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  1. #1
    Atomic Punk
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    12.07.17 @ 12:54 PM
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    Default Credit Cards, and

    who out there is currently trying to rid yourself from such dependency and/or current debt from them??

    How are you doing it, and such...

  2. #2
    Romeo Delight
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    My goal was to not have any debts by the time I turned 45, which was last Oct. It was very challenging, and at first I really struggled with the feeling of not having stuff. Ya kinda dumb.
    I did'nt exactly make my goal. I still have about $2500 in a personal loan that I will have paid off by July. Happy debt independence to me! Will feel awesome not having credits card debt, no car payment no house payment,,,debt really is a type of bondage.
    What really helped me is that I paid my self first. Even a little can add up over 6 months. Good luck.

  3. #3
    Good Enough Ace Ventura's Avatar
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    I am currently debt free but it wasn't always that way. I went through a nasty divorce about 11 years ago and I assumed most of the marital debt, which was MUCH higher than I had ever known. My whore ex-wife had racked up over 25k in credit card debt that I was unaware of. I know, doen't even ask... After I finalized my divorce, I went to every single comapany that I owed money to and negotiated with them. Month by month, I would just take all of my commission money and slowly pay the debt down. It was an enormous struggle and I sacrificed A LOT. No more nights out at the bar buying rounds of drinks. No more expensive dinners or treating myself to basically anything for a long number of years. I thought about, and looked into debt consolidation but there are a lot of things to look out for. A lot of those companies don't tell you that you can actually damage your credit before it gets any better.

    Now, the only debt I have is what I CHOOSE to have. I have a Gulf gasoline card that I use and pay off about 80% of it per month just in order to have active, revolving credit. My cell phone bill provides the same. For the most part, everything I buy, I pay cash for. I haven't finanaced anything since my car in 1996. I refuse to be financially shackled ever again. It's hard to get there but once you are, you'll physically FEEL better being out from under that sort of pressure.

    Good luck!
    "It doesn't mean that much to me to mean that much to you..." -Neil Young

    "The sun's not yellow, it's chicken." -Bob Dylan

    "If you go out and buy a Van Halen record and put it in your collection, it'll melt your other records." -David Lee Roth, 1981.

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  4. #4
    Eruption
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    I paid off all of my CC debt at the end of 2009. This remains one of my biggest accomplishments, since I paid off $15,000.00 in a little over a year and a half.

    What I did was take all of my statements, and calculated what my payments would be for each if I wanted them to be paid off in 1 year, 18months or 2 years. I decided 18 months was perfect, 1 year had way to high of a monthly payment, and I was too impatient for the two year plan. So I went to a student loan site and figured what my monthly payment would be for each one if I wanted them paid in 18 months. I didn't do the trick of paying off the smallest first I wanted them paid off at the same time, which some may argue is the better way. As I paid them off my interest rates went down, but I didn't redo my calculations, I paid the same monthly amount anyway. I had a note in my checkbook for what I was to pay for each credit card company for the first or second payroll of the month. I worked a second job at a telephone survey company for the bulk of that time, it was a horrible job but at $12.00 was pretty decent part-time pay and it served it's purpose nicely. I also got a roommate, I still have one not the same person because I love the extra money, I realize most of you are beyond that but that helped immensly. I was on a strict budget and really didn't buy more than the necessities. I still used one of my CC's (I can't let go of the points) but I made sure that I paid the current charges every month along with my budgeted payment plan. I used to be quite the shopper but working and slaving away on the goal has really affected my spending permanently I think.

    I never thought I would be debt-free but I think what worked for me is having a strict payment plan and sticking to it no matter what. Those 18 months sucked but I wouldn't trade the end result for anything.

  5. #5
    Gird your loins Daisy Hill's Avatar
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    12.09.17 @ 08:36 PM
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    First you MUST make sure that you have enough cash on hand ot cover your living expenses for one year.....if you don't have that set aside, you shouldn't even be thinking about anything else....some advisors say that in this economy you should have 18 months set aside

    How to pay off cards kind of depends on what you are trying to accomplish.

