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It is currently Mon Dec 22, 2014 8:01 pm




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 Post subject: Re: Journey into debt reduction (Round 2)
PostPosted: Thu Jan 10, 2013 10:42 am 

Joined: Fri May 04, 2007 8:14 pm
Posts: 1985
That's fine. Just wanted to make sure that you were thinking the process through. Thanks for bearing with me and explaining your plan. I do want you to succeed.


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 Post subject: Re: Journey into debt reduction (Round 2)
PostPosted: Thu Jan 10, 2013 12:57 pm 

Joined: Tue Apr 15, 2008 6:48 am
Posts: 526
Location: Arkansas
Yep.... been trying to learn from past mistakes and formulate a plan to keep from repeating them.

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 Post subject: Re: Journey into debt reduction (Round 2)
PostPosted: Mon Jan 14, 2013 5:53 pm 

Joined: Tue Apr 15, 2008 6:48 am
Posts: 526
Location: Arkansas
There's an old country song that says... You have to stand for something, or you'll fall for anything... You've got to be your own man not a puppet on a string." Well I have always lived my life by my principals and this song really hit a cord with me when it came out. Sometimes those principals have caused me heartaches and headaches, but I still stand by my principals.

Once again it looks like I am going to have to stand on my principals. It is now time to boycott Chinamart (aka walmart). They have now proven that they are anti American. It was bad enough that probably close to 90% of what they sell is made in china, but this last slap in the face of Americans is more than I will take.

Quote:
“As of right now Wal Mart is not going to be making any new orders of ammo because of the upcoming decision on the second amendment”. Said, “As of right now we are unsure of what new legislation might be coming, and because of this, we are suspending new orders. We will continue to sell what is already in stock in stores and at our distribution centers, but any new orders will not be shipped until the issue is resolved”.

http://investmentwatchblog.com/breaking-confirmed-wal-mart-is-not-going-to-order-any-more-ammo/


This tells me that they do not support the 2nd amendment which guarantee's us "the right to keep and bear arms shall not be infringed". Just last week higher ups from walmart met with the VP to talk about gun control and now they will not be ordering ammo until the govt wants to see if they are going to destroy a vital part of the United States Constitution. Walmart has made it's stand against the United States Constitution and I will make mine against walmart with my money. Sucks for them though... because 90% of my shopping was done at walmart because I could swing by there at night on my way home from work. I am gonna miss not having to battle the crowds because I was normally at walmart around 11pm when everyone else wasn't.

Also sucks for them that now they will have one less armed LEO shopping there that could have stopped an active shooter in their tracks. Now I will drive 45 miles one way to go shopping elsewhere on my days off. Might actually work out better for me because I'll either get what I need on my days off... or I wont get it. Could help me save money in the long run... but it's gonna suck for my gas bill and the extra miles put on my vehicle. :(

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 Post subject: Re: Journey into debt reduction (Round 2)
PostPosted: Tue Jan 15, 2013 1:55 pm 

Joined: Tue Apr 15, 2008 6:48 am
Posts: 526
Location: Arkansas
Ya know that old saying... If it wasn't for bad luck, I wouldn't have any luck. Welp... that's been my life so why should now be any different.

Yesterday the weather was getting bad (it started sleeting) so I drove my truck to work. On the way home it decided to go to shit on me. I'm talking serious transmission problems. I could stand on it and my speed wouldn't increase but my motor sure sounded like it wanted to do something. Ease down on it and I could get up to speed.

Today I was going to drive the car to work and the weather is even worse... so once again Im in the truck since there is now ice on the roads. :@ If I end up in the ditch on the way home (a real possibility) Im not sure I'll be able to get myself out even with 4x4 if I cant get power to the wheels.

I talked to one of my friends and co-workers that used to rebuild classic cars and also built drag cars.... he says it sounds like I am going to need a full rebuild of the tranny. The weather is supposed to be clearing up tomarrow and then on Thursday he is going to take it for a spin. Hopefully within two weeks I can have my truck back to normal. Depends on him and if we can work on it this weekend. He said after he drives it he will have a better idea of what it needs.

