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anyone knows or did Debt Snowball Method - 7/20/2010 7:58:47 PM
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LuAnn
Posts: 341
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From: born in harrisburg,pa and live in florida
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We are doing Dave Ramsey finance class.. He has lost of wisdom.. Husband is talking about debt snowball method.. First we need to have a $1000 ER save up.. just for ER ... your know car, teeth, doctor ect.
Getting a little scare, but it look like a good idea but need to have extra cash for ER..
_____________________________
Be strong and courageous. Do not be afraid or terrified because of them, for the Lord your God goes with you; he will never leave you nor forsake you. Deuteronomy 31:6
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RE: anyone knows or did Debt Snowball Method - 7/20/2010 9:42:39 PM
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peace77
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Why are you scared?
You can do it!
I don't agree with everything that Dave says. I believe that you should keep your credit cards but stop using them to live above your means. In other words, reserved for emergencies only until you have a fully funded emergency fund (not just the $1,000 but 6 months of expenses).
Open a savings account if you don't have one.
Look for ways to save.
Shop grocery sales and don't buy meat if over $2.50 per pound.
I pay most of my bills online. This saves 44 cents and sometimes 44 cents and an envelope each month. It really adds up.
I also make sure I have a drink (bottle of water or lemonade) when I leave home. This cuts out the temptation to buy a bottle of water or soda from a convenience store when out of the house.
If you will be away from home at mealtimes bring your lunch or dinner with you. Restaurants are expensive!
Put your money into savings when you get paid.
An emergency fund is a MUST.
< Message edited by peace77 -- 7/20/2010 9:51:57 PM >
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RE: anyone knows or did Debt Snowball Method - 7/21/2010 11:29:12 AM
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APZR
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Scared of saving? I'd be scared if I didn't have any savings with nothing to fall back on. Start with $5 a month. When that becomes comfortable, bump it up to $10/month. Keep it up and you'll soon be up to $100/month.
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Ya can't keep trouble from visitin, but you don't have to offer it a chair.
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RE: anyone knows or did Debt Snowball Method - 7/21/2010 2:49:02 PM
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Simway
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By all means do save even if it's a little. It will grow, and it's a good feeling to know it's there if the need should arise, and at somepoint a need to arise.
Simway
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RE: anyone knows or did Debt Snowball Method - 7/21/2010 4:08:36 PM
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LuAnn
Posts: 341
Joined: 4/13/2005
From: born in harrisburg,pa and live in florida
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See what I am scare of it my husband want to start the pr Rata Debt list...which is cards pay one off and then the next and on and on.. What form look like is Income_____________-Necessarily Expense__________Disposable income- Form is Item--Total payoff, total/deb =percent x disposable income=New payment..
What is scare me is we have not save up the $1000 ER fund and hubby want to do this.. my thinking is he think if we start this we will be able to save more quicker.. But Dave said that you sure have garages sale, work part time or over time if can.. My husband has not desire to do this and I fell like the pressure I the one to do the part time.. sorry I just can't.. I have a child who is special needs beside working full time already...so I am scare and unsure to what hubby want to do..
We are going to class tonight... I like Dave but some of the stuff to what he said I am unsure of..
Thanks for you advice.. also please pray too!
_____________________________
Be strong and courageous. Do not be afraid or terrified because of them, for the Lord your God goes with you; he will never leave you nor forsake you. Deuteronomy 31:6
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RE: anyone knows or did Debt Snowball Method - 7/21/2010 6:42:50 PM
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bolt.
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You do need to save up an emergency fund before you are going to be able to successfully get out of debt (because stuff just keeps happening).
BUT... that does not mean you have to do it this week! If $1000 is your target amount for that fund... If you take a year to save it up, you only need make an extra $85/ month, or scrounge (by finding a way not to spend) the equivalent. If you take 2 years to save it up, you only need to save $43 per month... $11 per week. It is not going to make or break you to find, make, or not spend $11 per week. So don't be scared.
