[Hopeful.Romantic]

Hi everyone,

I am new to posting on here, but I have been reading and enjoying people's suggestions and stories of success.

I started Dave Ramsey's plan for getting out of debt about 2 months ago. I had reached baby step #2 of reducing debt fairly quickly. And now unfortunately, I will have to put a stop to that to rebuild my emergency fund, since I will be using it to pay for some needed dental work.

I currently have just over $22,000 in debt including my car loan. I rent so I do not have a mortgage right now. I make a little money online, and earn rewards through Swagbucks.com

My goal was to be able to go to Disney World next year by saving a little aside each paycheck. Now with the dental work setup, I am down that I may not be able to reach that goal, but I realize that it took me a few years to rack up this debt, and may take me a few years to pay it down.

I have thought about a second job mostly on Sunday, as I work on Saturday every other week.

I am also thinking, instead of using Swagbucks for "wants" if I should start using it for needs, or to start saving up for hopeful Disney World vacation next year.

Any suggestions or words of wisdom would be greatly appreciated!
Kelly

 

[ilovechocolate]

Hi and glad you've posted, Kelly!

If you post your income, expenses, etc., there are folks here at the Village who can give you tons of good advice.

 

[josantoro]

Welcome HR! sounds like you are on the right track. Bummer about the dental work - it is costly, no two ways about it.

 

[CookieLee]

About Swagbucks ... when you're paying off debt, especially when debt is growing (the dental work), then there are no buying "wants". The only buying should be planned needs. If I remember correctly, there is no planning with Swagbucks so what little you make there is no really helping you reach your goals. I dare say Swagbucks rewards would fall into the same category as a "rewards" credit card where Dave Ramsey is concerned.

Good luck!

 

[CPA-Kim]

I really can't give much advice with the limited information your posted. However, I would put off the Disney trip until my debt was paid off. It'll be your reward at the end of Step 2 (if you're doing Ramsey.)

 

[Hopeful.Romantic]

Thank you everyone for your comments.

Actually SwagBucks is free, I don't pay any money for it. I re-read my post and it sounds like it is a pay to use or credit card the way I worded, but it isn't. I have used it in the past to save up gift cards for furniture. I can use my points for PayPal on there, and I am thinking about doing that to help out with my debt and emergency fund rebuilding.

I tried to respond sooner with my income & info, but it said it was a moderated post, and it never showed up, so here it is again:

$1,500 monthly income
______________________________________
$565 rent
$227 car payment
$100 car ins.
$120 groceries
$75-88 Electricity
$53 basic cable/internet
$40 phone bill
$60 pet supplies
$205 roughly between min. payments on debt
$20 Misc/Gifts


Which usually leaves me about $35 dollar extra, which I throw the extra at my lowest balance debt wise (or now would be my emergency fund)

 

[larabelle]

$1,500 monthly income
______________________________________
$565 rent - can you get a roommate
$227 car payment
$100 car ins.- this seems a little high...shop around for a cheaper rate
$120 groceries
$75-88 Electricity
$53 basic cable/internet- discontinue this and use the internet at the library
$40 phone bill
$60 pet supplies-list these...how many and what kind of pets do you have?
$205 roughly between min. payments on debt
$20 Misc/Gifts

suggestions for lowering electricity in an apartment: change your thermometer settings to higher in the summer and lower in the winter, window blankets on all windows, fans in the summer and electric blankets in the winter,

 

[larabelle]

What hours do you work? Could you pick up a evening job...maybe cleaning apartment buildings, or at a local restaurant.
Do you cook, sew, garden...if so could you market these skills.
Do you have a south facing patio on your apartment...could you grow something to eat in pots.
Do you like kids...could you tutor for extra money.
Do you play an instrument...could you give lessons.
What about a paper route before work.
Could you sell your car and do without one for awhile...do you have any type of public transportation you could use instead.
For groceries start a price book. Look into cheaper recipes-lots here on the forum.
Could you discontinue your monthly phone and instead get a Trac pay as you use cell phone.

 

[CPA-Kim]

There are two ways to accelerate debt reduction: lower your monthly expenses and increase your monthly income. The best way is to do both. First, is your health good enough to take on more work? If so, I would recommend using your current talents to increase your monthly income. That might mean taking on more similar work or finding something different to supplement your salary. Babysitting, tutoring (if you are good at a subject), delivering papers, waiting tables are just a few things that quickly come to mind. Lowering existing debt is a bit more tricky and you always must weigh the cost/benefit of doing so. For example, if cutting the a/c off just to save a few dollars a month exhausts you, then it doesn't make sense to do it. Do you have a good FICO score? If you do, it's important to keep current on all payments. If your FICO score is low, you might want to consider negotiating with the credit card companies. Does your car have equity? If so, you might want to consider selling it and buying something very cheap that runs well. That should also reduce your insurance. I'm guessing you either live in an efficiency or one-bedroom apartment. If not, can you get a roommate. Also, when your lease is up, is it possible to find a roommate and lower your rent/utilities by doing that?

 

[James Martin]

Well you can reduce your debt by following the give tips.

Stop spending: Get spending under control so you don't add to your debt going forward. If possible, stop unnecessary spending

List everything you owe: List the amount you owe, the minimum monthly payment the creditor expects and the interest rate on each account.

Decide how much money you can comfortably allocate: If you followed step one above, you may have a few extra dollars for reducing your debt. Now fine-tune your budget; save a few dollars here and there by cutting back.

 

[CookieLee]

Do you get a tax refund? If so, adjust your withholding so get more money in your paycheck. You need the money now, not later. For instance, if you get a $1200 tax refund and are paid twice a month, adjusting your withholding could give you an extra $50 a paycheck. Considering that you're only putting $35 extra toward debt retirement, that would be a lot.

Always, always look at expenses you consider fixed expenses first. Taxes aren't fixed. Open enrollment will come up in a few months. Can you change your insurance options to save money?

Also, it looks like you're earning between $8-$10 an hour if you work full-time. That isn't a lot. I agree with getting a second job or finding a new, higher paying job.

 

[larabelle]

OK I know this is drastic...but with your income/debt maybe it is time to get drastic.
When I was paying off debt I unplugged my apartment supplied stove and refrigerator. I instead purchased a $10 toaster oven from a thrifty and a super small refrigerator (3.1 cubic feet). I already had a microwave oven. It was cheaper to run the smaller appliances then my energy guzzling apartment appliances. My electric bill dropped dramatically. I have seen the small refrigerators at the thrifties for less than $40.00.