I'm still going to be paying a pretty good chunk in labor fees but at least it's someone I like getting it vs some business, plus I'll be there and I can learn something new. I don't mind paying him at all. Eventually we are also going to beef up the motor in my truck to make it what I dreamed about when I bought it back in 1995. I guess I cant complain too much.. the trucks 18 years old, but I sure wish it didn't decide to do this crap when the weather is at it's worst. Spring, summer or fall I can drive the car with no problems.... I rely on my truck in the winter.

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 Post subject: Re: Journey into debt reduction (Round 2)
PostPosted: Tue Jan 15, 2013 4:38 pm 

Joined: Wed Oct 07, 2009 4:16 pm
Posts: 961
Shucks kicking a rock in the dirt with you: what about a junk yard transmission?

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 Post subject: Re: Journey into debt reduction (Round 2)
PostPosted: Tue Jan 15, 2013 5:36 pm 

Joined: Tue Apr 15, 2008 6:48 am
Posts: 526
Location: Arkansas
Fantasma... I can no longer participate in the 52 week challenge. That money is needed elsewhere. I was hoping that we had a bit more time, but it's obvious the politicians are hell bent on starting the next American revolution. The state of NY fired the first shot and it's only a matter of time before the people rise up.

Nationwide, more than 2.7 million background checks for gun purchases were recorded for December, according to statistics kept by the FBI, and 2012 was a record-setting year for gun sales in the country with more than 19 million background checks conducted.

Folks didn't just buy these weapons to turn them over to the govt. It's also almost impossible to get spare parts and ammo right now because everyone is buying them up as soon as it becomes available.

Getting your financial house in order is great... but folks... please start getting your physical house in order. Start putting back some food and water. If and or when this kicks off... it's gonna get ugly and it's gonna last a while.

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 Post subject: Re: Journey into debt reduction (Round 2)
PostPosted: Tue Jan 15, 2013 5:38 pm 

Joined: Tue Apr 15, 2008 6:48 am
Posts: 526
Location: Arkansas
fantasma wrote:
Shucks kicking a rock in the dirt with you: what about a junk yard transmission?


I'm just gonna rebuild it...at least that way I know what I have. We are also going to do some things that will help make it more bulletproof which is a good thing considering my oversized tires and big winch on the front end.

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 Post subject: Re: Journey into debt reduction (Round 2)
PostPosted: Wed Jan 16, 2013 6:15 am 

Joined: Wed Oct 07, 2009 4:16 pm
Posts: 961
N2Deep wrote:
fantasma wrote:
Shucks kicking a rock in the dirt with you: what about a junk yard transmission?


I'm just gonna rebuild it...at least that way I know what I have. We are also going to do some things that will help make it more bulletproof which is a good thing considering my oversized tires and big winch on the front end.


You mean bullet proof as in from breaking down for awhile: such as belts and hoses right?

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 Post subject: Re: Journey into debt reduction (Round 2)
PostPosted: Wed Jan 16, 2013 1:27 pm 

Joined: Tue Apr 15, 2008 6:48 am
Posts: 526
Location: Arkansas
fantasma wrote:
N2Deep wrote:
fantasma wrote:
Shucks kicking a rock in the dirt with you: what about a junk yard transmission?


I'm just gonna rebuild it...at least that way I know what I have. We are also going to do some things that will help make it more bulletproof which is a good thing considering my oversized tires and big winch on the front end.


You mean bullet proof as in from breaking down for awhile: such as belts and hoses right?


Such as adding in extra clutches to take up the slack in the gears and adding a mild shift kit so there is less friction when it shifts.

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 Post subject: Re: Journey into debt reduction (Round 2)
PostPosted: Sun Jan 20, 2013 12:08 pm 

Joined: Tue Apr 15, 2008 6:48 am
Posts: 526
Location: Arkansas
2013 Goals
Reduce my debt load by $8500 … (8222.53 left to go)
Increase my eFund to $1000 … (578.00 left to go)
Increase my retirement value by $2500 … (2350 left to go)


Monthly Goals & Achievements

Goals for January…
200/200 ... extra put toward Debt Reduction
422/400 ... increase eFund


