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Started By
Message
For those who climbed out of a hole, how often did you get set back again?
Posted on 7/29/15 at 2:37 pm
Posted on 7/29/15 at 2:37 pm
In mid May, I made decisions and cut my budget so that my family and I would be completely debt free by June of 2016. That includes car notes and any other extraneous expenses. At that point, my family and I would have an $600 surplus each month instead of living paycheck to paycheck. Depending on what happens with my guitar business (guitar lessons, wedding performances), I could easily bump that number up.
But starting around mid-June, the shite storm happened. It's like one thing after another happened, so much so that it would be boring to list them all.
Anyways, from June 14th when my Nissan had an issue to today when my Honda had an issue and all the shite that happened in between, I've had to place $3100 on a credit card. I went from being a little over $7200 in debt (car note, student loan, credit card) to now being $10300 in debt.
Not sure if I'm asking for advice or just looking to vent, but this sucks arse and it makes me wonder if outside of getting a third job if I'll ever truly get out of debt.
But starting around mid-June, the shite storm happened. It's like one thing after another happened, so much so that it would be boring to list them all.
Anyways, from June 14th when my Nissan had an issue to today when my Honda had an issue and all the shite that happened in between, I've had to place $3100 on a credit card. I went from being a little over $7200 in debt (car note, student loan, credit card) to now being $10300 in debt.
Not sure if I'm asking for advice or just looking to vent, but this sucks arse and it makes me wonder if outside of getting a third job if I'll ever truly get out of debt.
This post was edited on 7/29/15 at 2:40 pm
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Posted on 7/29/15 at 2:47 pm to StringedInstruments
quote:
At that point, my family and I would have an $600 surplus each month instead of living paycheck to paycheck
If you're still running a $600/mo surplus then you're in good shape. Hit the debt snowball: Tick off your debts, smallest to largest. Minimums on all except the debt you're paying off. Interest rates won't matter much as you should be debt free in 18 months. You'll see results quickly if you're paying $600/mo.
Posted on 7/29/15 at 3:08 pm to StringedInstruments
I know we don't like everything Dave Ramsey says but this is where he gets it right. Shite happens!! It's inevitable. That's why he stresses the emergency fund and 6 months of expenses to cover your arse when shite happens. If this would have been in place for you, it would be a blip on your radar.
Posted on 7/29/15 at 3:19 pm to GCTigahs
quote:
I know we don't like everything Dave Ramsey says but this is where he gets it right. Shite happens!! It's inevitable. That's why he stresses the emergency fund and 6 months of expenses to cover your arse when shite happens. If this would have been in place for you, it would be a blip on your radar.
Except Dave Ramsey doesn't stress an emergency fund plus 6 months of expenses while paying down debt.
He preaches a $1000 emergency fund while paying down debt. After debt is paid off, then he recommends fully fund your emergency fund.
I don't like that approach. My wife and I are paying down debt (student loans) but we established our emergency fund first.
Anyway, if you're running a $600 surplus, the $3,100 sets you back 5 1/2 months. No worries man. Just keep ticking away at it. Pick up extra jobs, get your spouse to try to do the same. Retool your budget again and again.
You'll get there.
My wife and I are swinging away at student loans-the only debt we have besides the house. Hoping to be debt free (except the house) by March 2016.
Keep your head up.
This post was edited on 7/29/15 at 3:22 pm
Posted on 7/29/15 at 3:29 pm to StringedInstruments
Do you currently have a $600/month surplus? and that's what you are using to pay off the $7200 (before car disasters struck)?
Yes, it's always two steps forward, one step back. Murphy's Law, etc. Stuff always happens... the issue is... do you have cash in the bank to pay for it.
I would strongly consider putting 1-2K in savings for piece of mind.
True story. Last night, my beloved 10 year old dog was attacked in the yard by a pit bill that had gotten into our back yard when our gate was not fully latched. We heard barking and crying and ran outside and were able to get the pit eventually off my dog. Rushed my dog to the vet (who happened to have after hours on Tuesdays). He's going to be ok but just the bill for last night was $560, and he needs to go back on Friday for more work.
The pit's owners say they will reimburse us for the vet fees, I don't know if that will happen or not. Animal control came and got the pit bull. I had no hesitation paying for the vet bill.
A few years ago when our finances were a mess, that would have been a time when we pulled the credit card out and ran up more debt. Now, we just pay it, adjust, and move on.
Yes, it's always two steps forward, one step back. Murphy's Law, etc. Stuff always happens... the issue is... do you have cash in the bank to pay for it.
