we are really gonna do it

[moneymonkey]

Scary, but we are excited.

 

We owe:

Car1 = 12,000 @ 6%

Car2 = 9,000 @ 6%

CreditCards = 15,000 @ 18%

FurnitureStore = 4,000 @ 0%

____________________________

 

We are about to spend almost all our savings and tax refund to:

Pay off Car2, and 4000 of credit cards.

 

I am about to move the rest of the credit cards to a 0% card (1year).

Next we plan on paying 4k a month on car1, then CC at 0%, then FurnitureStore.

 

THEN we will be debt free !!!!!!!!!!!!!!!!!!!!!!!! --- minus our home.

 

 

We plan on doing this all by october 2008, wish us luck

 

 

 

$1,000 to start an Emergency Fund

Pay off all debt using the Debt Snowball

3 to 6 months of expenses in savings

Invest 15% of household income into Roth IRAs and pre-tax retirement

College funding for children

Pay off home early

Build wealth and give!

Invest in mutual funds and real estate

 

 

Edited by admin to remove link.

[hegemony]

why would you want to pay more interest than you have too? if you follow nutbar ramsey you will pay a zero % loan before an 18% loan

 

have you considered adjusting your W4 so that you don't have a large tax refund and thereby have the money thorugh out the year to paydown debt?

[TeeSharice]

though the poster is not advising anyone else to follow DR's advice, I must note that DR's philosophy doesnt not agree with much of the CBs philosophy.... and in that light, I remind everyone of the following

 

 

We here at CreditBoards recognize that there is no "one size fits all" method to effectively manage one's finances. Many financial "experts" out there sell advice on money management, and some are even very successful. At CreditBoards, our policy is one that endorses financial restraint, responsibility, and the wise and responsible use of credit.

 

In today's world, living a life without credit is simply impractical and not cost-effective. Whether it is problems renting a car, higher car insurance rates, or a sub-prime mortgage, those with poor or no credit standing are forced to pay extra. Perhaps in a perfect world, this would not be the case, but it is the world we live in today.

 

As a result, CreditBoards cannot and will not endorse any financial or money management system that advocates the complete elimination of credit from one's life. We run this site as a service to our members, to help others learn the lessons that we ourselves learned. We can no longer in good conscience allow poor financial advice to be posted on this board without taking action; such advice can cost our members additional money and undo months or years of hard work. Therefore, posts containing such advice will be moderated by management, and posters who made a habit of posting such advice may be subject to warnings, moderation, or even banning. We will not allow CreditBoards to be used as a device to distribute bad financial advice and information.

 

 

Thanks,

Management

CreditBoards.com

[hegemony]

Scary, but we are excited.

 

We owe:

Car1 = 12,000 @ 6%

Car2 = 9,000 @ 6%

CreditCards = 15,000 @ 18%

FurnitureStore = 4,000 @ 0%

____________________________

 

We are about to spend almost all our savings and tax refund to:

Pay off Car2, and 4000 of credit cards.

 

I am about to move the rest of the credit cards to a 0% card (1year).

Next we plan on paying 4k a month on car1, then CC at 0%, then FurnitureStore.

please stop and think about this...do you really think paying off a zero percent loan is better than paying of something at 18%? This is exactly why DR's one-size fits all B.S. snowball is expensive.

 

It sounds like you are getting 13K in a refund (tax refunds are a terrible idea IMHO but that is a different topic).

 

You are so so so much better off paying 13K on the 18% debt. 18% is extremly high interest.

[themishmans]

When does the 0% reset and to what? I know that some furniture stores charge you interest from date of purchase at some ungodly rate if you don't pay off before the due date. In that case, paying off the 0% loan may not be as stupid as it sounds.

[hegemony]

When does the 0% reset and to what? I know that some furniture stores charge you interest from date of purchase at some ungodly rate if you don't pay off before the due date. In that case, paying off the 0% loan may not be as stupid as it sounds.

I didn't say it was stupid I said it was more expensive.

 

Do you think paying a 6% auto loan before 18% credit card debt is smart?

[moneymonkey]

why would you want to pay more interest than you have too? if you follow nutbar ramsey you will pay a zero % loan before an 18% loan

 

have you considered adjusting your W4 so that you don't have a large tax refund and thereby have the money thorugh out the year to paydown debt?