Just set up the account, and program into it an automatic transfer every pay day of the amount you choose, then live as usual. If you feel you can sacrifice a bit more, change the transfer and make it just a little bigger. If you do have a garage sale, or get a bonus, vacation pay, or gift of money -- put it straight in that fund without even thinking about spending it.
Once that fund is full (no matter how long it takes) stop the automatic payday transfer and begin applying that amount to your smallest bill. Steady application of small amounts makes a BIG difference... over the course of a decade or so. Think about where you were at in 2000... that's how long a decade is. A good plan will have you sitting pretty by 2020. That's a long time, but it's better than being where you are at (or worse!) when that year arrives (which is what will happen if you take no action starting now).
It's nice to get out of debt as quickly as possible, but the choices you make need to be able to stick to for years and decades. Slow and steady wins the race. It takes determination, but you really can do it a little at a time.
And NO Christian would advise you to neglect children (especially special needs children) in order to get out of debt on a super-fast timeline. That would be a deeply ungodly decision.
_____________________________
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Let my friend Brian at Daily Audio Bible help you too.
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RE: anyone knows or did Debt Snowball Method - 7/22/2010 12:39:10 AM
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peace77
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Are you current on your bills now?
If so, do NOT use the Pro Rata Debt List.
However, you can honor your husband by putting some funds toward the debt, instead of all of it towards the emergency fund.
Instead, of using the Pro Rata Debt list, make a budget of your necessary expenses. Include misc. expenses such as haircuts (unless you do it yourself) and other items not in another category.
Paying yourself (putting money into savings) must be a budget item
Income - budgeted expenses = disposable income.
Example: Current income $2000 (after tithe and taxes)
Current Expenses $1940
Funds remaining $60
Put $50 into savings each month. Add savings to your budget.
Put $10 towards (additional payment on) the smallest debt
There 2 ways to have more income to pay towards debt.
One is to increase your income.
The other is to decrease your expenses. Some people need to do both.
It's usually easier to increase income, but in your situation you may need to look at decreasing expenses.
If you are paid every 2 weeks, there are 2 months each year when you will have 3 paychecks. You can use this money to help fund your emergency fund. Other sources could be your tax refund or selling something that is no longer needed or is outgrown.
Perhaps, you have an expense that you can cut. Some people have gone to a cheaper cell phone plan or down to basic cable or cut out cable service completely.
Try using http://www.GasBuddy.com to find the cheapest gas in your area.
It takes time to do it. It may seem easier if you start with a smaller goal.
We made a goal in the beginning to save $500.
After we had saved $500, we made a new goal to save $1,000.
_____________________________
I GoodSearch for Lance's Deaf Orphans.
Raise money for your favorite charity or school just by searching the Internet or shopping online with GoodSearch - www.goodsearch.com
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RE: anyone knows or did Debt Snowball Method - 7/22/2010 2:16:48 PM
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LuAnn
Posts: 341
Joined: 4/13/2005
From: born in harrisburg,pa and live in florida
Status: online
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yes, paid check to paid check... one of the card is almost paid off.. and the other are getting down but slow.. the two that are high are hubby... which one is about $175 and the $340.... I am giving up a lot... gym, I hardly buy anything expect for food... I want to eat healthy food but would like some idea to make for the family cheap and quick since I also work 8 1/2 hour a day, beside being a mom and wife... so if anyone has some idea please help..
Hubby drink soda and this time he did get the store brand. If anyone can help me with some cut back it would be help.
I also did asked hubby if he talk to cell phone and TV, Phone and internet service... If we could cut back on that would be good.. I told him the internet on the phone we can live with out.. so pray about that hubby would call and get the cell phone. ect down..
so anyone have food idea quick cheap healthy and also hubby and I get to go out every Saturday, any cheap idea would help with that.. I know my hubby love me cause he is showing.. but I will say some area I still don't have that trust.. I trust the Lord Jesus and this is what keep me going.
Thank you for your idea and prayers.. LuAnn
_____________________________
Be strong and courageous. Do not be afraid or terrified because of them, for the Lord your God goes with you; he will never leave you nor forsake you. Deuteronomy 31:6
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RE: anyone knows or did Debt Snowball Method - 7/22/2010 4:20:31 PM
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stateofgrace
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Even if you're on a cell phone contract, check with the provider to make sure that you are getting the best deal for your situation right now. We switched plans at our provider a couple of months ago for $40 less per month.
