Debt Dumpers 2020

[DisneyMandC]

That's great on the loan down! Are you going to WDW or doing something else?

Little bit of everything, actually! Going to Busch Gardens one day, Hollywood Studios, Villains After Hours, and Universal haha. Yes, we like to come back from vacation exhausted...

 

[trenty]

wrong thread, sorry

 

[jen7233]

Little bit of everything, actually! Going to Busch Gardens one day, Hollywood Studios, Villains After Hours, and Universal haha. Yes, we like to come back from vacation exhausted...

Oh my, that is a little of everything!!

 

[DisneyMandC]

Oh my, that is a little of everything!!

Haha yeah, we started with just Busch Gardens and Universal, then I watched the Star Wars Disney special on tv and wanted to go back to Hollywood Studios again. Then on Friday night DH decided he wanted to go to Villains After Hours too haha.

 

[Beachmom0317]

We got our federal tax return yesterday. I really wanted to splurge and buy a new purse and DH wanted some fishing gear, but we decided to transfer the funds to our snowball before we could change our minds lol. We owe $5,900 on our DVC loan (current debt we’re tackling), and we were able to pay it down to a balance of $3,300 with the return. We’re so close! I think before summer comes we’ll have it paid off and can then tackle DH’s balance on his truck, around $16k. I’m super sad we’re taking 2020 off of Disney but small victories make it hurt a lot less.

 

[jen7233]

We got our federal tax return yesterday. I really wanted to splurge and buy a new purse and DH wanted some fishing gear, but we decided to transfer the funds to our snowball before we could change our minds lol. We owe $5,900 on our DVC loan (current debt we’re tackling), and we were able to pay it down to a balance of $3,300 with the return. We’re so close! I think before summer comes we’ll have it paid off and can then tackle DH’s balance on his truck, around $16k. I’m super sad we’re taking 2020 off of Disney but small victories make it hurt a lot less.

I'm not sure how DVC loans work or really much at all on DVC, but good that your tax return is going towards a goal you want to work on.

 

[Beachmom0317]

I'm not sure how DVC loans work or really much at all on DVC, but good that your tax return is going towards a goal you want to work on.

Thank you! Basically we bought into the Disney vacation club (Disney’s time share program, nicknamed DVC for short) and we bought a contract for 12,000 in late 2018 and financed it. We’ve been aggressively trying to pay it off so we can move on to some other loans we have!

 

[crazycatstacy]

Boss announced this morning he is retiring in 30 days. The second in charge person has only been in their position for about a year but is expected to move up. Not sure who will take the second in charge position now but it all gives me a lot of anxiety!

 

[Jen and Ashwin]

Our Echo Show's background image is a rotating family album. This morning, DD saw a picture of us dressed up at MNSSHP. She pointed and the picture and yelled, "I go back there. I go back Disney."

Oh man, I totally feel her. I wish we were at Disney right now.

 

[Beachmom0317]

Our Echo Show's background image is a rotating family album. This morning, DD saw a picture of us dressed up at MNSSHP. She pointed and the picture and yelled, "I go back there. I go back Disney."

Oh man, I totally feel her. I wish we were at Disney right now.

Me too! Does Disney on Ice come to your area at all? Were lucky that they come close to us, so we attend shows to give us our Disney fix when we’re in between vacations!

 

[Jen and Ashwin]

Me too! Does Disney on Ice come to your area at all? Were lucky that they come close to us, so we attend shows to give us our Disney fix when we’re in between vacations!

We had tickets for the weekend after our December WDW trip, but we were all too sick to attend.

 

[Hey Blinkin]

Ok, guys, I need some advice on how to allocate my savings buckets in Ally.

I have 4 main savings goals right now, which I will list in order from highest $$$ goal to lowest:

Military Retirement (no set amount, just as much as possible)
Car loan payoff ($7200)
Balance transfer payoff ($7000)
Disneyland Annual Pass Fund ($4500)

I HAD been putting the bulk of my monthly savings towards the military retirement goal, as that was the main priority for later this year. However, now that retirement is 3 years away again, that goal isn't as urgent.