    If you are trying to improve your credit score, you should set a plan to pay down cards to get to the point where no credit card is over 50 percent of the available credit....and don't cancel any of those cards...just don't use them...even if the card is cancelled by the consumer, it can lead to a mathematical calculation of the percentage of credit being used up that will LOWER you FICO...weird, but it happens

    if you are just trying to get debt free there are 2 ways of looking at this ....some advisors say that you should look at the lowest balance cards first and pay them off first so that you have fewer bills coming in and have that feeling of accomplishment....and gives you the drive to pay off the others

    the second plan involves paying off the highest interest rate card first....that way saves you the most money, but to some, it takes so long that they don't feel that they are getting anywhere

    depending on how much you owe and how many cards you have, a combo of the methods works best....if you have a high interest rate, but low balance card (usually they are "store cards") pay that off....one fewer bill!

    and then work on a higher interest rate card for a while

    if you get a little windfall....a bonus or tax refund...knock off another one of those lower

    so really it depends on what you are trying to accomplish and what keeps you awake a night...the number of bills (or call!) coming in, the amount of debt you are carrying, or your FICO score

    survivor of the Bowling Green Massacre 9-3-2016 BGSU 10 OSU 77

    She was warned. She was given an explanation. Nevertheless, she persisted.

  6. #6
    Forum Frontman It's Mike's Avatar
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    12.11.17 @ 05:13 AM
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    Default

    i think people really complicate this far more than they should. The fact of the matter is that any outstanding credit on a card is a horrible use of your money. Simply put if you have outstanding credit you need to sit down and make a budget and find out (1) why you're gotten to where you are and, more importantly (2) is this a problem that will continue into the future. If you can put together a balanced budget (and this should include an amount of money for contingencies as well as saving for big ticket future items that will happen and an item called debt repayment which will be your credit card repayment). Also ensure that you have wiggle room (ie if you bring in 500 bucks a week - don't budget all 500, that won't work as you will miss stuff). The key is to be honest with yourself when you buget, don't lowball numbers - it catches up.

    Assuming you can do this, stop using your credit cards now or only use them for budgeted items and immediately repay them from your bank account (not at the end of the month, immediately). You'll repay the cards in time and once they're done (and more importantly a habit has been established) you can take away the debt repayment line from your budget and add that money to some sort of savings programs. You never know when something will surprise you. Even the most insanely orgnanized person can be thrown for a loop when he's told that his wife is having twins.


    At least this is what i do and I've never had a nickel of debt outside of my mortgage. And that was scheduled to be done before our son was done elementary school - the twins might push that back a year or so.

  7. #7
    Sinner's Swing!
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    11.25.17 @ 09:06 AM
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    Default

    Quote Originally Posted by voivod View Post
    who out there is currently trying to rid yourself from such dependency and/or current debt from them??

    How are you doing it, and such...
    I recently got rid of my debt. I'm telling all of you, no matter what means you have available, just do it.
    I'd like to give a little history of how mine started. it was the classic snowball effect.
    Years ago, out of school, I had a car, and the transmission went in a big way. I couldn't locate a replacement, so I ended up having to get it repaired. The repair cost close to 3 G's, and being wet behind the ears fresh in a job....I didn't have that. I approached my bank, and they offered me a credit plan, actually more of a LOC, through Mastercard for a very low prime rate of 4.3%.
    Did it. Started paying down right away, then I was in a car crash and broke both my legs and arm. Could not work, and disability barely covered the bills. The card was well excersized for over a year and a bit. Still making my payments, but the debt was increasing faster then I could pay it off.
    $5.000.00+, okay?
    Then came the big shitstorm.
    Soon after I got back to work and things were looking up, I got a letter from my bank stating that they were merging with another institution, and therefor would be dropping some of their credit plans, selling them to large American banks. Ohhhhhh.....
    Well let's just say that 4.3% quickly jumped to 24%!
    With student loans, cost of living in Vancouver, and normal things coming up, then finding out I had a crooked accountant, and then owed 20.000.00 bucks in back taxes to the government, things got out of control.
    I was 40.000 in the hole!
    Long story short. Got an inheritance, and paid the fucker off in full.
    Do it! You'll live longer from the lack of stress!

  8. #8
    carpe damn diem billy007's Avatar
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    12.11.17 @ 05:11 AM
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    I may be in the minority, but I like using the credit card as much as possible. I like that record of what I bought, when I bought it and where I bought it. I like to be able to get a picture of where my money's going. If I lose a credit card, it's a minor inconvenience - I call them, tell them I've lost it, they cancel it and issue me a new one. If I lose a hundred dollar bill - it's gone - never coming back.

    My wife is very sloppy with money. Get in her car, and usually there's bills stashed in multiple places, change in the cup holder, on her dresser, on the table, on the floor. She charges, she pays cash, so if you try to get a track on how much she's spending in a given month, you can't. I don't like that. It's hard to put your finger on waste. Just how much did you spend on Dunkin Donuts coffee last month? Or cigarettes? We don't know.

