by Ryan Reid
Member since:
October 5, 2008

At War With My Debt: Update

February 12, 2011 01:55 PM UTC
views: 0 | 12 people recommend this | comments: 48

Well, i have been at war with my credit card debt for a while now. i have made some big strides and changed my habits to prevent the same disaster from happening again. however I still have a decent chunk of debt to my name and I seem to be having trouble paying it down.

My main issue lies in the fact that i dont have a job...duh...well, i am working at this exact moment but it wont last beyond next week most likely...so...yeah

anyway, besides minimum payments, i havent made an inch of headway in my goal to be debt free. the tax return i will be getting before long will play a part in this, but until then...not much progress to be reported. i even had to take what little i had stashed away for emergencies to pay the bills...so...here is where i sit at the moment.

Credit card debt : $7231 (last month was $7316)

Emergency fund : whatever change i have laying around...so basically $0

But despite this dismal report, i would say things are looking up...long term at least.

I will have my tax return and i intend to spend AT LEAST $1000 of it straight to my debt and more if i can, my car needs repairs so it comes first. so that will be a good dent. not a mortal blow, but a good flesh wound.

Also, i sent in my last car payment this month, so that is another $350 a month that i don't have to pay out. We also got our Comcast bill dropped to about half of what it was. and my insurance dropped a bit. so, in the long run i might start to make some progress. but this month...not so much.

To those of you in my position, stay strong! there is a light at the end of the tunnel, sometimes its just a little dim...


 

Comments: 48

J W. Feb 12, 2011, 1:57pm UTC
I have a Lane Bryant card that is maxed out. I need to get it paid off
Ryan Reid Feb 12, 2011, 2:01pm UTC
its really hard to do...but essential!

i cut up all my cards except for one, and that one is in a very inaccessible place to make sure i only use it in extreme situations
Debbie T. Feb 12, 2011, 2:08pm UTC
The way I look at it is that you are $5 less than last month. Although it's not much, $5 is $5. Little by little it'll go down.
Ryan Reid Feb 12, 2011, 2:20pm UTC
you are dead on with that. however, at that rate i will never be out of debt lol

i know even the smallest decline is still progress, but i am looking for bigger...much bigger
Dorothy H. Feb 12, 2011, 2:10pm UTC
Wow! You could add that $350.00 a month that used to go to your car payment to the payment you normally make to your credit card debt, and take nice big bites out of that debt.

$350.00 a month for 12 months = $4,200. off that debt number. Added to the amount you normally send to the CC debt would make an even bigger chunk taken out of that debt.

COOL!
Ryan Reid Feb 12, 2011, 2:18pm UTC
exactly! thats why i said long term its still looking up! lol

i was SO HAPPY when i sent that payment in...its the biggest step i have taken in a long time. i plan to never have 2 car payments again, actually i hope to never have 1 but things can hit at the worst times...and tend to. so i will gun for only having one and hope for none! lol

