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re: Say you were to "give up" and go with debt consolidation?
Posted on 7/25/16 at 4:08 pm to Ace Midnight
Posted on 7/25/16 at 4:08 pm to Ace Midnight
quote:
Are you paying cash for everything or a debit/credit card?
Debit BABY. Livin' the dream.
I keep one credit card in the wallet for an "oh frick" emergency expense. But never use it.
Friends of ours did the envelope thing. Thats Ramsey too, right?
I'm just gonna have to be the dick and take the money we are saving and attack the bill of that period.
I've just been looking for anything to speed this along. Consolidation is what I WANT. But I know there are pitfalls. The idea of "paying everything off" and then being left with one note instead of 11 appeals to me.
As was mentioned. Best case would be a scenario where my payments (which are $1745/month just totaled it) are reduced to say $1200, but you still pay the $1700 and fast pay that bill?
Wish in one hand and shite in the other....
2
Posted on 7/25/16 at 4:16 pm to LSU alum wannabe
quote:
Friends of ours did the envelope thing. Thats Ramsey too, right?
Yes. Works like a charm. Instead of being an abstract concept, money becomes a tangible thing again. I know some folks laugh it at and it is hokey, but we use in it place of audited accounting (which would be prohibitive to run a private residence not occupied by billionaires). Sometimes, we have to move things around to zero it out, but it is much more of a zero sum game that way.
quote:
The idea of "paying everything off" and then being left with one note instead of 11 appeals to me.
Psychologically - it's new borrowing. You're borrowing money when borrowing money got you in the situation in the first place. What you will find is that you'll pay on your consolidation plan, effectively a second mortgage (or pay for a house you don't own), and then all your paid off cards will start drawing spending again. You won't develop any discipline and you'll not generate wins.
The psychological feedback of the snowball works. You build small wins (paying something off so it never hurts you again. Write the letters "FO" on that last check to retire a debt if you want). Which encourages you to keep going. As you pay off bigger and bigger amounts, you start to build up momentum - "the snowball" becomes an avalanche - a good avalanche.
Posted on 7/25/16 at 5:04 pm to LSU alum wannabe
quote:
Debit BABY. Livin' the dream.
Using a debit card in your situation is a bad idea. You've already proven that you can't handle credit cards responsibly.
What you need to do is to take out a certain amount of cash every paycheck and budget yourself. Ran out of money with two days to go? Eat what's in the fridge or pack a lunch. The budget should be strict. You'll be amazed at the extra money you'll have to pay down bills if you go this route.
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