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America Needs Revival. Will you commit to pray for it?
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RE: anyone knows or did Debt Snowball Method - 7/22/2010 8:32:28 PM
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LuAnn
Posts: 341
Joined: 4/13/2005
From: born in harrisburg,pa and live in florida
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Thanks! Pray that my hubby will call cell company..
_____________________________
Be strong and courageous. Do not be afraid or terrified because of them, for the Lord your God goes with you; he will never leave you nor forsake you. Deuteronomy 31:6
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RE: anyone knows or did Debt Snowball Method - 7/23/2010 12:34:09 AM
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peace77
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LuAnn,
You can save a lot by not eating in a restaurant every Saturday. You don't have to give up going out. You can make and pack a picnic dinner. Or, you can get some chicken and a side dish from the deli counter at the grocery store and use that for your picnic.
Did you know that Dave Ramsey teaches NO eating out at all until the debt is paid off? If you spend $25 per date (on average) that's $100 per month.
Cutting down your restaurant meals to once per month instead of once per week would be enough to start your emergency fund. For example:
Cutting out 3 restaurant meals (at $25 each) is $75. You still have to pay for food if you eat at home, estimate an at home meal at $5 ($5 x 3 meals = $15) and you will have $60 to put into your emergency fund each month.
Encourage your husband to drink less soda and more water. It's healthier.
I got my husband to drink sparkling water instead of soda. It comes flavored but does not have all the added sugar.
Some excellent inexpensive meals are lentil stew, homemade bean burritos, red beans and rice (New Orleans delicacy), black beans and cornbread.
For breakfast, have steel cut oatmeal instead of expensive cold cereals.
Make use of your crockpot. It's a wonderful help for any busy woman.
If you don't have one, ask for one on Freecycle. http://www.Freecycle.org
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RE: anyone knows or did Debt Snowball Method - 7/23/2010 10:01:21 AM
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creationtalk
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Another way to attack credit card debt is to take the current required payment, round up to the next multiple of 5 or 10, then pay that amount every month even as the "required" payment drops. Usually the round up isn't that much so rounding doesn't significantly impact the balance, but it can make a big difference in the interest and time to pay.
Agree with Peace77 about saving through automatic deposit--if the money never shows up in your account and you leave it out of your budget, it's much easier to save it.
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RE: anyone knows or did Debt Snowball Method - 7/23/2010 10:59:05 AM
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peace77
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Agree with CreationTalk about rounding up your credit card payments.
Even if your budget is very tight, you can round up to the nearest dollar without noticing a difference in your budget. That is, if the amount due is $87.23, pay $88.00. Or better yet, pay $90.00 or $100.00. Any amount over the required payment does make a difference in getting the balance down.
Another way to decrease your credit card balance is to pay as soon as the required payment amount is available for the account. You may still have 3 weeks to pay but if you pay immediately online, you will be charged 3 weeks less interest charges on the amount that you just paid. So your interest fee for the next month will be less.
Another advantage to paying online is that your payment reaches the creditor faster (usually the same day) and you decrease the interest due by not waiting for the payment to arrive in the mail.
It's important to have an emergency fund in case either you or your husband is unable to work due to sickness or injury or need to take time off to care for your child.
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RE: anyone knows or did Debt Snowball Method - 7/23/2010 3:07:31 PM
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LuAnn
Posts: 341
Joined: 4/13/2005
From: born in harrisburg,pa and live in florida
Status: online
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Thank you for your advice... We did cut back on eating out and starting to eat out on Saturday for our date cheaper and some place where you don't have to tip anyone...
For the soda I trying to talk to hubby about drinking more water but he is not there... I drink water and try to eat healthy.. I did have the gym account but stop and yes I did enjoy cause I would go three time a week and swim 3o minute to 45 minute... have been trying to walk again it seem to rain the day. I need to get back so I can stay good health.. and yes swimming did help me a lot..
someday I be able to go back..