    I've had to crawl out of the hole twice. The first time was when I was single and it was all my own doing. Mostly bad habits that I'd gotten to when I was young not getting it through my head not to do things that way. A little over ten grand that I chipped away by signing up for "0% for x number of months" credit cards and moving as much as I could so that I was paying off the principal and not interest when I made my payments. The second time was when she lost her job a few years ago and we just weren't able to pay everyone until she found a new one. Insane amount, some of which I'm certain now existed before she lost her job. More than Ace up there. Much more. It's all gone now, thanks to help from a debt management company (and very little forgiven by the card company), but I worry we could head down that road again with the way she manages her part of the money. Before she left for Maryland, we figured out what her expenses should be and mine were going to be tight at the time (as I still had the final few months of debt management payments), but she would have enough to provide my spending money. Well, now the debt management payment's gone, so she doesn't need to have money to help me, but she's telling me she's behind. Why? Again, can't put a finger on it because she pays too much cash instead of putting everything on a card where it could be breaking down (though I'm not sure she'd be willing to sit down and look at it anyway).

  9. #9
    Sinner's Swing!
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    11.25.17 @ 09:06 AM
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    It was a tough pill to swallow, as I would've loved to have put that money toward a mortgage, but in all honesty, it's the best thing I ever did. I wasn't expecting the money, and like I said, I always made more than the minimum payments, but the higher the debt got, the less it did with all the compound interest, so for many years, my debt was first and foremost on my mind every waking hour, and often in the middle of the night.
    The thing is that i was not a problem spender. All the debt came about from basic essentials, divorce, cash flow problems, and unforeseen emergencies.
    I'm not trying to sound preachy, but whatever money comes your way, if you can afford to put it toward that debt, it's a very good thing to do.
    Good luck to you all.
    JJ

  10. #10
    Hang 'Em High sickman's Avatar
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    Default

    Ok linkers, I have a dilemma that I would love some input on. It does have to do with the topic.

    About 5 years ago my wife and I took out a second mortgage on our house to pay off approx 30,000.00 in CC debt. I will admit about 8k was mine, the rest much to my dismay was not. This second mortgage has a 6.8% apr for 30 years. My 1st mortgage has 5.5% for about another 25 years.

    Over the weekend I applied for a new mortgage and was approved today for a 15 year fixed at 4.25% with a total monthly payment of about $1500.00. Right now I currently pay 1100/month for the first and my wife pays 230/month for the second. Now all of it will me my nut to pay.

    While I know that fiscally this new loan makes sense I am a little hesitant on doing it. The 1500/month just seems like a lot. I know I can afford it but there is this hesitation for fear of some day losing my job and not being able to afford to pay my mortgage. On the upside I could have my home paid off by the time my youngest graduates high school.

    Any input would be greatly appreciated.
    I used to jog but the ice cubes kept falling out of my glass.

  11. #11
    Sinner's Swing! graeme's Avatar
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    11.19.17 @ 09:41 AM
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    I got into debt paying for education. It has paid for itself, even with interest, many times over.

    Having said that, I will never borrow again.

    I hated that feeling. It sucked at my soul every day.

    From now on, if I need something I cannot afford, I will save and wait.

    It's funny how it happens faster than I think it will. One, Three or six months of patience is better than two years of anxiety.

    Debt is slavery.
    A man could lose himself in a country like this.

    My blog at http://tollins.blogspot.de/

  12. #12
    Romeo Delight
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    01.27.17 @ 06:20 AM
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    Quote Originally Posted by voivod View Post
    who out there is currently trying to rid yourself from such dependency and/or current debt from them??

    How are you doing it, and such...

    Check out "The Total Money Makeover" book by Dave Ramsey and use his DEBT SNOWBALL.
    I have personally used it and it works. Check out daveramsey.com and there are also podcasts of his radio show

    will change your financial life if you follow his advice......

  13. #13
    Romeo Delight
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    01.27.17 @ 06:20 AM
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    Quote Originally Posted by sickman View Post
    Ok linkers, I have a dilemma that I would love some input on. It does have to do with the topic.

    About 5 years ago my wife and I took out a second mortgage on our house to pay off approx 30,000.00 in CC debt. I will admit about 8k was mine, the rest much to my dismay was not. This second mortgage has a 6.8% apr for 30 years. My 1st mortgage has 5.5% for about another 25 years.

    Over the weekend I applied for a new mortgage and was approved today for a 15 year fixed at 4.25% with a total monthly payment of about $1500.00. Right now I currently pay 1100/month for the first and my wife pays 230/month for the second. Now all of it will me my nut to pay.

    While I know that fiscally this new loan makes sense I am a little hesitant on doing it. The 1500/month just seems like a lot. I know I can afford it but there is this hesitation for fear of some day losing my job and not being able to afford to pay my mortgage. On the upside I could have my home paid off by the time my youngest graduates high school.