So, I had the thought to attack these goals using the snowball method, and save from smallest goal up to largest. The three goals that aren't military retirement have a timeline of this year. I need the DL AP money first, in late August. I need the other two complete by December. I want to hold the money in savings until the end of the year to earn interest. The car loan is at 0.9% and the balance transfer is at 0%.

I currently have about $10,200 in the savings account to "distribute" among the buckets.

Should I go ahead and put $4500 in the DL AP bucket, meet that goal, and put the rest towards the balance transfer? Then, continue to put money towards the balance transfer before moving to the car? Or should I continue to allocate monthly amounts so that by the end of the year, all the goals are met?

I know it doesn't REALLY make a difference, and it's all just really one account anyway, but this is just my hyper organized mind at work.

What would you all do?

What is the annual pass fund? Do you owe that or are you saving for that? Personally i wouldn't be spending $4500 on annual pass is I had over $14000 in other debt. I would put $9k towards that keeping a $1000/min for an emergency fund? What is your car payment per month and the balance transfer payment per month? If you paid those both off you could possibly save up for the AP and pay cash for that. You are borrowing money to buy the AP now.

 

[pblack]

Over the weekend my DH and I discussed more about possibly refinancing our house, not pulling any equity out since I'm pretty sure we don't have enough yet to do that, but to hopefully lower our payment per month. (Currently $2100.) The company we originally went through for our mortgage periodically e-mails us with home estimate updates, etc. So we reached out to them to see how much/if we'd be able to save by refinancing since the rates/APRs are lower now than when we purchased 2 years ago. They got back to us with a couple different numbers and we've decided to pursue refinancing at a new 30 year term which would save us about $300/mo. (We're only 2 years into our current 30 year term and this house will not end up being our forever home, so we're ok with "losing" 2 years.) If all goes well with the refinancing we could do so much with that extra $300/mo. I still really want (almost to the point of need) a new(er) car and that savings could potentially go towards a car payment. I'm excited about the possibility of lowering our mortgage payment.

 

[DLgal]

What is the annual pass fund? Do you owe that or are you saving for that? Personally i wouldn't be spending $4500 on annual pass is I had over $14000 in other debt. I would put $9k towards that keeping a $1000/min for an emergency fund? What is your car payment per month and the balance transfer payment per month? If you paid those both off you could possibly save up for the AP and pay cash for that. You are borrowing money to buy the AP now.

The annual pass fund is to pay for our renewal at the end of August. Our current APs are paid for already. The AP is a non negotiable, for a few reasons I won't get into here. It's a recurring entertainment expense for the year, basically. I just don't want to do the monthly payments option. Want to pay in full for them.

The car payment per month is $432.49 with 28 payments remaining. I want it paid off by December.

The balance transfer minimum payment is $125/month. The balance is currently $7250 with a deadline of 1/15/2021. I also want that one done by December.

Just to clarify, none of those debts will be difficult to get rid of. Its not a matter of paying them off a.s.a.p. My strategy is to hold the money in savings since I'm getting 1.6% in interest there, then at the end of the year, pay off the car and balance transfer, leaving the rest in the savings account to keep earning interest. I could theoretically pay off the debts by May but I don't want to.

 

[DLgal]

Our Echo Show's background image is a rotating family album. This morning, DD saw a picture of us dressed up at MNSSHP. She pointed and the picture and yelled, "I go back there. I go back Disney."

Oh man, I totally feel her. I wish we were at Disney right now.

Your daughter is all of us.

 

[Hey Blinkin]

The annual pass fund is to pay for our renewal at the end of August. Our current APs are paid for already. The AP is a non negotiable, for a few reasons I won't get into here. It's a recurring entertainment expense for the year, basically. I just don't want to do the monthly payments option. Want to pay in full for them.

The car payment per month is $432.49 with 28 payments remaining. I want it paid off by December.

The balance transfer minimum payment is $125/month. The balance is currently $7250 with a deadline of 1/15/2021. I also want that one done by December.

