2007 - Debt Reduction Challenge

[lisettelovebug]

We plan on using a portion of our debt with our income tax refund. We're getting about $6000 combined (state and federal). We are also buying a bed - we need a decent one desperately and we were really good and didn't go into more debt by buying one when waterbed sprung a leak. So there's about a $1000 from our total. And my husband wants a Bowfled so there's another $1000 - but this is actually good because we won't have to pay the $70 a month for the gym!! Our dryer is getting ready to die - so there's about $900 - dear husband has to have one that matches the front loading washer!! We have about $700 to pay off from hospital bills from when our baby was born in August. I have 2 credit cards with $800 total and JCP has about $250. I owe about $700 for my one student loan so we will pay that off too.
That will leave us with basically one vehicle payment that will be paid off later in the year, a car payment that has 5 more years, and a student loan with $16,000.

The rest will be put in a high-yield savings account to go towards a down payment on a house.

[tlenad]

[QUOTE=tlenad;670697][QUOTE=tlenad;658216]
At any rate for this year, I expect to accomplish the following.

Have both my Household Bank and Chase Credit Cards paid off. Plus have my Discover Card paid down under $4,000.00 and my Visa Card paid down under $9,500.00. That will set me up nicely to have the rest of the cards paid off by the end of next year.

I will also pay of my car loan in August of this year which is a wonderful relief.

I will have my EF back up to $1,000 by August as well.

I will also be funding a $500 vacation and a $600-$700 car repair with cash.

[\QUOTE]

February Month End Check in (A few days early as I already got the last pay check of the month.)

This month I was able to send $1038.68 in addition to my Minimums. Thank you Income Tax Refund.

Credit Cards: Paid off my Household Bank Card. I am still expecting the devils will sock me with interest charge this month as they always do when you pay of a card but it should be small. I also started paying down the Chase Card which is a great feeling as the interest on that card is 29.99%.

Made the regular car payment which means I have 6 more payments left. Come on August. The minimum on my student loan, Discover Card, and Visa.

I sent the minimum payments in on the rest of my debts, including my car loan...one payment down, seven more to go.

This year is looking better and better, baring any major set backs, I should be able to get Chase paid off along with my car payment and have my Discover Card paid down under $1k. That's $2K lower than I thought last month.


Sent $50 to my emegency fund which is nearly wiped out as I had to do the car repair this month so that expected expense is gone too. I'm still holding off on saving for the vacation until the Chase Card is paid off.

Oh and this weekend I treated myself to a nice meal out in celebration as they announced the lay offs at work and thankfully I still have a job. And an even bigger blessing 4 out of 5 people in my department that got laid off volunteer to be let go. So the mood is still pretty up beat around here.

[danni]

I have paid off one credit card!!! I can't wait until our income tax comes in that will take care of 2 more debts.

[Kisobel]

very excited to send $6321 to the student loan today. love the tax return. i am working a ton of overtime right now. i really want this loan gone.


kate

[MelissaMarie]

I should be getting my tax refund deposited within the next few days and put some of it towards a credit card and the rest I'll put into savings to use towards my summer tuition so I won't have to take out anymore loans.

I'm going to have a little experiment this weekend, I'm going to call it "Selling Sunday" basically going to go through the entire house and whatever is not nailed down, that which I don't need or use, I'm going to try and sell. I'm going to put nearly all of my CDs, DVDs, and books on Amazon and Half and then put household items and other things up on Ebay... should be interesting to see how much money I can get towards paying down the debt!!!! I'm looking to put up 100+ items on Ebay alone, so hopefully I'll make 1,000+ dollars.

[pammy]

Was able to mail off $1,700 to the student loan on Friday. Two more paychecks and that sucker will be history!!!

[frugalnana]

Just in the three months that dh and I refigured our household income and to take more out of the money to pay down the medical, I have paid three of the medical accounts off. Still snowballing. I added the payments from those three accounts to the next smallest. At first it was depressing until I paid the first account and I had a smile from ear to ear. Because I know we are making some leadway and we take any extra at the end of the month and apply it to the medical. We won't receive a refund this year since the IRS is applying what we would get to dh's back taxes, then they will let us know if they except his offer in compromise. We will get a state refund and that will go towards medical.

