Have you debt reduction goals changed?

**mikandmari** · 04-30-2008, 05:38 PM

Have your goals for debt reduction changed lately because of the economy?

Last year, by cutting back, I was able to pay down my debt at an impressive pace. I had high hopes for this year too, but then the economy tanked. This year it seems that I have no extra money.

Gas and grocery prices are killing us, and we have less opportunities for overtime at work or for side jobs.

I'm still chipping away at the debt, but barely. I've lowered my goals so that I don't become discouraged. At this point I hear so many horror stories of families in financial distress that I'm thankful we have jobs to pay our bills.

So I guess my snowball plan will take a little longer. I just pray that we can keep the numbers going DOWN, even if a little at a time

.

**StaceyS** · 04-30-2008, 05:45 PM

Yes! It's disheartening, but I've had to. I'm still doing better than I was, but not nearly as well as I'd hoped. Gas prices are messing with my budget big time, and I drive a fraction of what most of my friends do.

**lovestolaugh** · 04-30-2008, 06:00 PM

Yes, we have had to rethink our goals also. The gas prices are certainly hurting us. The cost of groceries has gotten crazy. I was hoping to be able to pay another $10 grand from our cc debt this year, but will be lucky if we can pay down $3-4 grand. We have started putting less money towards snow ball and more towards emergency fund. Plus I work in the school system and won't get a pay check for three months. That hurts. I am trying to save a portion of each check now to have for the summer months. I am really starting to get freaked out by the economy. I try to stay optimistic but it is getting harder and harder to do.

**AmyBoz** · 04-30-2008, 08:52 PM

I think a lot of people have had to reprioritize with the tightening of the economy. Paying down debt is still incredibly important, but so is saving, and even if you can pay off debt, people are realizing that they aren't going to be able to do it as quickly as they had previously thought.

Just keep plugging away at whatever pace you can. You are fighting the good fight!

**Dad_of_4** · 04-30-2008, 09:10 PM

We have yet to feel major effects of the economy slowing down. I work in manufacturing and our orders are increasing. In may we are scheduled to work 3 Saturdays already. It will probably be all four by next week. I am starting to think parts of the economy may be slowing down because of people panicing. The higher gas and food prices are hurting us a little but not enought we are stressing out, yet. From looking at the indicators, I think gas and oil prices are to the point of a major adjustment. The higher prices have driven demand down and it looks llike we are getting ready for the start of a surplus cycle. It may take the summer till this adjustment happens. Hopefully people will take close to home vacations and keep demand low.

We have been hitting our debt harder than ever. We have a good chance of being debt free before Christmas if we don't lose focus. However, we do have a lot of home repairs to complete ($10,000+) due to a recent hail storm but it looks like the insurance check will actually cover all of it. We also have a lot of catch-up car maintenance/ vet care/ clothing for the kids that needs to be done. We are just trying to keep it under control and remain focused.

**Preston** · 05-01-2008, 12:30 AM

"I think gas and oil prices are to the point of a major adjustment. The higher prices have driven demand down and it looks llike we are getting ready for the start of a surplus cycle"

I honestly don't see fewer cars on the road than I did before gas started spiking up. People aren't very up for changing their habits. They have no problem complaining about the prices but do nothing to cut back driving/spending.

There will never be a surplus cycle as far as gas is concerned. If there was we would be paying 89 cents a gallon like we were in the 90's. Oil is a limited resource that is ALWAYS in high demand and the only way to get around it is to not use oil.. which is very hard to do.

**Denvergirlie** · 05-01-2008, 09:32 AM

I haven't really felt the the riseing costs yet, so my debt paydown is still on the same schedule.

However, I work from home, so only gas up once a month and I have a huge stockpile of food so the rising costs at the grocery store don't affect me either.

I do take pause at some of the stories I've been reading about others having such a hard time. My thoughts are with these troubled folks and I count my gratatudes each day.

