Debt Free in 2007 - Did you make it?

[firsttimer2007]

Thanks for the replies everyone. I do tend to get a little impatient with debt payments. I have cleared out our emergency funds twice before to pay debt. We went from about $45,000 in debt (not counting the house) about three in a half years ago to about $15,000 now (car and student loan). It just takes so much time.



The interest rate in the car is 4.99% and my savings account earns 5.05%.

Keep the savings account interest rates are going up.

 

[MagicalMom]

Hi everybody


I'm not sure what to do...Pay off this $6000 car loan (which would leave us with a student loan payment and a mortgage for debt) or hold on to the savings and pay the car loan at a slower pace

I'd go for the slower rate. You never know what the future may hold.

 

[MagicalMom]

September's been ugly to us too! It's mostly my fault though, I realized that the King Tut exhibit in Philly is leaving at the end of the month and that we would realistically never have another opportunity to see the exhibit (as he'll be permanently housed in Cairo soon). Once in a lifetime visit to see Tut = $100.

I just saw your post & DH & I agree that this a splurge we may have to make too. Were the tickets hard to get? We only have a couple weeks until it's gone.

 

[comicguy]

Well, I just received my first paycheck from my new teaching position. Wow!!!

I am making double than I did at my last school(and of course the benfits are better, as well)

Most of my first paycheck has to go towards: the stuff I bought for the new classroom(300.00), the new clothes that I needed(200.00), my son's new school clothes that he needed(200.00), the inspection and oil change for my car(50.00) and what is left over I think will be going towards bills.

It will be nice to really put debt reduction into overdrive. I want to pay 2 payments ahead on the house, and add a couple of thousand to the emergency fund, then watch out chase, citibank, and dept of education you all will be making less money from me

 

[girli565]

Well, I just received my first paycheck from my new teaching position. Wow!!!

I am making double than I did at my last school(and of course the benfits are better, as well)

Most of my first paycheck has to go towards: the stuff I bought for the new classroom(300.00), the new clothes that I needed(200.00), my son's new school clothes that he needed(200.00), the inspection and oil change for my car(50.00) and what is left over I think will be going towards bills.

It will be nice to really put debt reduction into overdrive. I want to pay 2 payments ahead on the house, and add a couple of thousand to the emergency fund, then watch out chase, citibank, and dept of education you all will be making less money from me

I know how that is!! Paycheck's already spent even before it gets to rest in your bank account, lol. Does your school give you a check they call lead money for your supplies? I usually do spend my own money for my class but then in October we will get a separate check aside from our paycheck for $250 to cover all supplies and things we needed for class. All they require is that we keep receipts for what we spent in case there's an audit.

 

[girli565]

Awesome!

Thank you!!

 

[Robert 31320]

We just read this entire thread! We'ree trying but it's going slow right now. I think we have just become more motivated just by reading this!

One thing is for sure, when we go to Disney next March it will be PAID FOR. We've arrived "paid in full" the past three trips and that makes the entire trip a blast.

Now if we can only arrived in a "paid for" Suburban...

 

[brookelizabeth]

We had $1000 in our savings account, but our car was acting up. We finally took the car in and it cost us a total of $1075 (but the car runs like brand new again!). We were a bit bummed about this, until we realized that we have around $300 in another savings account we haven't touched, an additional $300 in our checking account that we've been meaning to transfer to our savings-and my DH's parents gave us $300. So our car repair only cost us $175-and we definetly have enough saved in our "car" fund to cover that! Yea!

 

[PartyOf5]

Henry is adorable...congratulations!

Is your house still on the market? Any bites?

 

[MinMouse]

We just read this entire thread! We'ree trying but it's going slow right now. I think we have just become more motivated just by reading this!

One thing is for sure, when we go to Disney next March it will be PAID FOR. We've arrived "paid in full" the past three trips and that makes the entire trip a blast.

Now if we can only arrived in a "paid for" Suburban...

Wow! That must have taken a while to read the entire thread! That took dedication. Welcome to the thread!

I agree that it is very motivating to read everyones progress. Although I don't often post on the thread it certainly helps me stay focused on our financial goals to check in and read this thread!

 

[brookelizabeth]

Henry is adorable...congratulations!

Is your house still on the market? Any bites?

Thank you! The pic is of him in his Mickey Mouse hooded sweatshirt jacket. I thought that was appropriate for the DIS!

House is still on the market...no bites...veryyyy few showings. I'm not thrilled with our Realtor, as far as I am aware he hasn't even advertised the house once in the paper or anything. He wants to do another open house, but since Henry has been born, it's been a bit difficult. Besides open houses so rarely sell a home, I'm not all that eager to make one happen. However with my DH's raise and my at-home job, we'll be making almost what we were pre-Henry, so selling isn't quite as urgent.

 

[KandiB47]

We had $1000 in our savings account, but our car was acting up. We finally took the car in and it cost us a total of $1075 (but the car runs like brand new again!). We were a bit bummed about this, until we realized that we have around $300 in another savings account we haven't touched, an additional $300 in our checking account that we've been meaning to transfer to our savings-and my DH's parents gave us $300. So our car repair only cost us $175-and we definetly have enough saved in our "car" fund to cover that! Yea!

