http://www.destroydebt.com/blogs/helpmepayoffmydebt.html Help Me Pay Off My Debt www.destroydebt.com Sun, 12 Apr 2009 12:21:07 GMT webmaster@destroydebt.com webmaster@destroydebt.com http://www.destroydebt.com/blogs/helpmepayoffmydebt/2199-my-inner-economy.html http://www.destroydebt.com/blogs/helpmepayoffmydebt/2199-my-inner-economy.html Sun, 12 Apr 2009 12:21:07 GMT In the last few months I have been blessed with the desire to become debt free.  I have sold stuff and canceled services (cable, the fastest of the high speed internet) all in the name of becoming debt free. I have now taken a step back and looked at what I have accomplished.  In the ... In the last few months I have been blessed with the desire to become debt free. 

I have sold stuff and canceled services (cable, the fastest of the high speed internet) all in the name of becoming debt free.

I have now taken a step back and looked at what I have accomplished. 

In the span of six months, I have taken my debt load of $45,500 and turned it into a debt load of $39,164.  However, through creative money maneuvering I now own my car and have much, much lower APRs.  You can find the details here (personal website).

This may not sound like much, but that is because I left out the best part! 

I also have cash-on-hand. 

My cash reserves total about $11,000.  This money will be used to pay off my 0% intro rate in August when it becomes due, as well as serving as an "Emergency Fund" until that date.  When the day comes to pay off my 0% card, I am hoping to have more than what I owe on it so the 'excess' cash becomes my new emergency fund.

So, to be completely accurate, my 'net' debt load would currently be $28,164 or about 60% of what it was August of last year!

It is a great feeling to reflect on!

Six months ago, I wouldn't have thought that I would be so happy to have lived a half year on bare minimums and "cheap" entertainment.

As you strive to pay off your debts, please keep a picture in your mind of that day when the last bill gets paid! 

You (and I) will love it!]]> http://www.destroydebt.com/blogs/helpmepayoffmydebt/790-what-is-wrong-with-the-debt-snowball.html http://www.destroydebt.com/blogs/helpmepayoffmydebt/790-what-is-wrong-with-the-debt-snowball.html Wed, 25 Mar 2009 02:53:09 GMT The Debt Snowball. This technique was made famous by the great American Dave Ramsey, but it has one major flaw... In order for it to be effective, you have to be the most un-disciplined person (in order to get deep in debt) who suddenly became the most disciplined (so you can pay off that debt).&n... The Debt Snowball.

This technique was made famous by the great American Dave Ramsey, but it has one major flaw...

In order for it to be effective, you have to be the most un-disciplined person (in order to get deep in debt) who suddenly became the most disciplined (so you can pay off that debt). 

Why is this a problem? 

Most people can't overcome their troubles, at least not without some help.  Don't get me wrong, those who need a constant pat on the back should snowball away, but what about those who have a tendency to slip?  I have that problem, and I am not afraid to admit it!

I occasionally let myself slip and purchase some books, video games, or DVDs..  Everyone does, we're human! 

Why should we, knowing that we are going to slip, pay off the smallest debt first? 

This will only prolong the pain of paying people money for borrowing their money!

The conclusion?

If you need the constant 'win' of getting a debt paid off, please, use the debt snowball method. 

However, if you are okay with admitting that you will struggle with your attempts to pay down your debt.  Why use the method that will extend that pain of interest payments even farther?]]> http://www.destroydebt.com/blogs/helpmepayoffmydebt/457-do-you-read-what-you-sign.html http://www.destroydebt.com/blogs/helpmepayoffmydebt/457-do-you-read-what-you-sign.html Sun, 22 Feb 2009 11:29:18 GMT A local radio station has a show called 'Money Talk'.  I am sure that my community can't be the only one to have such a unique (sarcasm) name such as that...  But, I am wondering if it has a unique problem. I was listening to it the other day, and a lady had called in about her mort...
I was listening to it the other day, and a lady had called in about her mortgage.  This was her situation:

She had a ARM.
It was set to adjust next month.
It's "adjustable" piece was based on LIBOR.
...
and that was all she knew!

The guy on the call obviously couldn't comment on it for one obvious reason, LIBOR + what?  Not to mention, her blaringly obvious showing that she did not read any of her mortgage terms. 

Has anyone else out there decided to spend (I think it was...) $300,000 without checking every detail?

