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Discussion Starter · #1 ·
Thought this would be a good idea since well most of us are trying to get out of debt.whos in?
 

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I am in on this one as well!! Our First thing is to get out of Medical Debt!!

I am in on this one as well!! Our First thing is to get out of Medical Debt!! Then Get out of Credit Card Debt!! :)
 

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Ok I'm in......!~ We only have (drumroll palease) ~1.8~ more house payments to go! We've been using the snowball method and it's really starting to pay off. I HIGHLY recommend it. After the house mortgage goes down in flames then we'll pay off 2 cars in 6 months using the same method. I figured up the other day and we'll save over $54,000. by paying off the house early~! Woo-hoo! Who else is gonna play?
 

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DebbieBob
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We just refinanced to 6% for 10 ending out 7.5%for 30. We figure that will save lots of money, We just paid all our credit cards off. Just trying to figure out how to go from a weekly paying job to a monthly paying job.
 

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Discussion Starter · #5 ·
Great!Gald you guys are in.We use the snowball method too.It works wonders.In Feb we paid off my student loan,home deopt credit card and our visa and closed the accounts.We then rolled over what we payed on them to our equity line.We are hoping to be debt free except our house by Spring of 2003.This way we can save for our dream home.Lets start with what we have in debt and make up our own plans to get rid of it for good.I'll go first.

Mortgage=$60,000/$514.04 a mo
Van loan=$8200/$386.71 a mo
Equity line=$12,000/$186 a mo

Total debt=$80,200/$1086.5 a mo

We are gonna still pay minimum on our house since we are selling it in less than 2 yrs.On my van we are paying $1200.00 a mo to have it paid off by Jan2003.On the equity line we pay $320 a mo(snowballed $120 from previous debt)and using dh bonus at the end of the year,savings in our cd,and tax refund next year to have it payed off by March 2003.When we do all this we will beable to save $1500 a mo next year to go towards our house.
We are paying the minimum on our house since we
 

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Update on our Challenge!! :)

Update on our Challenge!! :)
Mortgage is around $535.54 a month if we pay extra on it to pay it down quicker!!
Power Bill is a fixed Budget $62.00 a month!!
Credit Card bill is about $65.00 a month to pay off the Card( We have about $3,000 to pay this card off )!!
Gas Credit Card Bill one is $38.00 and that one will be paid off again!!
Gas Credit Card Bill one is about $56.00 because DH has a Tendency to run this one up so we have about $300.00 to pay off on this one!!
Medical Bill mine is about $15.00 !!
DD's Medical Bill is about $58.00!!
DH's Medical Bill one is $50.00!!
Another one of DH's Medical Bills is $50.00!!
The Last Medical Bill of DH's is the Major one and it is about $315.00 that we must pay off on it!!
Local Phone Bill is about $35.00 a month!!
Long Distance Phone Bill is about $16.00 to $25.00 a month!!
Long Distance Calling Card Phone Bill is about $2.00 a month!!
When we have the Medical Paid off we will work on the Credit Cards then we will work on Paying off the Mortgage !!
We then can finally work towards being Debt Free!!
Oh Car Insurance is about $72.90 every three to six months!!
Taxes on the Car is about $10.00 a year!!
Taxes on our Land and Home is about $ 80.00 a year!!
We drive older cars that way our insurance and our taxes are cheaper on our Cars!! :)
 

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Discussion Starter · #7 ·
Oh you lucky gal I wish my car ins was that cheap.We just changed to state farm and get a discount since our house is insured with them.We were paying $136 a mo with $1000 ded. and full on my van and liability on dh truck.Now we are paying $115 a mo with a $500 ded and full on both vehicles.Better deal all around.

Once you get the medical bills paid off I would snowball it to your credit card debt,this way you are in the same budget and pay them off faster
 

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Can you please tell me more about the SnowBall Method I have heard of it before but..

Can you please tell me more about the SnowBall Method I have heard of it before but I am not very familar with it at all!!
Thank you for your help!! :)
 

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Hi all! I don't know that I'm necessarily "in" on the challenge, but am feeling pretty good about the fact that we paid off one of our cars last week, (and are calling to reduce the insurance coverage on Monday), and are about to pay off dh's school loan. He has $905 left on it, and we were just going to keep paying each month, but today was the last day of school for me and I had a check in my mailbox for $934.00. I couldn't figure out what it was for, and then I remembered that it was tuition reimbursement. The district where I teach pays you back for classes you take as long as you get a B or above. (I got an A! :) ) I am starting my doctorate in Educational Administration and the school was just paying me back for my first class! So, we're using the money to pay off dh's school loan! Yeah!
 

