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New Budget Period - Can You All Provide Me Some Advice?

15 Responses to “New Budget Period - Can You All Provide Me Some Advice?”

1. creditcardfree Says:
   December 28th, 2017 at 01:14 pm 1514466886
   1514466886
   I think you need to keep the sinking fund money for your insurance for sure. Car repairs and the sorority membership are also not easily cash flowed, so I'd probably keep those. The rest may be able to be cash flowed, in the month they occur. Look for other places to find more money. This is where you become gazelle intense. What are you willing to do, sell, work for to pay off the debt faster?
   
   

2. creditcardfree Says:
   December 28th, 2017 at 01:17 pm 1514467030
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   I think 'catching up' the sinking fund just for this one debt would bite you later...because the next debt will be your focus and you will want to pay that off too. And you won't ever make the point of paying yourself back while you have debt. Well you might make the effort, but until you have no debt, it will always be at the expense of paying debt.
   
   
   

3. Out of the Dark Says:
   December 28th, 2017 at 02:53 pm 1514472808
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   Amber, I always focus to cost of debt vs. earnings gained/lost. In other words, is the interest you pay on CC3 less than what you would "earn" if applied elsewhere? For example, if you put the money towards CC3, get that paid off, can you plow what you would normally pay towards it each month into your sinking funds at an accelerated rate? Remember too, paying monthly for insurance costs you zero (0) in interest paid.
   
   Thus, put all resources towards unsecured CC debt that costs you more than any other unsecured (car insurance) and/or lower interest rated debt(s).

4. AnotherReader Says:
   December 28th, 2017 at 02:54 pm 1514472846
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   You might consider selling things you no longer use to generate additional cash to pay down the CC's. CCF sells a lot of things on the various selling sites. Maybe read through her posts or look at what other folks do that sell their unused stuff.
   
   How is the house sale coming? Are there rentals that are part of the estate? If so, what is the plan for those?

5. snafu Says:
   December 28th, 2017 at 03:19 pm 1514474370
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   Adding my voice to others, you've made a plan and it's important to force yourself to stick to it s that it becomes a habit...just routine. If yu having an overwhelming desire to clear CC#, you will need to find additional funds. Take extra work, find a PT job, return iPod gift, sell stuff. Clothes you don't need, don't wear might go to consignment..

6. DW Says:
   December 28th, 2017 at 04:36 pm 1514479006
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   Amber, I totally agree with thes others, especially Snafu. I think because it’s the end of the year, you are anxious to eliminate CC3. I’m going against DR, but this would be a one-time only exception! Use your emergency fund to pay CC3 and work hard to build it up again. Of course this may mess up your goal of paying off a credit 1Q 2018, the key is looking for more cuts, a 2nd gig, or maybe the house will sell in 1Q. Try to have at least $500 in the emergency fund in 12/31. If you choose to do this, then PLEASE stick to your new 2018 budget, money you earmarked for CC3 will now go to replace the emergency fund.

7. DW Says:
   December 28th, 2017 at 04:39 pm 1514479174
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   Regardless of what you decide, it going to take patience to work through your debt and your budget.

8. crazyliblady Says:
   December 28th, 2017 at 05:37 pm 1514482652
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   I totally get your desire to get that cc gone. However, I will submit that having sinking funds for those weird, occasional expenses (car insurance, car registration, property tax, driver's license, professional memberships, car replacement, medical bills) will help to keep you from going into debt. That's because you won't be hit with a whammy of an expense and wonder where you will get the money from. The first time I had major reality on what this could do for me was the year after we bought our house, we got a notice in the mail of an escrow shortage. At the time, we had enough in checking to just cover it. However, for the next year, I set up a sinking fund just for that, so that the next time we had an escrow shortage, there was no scramble to find the funds. I just transferred the money, wrote the check, and it was done.

9. Amber Says:
   December 28th, 2017 at 08:18 pm 1514492310
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   Thanks everyone, I appreciate the feedback.
   
   I've taken a few items out of the closest and posted on OfferUp, hopefully, I can sell some things

10. LuckyRobin Says:
    December 28th, 2017 at 10:41 pm 1514500903
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    It is a temptation I understand. We did cave to that once while getting out of debt and then I spent the entire time worrying while be built the EF back up. It was very stressful. So no, I wouldn't do it. But you could take the $74.33 that is over the $1000 EF amount and the $20.41 in your Family Vacation Fund and get the card under $500 owed. Why are you saving for a family vacation? You should not be taking vacations while you are trying to get out of debt. Or at least not in the first couple of years.
    