Just really happy at the moment.

[danni]

We are aiming to pay off everything except the van and the mortgage.

Paid off one of the credit cards last week!!

[tlenad]

It was pay day this week and I got my small bonus from last year so I was able to make a bit of progress on my debt. I've finally paid off 10% of what I owed when I started.

I sent in my Car payment $413.22, my student loan payment $90.33 and sent in $665.81 in to my Chase Card.

[danni]

We are aiming to pay off everything except the van and the mortgage.

Our income tax came in so 2 more are completely paid off!!!!

Only 5 more too go!

[frugalwanttobe]

With our income tax checks I will be able to pay off the cc I used to buy my dryer. It is 0% until July. We bought new furniture in November and it is 0% until November so I am going to put a big dent in it with the tax checks. I will get rid of this debt before November because there is no way I am paying any interest. I am determined.

This year I will get rid of at least 3 more credit cards. I am tired of this debt.

I put up a sheet of paper on my closet door that shows the credit cards we paid off already. I like looking at it. My husband is all for this so it makes it easier to achieve all of this.

Good luck to everyone.

[FrugalMomof3]

Reading all these wonderful stories on paying down debt is awesome.

DH and I paid off all our credit card debt with our income tax, which is a plus, no worrying about if we can pay more than the minimum, such a great feeling.

Keep up the great work everyone!

[AprilP]

You guys are really inspiring. I've got two huge goals this year, to pay off all my debt and to lose CONSIDERABLE weight. Hope I'm not taking on too much trying to concentrate on both.

Paid off - Rental on Washer/Dryer
Paid off - Student loan (finally, after 20 years)
Still have 2 car payments (well 3, but one is due March 15, so I'm not counting that one.
Have to pay anesthesiologist (spelling?????) for son's surgery to pay (about $400 I think)
Need to have major plumbing work done in back yard (sewer pipe needs replaced) - will TRY not to have to take out loan to do that. Hopefully it'll hold till I can save up.

How much do you guys know about paying off old junk on your credit report? How hard is that? Will they work with you or are they @s**h0les about wanting it all at once (especially since it's quite old). I'm just now starting on this idea.

[pammy]

You guys are really inspiring. I've got two huge goals this year, to pay off all my debt and to lose CONSIDERABLE weight. Hope I'm not taking on too much trying to concentrate on both.

Paid off - Rental on Washer/Dryer
Paid off - Student loan (finally, after 20 years)
Still have 2 car payments (well 3, but one is due March 15, so I'm not counting that one.
Have to pay anesthesiologist (spelling?????) for son's surgery to pay (about $400 I think)
Need to have major plumbing work done in back yard (sewer pipe needs replaced) - will TRY not to have to take out loan to do that. Hopefully it'll hold till I can save up.

How much do you guys know about paying off old junk on your credit report? How hard is that? Will they work with you or are they @s**h0les about wanting it all at once (especially since it's quite old). I'm just now starting on this idea.

Hey April!! You know what they say about how to eat an elephant.. one bite at a time. You can do it if you break it down into small steps, then take one baby step at a time. You can go anywhere if you take baby steps.

I believe the way to go about getting stuff off your credit report is to pull your credit report and get them lined up, there should be phone numbers on there. Don't call all of them all at once, like waking a lot of sleeping giants. Instead, take on one at a time. Say you want to get rid of one that is $1,000. For example, you could save up $500 and then call just that one and offer to settle, as paid in full. Make sure that if they agree to it get it in writing before you send them anything, that it says as payment in full. Don't give them your bank account number or anything like that. If it were me I'd send them a money order and mail it return receipt requested so I could prove they got it.

Do that for each of them one at a time. If they've been on there a long time they will probably settle for less than the amount owed since most of them probably think they won't be getting any of their money anyways. Some may not, but you never know, you could get lucky.

Want to add that I haven't tried the above personally, but have heard Dave Ramsey suggest this for the same situation on his radio show. If someone has personal experience that is more beneficial, please chime in!!

Best of luck!!!

[mom2three]

I have a friend who did this. He owed a bank $1000, he offered his savings ($500) and they forgave the rest.