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Way to go AmyBoz , Congradulations!! :)

Way to go AmyBoz , Congradulations!! :)
 

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I'm in. We recently (2 days ago) decided to concentrate on paying off our van and then our house. We are going to hold off until Sept or Oct because we are doing some much needed remodeling and are buying a new furnice before fall. Our furnice is as old as I am (27) and isn't really effecient, so we will be saving money in the long run.

Anyway, we owe around $10,000 on our van and $34,000 on our house. I think we can get the van paid off by December 2003. They we will concentrate on the house which should take 2.5-3 years to pay off.

We will also be doing some more remodeling during the next couple of years. The biggies being a new roof (you can only patch roofs for so long) and a new kitchen. Since we are doing most of the work ourselves we should be able to do it on a budget.

So it is time to tighten our frugal belts.
 

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Discussion Starter · #12 ·
The snowball princeble is very simple and allows you to pay off debts with out going totaly over budget.Here is what we did.

Jan 2002

Mortgage-$514 a mo
Car-$386 a mo
Equity line-$200 a mo
Visa bill-$50 a mo
Student Loan-$50 a mo
Home depot loan-$20 a mo

Total being paid to debt a month =$1220

We paid off the visa,hd loan and student loan with our taxes.And the snowballed it over to our equity line.

March 2002

Mortgage-$514 a mo
Car-$386 a mo
Equity line-$320 a mo

Total being paid to debt a month=$1220

This way we are paying out the same a mo,but with fewer bills and putting more to our equity line.

THings have changed though.Dh got a raise and we figured out how much he made in a month and it was a lot more than we thought.So now we are paying Almost $900 more a month on our van to get it paid off by Jan 2003,and he will get a nice bonus at the end of the year to pay off the equity line.

I hope this helped
 

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This challenge sounds interesting. I am not sure I know what I need to do, but I would love to be debt free! I pay only the minimum on each payment due except the house payment. I only throw in a few more dollars a month on it.

What do I need to list?

I have these monthly:
house: 398.00
DH's truck: 200.00
My car: 200.00
loan: 77.00
Doctor bill: 25.00

Then I have:
lights150.00
water 30.00
Medicine 100.00
car insurance 128.00

Extras:
phone 70.00
internet 22.00
directv 35.00

Groceries: 240.00
DH's habit: 56.00
Gas: 90.00

Total outcome for the month: $1821.00

DH take home pay: 2400.00
My take home pay: 600.00
Total monthly income:$3000.00

I guess after looking at that I realize I should be using that extra money and paying more on the loan and the dr. bill since they are the least amount owed on.

Any advice from anyone????





:)
 

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Discussion Starter · #14 ·
Ok we took the first step in realizing our debts and wanting to get rid of them.The next step is working on what we will do to get rid of them.Meaning:what are we going to sacrafice to be debt free.Everyone should have a different answer to that question.Because each persons situation is different.For us it was simple we took what we paid for 3 of our debts and after they were paid off we applied them to another.Now this still isn't enough for me so we are cutting back on eating out to only once a month so this should save us $100 to put towards debt.

There are other ways to pay off debt even if you don't have that much extra each month.Look at your bills,do you have a mortgage?Do you pay mortgage insurance?You might not have to if you have enough equity built up.That could save $20 a mo right there.Then apply that $20 to a debt.Do you make lots of long distance phone calls,use email or write half the time and you will save.Or do you have extra charges on your phone that you don't ever use.We did.We took off caller id and call waiting to have just the basic plan,but dh wanted call waiting back on.So we still save $7 a mo with caller id off.For this part of the Challenge your goal is to pick a debt to pay off(try lowest balance first) and find out where you can get that extra money.And if your like me you might realize that extra money was there all along and you didn't even know it.
 

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I think I am going to knock-out:punch: the dr. bill! This is my first step to debt free!!
 

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The first thing we are going to do is pay off our Medical Debt as well and then pay..

The first thing we are going to do is pay off our Medical Debt as well and then pay off Credit Card Debt and then Pay off Mortgage !! :)
 

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You can look at paying off debt in different ways. Most medical bills do not have interest, but credit cards do. Some people choose to pay their smallest bills off first to gain a sense of accomplishing their goals.
 

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I think I am going to go with the smaller debt because I don't have CC to pay off, but do have loans that have interest. The smallest thing I have is the medical bill and I doubled it this month. I am going to add more to the car payment to each month! You people are so smart! Why didn't I think of getting out of debt sooner!!!:D
 

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Discussion Starter · #19 ·
We are starting with our smallest which also has the highest intrest rate,but it is in the middle on monthly paymets.We owe $7,700 on our van and our monthly payment is $386.71.We are going to bump that up to $1100 a mo to hopefully have it paid off by Jan 2003.
 

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Mailed off that dr. bill today with the doubled amount! Thank you for the inspiration to succeed with this!!;)
 
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