Dave Ramsey Support Thread ~ March 18-24

[lyn1270]

Originally Posted by KennedyMommy Hi Ladies, This is what I posted on the last page. Okay so here is my dilemma... I owe $80,000 to student loans. I owe $20,000 at 9.5% interest (paying $200/month), $10,000 at 3.25% (paying $40/month), and $10,000 at 4% (paying $35/month). I know DM says to pay off the smallest amount first, but if I paid the other 2 off first, it wouldn't leave me with much of a sb. What should I do? Thanks ladies

I would stick w/DR method of paying the smallest first. One of the reasons he recommends that is to get your momentum going, to make you feel successful. We owe $60k in CC debt (yes, i know, it made me vomit too ). I didn't even look at the interest rate when determining which to start paying first. I paid the smallest first, and now I'm working on the rest. I do have some larger ones that have higher interest rates, but I'm sticking w/the Dave method. My DH tired the other way, paying the higher debt w/the higher interest first, and it blew up in his face. so that's my

[frugalmomof2]

I gave DH the go ahead for a $75 gadget today. He has had massive overtime this month and feeling really bummed about being away so much/being so tired from working so much/etc. He looked like a school boy shopping for a gadget... it was such a treat for him! So far this month DH has brought in $700+ extra from overtime for snowball/savings. I say a $75 gadget is well earned.

Then we sat down and discussed homeschooling option. It's a go so I need to figure out a budget for that, though it wont come close to private school tuition costs. I'm excited about tailoring their education to their interests and learning styles...I think it's great experience as well (I'm an early childhood education major).

[bluecandi]

Ok so.....Im paying off my little cc (600ish) with the refund. It has 0 interest til 10/13. Is it stupid to transfer some from the big cc (7k, 9%) to the little cc and then pay it off?......like 1k (assuming the transfer fees arent rediculous). Mainly to just have a smaller balance thats collecting interest on the biggun. Is that stupid?

[deezee02]

Originally Posted by frugalmomof2 I gave DH the go ahead for a $75 gadget today. He has had massive overtime this month and feeling really bummed about being away so much/being so tired from working so much/etc. He looked like a school boy shopping for a gadget... it was such a treat for him! So far this month DH has brought in $700+ extra from overtime for snowball/savings. I say a $75 gadget is well earned. Then we sat down and discussed homeschooling option. It's a go so I need to figure out a budget for that, though it wont come close to private school tuition costs. I'm excited about tailoring their education to their interests and learning styles...I think it's great experience as well (I'm an early childhood education major).

I have found that to be important also when doing DR. I know the thought is to not spend/save/payoff until everything is paid off, but I really that leads to resentment of the hard work you are putting in. At least that was how it worked in our situation. Dh and I both said if we are working our tails off to get somewhere, we are going to reward ourselves occasionally. Actually on Saturday we went out to dinner alone (first time we did that since June). It was nice not worrying about how much we were spending, and having some time to ourselves. We go out once a month, but typically keep it low budget, this time we went to a steakhouse, dh was in heaven lol.

For us, everything is looking good. Spring time brings bugs (we have woods, mulch Ect) so I finally broke down and called my friends lady who sprays. $200 for the first spray and then $50 any other time I want her to come out during the summer. I probably could have done a big name company a bit cheaper, but my friend has been using her for years and says she is great, she uses Eco friendly products and is a local small business. Also paying another $100 on dh's debt. Holding the rest of my money until the end of the month to make sure nothing unforeseen comes up, but might be able to pay off 3-4 debts, depending on how sales go for me.

[krispy79]

Originally Posted by KennedyMommy Hi Ladies, This is what I posted on the last page. Okay so here is my dilemma... I owe $80,000 to student loans. I owe $20,000 at 9.5% interest (paying $200/month), $10,000 at 3.25% (paying $40/month), and $10,000 at 4% (paying $35/month). I know DM says to pay off the smallest amount first, but if I paid the other 2 off first, it wouldn't leave me with much of a sb. What should I do? Thanks ladies

I would pay off the higher interest first in this case, it's more than double the one and almost 3x more than the other. For me the win would come from not spending another 20k in interest. It would literally take, based on just paying your minimums, an extra 25 years to pay it all off if you paid the smaller ones first... I see no win there. Start on the big one!

Originally Posted by bluecandi Ok so.....Im paying off my little cc (600ish) with the refund. It has 0 interest til 10/13. Is it stupid to transfer some from the big cc (7k, 9%) to the little cc and then pay it off?......like 1k (assuming the transfer fees arent rediculous). Mainly to just have a smaller balance thats collecting interest on the biggun. Is that stupid?

