Hiding late mortgage payments, back in CC debt. Hi again.

iVillage Member
Registered: 05-09-2002
Hiding late mortgage payments, back in CC debt. Hi again.
14
Sun, 01-01-2012 - 10:15am

I've been here on and off for a decade.

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iVillage Member
Registered: 08-24-2007
Hi ldp328 and welcome back to the boards.

I just wanted to chime-in with demontespan. Take what you will find useful from various financial plans and then morph it into something you can use -- don't feel pressured to follow Dave Ramsey letter-for-letter.

Like demontespan, I also don't use the envelope system. And I didn't destroy my credit cards. In fact, I tried buying groceries with cash, but eventually reverted back to my credit card. Cash just didn't work for me and I like collecting grocery points (I average about $250 in free groceries per year). I understand that for others, it's hard to control themselves with a credit card, but for me it isn't the case. I paid off over $16,000 in credit card debt and it was so painful, it keeps me in check! Credit cards don't tempt me.

I also made regular retirement savings contributions while paying off my debt.

I do use sinking funds -- they give me so much peace of mind and have kept my finances so organized, that I would never revert back to my old way of handling money.

And I did save the $1,000 emergency fund first and it was a Godsend. It helped me not fall backwards during my debt-repayment years.

Just take whatever tips resonate with you and ditch the rest.

Good luck!

Kate


empty purse

iVillage Member
Registered: 04-16-2008

This is what I can think of right now:

1.

iVillage Member
Registered: 05-09-2002
Ahhhhh thank you!!! Me too. He drives me NUTS. Gazelle like intensity etc., etc. I feel like it is not the way to go at all. At least for me. What are some of the "rules" you violated that worked for you? Would love to hear them if you are open to sharing.
iVillage Member
Registered: 04-16-2008

Just want to add although there are a number of Dave Ramsey fans at this board, I cannot stand him!

iVillage Member
Registered: 05-09-2002
Hi I tried to PM you, but I couldn't figure out how. I just looked into Dave Ramsey again, was trying to go in with an open mind, was excited about it. But I just found out he declared bankruptcy in 2008!!! I didn't know that! I can't fathom following his advice on gazelle like intensity now. It was deflating to find this out. I could be a gazelle too if I started with a clean slate, but instead I'll keep plugging. I was actually looking forward to reading about his advice again but not now. I am not judging anyone who files, but for Dave Ramsey to have filed recently? It would be like having my accountant not filing his taxes on time. Sigh. I was disappointed.
iVillage Member
Registered: 05-09-2002

Thank you for your message.

iVillage Member
Registered: 05-09-2002

Thank you so much Liz. Yes, I am scared now so I am throwing money at the efund. It feels good. The mortgage thing is on track again. I can't pay the entire thing with my paycheck anymore because of the student loans (I get a 4 month break for my last semester, but then it kicks in again) because it is a two family so we can either have one income and rental income or two incomes and no rental income right now, but I can't do it all on my check. But you are right, I am scared now and actually....I love it. I am so ready to save I got all the coins together to roll up and my husband and I talked about no trips, no nothing, until we are out of debt. We had to deplete $20k when we first moved in for two new boilers and then no more efund, so hence the CCdebt. No good I know, but at least looking back, I know how the major one (AMEX) got as large as it did for both of us. I used to be able to throw money at it and get it back down to nothing but not anymore and it scares me. It felt so good to be debt free and I'm ready for that again that is for sure. (When I say debt free personally I mean no debt other than student loan and mortgage.) Wisdomtooth I admit I am no gazelle so the Dave Ramsey books are really hard for me to dig into. I don't like being in debt but I also know I am willing to give up eating out, etc., and as I said, making my own coffee, doing things to save money, but my passion is travel and I am not willing to completely give that up. I will cut back to every other year, but not all the way and I'm ok with that. So thanks but no thanks!

iVillage Member
Registered: 12-10-2009
Welcome back, congrats on the degree I also think about school but am really hesistant also. I understand how slippery of a slope debt can be. I am on maternity leave and we are begining to feel the pain. I realize lately about my self is that I won't touch the savings I have for my girls but my own efund is easily depleated with "wants". My point is it is really easy to know what we need to do but the hard part is doing it. So catch up now while you are scared:). I started my efund again last paycheck and this year I am going to treat it how I treat my daughter's savings now that I realized my pattern.
Warmly, liz

Liz

student loan paid off 2010

Bathroom remodel loan paid off 2013

Pending Car loan to be paid by the end of 2014!!!!!

 

Community Leader
Registered: 01-03-2004

Hi,

I'm the "divorce" CL but I make my living teaching financial literacy. (Lucky you!) Here's my two cents: (Ahem, clearing throat....)

1)CUT UP your credits. Don't just put them away. Cut them up! You're all ready maxed out and you can't use them any way (without costing you more in over limit fees, etc.). Just cut them up.

2)Pay your mortgage FIRST. Always! Never, never, never pay your other bills before

Community Leader
Registered: 08-25-2006
Welcome back!

Definately get back on track with the mortgage. I did that years ago and well, you know how that story usually goes. A big mess and finally a loan modification after 9 months of back and forth while in forclosure.

Point being....you are right to change that first, and change it now. Once you cross that line they stop taking your money and it is a pain to get it straightend out, even if you have the money.

Don't mean to pound home what you already know, but I just know how EASY it is to fall into that and how EASY one little mishap, like a car repair, can mess up the "pay with my next check" plan.

I understand the "waiting for his check for his part of the bills," because I do too, but I always pay the mortgage with my check.

I was also out of debt about 4 years ago, but I learn from each phase of my financial and debt journey and always learn a new lesson along the way. Is my one CC debt of $13,000 crazy? Yea, for my income level it is. But this is nothing compared to some of the messes I have been in the past.

Hang in there. You can do it again!
Serenity

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