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Message
re: Tips for paying off debt?
Posted on 6/25/15 at 9:17 am to King of New Orleans
Posted on 6/25/15 at 9:17 am to King of New Orleans
Budget. Stop eating out. Stop going on trips. Stop doing unnecessary things. Keep your lights on and food in the fridge. After all monthly expenses are accounted for, throw everything that's left at the debt. Rinse and repeat. By having a written budget, you will find things you don't need to be spending your money on.
Dave would tell you to start with the lowest debt regardless of interest rate while paying minimum on everything else. It's a behavior thing. Once you pay something off, it motivates you to keep going, whereas, you may get burned out if you go with the biggest debt.
Pay more than that
Dave would tell you to start with the lowest debt regardless of interest rate while paying minimum on everything else. It's a behavior thing. Once you pay something off, it motivates you to keep going, whereas, you may get burned out if you go with the biggest debt.
quote:
I'm trying to pay a little more than the minimum payment amounts each month.
Pay more than that
0
Posted on 6/25/15 at 9:18 am to TDsngumbo
quote:
The best thing you can do is strip 90% of all your "wants" out of your monthly expenses. It will be hard as hell the first two or three months but after that it will become second nature to you.
That is such good advice....you can easily live without cable TV, high speed internet, and a smartphone. That's at least $150-200/mo additional cash, or more depending on your plans. The local public library has free internet (often free wi-fi that reaches the parking lot), which you've already paid for via your property taxes. Public library also checks out DVDs, e-books, and offers free streaming video. Cut those recurring monthly expenses and use the cash to pay down debt. Stop thinking of luxuries as necessities. (This might also apply to a gym membership, as you can exercise for free in the good ol' outdoors; running costs nothing.)
Food is another big hole in most budgets. Learn to like what's on sale at the supermarket; learn to cook from scratch. If you think prepared food is cheaper than scratch cooking, you don't know how to cook. Learn how. (See local public library, nonfiction 641.5.) Commit to not wasting any food you buy; food thrown away is money tossed into the trash.
Good luck....
Posted on 6/25/15 at 9:24 am to iknowmorethanyou
quote:
5000 plus. New AC for a homeowner and one is back on the road to poor.
Agreed. Going through this now. Thankfully I didn't go with Dave's $1k philosophy.
Posted on 6/25/15 at 9:29 am to King of New Orleans
Depending on what your car note interest rate is, it may be prudent to pay it off before the student loans.
Definitely pay off the CCD debt first.
Definitely pay off the CCD debt first.
Posted on 6/25/15 at 10:52 am to bayoubengals88
quote:
Don't even establish the e fund to begin with...just put it all on the cc.
That was my point earlier. If you have credit card debt already, then pay it all off *before* establishing an emergency fund.
Suppose you owe $3k on a card that charges 20% interest. You have $1k in cash and no emergency fund. If you set up an e fund then your $1k is earning an interest rate of basically nothing. If you apply it to your CC balance then your cash earns 20%.
If three months later you have an emergency that costs $1k you can pay for it with your credit card. Sure, you're back where you started but during those three months your $1k was earning you 20% interest instead of nothing.
Posted on 6/25/15 at 11:28 am to King of New Orleans
Go check out Ready for Zero website. Im sure there are others, but it gets you to the quickest payoff using interest s the guide.
Posted on 6/25/15 at 2:08 pm to hungryone
quote:
That is such good advice....you can easily live without cable TV, high speed internet, and a smartphone. That's at least $150-200/mo additional cash, or more depending on your plans. The local public library has free internet (often free wi-fi that reaches the parking lot), which you've already paid for via your property taxes. Public library also checks out DVDs, e-books, and offers free streaming video. Cut those recurring monthly expenses and use the cash to pay down debt. Stop thinking of luxuries as necessities. (This might also apply to a gym membership, as you can exercise for free in the good ol' outdoors; running costs nothing.)
Food is another big hole in most budgets. Learn to like what's on sale at the supermarket; learn to cook from scratch. If you think prepared food is cheaper than scratch cooking, you don't know how to cook. Learn how. (See local public library, nonfiction 641.5.) Commit to not wasting any food you buy; food thrown away is money tossed into the trash.
Good luck....
Hey smartfrickingass --- you and everyone here all know damn well you're taking what I suggested to the extreme. I have a smartphone and high speed internet but I got rid of cable over two years ago. Hulu and Netflix it is for me - $16 a month combined with $45 a month for the high speed internet to stream and I'm saving $100 a month right there alone.
I quit drinking (because I'm not in college anymore and have a life that revolves around so much more than alcohol) and I don't go out every weekend. Cars are paid off, student loans are paid off, and we're paying a minimum of $1,300 extra to our mortgage each month because we stripped 90% of our "wants" out of our life. We are sacrificing a little now so we can be retired multi-millionaires in our late 40s. If that's not appealing to you, then I can't help you. Stick to your shitty arse immature life now. I don't care.
Posted on 6/25/15 at 2:09 pm to bwallcubfan
quote:
Thankfully I didn't go with Dave's $1k philosophy.
Dave Ramsey is simply out of touch with reality if he truly believes $1,000 is a good starter emergency fund. If anything, $5,000 is a good beginning to an emergency fund in today's reality. $1,000 may have been good enough to start with in 1995 or 2000 but not in 2015.