We need to cut our cell phone bill and tv,phone and internet.. hubby was to call but has not yet cause I have this feeling he does not want to give up.. Yes, I am a little frustrate right but trying to be kind and don't know how to say.. He is very interested in Dave Ramsey wisdom and see a little but not all there...but anyway the reason why I am so frustrated is I feel like I am the one who is giving up all... I do my own hair (cut dye ect), own facial and make up, cut the grass, yard work, clean the house and been doing more cooking at home.. At one time hubby always want to go to breakfast after church and I had to stop it... I stop all of this cause He credit card were max out and I saw it was me paying the bill and I had to stop.. I did not want my cards to go to high..
Anyway thank you all for your advice and prayers.. LuAnn
_____________________________
Be strong and courageous. Do not be afraid or terrified because of them, for the Lord your God goes with you; he will never leave you nor forsake you. Deuteronomy 31:6
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RE: anyone knows or did Debt Snowball Method - 7/23/2010 5:08:54 PM
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kernsfamily
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quote:
ORIGINAL: LuAnn
We are doing Dave Ramsey finance class.. He has lost of wisdom.. Husband is talking about debt snowball method.. First we need to have a $1000 ER save up.. just for ER ... your know car, teeth, doctor ect.
Getting a little scare, but it look like a good idea but need to have extra cash for ER..
we did "the snowball" over a 3 1/2 year period....and, have been "debt free" for almost 3 years.
It worked wonderfully!
It was frustrating when that $1000 emergency fund was continually having to be tapped! but, we persevered!
_____________________________
Proud dad of 3 great girls....Blessed to have all of them in a "totally awesome" public elementary school!
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RE: anyone knows or did Debt Snowball Method - 7/23/2010 5:14:31 PM
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LuAnn
Posts: 341
Joined: 4/13/2005
From: born in harrisburg,pa and live in florida
Status: online
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Thank you kernsfamily for your encouragement.. Keep us in you prayer since you know how frustrating it is in the beginning..
I thank the Lord Jesus for bringing a great brother in the Lord so my husband would listen to him.. cause I been saying this for years..
Thanks.. LuAnn
_____________________________
Be strong and courageous. Do not be afraid or terrified because of them, for the Lord your God goes with you; he will never leave you nor forsake you. Deuteronomy 31:6
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RE: anyone knows or did Debt Snowball Method - 7/24/2010 8:00:42 AM
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peace77
Posts: 519
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LuAnn,
Part of the problem is that you are not united as a couple. When you are married, It is not his bills and my bills but our bills.
I suggest that together you work out a budget and figure out what needs to change. If you need more time to cook at home, then ask him to mow the grass and do yard work.
Cutting out cable TV is a great way to save money.
If he is not willing to give up anything, then he should consider getting a 2nd job.
It's good that you have cut down eating out but you still can't afford to eat out at all until you have some savings. Even if you go to a fast food place, you are probably spending at least $6-$7 per person. Instead you could buy a roasted (cooked) chicken at the grocery store for about $7, add a homemade side dish and have enough for the whole family.
If your husband is not willing to make any changes, consider asking your Financial Peace teacher if you can meet with him privately. If not, perhaps your pastor can help you both "get on the same page" and solve the problem together.
Peace,
Anne
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RE: anyone knows or did Debt Snowball Method - 7/24/2010 10:03:12 AM
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LuAnn
Posts: 341
Joined: 4/13/2005
From: born in harrisburg,pa and live in florida
Status: online
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Thank you peace77.. You are right about being not united..I am to give all and he can go and buy a ipod with out talking to me about.. and he wonder why I am mad at him.. Hummm!
Oh.. the ipod was going to be for son and me but he change his mind cause he got a new ipod for a good price and his ipod can not put 2000 sound on.. what is wrong with this???