Just to clarify, none of those debts will be difficult to get rid of. Its not a matter of paying them off a.s.a.p. My strategy is to hold the money in savings since I'm getting 1.6% in interest there, then at the end of the year, pay off the car and balance transfer, leaving the rest in the savings account to keep earning interest. I could theoretically pay off the debts by May but I don't want to.

Ok, hear me out on this, please.

You say you want to have the car loan done by December which is $7000/10 = $700/mo payment
You say you want to have the CC done by Jan 21 which is $7200/11 = $654/mo payment.

If you take $7k of the savings you have and pay off the car you would free up $432/mo plus the additional $270/mo for the extra money for the payment each month. Then snowball that into the $654 payment of the CC so you will be paying $1354/mo on the CC. If you apply the other $2k in savings to this it would be paid off in 4 months leaving you plenty of time to save the $4500 for the AP's and everything would be free and clear by early to late fall.

I totally get prioritizing your fun money but you can be debt-free sooner than Jan....You may be making 1.6% interest on your savings but you are paying a lot more interest on your car and CC so it is worth paying the debt off ASAP. if you pay for your AP's with that money you are financing them with loans you already have.

 

[DLgal]

Ok, hear me out on this, please.

You say you want to have the car loan done by December which is $7000/10 = $700/mo payment
You say you want to have the CC done by Jan 21 which is $7200/11 = $654/mo payment.

If you take $7k of the savings you have and pay off the car you would free up $432/mo plus the additional $270/mo for the extra money for the payment each month. Then snowball that into the $654 payment of the CC so you will be paying $1354/mo on the CC. If you apply the other $2k in savings to this it would be paid off in 4 months leaving you plenty of time to save the $4500 for the AP's and everything would be free and clear by early to late fall.

I totally get prioritizing your fun money but you can be debt-free sooner than Jan....You may be making 1.6% interest on your savings but you are paying a lot more interest on your car and CC so it is worth paying the debt off ASAP. if you pay for your AP's with that money you are financing them with loans you already have.

No, I'm not paying more in interest.

The credit card is a balance transfer at 0%.

The car loan is at 0.9%

I stand to make more money by letting the money needed to pay both off sit in savings while making minimum payments for now.

The car loan balance is $11,420 right now. If I save up $7000, I can pay it off in December, taking into account the payments between now and then.

Theoretically, the debts are almost "free and clear" right now. I have most of the money sitting in savings to pay them off. I don't NEED to pay them off now.

The first thing I will need a chunk of money for is the AP renewal in August. Having that money earmarked means I won't end up financing it (at 0%, mind you) and have another $400/month expense. What I am trying to do is eliminate all extraneous monthly expenses (car, balance transfer, annual pass payments, etc).

 

[Hey Blinkin]

deleted

 

[DisneyMandC]

I just gave you a very clear easy way to accomplish all of and be debt-free by end of this year. Ok enjoy your debt. You asked for advice and as typical the in debt folks always have some mathematical solution to their problems. If you were so good at math you wouldn't be in debt. Chances are you have no way to afford the payments I laid out because if you could you already would have done that. If you were serious about paying off debt then foregoing an AP would be an easy decision. Seeing as you consolidated multiple cards on a balance transfer your priorities are clear. You were not looking for advice you were looking for others who are in debt to agree with your poor decision. By your math, you will make a whole $161 off that $10k and choose to keep $14k in debt...lolololol. Yikes.

Boy, you sound like a delight.

 

[jen7233]

I just gave you a very clear easy way to accomplish all of and be debt-free by end of this year. Ok enjoy your debt. You asked for advice and as typical the in debt folks always have some mathematical solution to their problems. If you were so good at math you wouldn't be in debt. Chances are you have no way to afford the payments I laid out because if you could you already would have done that. If you were serious about paying off debt then foregoing an AP would be an easy decision. Seeing as you consolidated multiple cards on a balance transfer your priorities are clear. You were not looking for advice you were looking for others who are in debt to agree with your poor decision. By your math, you will make a whole $161 off that $10k and choose to keep $14k in debt...lolololol. Yikes.

What's your problem? They didn't directly ask for your personal advice on finances. While sometimes people on here ask for a viewpoint, it's also just a checkpoint for some as they make their way through their own choices.