    Any input would be greatly appreciated.
    I am a huge Dave Ramsey follower, and he only recommends 15 year fixed mortages. His recommendation is that the monthly payment is not more than 25% of your take home pay.

    He also recommends an emergency fund of 6 months of expenses.

    Check out his book "The Total Money Makeover."

    Based on Sammy's book, sounds like Alex may want to read it

  14. #14
    Top Of The World HissingCobra's Avatar
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    I'm 42 years old with a wife, 2 daughters and a home. Like everyone else in America, we also have bills. However, we try to keep those bills to a minimum and pay them in full every single month, with the exception of our Credit Card. Currently, it's about $2,000 and I'm freaking. Whenever it gets as high as $2K, we simply stop using it and pay at least $100.00 per month on it. Some years we can pay it off if I'm working side jobs or whatever but if we can't, we take our entire tax return and pay it off (which we'll be doing in about another month). Other than that, the only other loans we have are on our home (7.5 years worth of payments left) or on our daughter's used car (2 years worth of payments left). In essence, we sacrifice a lot compared to a lot of our friends and we're in a lot better financial situation because we've been relatively smart with our money. It comes down to the basics. YOU CANNOT SPEND MORE THAN YOU MAKE! If you do, you have to keep it to a minimum and work hard to take care of that debt before assuming more.

    We had to learn as we went because both of us came from families that had a horrible track record in the money keeping department. We started off with a 30 year adjustable mortgage that started with a rate of 5.5% and went up a point per year for each of the first five years, topping out at 10.5%. After two years and when the rate was about to move up to 7.5%, we refinanced a new loan for 30 years at a locked in rate of 6.6%. We lost two years but we were able to use that extra savings of the low interest rate to pour more money into re-doing every single room in the house. So, now we're back into a 30 year 6.6% fixed rate mortgage of which we paid on for another 6 years (24 years left to pay). At this point, we re-financed into a 15 year mortgage at 4.25% interest rate. Our payments went up $100.00 per month but we shaved 9 years off of the mortgage, eliminated PMI insurance (which was a scam anyway) and realized that we will own this house someday. We paid that mortgage for another 5 years and ended up refinancing again, this time for 9 years at 3.75%. That's where we sit today and we're finally down to 7.5 years. My advice? Use your brain to see what's out there for alternatives to help you reduce your debt!

    As for cars and such, I buy myself used Fox Bodied Mustangs from the '80's because I loved them when I was a kid and wanted them in the worst way, the problem was that I couldn't afford them in high school when they were brand new. These days I can pick up used ones in relatively mint condition for $5,000-$6,000. I do my own car repair work and know these cars inside and out, keeping any repairs down to manageable levels. For my wife's cars, I buy her a brand new car about every 11 years. We buy them new and keep them until they're dead, usually getting rid of them due to rot problems. It sure is nice when there's no car payments due every month!

    What I see today is that people want to have it all and they want it now. They do not want to work hard to earn what they have. It's easier to borrow and to keep on borrowing so that they can have the latest and the greatest. This means that they're buying houses that are way above their means, cars that are way above their means, and other high priced items as well. This leaves them short on money to live on and they don't realize it until it's too late. Another thing that I see today is that it seems that nobody wants to fix anything anymore. It's easier to hire someone (finance their repair bill) or throw it away and replace it (usually with a higher priced model on credit). It's a terrible cycle that is difficult to get rid of and it can cost you in the end.

    Case in point: We have friends of ours who bought their house two years before we did and they paid around $84,000 for it. Twenty years later they are now in the process of losing it and they're filing for bankruptcy. They've refinanced that original mortgage so many times and have taken out more and more money each time and now they owe $289,000 on it! Their mortgage payment is $2,600 per month! It doesn't take a brain surgeon to figure out what they did wrong. Oh, that extra $206,000 that they "borrowed"? Where did it go? Who knows because they have nothing to show for it. Our friendship became strained, as they would be going out every single weekend to concerts that cost $100.00 per ticket, camping expeditions for entire weekends, vacations in Florida every years, etc...etc...etc... and my wife and I couldn't keep up so we chose to simply avoid them. Now they are "Victims" of the banks and the banking schemes. I find it disgusting that they can even think this way but that's what seems to be happening today...........

    I digress. Just remember that nothing replaces hard work, using your brain to better yourself, or learning how to fix something on your own. Of course, these are my general observations and they do not apply to everyone or everything, take them with a grain of salt.

    Oh, sorry about the length of this post but if you all saw what my wife and I make compared to the rest of the working class families, it's on the low end of the scale, yet we are in a much better financial position and can see the light at the end of the tunnel.
    Last edited by HissingCobra; 03.28.11 at 07:44 PM.

 

 

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