**Dad_of_4** · 05-01-2008, 10:50 AM

Originally Posted by Preston

"I think gas and oil prices are to the point of a major adjustment. The higher prices have driven demand down and it looks llike we are getting ready for the start of a surplus cycle"

I honestly don't see fewer cars on the road than I did before gas started spiking up. People aren't very up for changing their habits. They have no problem complaining about the prices but do nothing to cut back driving/spending.

There will never be a surplus cycle as far as gas is concerned. If there was we would be paying 89 cents a gallon like we were in the 90's. Oil is a limited resource that is ALWAYS in high demand and the only way to get around it is to not use oil.. which is very hard to do.

Demand for oil was down 8% and 6% for gas in February. Almost everyone I know is cutting back on driving by combining trips. We have a van and a car getting 24 and 42 MPG. Normally I would drive the van on weekends to do errands now I use the car if I go anywhere. A lot of people at work are now carpooling that would have never considered it before.

**Samigirl** · 05-01-2008, 11:11 AM

Honestly, I was ALL about debt reduction at the beginning of the year. Now, I'm more inclined to put money into savings. I've been kind of bummed out about stalling on the debt reduction. My mind knows we need to get the debt paid down, but my heart wants to save money in case the economy really tanks.

**chevy_chick95** · 05-01-2008, 11:36 AM

i agree with samigirl. I was all motivated to pay down as much debt as i could and not save anything until it was all paid off. but now ever extra penny i get goes into savings.

**itlw8** · 05-01-2008, 01:34 PM

I was going to say no but really my answer should be a big YES we are trying even harder to pay EVERY debt off... We got some bad news yesterday dh may have a layoff this summer so it is even more important to do as much as we can along with building my emergency fund a bit more to allow for an extra housepayment or two.

so while it may happen I have to slow down paying it off for now I am planning on money being short and cutting back NOW and paying off everything I can. This is where being frugal is helping

**mommy4ever** · 05-01-2008, 02:40 PM

I'm with Meg. I know, we just made a MAJOR purchase an RV. However, I withdrew the money(LOC) yesterday and today I already paid back 10%. Tomorrow another 10%. Monday another 10%. And I *think* another 10%. So by next week our purchase is almost 50% paid. The purchase was made with the intent on paying it off asap. I Think it's nearly 100% paid by June 15. That said, I'm not doing anything more than 2 months mortgage savings. I'm building my stockpile, and hitting each and every bill hard. By September, I do hope to have only 2 bills left. So if dh were to be laid off, that I'd have enough paid off that we could survive on his EI and my daycare income. We'd not live reich but all our basics are covered.

We are looking at selling one minivan for a small car. We're reluctant as dh is very tall and doesn't fit comfortably in a car, but since his gas budget is well over $250 we are willing to do so. My drivign would be limited to after daycare hours as much as possible. In the winter it is harder as the kids have hockey/ringette al over the city so it does involve both vehicles.

But we're cutting back NOW. It doesn't make sense to me to risk having more payments when money is lean. Money earning less than 2% while paying up to 12% interest doesn't make sense either.

**Preston** · 05-01-2008, 02:54 PM

Originally Posted by Dad_of_4

Demand for oil was down 8% and 6% for gas in February. Almost everyone I know is cutting back on driving by combining trips. We have a van and a car getting 24 and 42 MPG. Normally I would drive the van on weekends to do errands now I use the car if I go anywhere. A lot of people at work are now carpooling that would have never considered it before.

Where was the demand down? And that was for Feb. It's now May. If demand went down then prices should've followed suit.. at least a little.. but they are still increasing.

Demand may have gone down locally but internationally the demand seems to only be increasing... combined with the weakening dollar makes all the more frustrating.

**mombottoo** · 05-01-2008, 05:38 PM

Not yet they haven't...but, I can see it happening in the not so distant future.

**BetterLateThanNever** · 05-01-2008, 05:47 PM

Right now I am making large payments on my credit card but i'm also shifting focus on to building a large savings account. I havea student loan that I dont' have the option of taking hard ship defferal. Tried it once when I hurt my back and was in bed for 5 1/2 weeks. All I got was a flippant okay well just keep accruing interest until you pay again.