Paying Stupid Tax :(

**ampw** · 04-14-2010, 10:36 PM

Hello all,

I'm a new member here. I'm embarrassed to even admit to how much we are in debt... Close to $110,000.

No idea what we were thinking to get us into this kind of trouble and debt, but we have decided enough is enough. Took our first FPU class last week, looking forward to our next class.

I stumbled upon this site and decided to list out what our debts are and want to learn what I could from you guys.

I want to be debt free in 3 years!

**Linus** · 04-14-2010, 10:52 PM

Wow. Off the top of my head I'd suggest to just keep at it. Keep in mind the whole picture but try to do little steps (as it's often said, a journey of a 1000 miles begins with a single step).

And cut out any and all extra spending, especially if you have a 3 year goal. Sock everything you can into your EF (making it enough to last for 6 months) and pay as much debt down as possible (perhaps cancel a few of those cards to avoid temptation?)

**dcompton** · 04-15-2010, 12:07 AM

Welcome to FV. You will get lots of good advice here, and even more support. This won't be easy, but like Linus said, just tackle it one step at a time. You can succeed it you keep your focus.

**Mom2-3** · 04-15-2010, 12:14 AM

You can do it

One step at a time. Keep posting and asking questions.

Breathe......

It can be done

**Luv2BeFrugal** · 04-15-2010, 12:21 AM

We all have to start somewhere... It's good that you're ready to attack it!

Welcome to the Village!

We're ready to cheer you on!

**frugalfranny** · 04-15-2010, 01:40 AM

Welcome aboard. Glad you have joined us.

You can do it........just tighten the belt and dig in. We can help you so be sure to ask questions.

**militlady** · 04-15-2010, 04:20 AM

Welcome! You can do it!

**Nada.Leona** · 04-15-2010, 06:33 AM

Bravo to you, for facing your debt! There are so many times people say "I want to be debt free" but are afraid to look at what they owe. It's good that you are not only willing to face it, but that you even have an Emergency Fund started.

Have fun with your debt too. It makes it easier to get rid of. Challenge yourself to, say, pay off one credit card every 3 months or so (that would actually get you to your 3 year goal, I think). Make it into a game. And when you pay one off, savour that feeling -- it's a real motivator to get rid of the rest of it.

Have fun, ask lots of questions (TRUST ME! Someone here has the answer. You won't believe how many walks of life you'll meet at the Village!) and be ready to be creative.

**daughter of pearl** · 04-15-2010, 07:36 AM

I am so glad that you arrived here at FV...there is such great advice here.

My personal feeling is that your should get rid of all except the lowest interest cc, focus on getting a solid emergency fund in place, then get rid of that one too.

Stop carrying debit/credit cards, and work in cash (just this practice alone has completely changed the way I feel about money!)

You have taken such a big step by examining your debt and doing FPU...keep going!!

When you are frustrated or overwhelmed, come here and post about it...people will be so supportive and helpful!

**Russ** · 04-15-2010, 08:32 AM

Originally Posted by Linus

Sock everything you can into your EF (making it enough to last for 6 months) and pay as much debt down as possible

If the person has a somewhat stable job, would it be advisable to reduce that to a lower amount (3 months or even $1000) to more quickly pay off debt?
a 6 month Efund can be very hard to accomplish.

**Linus** · 04-15-2010, 08:49 AM

Originally Posted by Russ

If the person has a somewhat stable job, would it be advisable to reduce that to a lower amount (3 months or even $1000) to more quickly pay off debt?
a 6 month Efund can be very hard to accomplish.

Perhaps. I've always battled this because of a fear that in the times we're in, there is, IMO, no such thing as a stable job.

**Russ** · 04-15-2010, 08:53 AM

I have this battle with my wife Linus. The problem I have found is when we are closing in on the magical number, spending goes up, we never reach the goal and debt never gets paid down.

**Greebo** · 04-15-2010, 08:59 AM

Welcome to FV. You're going to love FPU! Wait till lesson 4 - Dealing with Debt.

You'll hear this from Dave - be prepared - he's going to tell you to sell your car.

**Linus** · 04-15-2010, 09:49 AM

Originally Posted by Russ

I have this battle with my wife Linus. The problem I have found is when we are closing in on the magical number, spending goes up, we never reach the goal and debt never gets paid down.

Ah.. that's why I'd cancel the cards or limit myself to ones that force me to pay immediately. But it is a valid point. If spending isn't under control and stopped first, the upping the EF won't help.

**frugalfoster** · 04-16-2010, 10:05 PM

Everyone starts somewhere... and this is your first step. Stay focused by reading these forums daily....read how others have been successful and don't be afraid to post. This is what keeps me on track the best. I say pay your cc's as Dave says...tackle the smallest first...it's a mind thing...when you start to see them fall you gain momentum to keep on going....Good luck to you and we are here to cheer you on!!!