Achievements for January…
Sams Card --- $0.97 above what's needed for DRP, monthly progress... (211.51), still owe... 1820.26
Discover Card --- $2.16 above what's needed for DRP, monthly progress 48.16, still owe... 5672.37
Lowes Card --- $18.93 above what's needed for DRP, monthly progress (1102.64), still owe... 5252.53
Chase Card --- $4.76 above what's needed for DRP, monthly progress 30.95, still owe... 7688.09
AmEx Card --- $4.47 above what's needed for DRP, monthly progress 56.47, still owe... 5597.96
CU Loan --- sent in extra $225 from debt reduction fund, $106.23 above what's needed for debt reduction plan, monthly progress 599.23, still owe... 7414.63

Current overall debt reduction for January:
(754.34) ... all debts in

Notes

I am still fighting the urge to spend and sometimes I end up loosing. I should have had some extra to play with, but instead it flowed out like water thru a sieve. I have to be more careful because according to my projections I am only going to have around 15 bucks in my checking account when I get paid again.

Now for a bit of good news. I was able to meet my January goals for my debt reduction. I sent in $200 extra towards my CU Loan. That should bring my debt down to around 7425. Next month I should have it down into the 6 grand mark. I am still on track to have it paid off by Jan 2014.

I was also able to exceed my January goal for raising my eFund. I beat that goal by 22 bucks. Between the two goals I matched or beat... I feel great and my spending lapse cant take that away from me. I set my goals and I achieved them.

Now lets set some goals for February:

0/200 ... extra put toward Debt Reduction
422/475 ... increase eFund

I also need to find a way to add some extra on my Retirement goal. If I don't then I wont make my yearly goal. As it stands I am 700 short for reaching that goal.

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 Post subject: Re: Journey into debt reduction (Round 2)
PostPosted: Tue Jan 22, 2013 8:21 pm 

Joined: Tue Jun 30, 2009 9:44 pm
Posts: 326
Location: Atlanta, Georgia
I don't know which sieve the water flowed through, but if you can find a way to funnel it next month as your extra needed to meet your retirement goal, that's the ticket! ;) Congrats on surpassing your January goals!


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 Post subject: Re: Journey into debt reduction (Round 2)
PostPosted: Thu Aug 08, 2013 2:13 am 

Joined: Tue Apr 15, 2008 6:48 am
Posts: 526
Location: Arkansas
I'm still chuggin along. I haven't been keeping track of every little detail like I used to and I've slipped a time or two but overall I'm not doing too bad. I've had a few setbacks because of mindless spending and I end up kicking myself because of it, I am still trying to change my mindset. It is harder than I anticipated.

According to a post I made about my Jan numbers my CU Loan was at ... 7414.63. I don’t have the exact numbers currently in front of me, but it is now down to around 4200. This next payment should break the 3 thousand mark.

At my current repayment schedule it should be paid off around Feb of 2014. My goal however is to have it paid off by Christmas. To facilitate this goal I have made the decision to put in for overtime at work. I don’t particularly like my job anymore, so in all honestly I don’t want to do the extra time here, but I have to do something. I’ve had all of this crushing debt I can handle. I need some relief.

I made this decision about two weeks ago, and since then I have been able to pull in 16 hours of overtime. This will allow me to dump an additional $400 (currently) towards my CU Loan payment next month. Sadly because I had agreed to help my buddy on my day off I had to turn down another 8 hours. That would have allowed me to dump $600 towards it. My hope is to get at least one overtime per week. To help with that I have signed up to work the shift after my scheduled post and also two shifts on my days off. So far I have been able to pull one day a week. I just hope it holds.

I have also talked with my Lt. and I currently plan on signing up for some overtime on my 3 week vacation in the fall. Maybe I’ll be able to rack up some $$$. I don’t plan on going anywhere; I just have projects to do around the house.

It will be a huge weight off my shoulders when I get this one paid for. It will open up $448 a month. At least then I won’t feel like I’m living paycheck to paycheck. That $448 will go towards the next credit card debt on my list.

Here is something I’d like your input on.

My current plan is to attempt to work overtime until I get my debt paid off. At the current schedule (without overtime) I am looking at somewhere around 3 years. The overtime would cut that down considerably.