I would strongly consider putting 1-2K in savings for piece of mind.
True story. Last night, my beloved 10 year old dog was attacked in the yard by a pit bill that had gotten into our back yard when our gate was not fully latched. We heard barking and crying and ran outside and were able to get the pit eventually off my dog. Rushed my dog to the vet (who happened to have after hours on Tuesdays). He's going to be ok but just the bill for last night was $560, and he needs to go back on Friday for more work.
The pit's owners say they will reimburse us for the vet fees, I don't know if that will happen or not. Animal control came and got the pit bull. I had no hesitation paying for the vet bill.
A few years ago when our finances were a mess, that would have been a time when we pulled the credit card out and ran up more debt. Now, we just pay it, adjust, and move on.
Posted on 7/29/15 at 3:30 pm to lnomm34
yeah, you're right, I was mistaken. My wife and I used his plan 10 yrs ago when we first married. Paid off 25k in a few yrs. We didn't have kids at the time so it made things a little easier. Now 10yrs later with a 6yr old and 4yr old with no debt but the house, the 6mo expenses sure does give you peace of mind when all hell breaks loose.
Posted on 7/29/15 at 4:01 pm to StringedInstruments
quote:
outside of getting a third job if I'll ever truly get out of debt.
Sometimes, you've gotta do what you gotta do. Weren't you considering a big fat load of debt to get a PhD? That's gonna make the $10K look small. Get rid of the CC debt ASAP; nothing good comes from it. Have a garage sale, put little worn clothes at the consignment shop, get that third job. Since you guys already have kids, do some babysitting for friends-of-friends (responsible adult sitters get top dollar for weekends in my area). Cut grass. Wash cars. Bartend on weekends. Go hustle up more guitar students.
Work is the answer to debt. Honest, hard work will get you out of this pothole. The side gig is nearly everyone's reality in 2015 America.
Did you ever sell your rental house? Maybe now is the time to take your cash out of it.
Posted on 7/29/15 at 4:03 pm to StringedInstruments
I hear you. In one week, we had our AC go out and find out we needed a new roof. And an unexpected medical bill.
But these things come in waves. Yesterday I found out my bonus was 20% higher than last year, and turns out that insurance will cover the roof and the roofer will cover the deductable.
this shite seems to appear in waves.
But these things come in waves. Yesterday I found out my bonus was 20% higher than last year, and turns out that insurance will cover the roof and the roofer will cover the deductable.
this shite seems to appear in waves.
Posted on 7/29/15 at 9:21 pm to StringedInstruments
Not trying to flame you but my guess is that your biggest problem is that your business just isn't bringing in sufficient income. Owing $10k really isn't that big a debt burden.
I'd be actively looking to get out of the guitar business and into something that pays better.
I'd be actively looking to get out of the guitar business and into something that pays better.
Posted on 7/29/15 at 9:27 pm to hungryone
quote:
Sometimes, you've gotta do what you gotta do. Weren't you considering a big fat load of debt to get a PhD? That's gonna make the $10K look small. Get rid of the CC debt ASAP; nothing good comes from it. Have a garage sale, put little worn clothes at the consignment shop, get that third job. Since you guys already have kids, do some babysitting for friends-of-friends (responsible adult sitters get top dollar for weekends in my area). Cut grass. Wash cars. Bartend on weekends. Go hustle up more guitar students.
Work is the answer to debt. Honest, hard work will get you out of this pothole. The side gig is nearly everyone's reality in 2015 America.
Did you ever sell your rental house? Maybe now is the time to take your cash out of it.
The PhD ship has sailed, partially thanks to that thread. I'm just ready to be settled with secure finances and the ability to build towards something.
The rental house is still afloat and after switching insurance companies, it's bringing in about $150/month, which is enough to pay for my books and fees for my graduate school classes.
Posted on 7/29/15 at 9:30 pm to LSUFanHouston
quote:
Do you currently have a $600/month surplus? and that's what you are using to pay off the $7200 (before car disasters struck)?
Yes, it's always two steps forward, one step back. Murphy's Law, etc. Stuff always happens... the issue is... do you have cash in the bank to pay for it.
I would strongly consider putting 1-2K in savings for piece of mind.
Well, I was typing quickly and a bit angrily, so the numbers weren't exactly in detail.
Here's my outstanding debt:
$240/month on a car note.
$140/month on a student loan (wife's).
$20/month on a credit card.
That's $400/month that leaves my pocket no matter what.
Since the credit card is interest free until November, I've been putting all of my extra money into that. I put an extra $200 into the credit card to pay it off first and will then start piling on the others.