    I think it is time you explained the sorority thing, too. You keep saying it is a long story. Whatever the story is, it is not something you can afford to pay for right now. And I would simply tell them that. Good people value honesty. What can a sorority do for you that can't be accomplished by hard work and networking anyway? Have they ever done anything for you? Or is it all one sided with you paying dues and them doing nothing? My opinion is that sororities are a big source of keeping up with the Joneses.

11. Amber Says:
    December 29th, 2017 at 01:06 am 1514509610
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    The sorority thing.
    
    So I always wanted to be a part of a certain sorority. I finally got the invite and was initiated . Long story short my mentor and friend made the recommendation and I was in. I actually borrowed the money ($2k) from my mother to join. 🤦🏾‍♀️🙄 Big mistake.
    
    The first year my dues were paid with the $2k+, the second year, pre-Dave I foot the bill. This year, the plan is to make this my last year active. I just feel so bad because this woman put her reputation on the line to get me in, she treats me like a daughter, so I feel obligated to do a few years.
    
    It's really not too bad if it's plan, it's something else when it's not. One thing I realized is that I think, well know, I didn't join the right sorority. So next year, I plan on not going active.
    
    Yes I've thought about taking the extra money out of the EF to get the CC down. But I think I'll use the the buffer in the checking.
    
    Family vacation. Well I posted in another post that I'll sock this money away, but I doubt highly I'll be going and using the money for debt. I don't know it's a comfort/what if thing.

12. creditcardfree Says:
    December 29th, 2017 at 01:43 pm 1514555038
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    Amber do any of the cards have rewards you can redeem for cash? Those can be thrown to credit card balances. Or if you could redeem for a gift card you could sell for cash, or use for needs that you would normally budget and then put the cash you had in the budget towards the credit card.

13. Out of the Dark Says:
    December 29th, 2017 at 03:05 pm 1514559927
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    Amber. Thanks for the sorority explanation. It helps me to see a couple of things with more clarity (not that what I see matters...lolol). In my line of work, part of what I am tasked with is identifying personal characteristics that others might overlook or otherwise deem unimportant.
    
    For example, during conversation, whenever eyes shift up and down, it's a progressive sign of thought, contemplation and focus. On the contrary, whenever eyes shift from left to right, it's a progressive sign of deception. Now, of course, this is by no means 100% accurate 100% of the time, rather, it is a baseline to dig deeper.
    
    I think, if I am reading this correctly, you focus a great deal on what others think of you, your actions and your loyalty. Often times, these characteristics define who we are, which is again is usually healthy. However, when we make decisions so as to not hurt someone outside of physical harm or safety but detrimental to ourselves, it is a form of unhealthy self manipulation. SO subjects you to self manipulation through his sob stories and inability to get out of his own way, thus, dragging you around and around like a toy. In the same manner, maintaining an expense that brings no value to your life outside of a status claim at this current state only to "not hurt another's feelings" is equally debilitating.
    
    A while ago I suggested cutting ties with negative, unhealthy "things". This might be a great time to consider this persons "feelings" versus your long term financial stability. Just a thought......

14. Bluebird Says:
    December 29th, 2017 at 03:58 pm 1514563088
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    Hi Amber, I personally don't think you should take money from your sinking fund to pay down the CC. It takes discipline to keep the sinking fund intact and it should be used for that purpose. Trying To Get Ahead mentioned the other day that she lowered the rate on a CC...would you be willing to add the interest rates of your CC's to your sidebar? Have you inquired about lowering your rates? Have you tried applying for 0% cards and transferring/consolidating some accounts? With regard to the sorority, if the woman treats you like a daughter, she will understand if you explain to her that you are trying to reach some financial goals and cannot afford the sorority. You're doing a great job!!!

15. LuckyRobin Says:
    December 29th, 2017 at 08:31 pm 1514579503
    1514579503
    Why don't you have a heart to heart chat with the woman who got you in. Tell her how grateful you are that she got you in, but that your life circumstances have changed. If she is a good person, she will understand. If she is all about status, then I don't think it is worth keeping just to not hurt her feelings. Status gets you into trouble.
    

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