The more I hear about the 'mortgage crisis', the more I think...  Those getting foreclosed on need to be, or else they are just going to do this again.]]> http://www.destroydebt.com/blogs/helpmepayoffmydebt/366-how-much-is-enough.html http://www.destroydebt.com/blogs/helpmepayoffmydebt/366-how-much-is-enough.html Sat, 10 Jan 2009 02:21:27 GMT I am at a point in my quest to be debt free where I do not know; how much is enough?  I do not have cable, I am on the lowest tier of internet (for "high speed"), and I do not spend alot of money 'having fun'.  Why then, do I feel like I am not doing enough to get rid of my debt load? T...
Why then, do I feel like I am not doing enough to get rid of my debt load?

To demonstrate.  After paying the essentials (rent, food, electric, minimum payments), let's say I have $500 a month.  At first, I spent $400 of that on paying down bills, and spent $100 'having a life'.  Well, turns out, that was not good enough!  Every time I spent money I was adding on interest and lifetime value of that money. 

That made that bottle of soda look quite expensive!

Is 80% of 'spare change' not good enough?

I cut it down to $50.  Now, that is 90% of my money that is going to paying off debts.  Yes, the debt goes away faster, but is that any way to live?  I feel guilty anytime I grab a RedBox movie! 

That dollar should not make me feel the way it does.

I hear people ask all the time, 'how do you get motivated enough to pay off all of that debt'.  What I need answered is, 'How do you get motivated enough to buy that extra bit of fun in your life?'

So, I ask, how much is enough to get over feeling guilty?]]> http://www.destroydebt.com/blogs/helpmepayoffmydebt/361-how-i-made-13975-in-10-minutes.html http://www.destroydebt.com/blogs/helpmepayoffmydebt/361-how-i-made-13975-in-10-minutes.html Wed, 31 Dec 2008 09:57:37 GMT I apologize for the misleading title, but I must let it be known!  I have taken back my PlayStation 2 Bundle.  The PS2, 6 games, DVD remote, and "21" movie is all back under the custodianship of Toys 'R' Us.  While this saddens me, it is the easiest money I have ever made.  D...
I have taken back my PlayStation 2 Bundle.  The PS2, 6 games, DVD remote, and "21" movie is all back under the custodianship of Toys 'R' Us.  While this saddens me, it is the easiest money I have ever made. 

Did I need a gaming console?  No! 

I have a PC, and I can use that to play the games I already own (as well as those addicting casual browser-based games). 

My current problem, however, is that I want a new TV!  It seems that everyone of my friends purchased a new one this Christmas.  I mean, who could blame them?  The TVs at Circuit City were basically a fire sale (the CCs stores around here were being shut down, so 40% - 60% off the final week!) 

The biggest challenge I am having is, I am a techno-geek.  I am realizing how hard it is to be conservative with the cash, but very much an inner gadget-geek. 

Sit back and envision this with me.  A 42 inch HDTV connected to a PC!  You could be lying on the coach with a wireless keyboard surfing the internet on your living room PC.  Oh, and by the way, that show that is on your television.  Yeah, it is being streamed via the internet!

I want to do that!  ...but, I don't want to pay for it. ]]> http://www.destroydebt.com/blogs/helpmepayoffmydebt/342-how-was-your-christmas-spending.html http://www.destroydebt.com/blogs/helpmepayoffmydebt/342-how-was-your-christmas-spending.html Wed, 24 Dec 2008 01:15:13 GMT It is Christmas Eve and I am staring at a brand new unwrapped gaming console.  This said console comes at a great price for what comes with it!  There is a DVD remote, several games (movie tie-ins and a racing game, nothing AAA), and a free movie (21, comes with a money clip!  oddly...
This said console comes at a great price for what comes with it!  There is a DVD remote, several games (movie tie-ins and a racing game, nothing AAA), and a free movie (21, comes with a money clip!  oddly in-appropriate given the website you are reading this on!).  The cost?  The extras were all free!  That is right, purchase the console and get all the extras for free!

It turns out that it was a deal from the day after Thanksgiving that never got removed from the system.  I win, right? 

That is where the dilemma is.  Do I really?  Is this bundle package really worth it?  I mean, yes, it was supposed to be my Christmas gift to myself.  But, what if instead I buy 1.25% of my car?  That $16,000 isn't going to pay itself!

My justification in purchasing this thing was, it is a great entertainment value!  I can watch movies on it (without getting up thanks to the DVD remote!), I already have another movie to watch, and it comes with some games to play. 

