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I read Dave Ramsey's book The Total Money Makeover back in June 2015 and decided it was time for me to get my life together and pay my debt off.
I welcome all comments, criticisms, as well as support and advice. Here goes nothing. Month 1. Wish me luck!
I sincerely wish you well in your endeavor. You've gotten out of debt once, you can do it again. It will probably take longer this time because you owe much more than you did the previous time.
I'm a big fan of Dave Ramsey, too, but it seems a lot of posters on this forum are not. The fact that you mentioned his name might have caused you to receive more negative, critical posts than normal (which is saying a lot because negative, critical replies on this forum are numerous in general).
A spreadsheet isn’t going to help in this case. He’s looking at about $1200/mo to live on after making the minimum payments on all of these loans. Nobody can live on that, so forget about the debt snowball. Even working OT and delivering pizza on the side isn’t going to fix this one.
The banks that extended this ridiculous amount of credit need to be held accountable too. Stop paying on the credit cards. If one of these is a car loan, keep making the payments to keep the car. Might want to accelerate the payoff on the 401k loan, since 401k tends to offer better protection from creditors.
I beg your pardon. A lot of Americans live on $1200 monthly (or less) after all bills and debts have been paid. I'm one of those persons. It can be done - just have to cut out unnecessary spending (eating out, shopping for non-necessities, paying for entertainment, paying subscriptions to various streaming networks, online games, gambling, etc.).
I beg your pardon. A lot of Americans live on $1200 monthly (or less) after all bills and debts have been paid.
As spelled out, the $1200 needed to also cover "bills" (i.e., rent, utilities, food, phone plan, car, etc).
It's moot at this point. The OP has increased his income by working more, and also reduced his interest expense with the help of a family member. Well done.
Yes, you were stupid and greedy. But I think it's very much worth asking yourself WHY? What was the motivation? You don't have to answer here. But what did you think the money was going to bring you that you don't have now? Usually there is some kind of insecurity or other emotional issue underneath the greed and if you don't get that resolved, you will keep repeating the pattern.
5) Line of Credit = $12,000 ($738 @ 17.24% and $11,262 @ 15.49%)
6) Credit Card 5 = $15,501 @ 0% until 4/24 and then 29.99%
7) Credit Card 6 = $5,359 @ 21.99%
8) Credit Card 7 = $5,239 @ 19.24%
9) Loan 1 = $19,998 @ 9.9%
10) Loan 2 = $17,606 @ 15.99%
11) 401k loan =14,528 @ 1.5%
12) 401k loan 2 =8,068 @ 3.1250%
Total Debt = $134,593
Monthly payments = $2,525 (not including 401k payment)
Monthly interest = $1,324 (not including 401k interest)
SUNDAY 3/12/23 UPDATE
Quote:
1) My Loan 1 = $20,000 @ 15.99%
2) Her Credit Card 1 = $22,660 @ 0% until April 2024
3) Her Credit Card 2 = $12,200 @ 0% until November 2023
4) My Credit Card 1 = $2,619 @ 19.49%
5) My Credit Card 2 = $20,000 @ 2.9% until December 2024
6) Her Cash Loan = $28,000 @ 0%
7) My 401k loan 1 = $13,856 @ 1.5%
8) My 401k loan 2 = $7,763 @ 3.1250%
Total Debt = $127,098
WEDNESDAY 6/7/23 UPDATE
Quote:
1) My Loan 1 = $19,701 @ 9.99%
2) Her Credit Card 1 = $21,760 @ 0% until April 2024
3) Her Credit Card 2 = $5,600 @ 0% until November 2023
4) My Credit Card 1 = $2,513 @ 19.49%
5) My Credit Card 2 = $19,276 @ 2.9% until December 2024
6) Her Cash Loan = $26,500 @ 0%
7) My 401k loan 1 = $12,774 @ 1.5%
8) My 401k loan 2 = $7,394 @ 3.1250%
Total Debt = $115,518
I FINALLY PAID MY FIRST CARD BALANCE OFF (My sister's card 2)!!! The initial balance was $12,200 and it took me 4 months to pay it off. Feels freaking amazing!
I still have a long way to go though and I'm super tired but I can't stop now. Going to keep plugging away. The next balance I'm attacking is my sister's card 1 ($18,860).
Here is the latest update.
SUNDAY 9/3/23 UPDATE
1) My Loan 1 = $18,938 @ 9.99%
2) Her Credit Card 1 = $18,860 @ 0% until April 2024
3) Her Credit Card 2 = $0 --- PAID OFF IN JULY 2023 ($12,200 paid off in 4 months)
4) My Credit Card 1 = $2,260 @ 19.49%
5) My Credit Card 2 = $18,215 @ 2.9% until December 2024
I FINALLY PAID MY FIRST CARD BALANCE OFF (My sister's card 2)!!! The initial balance was $12,200 and it took me 4 months to pay it off. Feels freaking amazing!
I still have a long way to go though and I'm super tired but I can't stop now. Going to keep plugging away. The next balance I'm attacking is my sister's card 1 ($18,860).
Here is the latest update.
SUNDAY 9/3/23 UPDATE
1) My Loan 1 = $18,938 @ 9.99%
2) Her Credit Card 1 = $18,860 @ 0% until April 2024
3) Her Credit Card 2 = $0 --- PAID OFF IN JULY 2023 ($12,200 paid off in 4 months)
4) My Credit Card 1 = $2,260 @ 19.49%
5) My Credit Card 2 = $18,215 @ 2.9% until December 2024
6) Her Cash Loan = $25,000 @ 0%
7) My 401k loan 1 = $11,824 @ 1.5%
8) My 401k loan 2 = $6,961 @ 3.1250%
Total Debt = $102,058
You are making amazing progress!! You will soon be under 100K!! Keep on doing what you're doing. You definitely want to get that 19.49% card paid off ASAP. That will allow you to put more money towards getting your sister's loans to you paid off while also focusing on attacking that 9.99% loan.
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September 2023 Update
