Dave Ramsey, debt, credit cards, retirement, etc

[SuperJETT]

I just made a $2,500 payment on the 4runner. We are shooting to have it paid off by the end of year. Early next year at the latest. This economy stimulator should knock another good chunk off. we owe 6500 on it right now.

Nice dude, very nice.


One thing I've noticed now that we don't have our debt payments is I don't worry about the price of gas so much. Yes it puts a dent in our budget, but it only cuts down our savings some, it doesn't make it hard to pay the bills or anthing like that.

 

[onesojourner]

Unfortanatly most people don't even have a budget so they don't even see how much high gas prices can effect them. all they do is complain for a while after they see it cost 75 bucks to fill up the truck. Wouldn't it be great if we all drove electric cars that cost about 1 cent a mile to operate?

 

[32vickie]

3200 left on the wifes trailblazer, we will have that payed off by summer.

 

[BruceSki]

Unfortanatly most people don't even have a budget so they don't even see how much high gas prices can effect them. all they do is complain for a while after they see it cost 75 bucks to fill up the truck. Wouldn't it be great if we all drove electric cars that cost about 1 cent a mile to operate?

uhhh yeahhhh....my durango cost me 80 bucks usually to fill it up...stupid 25 gallon tank and gas guzzling v8.... but it is nice when i tow a trailer to have the torque...snowboarding trips have been nice in it this winter too.

i have about 9,000 in debt including the truck, personal loan, and credit card.

i hope to wipe out most of it this summer--definitely the credit card and personal loan...and at least take a big chunk out of the truck.

then its time to start putting money away for a down payment on a house in a few years

 

[Snackem]

Darin I love the new avatar. Kara and I are trying to pile the cash away so that I can get back in school again and finally finish it w/o student loans.

 

[Snackem]

Our Church is going to start teaching FPU. Who has taken the class and what did you think of it? Is it worth the time and money?

 

[SuperJETT]

Our Church is going to start teaching FPU. Who has taken the class and what did you think of it? Is it worth the time and money?

We are leading our second class, week 8 is tonight actually.

It's definitely worth it, $90 or so is the typical cost, and you'll learn stuff that will save you way more than that.

 

[BruceSki]

okay...so yesterday my parents closed a safety deposit box and gave me a handful of savings bonds.

they are worth 756.00 and are gaining interest at 4%

I have 9,732 in debt

$7,000 auto loan @ 7%
$1,330 personal loan @ 14.2% ( i needed a stupidjet):banghead::banghead:
$1,402 credit card @ 0% until july

im wondering if i should hang onto these bonds and pretend i never had the money or use it towards my debt. i have been paying a few hundred per month towards my debt for the past 6 months but this is including a $1,200 tv i bought and $1,500 in car insurance....now im ready to start attacking that personal loan. I was just wondering if its a good idea to hold onto the bonds because i dont have a savings account or use it towards my debt

however i have a few checking accounts that are set up becuase i got a lower interest rate by setting up automatic withdrawal.

for my loans i have three months worth of payments sitting in those checking accounts just incase.
i also keep at least 500 in my primary checking for emergencies.

 

[SuperJETT]

It's a personal decision, but here's what I'd do.

Bonds earning 4% are just keeping even with inflation while you're paying higher interest on your loans. Cash those suckers out and drop some debt.

The Baby Steps from Dave Ramsey:
pre-1. get current on all bills (you already are)
1. $1000 in a baby emergency fund (savings account, it's not an investment)
2. pay off all debts except mortgage from smallest to largest, minimums on all but the smallest and attack that small one, then attack the next, the next, etc.
3. fully fund your emergency fund with 3-6 months' expenses
4. contribute 15% of your gross into retirement funds, matching 401k first, then Roth IRA, then non-matching 401k
5. college funds if needed
6. pay off mortgage early
7. grow, give, spend money

It sounds like you're doing a whole bunch of little things, instead you probably need to focus all attention on one step, then move to the next like the baby steps teach.