Awww, what a cute little guy

After thinking about it, I decided to pay off my car anyway. I kept $1000 in emergency savings and we will work hard to get that up to $15,000 ASAP (it will take a while). We still have the student loan debt of about $8600 but because the interest rate is so low (3.37%), and the payments are only $76 a month, I am not counting that right now. This is as close as I will be to debt free by December. Well, I guess I could count the three $76 payments toward the student loan too.

Thanks for motivating me everyone

 

[girli565]

Well, I knew things were going too well for me!

Got into my car yesterday to run and grab some lunch and it is dead. And of course it has to happen at 5pm on a Saturday when the shop is closed and will not be open on Sunday! So now I know for sure it will have to be towed in ($60) and then god knows what's wrong with it. I know this sounds nuts but every time I take it to the place I normally get my oil changes it starts to act up. I got an oil change last Saturday and of course it's now dead!

Last time I got an oil change it would sputter to a start but it would start. That got fixed by the place but now my debt free-ness will definitely be pushed back!!

 

[comicguy]

Our debt reduction is going okay right now.

CC #1 is now down to 9000 from 12000
CC #2 is now down to 4000 from 7500
CC #3 is at 0 and paid off monthly
CC #4 is at 0 down from 3000 and used once in a while to keep the card active
Lowes CC at 0 from 750 and will never use again!!
DW's SL is at 2500
My SL is at 36000 for both Undergrad and Grad, but it has netted me a job that I otherwise would not be able to have
Mortgage, well lets not talk about that yet

 

[MagicalMom]

Well, the furniture that we bought years ago (which I've been tired of for years!!!!) is almost piad off! Woot! Woot! LOL I'll never fall for that "no payments until 200?" crap again! Live & learn huh?

 

[KristiA]

Looks like everyone is doing a fantastic job! Getting lots of good ideas for sure.

Just curious though, (I have only gotten through 5-6 pages, so bear with me if this is already answered somewhere), for those of you paying off credit cards- how are you doing this? I mean, anytime of the month you get extra cash, do you send it in? Or, do you send in one lump sum on the due date? I am not sure how to make that work.

 

[minnie1928]

Looks like everyone is doing a fantastic job! Getting lots of good ideas for sure.

Just curious though, (I have only gotten through 5-6 pages, so bear with me if this is already answered somewhere), for those of you paying off credit cards- how are you doing this? I mean, anytime of the month you get extra cash, do you send it in? Or, do you send in one lump sum on the due date? I am not sure how to make that work.

Here's what works for me...I pay all my bills and budgeted items every time I get paid, leaving whatever is left in my checking account to cover any miscellaneous things I may have forgotten. Fast forward to the night before my next paycheck. I sit down and determine how much I have left in my checking account (after all checks have been paid, etc.). Whatever is left I send to the debt I'm currently focussed on at the moment. That way I'm making some type of payment every 2 weeks or so. I always start out each payday with only the amount of my paycheck and start the whole cycle over. Some times I'm sending $200 to pay down my debt, other times it might only be $20. But the point is that I am paying down the debt! I think it also helps to do it on a somewhat frequent basis like this...gives me a little psychological boost to know that my balance is dropping (in some way) every 2 weeks.

 

[MagicalMom]

Looks like everyone is doing a fantastic job! Getting lots of good ideas for sure.

Just curious though, (I have only gotten through 5-6 pages, so bear with me if this is already answered somewhere), for those of you paying off credit cards- how are you doing this? I mean, anytime of the month you get extra cash, do you send it in? Or, do you send in one lump sum on the due date? I am not sure how to make that work.

We concentrate on one card at a time. Right now we are focusing on a card that has a balance of about 1,000. The other 2 cards get paid slightly over the min. due. Just because it makes me feel a little better to send in that extra 10 - 20$. The main card get's paid almost weekly, since I pay it online. Min. due is about 20.00 a month, so I try to pay 20-40$ weekly on it. When that is finished I will concentrate on the next card.

 

[starwishing]

Hi everybody!!! Just read about half of the thread, and even though we are almost at the end of 2007 I am really commited to getting my debt reduced and would like to join. ~ Should we start a 2008 thread or just keep continuing this one? My dh & I have major cc debt, a car loan that has 2 yrs left, hearing aid debt, braces debt & a mortgage but are facing it and just going to dig at it, a little at a time......it's a start. I really think this thread is wonderful, and look how many people have joined who may not have if not for this thread. Awesome job to everybody!!!!!!!!!!!!

 

[ldb1030]

We concentrate on one card at a time. Right now we are focusing on a card that has a balance of about 1,000. The other 2 cards get paid slightly over the min. due. Just because it makes me feel a little better to send in that extra 10 - 20$. The main card get's paid almost weekly, since I pay it online. Min. due is about 20.00 a month, so I try to pay 20-40$ weekly on it. When that is finished I will concentrate on the next card.

Do credit cards care, or does it matter I guess, if you make as many payments on line that you wish?! I would suppose just as long as at least the minimun is paid by due date, that's all that matters right!?