Anonymous
12/17/2013 16:19
Subject: Re:Yay, paid down credit card debt!
Doesn't bankruptcy mess up your credit score for 7 years?
Anonymous
12/16/2013 16:30
Subject: Re:Yay, paid down credit card debt!
Anonymous wrote:Anonymous wrote:What do you all think about using some 401k money to pay off some debt? I was recently laid off from my job so we may have to take out some anyway and we have a lot of debt. We have about $28,500 in credit card debt and another $25,000 in personal loan/overdraft debt.
File for Bankruptcy. I did it. Almost out of it now.
Does that mean you don't have to pay your debt?
Anonymous
12/16/2013 16:16
Subject: Re:Yay, paid down credit card debt!
Anonymous wrote:I am very close behind you OP. I can't wait to be completely and totally debt free! Then I can start saving for a house.
Suzi Orman said you should save and pay off debt at the same time. It took me quite some time to get used to this, but I have only about $3K left on Credit Cards and $20K in the bank towards a house. You have to do both. Once I got to having about $10K in the bank for savings...I NEVER WANTED TO TOUCH IT! I never touch that account. I just act like it doesn't exist. Part of me wants to just take out the $3K and pay it off...cut them up and never use them again. I might do it at the beginning of the year, but to have $20K in savings, for me...is the most I have ever saved ever. I want to pay off my car, but again...It would take so long just to get the $20K again...I am not going to. I will get it all paid off eventually so by the time I am ready to buy a house I will have no car payment and $80K in the bank. 1.5 MORE YEARS! That is my goal.
Anonymous
12/16/2013 16:11
Subject: Re:Yay, paid down credit card debt!
Anonymous wrote:What do you all think about using some 401k money to pay off some debt? I was recently laid off from my job so we may have to take out some anyway and we have a lot of debt. We have about $28,500 in credit card debt and another $25,000 in personal loan/overdraft debt.
File for Bankruptcy. I did it. Almost out of it now.
Anonymous
12/16/2013 16:10
Subject: Re:Yay, paid down credit card debt!
Anonymous wrote:OP here: Thanks everyone. It does feel great. I think the hardest part was just owning up to the fact that we had to deal with the problem, particularly as a team. But since a couple people asked, here's a couple of things we did: we had been paying a little extra on our car payment, to the effect that we didn't actually owe anything for many months - as opposed to continuing to make payments, we stopped, which freed up $500 a month for about six months. We refinanced and lowered our mortgage by $600, but due to the timing of it, we didn't have to make payments for 2 months ($5000), we submitted for FSA and dependent care savings reimbursements (total of about $4000).
That was the easy stuff - the hard part was the spending. We had been using mint.com for a while, but never really checked in on it (probably because it was too painful), so once we fully owned the problem, we started checking it every day. We looked at the spending as a challenge in "how low can you go?" We ate from the pantry/freezer and for a couple of months our grocery budget went from $1100 to $500, its probably stabilized around $700 now (3 adults, one child). For one month we totally gave up all coffee shops and brought our lunches every day. That helped us break the habit and establish new ones. Now we aren't quite so militant, but it has significantly reduced from former levels. We used to be Amazon Prime junkies. Now before we purchase anything that's not an absolute necessity (diapers), we check with each other. This has significantly reduced impulse buys. Anyway, this is what worked for us.
I gotta stop buying lunch out. If I did this things would be so much better...maybe that will be my resolution. It is not like I am eating great food everyday. I might as well make a bologna sandwich.
Anonymous
12/15/2013 14:52
Subject: Yay, paid down credit card debt!
Not at all.
Anonymous
12/15/2013 10:51
Subject: Re:Yay, paid down credit card debt!
Anybody use a 401k for debt reduction?
Anonymous
12/14/2013 12:29
Subject: Re:Yay, paid down credit card debt!
What do you all think about using some 401k money to pay off some debt? I was recently laid off from my job so we may have to take out some anyway and we have a lot of debt. We have about $28,500 in credit card debt and another $25,000 in personal loan/overdraft debt.