So I currently have a $200/month surplus, but once the debt is all paid off, I would have a $600 surplus.
Posted on 7/29/15 at 9:31 pm to foshizzle
quote:
Not trying to flame you but my guess is that your biggest problem is that your business just isn't bringing in sufficient income. Owing $10k really isn't that big a debt burden.
I'd be actively looking to get out of the guitar business and into something that pays better.
It's side money. I'm a graduate student and my wife is a school teacher.
Guitar brings in plenty, but graduate school does not. One more year. One more year. One more year.
Posted on 7/29/15 at 9:35 pm to StringedInstruments
quote:
Since the credit card is interest free until November, I've been putting all of my extra money into that. I put an extra $200 into the credit card to pay it off first and will then start piling on the others.
With all due respect, you may have it backwards.
If you qualify for an interest-free card to start with, go out and get another one. Now. That will amount to an extension. Hell, get two. If your credit rating is much good you should be able to buy yourself another year or more of interest-free debt.
Then charge that one up with daily purchases while you pay off *other* debts that actually do charge interest.
Rinse and repeat.
Posted on 7/29/15 at 9:40 pm to foshizzle
Do *not* be concerned about asking issuers for rate reductions, applying for new cards with better terms that you can stretch out, etc. This costs you nothing and gives you time to get back on more solid footing. Be very aggressive here, credit issuers are desperate these days for people who demonstrate they pay their bills on time and you should exploit that.
Posted on 7/29/15 at 9:57 pm to foshizzle
quote:
foshizzle
This guy gets it.
I also think the $1,000 emergency fund when paying down debt is essentially pointless. It makes no logical sense, not even in the Dave Ramsey world.
This post was edited on 7/29/15 at 9:58 pm
Posted on 7/29/15 at 11:06 pm to Teddy Ruxpin
quote:
I also think the $1,000 emergency fund when paying down credit card debt is essentially pointless
If you're paying off credit card debt on an open line there is zero need for an emergency fund because you can always charge it back if an emergency actually does happen.
Posted on 7/29/15 at 11:17 pm to foshizzle
I know, I have no idea why Dave endorses the fund in that situation. It doesn't even make sense at all.
I understand the emotional purpose of snowball, but this $1,000 isn't helping anybody do anything just sitting there. Maybe one day I'll figure his mad genius on that one
I understand the emotional purpose of snowball, but this $1,000 isn't helping anybody do anything just sitting there. Maybe one day I'll figure his mad genius on that one
This post was edited on 7/29/15 at 11:19 pm
Posted on 7/29/15 at 11:32 pm to StringedInstruments
Seeing some of the post in here are refreshing. We are doing the debt snowball as well but shite it can be a struggle at times. We have a 2 week old now and just today had to deal with a shower that's leaking and now have to tear up the whole shower and all kinds of shite. Insurance will cover but still a deductible to pay. Our outlook on having all debt paid off minus house is about 5-1/2 years. This month we make our final payment on our FIRST bill to pay off. So now the snowball is about to get rolling.
But it can be hard at times when you keep up with what your friends are doing and all. We have some friends that are engaged and are both fresh out of med school and are now doing rotations. They did med school in St Martin. And first rotation is in New York. So you see them and they are just living the fricking life. Get loans go to mall and blow a shite ton on a shopping spree. And she them at rooftop bar or brunch everyother day/night. And I know we are doing the smart thing but it's hard to accept that sometimes. Seeing other people that are more realistic and have the same goals my family has is very nice to see time to time.
But it can be hard at times when you keep up with what your friends are doing and all. We have some friends that are engaged and are both fresh out of med school and are now doing rotations. They did med school in St Martin. And first rotation is in New York. So you see them and they are just living the fricking life. Get loans go to mall and blow a shite ton on a shopping spree. And she them at rooftop bar or brunch everyother day/night. And I know we are doing the smart thing but it's hard to accept that sometimes. Seeing other people that are more realistic and have the same goals my family has is very nice to see time to time.
Posted on 7/29/15 at 11:56 pm to GatorReb
quote:
We have some friends that are engaged and are both fresh out of med school and are now doing rotations. They did med school in St Martin. And first rotation is in New York. So you see them and they are just living the fricking life. Get loans go to mall and blow a shite ton on a shopping spree. And she them at roof
Student doctor life sucks. Trust me.
Posted on 7/30/15 at 12:08 am to StringedInstruments
You've got the right attitude, that's most of the battle.
Hang in there and you'll make it
Hang in there and you'll make it
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