as soon as the CC debt is gone, i will pay off my wifes car with that money, and then work on the house ultimately.
Susan G. Feb 12, 2011, 4:30pm UTC
The cool things about paying off your house early is how easy it is. All you need to do is make double payments. That sounds difficult but the double payment is on the principle. Look at your mortgage bill and you will see that the largest part is interest, followed by the escrow amount and the little, bitty amount is your principle. Just double that and check that it is to go towards your principle.
Ryan Reid Feb 12, 2011, 4:35pm UTC
haha, sounds easy but when you consider that i BARELY come up with the money for the bills we have now...it sounds a bit harder...or really...impossible. but when things are more freed up i intend to do just that. maybe not double...but extra
Bernard C. Feb 12, 2011, 2:11pm UTC
Having a card is good thing - though making purchases with it is one of discipline and that needs to be looked at - it does sound very easy to use though is not the way to go about that - if you earn xxx per monthh and give out xxxx per month then a review of those items needs to be done as sooner or later things are going to go the bad way and belly up and the card is the first to go - Hope this helps :-)
Ryan Reid Feb 12, 2011, 2:21pm UTC
i learned my lessons a couple years ago...i have been working on my debt for a while now. i am down to about a third of what i started with. but the final goal is still a ways off...and life loves to hand my bumps along the way
DarkBeauty 73 (Melanie) Feb 12, 2011, 2:23pm UTC
I am with you on tackling my debt, seems pretty dim right now I just hope like you say there is light at the end of the tunnel.
Ryan Reid Feb 12, 2011, 2:26pm UTC
some days it is just hard to keep going with it, but i know in the end it will be the greatest feeling ever!
DarkBeauty 73 (Melanie) Feb 12, 2011, 3:57pm UTC
agree, kind of depressing sometimes when it goes no where
Winona (the crazy rat lady) Feb 12, 2011, 3:30pm UTC
Getting out of debt is hard. Getting out of debt when you don't even hvae ajob is ever harder.
RedBird. B. Feb 12, 2011, 3:49pm UTC
Ryan, You sure will make a good dent into your bills with an extra $350.00 a month.
Your determination will get you through!
Good for You!
Tropica G. Feb 12, 2011, 4:07pm UTC
Yes, it is hard to get out of debt when there is no income really coming in. You will get there, because you seem really determined. Good luck.
elizabeth s. Feb 12, 2011, 4:32pm UTC
Times our really hard now days !
Elizabeth S. Feb 12, 2011, 4:48pm UTC
Ouch, that's a lot of credit card debt. At least you are going the correct direction. When the road is long, even an extra $5 a month can be worth a lot of dollars in the long run.

Congratulations on paying off your car. That's really something. I know you must have been worried about it from time to time.

While many people think credit cards are evil, I've always thought of them as a convenient emergency backup. It means that I do without most of the time until I can afford something but when the car breaks down, I'm not looking for ways to borrow money.

Good luck on getting debt free as soon as possible.
I used to pay an extra $20-$100 on my principal whenever I had a little money. I only did it for about a year, but when I got into financial difficulties, it meant I could lower my house payments by about $100 a month without renegotiating anything.
Ryan Reid Feb 12, 2011, 4:50pm UTC
i actually did double payments for a few months and a payment and a half for a while on my car, i ended up getting out of the payment 5 months early, not much...but hey! it really saved my butt down the line!
Rebecca D. Feb 12, 2011, 5:04pm UTC
I'm trying to pay mine off too. I have it down to less than $2000, and part of that is the laptop I bought to replace the old one when it got broken. I put that on a new card Best Buy offered me without interest for three years, so that helped a little. With interest, it would be nearly impossible for me to pay it off. I don't know if you've looked into doing a balance transfer or not. I managed to find one that gave me a year without interest, so I should be able to pay that one off before the end of the year. Good luck!
Ryan Reid Feb 16, 2011, 5:06pm UTC
i cant wait to be that close! good luck!
Janet "Jax" B. Feb 12, 2011, 5:50pm UTC
Good for you! I'm trying to get ours down....but things keep happening here. I get it paid down, then I end up having to put something on it.
Ryan Reid Feb 12, 2011, 6:29pm UTC
thats why the first step of my plan was to make an "emergency fund" so i wouldnt have to do that anymore. i have one card left for BIG emergencies, but it is quite literally frozen right now...also, cutting up all the other cards removes the temptation AND the option to use them.
Janet "Jax" B. Feb 12, 2011, 7:21pm UTC
OUr sewer went out....we didn't have much of a choice, as we don't have $2000 to pay for it. I use to have an emergency fund, but we've had to many emergencies the last year...flooding, broken foot, broken arms, CAT scans, etc
Ryan Reid Feb 12, 2011, 7:25pm UTC
oh i know, if its not one thing its another...
dee b. Feb 12, 2011, 6:15pm UTC
As long as you are making a dent, you are keeping in step. Whenever possible, you make a bigger dent and so forth. That gives you the mojo, to keep on bringing it down. The process is long and sometimes agonizing, and you feel like its a losing game. Just never get out of habit of making any kind of dent if all possible. Or it was all a waste even trying to begin with. Picture yourself like a runner trying to get to the finish line. Do you drop out because you didn't get there as fast as you would have liked? No you just try harder to get there when you can.
Ryan Reid Feb 16, 2011, 5:06pm UTC
great advice, thank you Dee
Sandy Moore Feb 12, 2011, 7:54pm UTC
You are doing good Ryan. I like the way you look at things and see where you can cut expenses. All will work out for you.
Ryan Reid Feb 16, 2011, 5:06pm UTC
Heres hoping!
Theresa W. Feb 13, 2011, 4:12am UTC
Hang in there, it may take time, but you're on your way.
Diane Huizenga Feb 14, 2011, 10:09am UTC
Hang in there Ryan you have the right attitude about your debt.
Pamela Marks Feb 14, 2011, 11:03am UTC
don't forget your car is paid off that is debt free all yours.
Jeff S. Feb 17, 2011, 1:36pm UTC
Have you looked at Dave Ramsey's Total Money Makeover plan?
He suggests the following Baby steps ( www.daveramsey.com ):
1). Stop all retirement investment contribution for the time being until all debts are paid off. Start beans and rice diet, no vacations, and no dining out. Cut up credit cards (use debit card), and stop creating debts.
2). Pay minimum on all payments until $1,000 emergency fund is built up
3). Start paying off debts with the smallest balance first.
4). After all consumer debts are paid off (you are officially debt-free), retstart retirement at 15% of gross income.
Ryan Reid Feb 20, 2011, 1:30pm UTC
actually i am working with that plan with very minor variations. i don't have the book but it is in my shopping cart on Amazon.com, i am waiting for a more opportune time to buy it but have full intentions of doing so.

