Q on overpayments to bills...

iVillage Member
Registered: 12-12-2004
Q on overpayments to bills...
19
Fri, 04-14-2006 - 1:08am
Hi, all. WELL, DH has decided that paying "extra" to gasoline bills, electric bill, cable, cell, etc. is stupid. I tried explaining "snowflake". He gets the part about rounding up, but thinks it's a dumb idea to have paid over on the gas bill so that we have a "credit" balance of $45!!! That's $$$ in the tank, not the bank, BUT everything is paid ahead at least thru May 5th, and on the cell, until June. Taxes-paid! ($1500!). There are expenses coming up (more doc bills for skin); BD parties (three this month). Gas has gone up 11% since last yr, ($3.00+/gal), and airfares, groceries, etc? Up. Extra $$$ in paycheck? None. Sooo--ladies, am I doing this all wrong? I did pay $100 extra to the big kahuna cc, but it will take me 8 months to pay it off. But, it sure is nice not to get socked each month with huge gas and electric bills. Ideas? Whiz.

Pages

iVillage Member
Registered: 12-12-2004
Fri, 04-14-2006 - 2:28pm

Hi, Peg. Well, you and Leanne and Lindsay should be finance teachers. Yes, I am taking "your lessons" and printing them out. If I see it printed out where I can refer to it, then I remember it more. Here's the low-down.

l) Sears. Open account. Available credit line: $8400 Not using, period. O bal for awhile.
2) Capital One account. Active account. Rolled over Discover bal. to 7% on this. Snowflaked $165 (extra payment). Available credit: $15K. Balance: $4992. and change.
3)BofA Flight Fund cc. Available credit: $5K. Open. Havent used in two yrs. Zero balance! Yippee. 4)Discover. Open account. Avail. credit line: $8500. Bal. $686. Have been bad in last two weeks. (more salves, creams, expensive prescriptions from skin doc today, etc.) Snowflaked $200 extra this month.

Soooo----My goal is to keep plugging away on the big Capital One, since I havent "activated" it. The most I can do is about $250 extra per month, but you mentioned start small, so I will start sending more to the Discover..

Paid off:

1) $200 x-ray bill (remember the 8-month waiting game--ins paid $3200!!)
2) $50 doc bill
3) Accountant bill Thanks and thats it. WHiz.

iVillage Member
Registered: 01-25-2006
Fri, 04-14-2006 - 4:09pm

Whiz,
Looks good! You are well under 50% on your debt to avail credit ratio so you really just need to keep making on time payments to improve your credit score. You didn't mention if you've actually reviewed your credit reports but you should do that too and make sure nothing incorrect is on there. Not sure what you mean about 'not activating' the Cap One card. It is still reporting to your credit report if you have a balance even if you haven't activated the actual card. Is that what you mean?

In terms of the payment plan you listed, you didn't mention the Discover rate but if it is higher than the Cap One, I would focus ALL snowflakes onto it and just make your min on the Cap One for now. Also, if you are still using credit cards, you might want to take a minute to look things over and figure out if you should be snowflaking less to avoid that. Obviously snowflaking and using the credit is still better than using the credit and making min payments, but I (and many on the board) am trying to learn to live without the credit at all. If that's you too, you might want to slow down the snowflakes and budget closer to real expenses. It's all a process though.

You're doing great! You'll be on the other side of the debt before you know it!

Peg

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Fri, 04-14-2006 - 4:09pm

Hey Whiz - looks like you've got lots of great advice here so far.

All my best,
Danni

iVillage Member
Registered: 12-12-2004
Fri, 04-14-2006 - 5:53pm
Hi, Danni and Peg, et al---THanks again for help. Peg, you cinched it. I am going to put the max amt of $$ to the Discover. By activating, I meant there is this little tag on the Capital One card you call the ### and activate it. I havent "activated" it so cant use it. I basically transferred most of the outstanding medical bills to it, then I can pay it off. I guess I should start re-evaluating snowflaking also. Am having the ladies help me clean today. Decided I couldnt chance it with blisters all over my hands. Anyway, have a good weekend. Thankful and grateful (but still learning) Whiz.
iVillage Member
Registered: 08-19-2003
Fri, 04-14-2006 - 8:10pm
Basically a slipping fund is putting money away regularly for known expenses, car registration, insurance, home improvement, car repair/replacement. You can use your exhisting saving account. Create a spreadsheet with the categories, and list the dollar figure you have in the savings for each category. Pick a number to top it off at, for instance I do $250 for clothing/shoes, $500 car repair, $1000 for home repair, etc.

Shannon


Pregnancy%20ticker
iVillage Member
Registered: 12-12-2004
Sat, 04-15-2006 - 2:03pm
Hi, Shannon--I know you touched on this awhile back, but the terminology confused me. So, it is like having accounts for different things, right? Vacation fund, car repair fund, etc.? I was leery of opening up more "savings" accounts at different places (DH said no way!), so I might open up savings account #2 at the same bank--one for repairs, one for medical/vet, etc. Problem is, I dont have a huge amount I can put into it. Have tried not to "raid" the e-fund. Can only start with $50/month. Whiz.
iVillage Member
Registered: 01-06-2005
Sun, 04-16-2006 - 8:49pm

If it makes it more comfortable for YOU to pay extra on non-interest bills, do it!

 

Image hosting by TinyPic

iVillage Member
Registered: 10-14-2003
Mon, 04-17-2006 - 12:38pm

I'd definately send the snowflakes to something with interest before the utility bills. Now I have been known in the past when I didn't have anything with interest to go ahead and send the fully budgetted amount to a utility bill. So say I have $70 budgetted for our power bill and the bill is only $59.02. I've been known (if nothing else has interest) to send in the full $70. This will give me a small cushion but the next month I do the full amount of $70 again. Eventually there will be a whole month I don't have to pay.

Stephanie

iVillage Member
Registered: 05-09-2002
Tue, 04-18-2006 - 12:16pm

Hi Whiz,
Sorry it took me so long to respond. Was away from the comouter this weekend...
Anyway, yes, i am getting there...thanks for asking. I am doing pretty good overall but as many others probably feel, its one step forward, two steps back.

I am about $6000 less in debt than I was 8 months ago and thats a good thing! I just opened my bill for a loan and the total amount due is actually lower than my monthly payment! this has taken YEARS and its the one i took out for the ex so how happy was I last night to realize that on Friday, it will be paid off and done with! I was expecting that in June, not April, so that was a really nice surprise.

I do owe the gas company $700 from my last apartment. I called to make a payment plan a few months ago but they said not to worry, i am in good standing, just keep sending payments which I do every other week. Well, turns out they are sending me to collection afterall. :(

So, I am in less debt but the FICO score takes a hit once again. O-well. I have my family and my health so I am good.

How are you? Hope all is well.

Pages