I'd also get a copy of Dave's book The Total Money Makeover, either borrow or get it from the library or buy it.

okay...so yesterday my parents closed a safety deposit box and gave me a handful of savings bonds.

they are worth 756.00 and are gaining interest at 4%

I have 9,732 in debt

$7,000 auto loan @ 7%
$1,330 personal loan @ 14.2% ( i needed a stupidjet):banghead::banghead:
$1,402 credit card @ 0% until july

im wondering if i should hang onto these bonds and pretend i never had the money or use it towards my debt. i have been paying a few hundred per month towards my debt for the past 6 months but this is including a $1,200 tv i bought and $1,500 in car insurance....now im ready to start attacking that personal loan. I was just wondering if its a good idea to hold onto the bonds because i dont have a savings account or use it towards my debt

however i have a few checking accounts that are set up becuase i got a lower interest rate by setting up automatic withdrawal.

for my loans i have three months worth of payments sitting in those checking accounts just incase.
i also keep at least 500 in my primary checking for emergencies.

 

[BruceSki]

i have the total money makeover and read through everything but the college investing part...i dont think im there yet.

i do feel like im spreading myself a little thin paying a bunch of things at once but i am not paying rent right now so i feel like i can put the money in two places at once.

 

[Mile9c1]

You'll have to pay regular income tax on the interest from those savings bonds.

 

[BruceSki]

You'll have to pay regular income tax on the interest from those savings bonds.

weak.....so i need to claim it next year or i can pay it at the bank when i cash them in?

 

[Snackem]

You'll need to claim it. The bank will ask for your address so they can mail you an income statement--they'll also send one to the IRS it's a 1099 I believe--it still won't be that much. It'll be at your normal tax rate and you will have to pay that money in taxes no matter when you cash them in. You'll probably even save as much in interest as you pay in taxes.

 

[Scraggly]

a little update for me my truck is paid for the 25 of this month and i am excited to get that taken care of and behind me.

also a guy at work showed me this link (sorry if its a repost)
http://newstalk1270.com/ ;click listen live
it has Daves show on 1:00-4:00 central time. ive been listening for a few days now
and im about hooked!

 

[SuperJETT]

You can listen to dave straight off his website: www.daveramsey.com/tdrs/ you can also listen to past shows or even download a one-hour podcast daily, all for free.

Great job on the truck.

a little update for me my truck is paid for the 25 of this month and i am excited to get that taken care of and behind me.

also a guy at work showed me this link (sorry if its a repost)
http://newstalk1270.com/ ;click listen live
it has Daves show on 1:00-4:00 central time. ive been listening for a few days now
and im about hooked!

 

[timbo512]

Paid off the truck this month with Tax rebate. Last kid will be out of daycare in 2 months. Should free up around $1100 in liquid cash by the Summer. We will have almost all of our mid/high interest cards paid off in the next couple months. Leaves me with the ski 4500 @ 10%, CC 9K @ 3.9, wife's Momma mobile and the Casa. By the end of 2008 (if, I pray, nothing changes) I should just have her car and the house. No CC and no other loans. Of course gas and the horse we own will continue to eat some level of funds... that and the kids.

 

[SuperJETT]

Sell the kids, you'll be out of debt quick! Shipping gets a little tricky, but it's doable.

Great job, just stick with your plan.

 

[Snackem]

If you sell the kids I would not make shipping an option. Tell the buyers that they are responsible for arranging all shipping or that they can come pick them up but that you will bill them for food and lodging for every day they are with you after the sale is final.

 

[timbo512]

we can get LisaLisa to work us a good deal with her shipping contacts.

 

[douglee25]

Paid off my car 2 months ago along with a substantial chunk of my credit card debt (wasn't that high to begin with). My remaining credit card debt will be under $1500 this month. After I freed up my car loan, I increased my 401k deduction to 7% with a 3% match. I am also in the process of buying a boat on a 15 year note. Although the boat comes with a payment, it's about 1/3 of what I was paying on my car.

Doug