 

Sorry - my post probably was not clear enough..

 

We owe:

Car1 = 12,000 @ 6% ----> Second balance to pay off.

Car2 = 9,000 @ 6% ----> First balance to pay off - This Month.

CreditCards = 15,000 @ 18% ------> Paying off 4k of this now, moving 11k to a 0% CC (ends april 09).

FurnitureStore = 4,000 @ 0% ------> Fourth and last to pay off as it is 0% for term of balance.

 

 

I would also like to ensure everyone knows I would'nt have been approved for the 0.0% 15,000 BOA Visa I am moving my last debts to if it were not for CB.

 

Also, I did fix my tax info - was working 2 jobs when I set it up years ago and forgot to ever change it:)

 

 

I also need to add that we havent read any of Daves books, his show simply got us excited about the idea of being debt free.

 

Hope that clears things up..

Edited February 3, 2008 by moneymonkey

[Cactus Flower]

why would you want to pay more interest than you have too? if you follow nutbar ramsey you will pay a zero % loan before an 18% loan

 

have you considered adjusting your W4 so that you don't have a large tax refund and thereby have the money thorugh out the year to paydown debt?

 

 

that would all make too much sense.

 

Not a Dave Ramsey fan.. sorry. There is not a lot of rhyme or reason to some of his tactics.

Edited February 3, 2008 by Cactus Flower

[Athena53]

I DO wish you luck, moneymonkey. While no one here buys DR's "all debt is evil" philosophy, getting rid of high-interest debt that keeps you awake at night, and not owing more than your cars are worth, are good moves.

 

I agree with earlier posts that if your tax refund is that high, you're essentially loaning money to the government at zero% and paying 18% interest on some of your debts- not a good trade-off! Take a look at your withholdings and change them so you take home more money every month and get less of a refund next year. You'll be out of debt faster.

[54regcab]

If you want to do things the Dave Ramsey way, break the $15K in CC's into individual credit cards and knock them off one at a time smallest balance to largest. Even if you have one CC at a high rate I'd pay that before getting aggressive on the car loans.

 

I'd take a careful look at the 0% furniture financing. Many times they will 'backcharge" all the interest accrued if the balance is not paid 100% in FULL at the end of the promotional period.

 

The 0% CC transfer MIGHT work if you don't get ratejacked, it's a very common practice with credit cards.

[saladdin69]

"Invest 15% of household income into Roth IRAs and pre-tax retirement"

 

 

Ramsey works for a certain sect of people but many here weight the money side more then the emotional.

 

If I stopped at only 15% investment rate I would be working until I was 4237452361456.

I prefer my 40% rate. I also think the saving for kids college should be much lower on your "list."

 

 

 

saladdin

[54regcab]

saladdin, is your house paid for?

[KYBOSH]

Dont care how or whose method you use to pay done your debts... just Get 'er Done!

[Cactus Flower]

I DO wish you luck, moneymonkey. While no one here buys DR's "all debt is evil" philosophy, getting rid of high-interest debt that keeps you awake at night, and not owing more than your cars are worth, are good moves.

 

I agree with earlier posts that if your tax refund is that high, you're essentially loaning money to the government at zero% and paying 18% interest on some of your debts- not a good trade-off! Take a look at your withholdings and change them so you take home more money every month and get less of a refund next year. You'll be out of debt faster.

 

I agree with this idea.

There is no harm in getting back a little of a refund if you are truly worried about having to pay (and thus having to come up with the money)

but if you are getting back 4 figures, there is something wrong. You are better off with that money on your paycheck or in your 401k, or a Roth IRA (or something) but not a free loan to the government.

[cookie07]

HTH does one get a $14000 refund? The most DH and I ever got was maybe $3000. My SIL and BIL say they are going to get a $12000 to $15000 refund and I just don't see how that is possible?!?

[hurricanesfans27]

HTH does one get a $14000 refund? The most DH and I ever got was maybe $3000. My SIL and BIL say they are going to get a $12000 to $15000 refund and I just don't see how that is possible?!?

 

 

I got 10k one year mainly because of rental expenses and tuitions and I was married claiming 9

[cookie07]

That's what I don't get about BIL & SIL. I think SIL said he claims 1 maybe 2 they have four kids but he can only claim three as the other is hers with her ex, they own their home, it just is mind boggling to me to see a refund that large. I guess I could only wish as I will always have to pay.

