our savings and retirement and invest.

[neelia]

^Congrats!!

My boyfriend doesn't have nearly as much debt as me.. and he has cars he can sell if he needs to (he already sold one and paid off half his CC debt with a fraction of the money then stuck a bunch in savings for emergencies).


So I took a look at my APR's on my $12k worth of CC debt.. when WaMu started going down, they brought my $8500 CC limit down to only about $80 above what I had in there.. $6800. So my limit is around there. Somehow I didn't notice that they also raised my APR to 25.9%!!!! I originally had thought to pay off my lowest balance first then go from there, but the percentages are opposite. The lowest balance is also the lowest interest (8.9%) so I've made a plan to pay off the $6500 CC this year. I am in school full time and will be making about $1k/month at my part time nanny job.. add rent, car payment, and other monthly expenses and I only have about $400 a month to pay debt off with which isn't much more than the minimums on all of my CC's. Luckily my boyfriend is willing to support me in this and pay for most of the groceries, utilities, etc so I can get out of debt.

So by the end of 2009.. I will pay off this $6500 CC. I'm still working out exactly how it'll work.. but I'm 100% determined. According to a snowball calculator it'll take until December 2010, but I plan to have garage sales, do extra babysitting, etc to get more money to pay it off.

We want to get engaged and married within the next couple of years and I refuse to do any of that with any debt.

I just made my first payment to that card for the year. $325. The minimum was $195.. so it's progress. Baby steps.

[texaslady22]

We owe $4,848.12 on our credit card. We're praying to have it paid off by March with our tax refund and saving some money.

After that, we'll just have medical debt that doesn't draw interest. I think we have about $5,000 of medical debt, but I haven't added it all up (too depressing).

This year, we hopefully won't get any more medical debt because we have a couple thousand dollars on our FSA--which we're really happy about!! No new debt!!!

At the end of 2009, I'd like to:
1) Have a 1,000 Emergency Fund
2) Have no credit card debt
3) Owe less than $2,000 in medical debt
4) Be working to save 3 months emergency fund

[rockhound24]

Major blow to my debt redux plan today... Instead of the $3000 tax return I received last year, I get to pay taxes this year. My parents laughed and said "Welcome to the club", but I can't help feeling really disheartened. I guess I'll just work on it like I said I would, but it will take me a little longer. *sigh*

[skw6559]

Major blow to my debt redux plan today... Instead of the $3000 tax return I received last year, I get to pay taxes this year. My parents laughed and said "Welcome to the club", but I can't help feeling really disheartened. I guess I'll just work on it like I said I would, but it will take me a little longer. *sigh*

I'm sorry that you have to pay this year:sad:. Just keep working on it and it will go down.

[LadyRaine]

I'm another one sold on Dave Ramsey! Check out Living Like No One Else - There's hope in your financial life!.

[rockhound24]

I'm sorry that you have to pay this year:sad:. Just keep working on it and it will go down.

Thanks! I will, I just had a little bit of self pity going on. Things could be much worse!

[udidwhat]

We want to get engaged and married within the next couple of years and I refuse to do any of that with any debt.

Good for you for committing to be debt free before you get married!! You will be so ahead of the game! We are down to our last debt except the house ($7700 car loan) & when we pay that off this year, it will be the first time in our 11 year marriage that we will be debt free. You will be there on day one! The Dave Ramsey Total Money Makeover book has definitely helped my marriage immensely. Finally living beneath our means has taken a huge amount of stress out of our lives. It doesn't matter what you make, it matters what you owe.

You can get the first hour of Dave's daily radio show free through iTunes. I put it on my ipod or listen through the computer & it keeps me inspired to keep going. For those of us with men who really can't bothered to sit down a read a book, get the audiobook on ebay (or better yet, at the library). I finally convinced mine to listen to it during his commute & he was sold on the plan.

Keep at it!