Pray for me... I know hubby is taking baby step but he need to give up more.. LuAnn
_____________________________
Be strong and courageous. Do not be afraid or terrified because of them, for the Lord your God goes with you; he will never leave you nor forsake you. Deuteronomy 31:6
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RE: anyone knows or did Debt Snowball Method - 7/24/2010 12:23:19 PM
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deermousie
Posts: 2728
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We did the snowball debt reduction <sends a big hug to Dave Ramsey> after DH went to the class and took the financial reins in hand (he used to be a wild spender).
It works, and we got out of debt a few years ago, praise the Lord!!! Just in time for our kid to go to college, so we're paying out of pocket and are eating a lot of oatmeal. At least our money is going to our kid and not a bank. She's in a cheap college and shares an apartment with a several roommates (approximately a half a million people in my eyes) so rent is cheap.  She cooks cheap.
I hate drinking water but I drink water instead of juice or soda. We rarely eat out. DH looks for outdated meat on sale (it's just aged more, as long as it isn't badly discolored or smells bad), we eat more beans/oatmeal/rice/WWpasta, and the rice comes in 20# bags from the Asian grocery store and buy a lot of food in bulk. We got in a really cheap CSA (fresh produce grown locally) and I use the internet to find recipes. Eggplant, anyone? We have cheap phones, and only because we live rural in case we get stuck. We just fixed up our 20 year old car, the only one we have. We have cable but only because it's free (long story). Otherwise we'd have no TV and no computer. For fun we build things out of stuff lying around (time to clean up!). DH gave up his Sumatra coffee and drinks the cheap stuff from the grocery store. I pack his lunches (leftovers - eggplant!). I buy sweats once a year for winter wear, and shoes once a year at the thrift store. Our college kid shops at thrift stores, too (leather jacket - $7? I'm there!).
We're not living high on the hog, but we're living okay, and we are grateful. Okay is good enough, and our kid is getting a good education (in more ways than one). God is good.
LuAnn, I recommend you get your husband Wilson's book, "Federal Husband." It was a real eye-opener to my husband about leadership and family provision. Coupled with Dave Ramsey, it really helped change him.
_____________________________
People died to give you the Bible in your language.
Read it. Eat it. Dwell in it. Rightly divide it. Live it.
Laugh, dance, praise your God, and go read some more. And God bless you.
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RE: anyone knows or did Debt Snowball Method - 7/24/2010 10:30:03 PM
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LuAnn
Posts: 341
Joined: 4/13/2005
From: born in harrisburg,pa and live in florida
Status: online
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Thank you all for your advice and most of prayers for us... hubby, son and I.. Not sure is you know, my son is 19 year but he is mentally handicap (special needs child).. I will say he (Joshua ) is a blessing to me.. Someday we I am down I will hear out of the clear blue say something that will encourage me.. Thanks again!
LuAnn
_____________________________
Be strong and courageous. Do not be afraid or terrified because of them, for the Lord your God goes with you; he will never leave you nor forsake you. Deuteronomy 31:6
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RE: anyone knows or did Debt Snowball Method - 8/11/2010 3:20:16 PM
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LuAnn
Posts: 341
Joined: 4/13/2005
From: born in harrisburg,pa and live in florida
Status: online
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I know you said to get my husband to read this Feral Husband book.....Please pray about this... I can talk anything spiritual to him... At one time it him and God... My hubby should treat me Like a wife not a room mate.. Why can't he see we are paying out bills more than we make.. He refuse to get a part time job.. only cut things little...I need a miracle ...so tired of this. Thanks.
_____________________________
Be strong and courageous. Do not be afraid or terrified because of them, for the Lord your God goes with you; he will never leave you nor forsake you. Deuteronomy 31:6
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RE: anyone knows or did Debt Snowball Method - 8/11/2010 4:53:52 PM
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peace77
Posts: 519
Joined: 4/18/2005
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Since your husband now has 2 ipods, sell the first one.
Have a yard or garage sale and sell anything that isn't used anymore or is outgrown.
Have you tried talking to your pastor or FPU teacher?
God bless you.
Hugs -- 
_____________________________
I GoodSearch for Lance's Deaf Orphans.
Raise money for your favorite charity or school just by searching the Internet or shopping online with GoodSearch - www.goodsearch.com
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