[moneymonkey]

HTH does one get a $14000 refund? The most DH and I ever got was maybe $3000. My SIL and BIL say they are going to get a $12000 to $15000 refund and I just don't see how that is possible?!?

 

 

My refund is about 9k, *Mostly because I worked 2 jobs when I setup my W4 a few years ago so I took out extra taxes to cover the 2nd 1099 job.

 

But I also have a rental property that runs at a loss and just had a kiddo !!!

 

I have since fixed my w4's and hope to pay/come out even next year rather than get a refund.

[cookie07]

HTH does one get a $14000 refund? The most DH and I ever got was maybe $3000. My SIL and BIL say they are going to get a $12000 to $15000 refund and I just don't see how that is possible?!?

 

 

My refund is about 9k, *Mostly because I worked 2 jobs when I setup my W4 a few years ago so I took out extra taxes to cover the 2nd 1099 job.

 

But I also have a rental property that runs at a loss and just had a kiddo !!!

 

I have since fixed my w4's and hope to pay/come out even next year rather than get a refund.

 

I'm hoping that between the fact that we bought a house late last year (duplex we live in one side) and my DH's business lost money again that we won't owe as much as last year.

[CamperMan]

Scary, but we are excited.

 

We owe:

Car1 = 12,000 @ 6%

Car2 = 9,000 @ 6%

CreditCards = 15,000 @ 18%

FurnitureStore = 4,000 @ 0%

____________________________

 

We are about to spend almost all our savings and tax refund to:

Pay off Car2, and 4000 of credit cards.

 

I am about to move the rest of the credit cards to a 0% card (1year).

Next we plan on paying 4k a month on car1, then CC at 0%, then FurnitureStore.

 

THEN we will be debt free !!!!!!!!!!!!!!!!!!!!!!!! --- minus our home.

 

 

We plan on doing this all by october 2008, wish us luck

 

 

 

$1,000 to start an Emergency Fund

Pay off all debt using the Debt Snowball

3 to 6 months of expenses in savings

Invest 15% of household income into Roth IRAs and pre-tax retirement

College funding for children

Pay off home early

Build wealth and give!

Invest in mutual funds and real estate

 

 

Edited by admin to remove link.

 

Congratulations!!!

My wife and I have been following Ramsey's plan for three years now and let me tell you it works great! We don't even own a credit card; much less have any consume debt any more. Our house will be paid in full in 20 months!!! Woo Hoo! We have been tithing regularly to our church and helping people financially in our community. Ramsey is right, when you start doing smart things with money God send more your way. God says to himself, there's a smart one that manages his money well; let me send more his way so he'll continue to help others.

[hegemony]

Congratulations!!!

My wife and I have been following Ramsey's plan for three years now and let me tell you it works great! We don't even own a credit card; much less have any consume debt any more. Our house will be paid in full in 20 months!!! Woo Hoo! We have been tithing regularly to our church and helping people financially in our community. Ramsey is right, when you start doing smart things with money God send more your way. God says to himself, there's a smart one that manages his money well; let me send more his way so he'll continue to help others.

 

I hope you enjoy paying more for insurance. I hope you never have to travel by plane or use a hotel.

 

Ramsey's advice is very expensive to follow.

 

God does not care about your credit or finances.

 

ETA: since you are new to CB (welcome by the way) you may want to read this post:

 

http://creditboards.com/forums/index.php?showtopic=243891

Edited February 13, 2008 by hegemony

[radi8]

I hope you enjoy paying more for insurance.

 

 

The discount for good FICO can be 40% or more.

[hurricanesfans27]

I hope you enjoy paying more for insurance.

 

 

The discount for good FICO can be 40% or more.

 

 

some people will never learn lol

[radi8]

I hope you enjoy paying more for insurance.

 

 

The discount for good FICO can be 40% or more.

 

 

some people will never learn lol

 

Ramsey. I wonder how much he earns directing people with no FICO score to his ELP "partners".

Wouldn't it make more sense to maintain a decent FICO (even if you never, ever go into debt) so you can do the choosing?

For giggles, ask your auto insurer what rate tier people with no FICO are put in. It's not the best.

But heck, you can always go on his radio show and yell "I'm Discount Free!"

[larson0818]

But heck, you can always go on his radio show and yell "I'm Discount Free!"