The last time I looked at my overall figures (around Jan of this year) I was somewhere around 33,500 in debt. However at the same time I owed around 31 or 32k on my house (it was definitely less than my credit card debt). I got to thinking that if I can pay off my debt in 3 years then I should be able to pay off my house around 2 years after that. So in 5 years I should be debt free.

Since I made the commitment to myself to work the overtime another thought has crossed my mind. What if I put my overtime towards my CU Loan as planned to free up the $448 a month. Then work my debt reduction as originally planned (3 year plan). After paying off the CU Loan instead of putting the overtime towards my debt put it towards my house. It is possible (depending on the amount of overtime) that I might be able to have the house paid for at the same time as the credit card debt. Thus shaving roughly two years off my debt elimination timeframe.

In my way of thinking… I’d just need two maybe three overtime shifts a month to accomplish this since for each 8 hours I’m looking at around $200 bring home after taxes.

I have my own personal reasons for wanting my house free and clear as soon as possible but I’d like to hear your thoughts on the idea.

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 Post subject: Re: Journey into debt reduction (Round 2)
PostPosted: Thu Aug 08, 2013 3:48 am 

Joined: Tue Apr 15, 2008 6:48 am
Posts: 526
Location: Arkansas
As I sit here and write this… it’s around 3am… I need something to keep my mind active while I pull this overtime shift. I can’t wait for 8am to get here so I can go get some sleep.

Just using some very rough numbers (since I don’t have my spreadsheet in front of me) I have come up with the following figures.

Let’s assume the following (debt load should be less but I’m shooting high)

Debt load of 32000 / 36 months = 890 a month towards the principal.

Sticking with the original plan this should be easy enough to accomplish. I’ll free up $448 plus the $150 currently earmarked for my debt reduction. This comes out to $598 extra towards my debt reduction. Between paying the min payments and the fact that I opened up some funds by dropping full coverage on my car (2004 with 209k miles) for liability, I should be able to get the remaining $292 towards the principal plus interest with no problems.


If my mortgage was sitting around 32000 in Jan then it should be down to around 30000 now. With that in mind… IF I am able to get 3 overtimes a month then I would have an additional 21600 over the course of the same three year period. Add into the mix the roughly $200 per month towards principal and I’m sitting at 28800 over the course of three years. That leaves finding 1200 bucks over the course of three years somewhere. That could easily be done using holiday pay.

Unless my sleep deprived brain is fooling me… it seems I should be able to get everything paid off in 3 years going this route (providing I can get the overtime).

Now let’s see if I can figure out the long road without any sleep (paying all overtime to debt then paying the house). I am gonna post the figures I used so I can come back to them at a later time when my brain is functioning properly. If you see a flaw in my logic then feel free to voice it.

In the following set of number I start off with the 448 that I freed up then added in the 150 earmarked for debt reduction. The next number is the proposed 3 overtimes per month. After that It’s the amount that paying off the previous bill should open up in min payments. That figure is close but not exact. I am also using the balance from Jan as a starting point since it has been posted here and is available.


448+150+600 = 1198

Discover 5672/1198 = 5 months

448+150+600+150 = 1348

AmEx 5098/1348 = 4 months

448+150+600+150+110 = 1458

Chase 6788/1458 = 5 months

448+150+600+150+110+170 = 1628

Lowes 4552/1628 = 3 months

448+150+600+150+110+170+100 = 1728

Sams 1530/1728 = 1 month


Roughly 18 months to get credit card debt paid off if working 3 overtimes a month.

Mortgage 30000-3600 (principal for 18 months) = 26400 left to pay after the 18 months of focusing on the credit card debt.


448+150+600+150+110+170+100+35+200 = 1963 (the last 200 is amount of min payment going towards principal)

Mortgage 26400/1963 = 14 months

Total possible time to debt freedom is 32 months. If my figures are correct or even remotely correct then it seems I’d be better off to focus all my attention on my credit card debt then attack my mortgage. Looks like it will get things paid off 4 months sooner.

It’s also nice to see there is a possibility of being completely debt free in three years or a little less. That would mean my house was paid off 10 years early!
The key will be staying focused on working the overtime when it’s available and not turning it down.

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