Posted on 6/25/15 at 3:25 pm to TDsngumbo
quote:
Dave Ramsey is simply out of touch with reality if he truly believes $1,000 is a good starter emergency fund. If anything, $5,000 is a good beginning to an emergency fund in today's reality. $1,000 may have been good enough to start with in 1995 or 2000 but not in 2015.
I added a zero to his $1k
Posted on 6/25/15 at 3:34 pm to bwallcubfan
So if you have liquid cash that exceeds the amount of debt you have, yalls suggestion would be to pay of the entirety of your debt?
Posted on 6/25/15 at 3:43 pm to Hester Carries
quote:
So if you have liquid cash that exceeds the amount of debt you have, yalls suggestion would be to pay of the entirety of your debt?
Depends on the situation, but yes, in general. For example, if I had $3000 left on my car, and had $8000 in cash, yes I'd pay it off in full.
Posted on 6/25/15 at 3:45 pm to TDsngumbo
quote:
Hey smartfrickingass --- you and everyone here all know damn well you're taking what I suggested to the extreme. I have a smartphone and high speed internet but I got rid of cable over two years ago. Hulu and Netflix it is for me - $16 a month combined with $45 a month for the high speed internet to stream and I'm saving $100 a month right there alone.
I quit drinking (because I'm not in college anymore and have a life that revolves around so much more than alcohol) and I don't go out every weekend. Cars are paid off, student loans are paid off, and we're paying a minimum of $1,300 extra to our mortgage each month because we stripped 90% of our "wants" out of our life. We are sacrificing a little now so we can be retired multi-millionaires in our late 40s. If that's not appealing to you, then I can't help you. Stick to your shitty arse immature life now. I don't care.
While I realize the internet is a poor conduit for subtlety, I offered all of my comments in earnest. Not in snark...there was no sarcasm in my post. I honestly believe that most people spend way too much on phone/internet/cable/books/iTunes and don't use the public library nearly enough. I am 100% sincere in this, nor do I find it extreme advice. I and many others are lucky enough to enjoy excellent public libraries & I save plenty of dough by not buying books and using lots of their other services. I literally go around telling people about the great free stuff at the public library, as many are unaware of the free movies, streaming video, e-books, audiobooks, databases (Lexis/Nexis, Ancestry, etc) available to patrons.
I'm flummoxed as to how a suggestion to avail yourself of taxpayer supported library services can be construed as an indicator of an immature life, or what any of this has to do with drinking. Perhaps encountering sincerity on the internet is so shocking, you misjudged my post?
Posted on 6/25/15 at 3:50 pm to bwallcubfan
quote:
Depends on the situation, but yes, in general. For example, if I had $3000 left on my car, and had $8000 in cash, yes I'd pay it off in full.
Lets say ive got 15k left on a student loan and 16k in the bank...
Posted on 6/25/15 at 4:01 pm to King of New Orleans
Have rich parents?
Posted on 6/25/15 at 4:27 pm to hungryone
quote:
Food is another big hole in most budgets.
quote:
hungryone
Posted on 6/26/15 at 7:45 am to Hester Carries
quote:
Lets say ive got 15k left on a student loan and 16k in the bank...
I personally wouldn't...I just don't feel good about only having $1k. But I wouldn't fault someone for doing it.
Posted on 6/26/15 at 8:02 am to Hester Carries
quote:
Lets say ive got 15k left on a student loan and 16k in the bank...
Interest rate on loans?
I wouldn't pay it all off. You can likely use that money to earn larger returns in investments. Especially if you have a low interest rate. However if it was 8% or higher I would probably pay most of it off.
If I was in your situation, I would just put large payments each month towards your loans and invest a good chunk of that 15k, unless it's your emergency fund.
Posted on 6/26/15 at 8:32 am to hungryone
quote:
While I realize the internet is a poor conduit for subtlety, I offered all of my comments in earnest. Not in snark...there was no sarcasm in my post. I honestly believe that most people spend way too much on phone/internet/cable/books/iTunes and don't use the public library nearly enough. I am 100% sincere in this, nor do I find it extreme advice. I and many others are lucky enough to enjoy excellent public libraries & I save plenty of dough by not buying books and using lots of their other services. I literally go around telling people about the great free stuff at the public library, as many are unaware of the free movies, streaming video, e-books, audiobooks, databases (Lexis/Nexis, Ancestry, etc) available to patrons.
I'm flummoxed as to how a suggestion to avail yourself of taxpayer supported library services can be construed as an indicator of an immature life, or what any of this has to do with drinking. Perhaps encountering sincerity on the internet is so shocking, you misjudged my post?
You are absolutely correct.
Depending on what Parish you live in but for me the Bossier Central Library is fantastic. HBO series, movies, audio books for my commute. Its cheap entertainment. You cant beat it.
Posted on 6/26/15 at 11:44 am to TDsngumbo
quote:
Hey smartfrickingass
quote:Damn man. Bad day? Thanks for the
Stick to your shitty arse immature life now. I don't care.
Posted on 6/26/15 at 4:48 pm to bayoubengals88
quote:I was thinking, this has to be a joke right. Maybe this guy needs to have a drink and relax
quote:
Hey smartfrickingass
quote:
Stick to your shitty arse immature life now. I don't care.
Damn man. Bad day? Thanks for the
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