I would do it, save any way you can right!?

[MakingHome]

Well, two or three weeks ago we paid off our only credit card. Yesterday I got the notice that the bill is at -0-. Woohoo!

AND...

Yesterday our crummy septic system got assessed and it turns out we need a new system. To the tune of $6000-6500. Not covered by insurance, I think. :-/ trying to be creative and think positively but good gracious it was a bit discouraging to have both things happen in the same day.

I guess one positive is that we're not tackling this problem ALSO carrying that mountain of credit card debt. :-/

[ulawolf]

Originally Posted by bluecandi Ok so.....Im paying off my little cc (600ish) with the refund. It has 0 interest til 10/13. Is it stupid to transfer some from the big cc (7k, 9%) to the little cc and then pay it off?......like 1k (assuming the transfer fees arent rediculous). Mainly to just have a smaller balance thats collecting interest on the biggun. Is that stupid?

I don't know the right answer but I would close the smaller card. It's one less card you have.

[mimi57]

Things are going well here I just spend a small fortune on organic bar soap (to make liquid soap for the sinks and bath) and all the ingredients to make organic diaper cream for my 4 kids in diapers (yes you read that right I have 4 kids in some form of cloth diaper every day). Total came in at $85 - $25 gift card from my bank earned from points on my card. So about $60 total which put me into sticker shock. However it will make a ton of diaper cream and since I am spending $15 every two weeks for a small tub of organic cream now it will pay for itself soon....at least that is what I am telling myself

We also didn't need groceries this week so that is a $150 savings

[AmberP]

^ What is your diaper cream recipe?

[2queens&1princenmyhouse]

Originally Posted by BNC Were doing OK here on everything but medical. We were just all feeling better and now me and ODD are getting sick again. We both have sore throats. Hopefully its just a virus and not strep (that way we can avoid the script costs, lol!). Also, I was actually able to get in to see my PCP tomorrow morning so I dont have to go to the care center. Usually the wait for my PCP is 2 weeks (for a sick visit and over 6 for a regular visit) so I usually just go to the care center when I get ill. I know I need to change pcp's with my insurance, but they are the dr's that oversee the midwives I use and we are trying for another baby. I dont want to have to switch away, then find out im PG and have to switch back, KWIM. SO at least I will save $120 since i dont have to go tot he care center. We have to write a check to the girls school for $60 for a fundraiser. Each child had to sell a box of candy (60 bars for $1 each) and we were only able to sell one box, so we have to pay for the other. Sucks on two levels....i have lots of candy in the house, and we are out $60! DH finally finished with our tax prep, so we are submitting them tot he tax guy this week and should hopefully have a refund in a few weeks. I'm hoping its enough tot cover tuition next year for the girls (our in-laws cover 50% of their tuition at a private school). We received our annual manna credit report, from the school and we have earned over $400 towards their tuition next year just by using the manna program! If you not familiar with that (most catholic schools offer this) - You buy gift cards to stores (all sorts of stores for gas, groceries, clothes, etc..) from the school. The school buys them at a discount from the stores, and then splits the discount with you. So for example, I buy my grocery gift certificates from the school. The school gets a 4% discount on them from the company, and then they split the discount with us 50/50. SO the school gets to keep 2% of the value and we get 2% of the value towards out tuition (we buy the gift cards at face value, so I buy $200 worth or whatever and get $200 in gift cards). I have been buying all my gas, groceries, and other expenses I can plan (walgreens gift cards for prescriptions, etc...), along with my inlaws grocery money all year. I also work and earn $3 an hour by selling manna at the school on Friday mornings (I can bring my younger kids too). Thats a good chunk of money off their tuition! I will probably be able to get to around $700 for the year by the time the next school year starts! I know alot of schools (ours included) will allow you to purchase the gift cards even if you dont have a student there and then will write you a check monthly or bimonthly for the amount you saved. It might be worth looking into if you have a church /school nearby that offers it. Thats it for me!

Originally Posted by lakemom We call it SCRIP but have the same plan. We put our funds towards either hot lunch account or SCRIP gift card (to buy more scrip cards). We too buy cards to fund as much of or monthly spending as we can. Our school splits the "rebate" by 75/25 with the school getting the larger amount.

We call it scrip also. We get 50% of the proceeds and I buy most of our groceries and gas with it (unfortunately Aldi's isn't on the program). We didn't use our credit last year since we started hsing, but I'm hopeful that if we send DD1 back next year, the amount we've accrued will be substantial. Even if it's not much, some is better than none.