And yet it sits there unopened.

I have a few PC games that have been occupying my spare time (all pre-debt free phase, and are unsellable).  I have also started looking deeper into what hobbies I want to have.  I didn't realize until just recently.  I have no hobbies (anyone have a suggestion?)

Anyway, I am single, and I have to work Friday so I will not be going back and seeing the family until this weekend.  If I make it until then without opening it, I am going to take it back. 

Christmas might be a really long day with this thing staring at me.  Cross your fingers and wish me luck!]]> http://www.destroydebt.com/blogs/helpmepayoffmydebt/340-today-i-begin-a-new-diary.html http://www.destroydebt.com/blogs/helpmepayoffmydebt/340-today-i-begin-a-new-diary.html Mon, 22 Dec 2008 01:02:50 GMT Many things have changed over the past few years.  I graduated high school in 2003, and spent a year working a factory job before heading to college.  In 2006, I graduated with an Associate's Degree and got a job as a mainframe programmer. In 2008, I am being told that the world is ca...
I graduated high school in 2003, and spent a year working a factory job before heading to college. 

In 2006, I graduated with an Associate's Degree and got a job as a mainframe programmer.

In 2008, I am being told that the world is caving in and my investments will be worthless in the near future.

What am I doing about it?  I am beginning a new diary!  Inspired (do I want to use that word?) by The Heroine Diary's opening track where Nikki Sixx acknowledges, "It's just you and me diary.  Welcome to my life." (edited)

Of course, Nikki Sixx wrote his diary while on tour from '86 to '87 during a deep bout with heroine addiction.  I am starting my diary about my trials to become debt free! 

Which diary do you think will be more interesting?]]> http://www.destroydebt.com/blogs/helpmepayoffmydebt/308-credit-and-you.html http://www.destroydebt.com/blogs/helpmepayoffmydebt/308-credit-and-you.html Sat, 01 Nov 2008 09:39:18 GMT I have been asking myself what would my life be like if I did not take on debt. Here is my conclusion: Real First Car:  1998 Dodge Intrepid w/ 100,000 miles (this was in 2003).  It costs $4,000.  I was working full time at a factory and had $3000 saved.  I had to take a loan fo...
Here is my conclusion:

Real First Car:  1998 Dodge Intrepid w/ 100,000 miles (this was in 2003).  It costs $4,000.  I was working full time at a factory and had $3000 saved.  I had to take a loan for 6 months, 9% APR for that extra $1000.00. 

Debt Free First Car:  1995 Dodge Neon w/ tons of miles.  I would have been able to pay this off in cash, and saved myself a little under $60 on interest.  However, the much bigger gain would have came from being debt free!  My car purchase was my first 'buy now, pay later' transaction and that set me on a path I should not have gone down (more on that later).

Total Money Saved: approx. $1,060.  I would have been able to at the very least buy the Neon for $3,000.  It wouldn't have had a CD player, and possibly some body damage, but I was 18!  Why do I need a great car at this stage of my life?

Real College:  I took out $23,000.00 in student loans.  This has a variable APR (currently like 7.1% though, not to bad...).  I now owe more than $23,000 on this loan though!  I am making payments that just barely pay on principal, half of it goes to interest accrued.

Debt Free College: I would have waiting another two years.  I had a well paying factory job (for my community) and would have been able to start taking classes while still working full time.  Also, I would have went to a community college.  As a mainframe programmer, there are people who went to a two year tech school making as much as I do!  Talk about a bad investment! 

Total Money Saved:  Uknown!  I would have been in the work force at the same time (4 year college vs. 2 year tech school + 2 year factory work) but instead of building debt for four years, I would have been building wealth!

Real Second Car: 2007 Dodge Caliber.  This was where I really messed up!  My Dodge Intrepid was dying, and I wanted a new car!  I was thinking, I finally have a great job and I have credit to burn!  I spent $18,000 to buy it at 7.96% APR.  This balance eventually got transferred to a credit card which has a 0% APR for a year but a 3% transfer fee.  I am putting cash in a 2.96% APY Money Market Savings Account instead of paying on this!  Doing this will save $1250 a year!

Debt Free Second Car: 2005 Dodge Intrepid.  They quit making this car sometime between 2003-2006.  I am not sure which year, but I would definitely have liked to get another one!  I loved my intrepid.  It was a sad moment when it died. 

Total money saved: ALOT!  $18,000+ vs $7,000 max!  I am kicking myself right now.]]>