thanks for the tips!
Jeff S. Feb 20, 2011, 1:36pm UTC
Good luck. We started the program 8 years ago (after I was laid off from what I thought was a very steady job as an engineer), and we have been able to become completely debt-free, and I have retired 5 years ahead of schedule. Our children have never borrowed money, hold a credit card, or bought anything on credit. We are hoping to continue this no-debt trend for the next generations.
Ryan Reid Feb 20, 2011, 2:37pm UTC
that would be great! i slipped up in the beginning, but i am trying to get back on track and moving forward.
Jeff S. Feb 20, 2011, 4:47pm UTC
Important keys for moving forward:
1. Build up emergency fund (at least $1,000)
2. Stay current on your bills, and stay on monthly budget
3. Don't create new debts - cut up credit cards and use debit card
4. Have adequate medical, life, auto, and home/renters insurance
5. Pay minimum on all bills except for the smallest balance, which you attack with vengence.
Ryan Reid Feb 20, 2011, 7:00pm UTC
i have done all of those except the emergency fund so far, i had it started but an emergency happened, as soon as i get my tax refund i will be setting aside 1000 for just that purpose. and also, i left one card un-cut, however it is frozen in a jar of water in the freezer. only until i have maintained the emergency fund for a little while. just in case something catastrophic were to happen between now and then.

i ordered dave ramseys book with my "Swagbucks" earnings earlier today, cant wait to get it and read it in its entirety
Katie R. Feb 19, 2011, 6:59pm UTC
Glad things are looking up!
Regina R. Feb 24, 2011, 5:46pm UTC
Congrats Ryan I think you are doing a very good job in managing your finances now.
Nichole D. Feb 26, 2011, 3:45pm UTC
Well..hey...congrats on getting the last car payment in. If you just put that $350 toward the credit card debt every month, that will pay off in no time!


This post has reached over 100 Views! Congrats!
Ryan Reid Feb 26, 2011, 3:46pm UTC
thats the plan! thanks!!
Nichole D. Feb 26, 2011, 3:47pm UTC
Cool!

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