WOMEN IN RED RACERS

[oweno]

Just popping in to UPDATE...

OweNo: 12/15/2014 $22,979.84 (03/17/08 $48,581.63, M190, M298, 190, 324)

[teachermom]

Update......so had a little bit of back and forth going on.....some charges that weren't in, yearly fees, and interest.....I think I have the total pretty close now. Didn't make as much headway as I wanted, but moving on! Going to get this debt paid off!!

Debt
Account	Beg Bal	12/14/2014	Difference	% Paid
Macy's	$112.21	$0.00	$112.21	100.00%
Home Depot	$386.50	$0.00	$386.50	100.00%
Target	$535.67	$0.00	$535.67	100.00%
Cap One 1651	$657.30	$630.00	$27.30	4.15%
Cap One 0013	$973.33	$954.18	$19.15	1.97%
Best Buy	$1,022.53	$1,049.00	-$26.47	-2.59%
Old Navy	$1,557.89	$1,499.84	$58.05	3.73%
Barclay Card	$2,096.73	$2,443.69	-$346.96	-16.55%
Sears	$2,732.77	$2,600.00	$132.77	4.86%
BofA	$3,022.93	$3,020.88	$2.05	0.07%
Total Savings	$13,097.86	$12,197.59	$900.27	6.87%

Teachermom 12/14/2014 $12,197.59 (11/16/2014 $13,097.86) *updated starting total. Will have another update on 12/30/2014 for my year end. (

Teachermom

Edited to add......progress is on my EF....I transferred $500 when I got paid and so far also added $328.39 to make my total $828.39. Still selling things.....tomorrow will add another $12 to $15 from some clothes and $25 for a desk. Lots more stuff listed for sell!! Also have a $20 and $43.52 reimbursement coming this week that I will add. That will make the total $928.91 +!! I can do this!!

[Rocky Mtn Saver]

Dec 13, 2014 22:01:27 GMT -5 sealy said:

I made my final payment on CC #2 and have my car payment down to $999. I want to pay it off at the end of the month. Downside my EF only has $13 in it. I would like to restart in 2015. Hopefully I'll only have CC #1 and mortgage left then. I'm praying Murphy leaves me alone.

While I applaud  your determination about your debt... I also have to ask what's so urgent about paying the last $1000 on the car that it has to be done this month?  What if you blow a tire the next day, and you have only left yourself $13 to pay for it?  You'll most likely add to your debt, is what will happen.  And you'll put yourself backward on your debt-free journey.  Why not put the extra money in to the bank instead, and pay off the car at the normal pace?  An all-or-nothing approach leaves you and your family very vulnerable and often prolongs your journey toward financial freedom. 

ETA:  Even Dave Ramsey wants you to keep $1000 in your emergency fund.   

[gidgetc13]

UPDATE

Gidgetc13 12/15/14 $15,749.67 (6/28/09 $96,421.29, M1001)

[snapdragon]

UPDATE: snapdragon 12/15/14 $15,454.24 (8/6/12 $28,849.00 3,11)

Well I made my goal of wanting to be under $15,500 by New Years. 

Everyone keep on marching along! 

[scrgrl47]

Dec 10, 2014 19:59:05 GMT -5 forwardwego said:

Dec 10, 2014 11:53:22 GMT -5 scrgrl47 said:

Good evening  . My race #2 started Jun 2011 and was DH's and my vehicle loans total @ $26K. I was hoping 2-2.5 years to payoff. At the end of 2012, balance was under $9K, but both DH and I needed extensive dental work (total was @$12K) $10K of which we charged and added to this race. In 2014 added to the race total again @$2K. Presently the balance remaining is my car $10987 at 2.5%. The scheduled payment is $325 which would pay it off in 35 months. I plan to at least pay $500 which would pay it off in 22.5 months. In a good month I could pay $1000, which has me thinking/wishing I could zap the loan this year. It would probably be wiser to stick with the $500 car payment, saving the possible other $500 per month. But, this race is feeling like an "old goal", as you mentioned  , and I want rid of it. My present savings is $2580, spread across 3 EF accounts, and is growing @$340 per month. (No credit card debt, paid that off in race #1).

 

Hi Forward - just got back from family wedding weekend activities and am now lucid enough to tackle your question.  Mostly.

Firstly, sorry to hear about the dental work.  $12k, yeesh.  Dental insurance, even if you have it, is such a sham.  $1k annual maximums, are they serious?  Do they have any idea how much a single root canal & crown are??  I have some strong opinions about how the lack of affordable dental care is a strong deterrent for many people to move up the ladder but that's for another day.

It sounds like you have a lot of good feedback so far.  Rocky Mtn Saver has a really good point about not depleting savings to pay debt as no EF increases the risk of going back into debt.  bankergurl made some great points about having one or two focused accounts and then dividing any "extra" discretionary between them but also being driven toward the win.

It sounds like you're pretty comfortable with your collective EFs growing at $340/month.  If you maintain this savings rate and pay the minimums on the dental $, could you still eliminate race #2 by 1/1/16 if you threw everything else at it?  If I were in your shoes, that's probably what I would do because it allows you to balance the savings but still shoot for that big win. 

[nodebt42]

Hi all,

I am finally under 20K!!!! It has taken forever! (I lost my starting debt which was over 60K in the move from the MSN boards. I originally had, I think, 3 credit cards, and SL #1 was originally about 12K or so.)

Anyway, without further adieu: NoDebt42: 12/15/14 $19829.22 (7/31/12, $41,135.92, NE90)

Account	Starting	Current	Paid	Percentage Paid
CC #1	$311.08	$0	$311.08	100%
SL #1	$6066.89	$0	$6066.89	100%
SL #2	$34757.95	$19829.22	$14928.73	42.95%
Total	$41135.92	$19829.22	$21306.70	51.8%

This also means I've paid off over 10K this year for the second time in 3 years! (Last year, I wasn't irresponsible. I just focused more on saving.)

Also, I don't often comment on others' posts, but I do read them and you all are quite a motivating community!

Thanks,
Amanda

[laramik]

Hi Racers!

Smiley updates have been posted!

It is so great to see so many familiar "faces" returning and also some brand new ones!

Keep up the great work everyone!

[scrgrl47]

runmarathons - congrats on paying over $20k in just a few years, that's amazing!  It also looks like you have some decent savings, a bunch in checking, and a good budget worked out.  Way to go.

Questions

• I ask this as a totally non-litigious person, but would it be worth evicting your current tenants and taking them to small claims court for unpaid rent?  A back thread shows that you weren't getting rent in September 2011 - these aren't the same people, are they?
  
  
• From which account are you planning to pull the roof $8k?
  
  
• Does your food & misc category cover stuff like clothes, movies, gifts, vacations, etc?
  

    
Suggestions*

1. Take $8k from checking for the roof since (I'm assuming) you're earning little to no interest on that checking $$
   
2. Take $5.5k from checking and fully fund a 2015 Roth IRA (unless your HSA is also post-tax...someone smarter than me will have to figure that part out)
   
3. Take $8.9k from checking and get rid of that student loan at 4.9% interest

These first 3 suggestions will leave $22.4k in checking and increase your leftover/month to $504.83 (current leftover of $382.86 + student loan bill of $121.97).

I feel like for the amount of risk you're carrying, which would include maintenance to two properties, delinquent tenants, you need to have some pretty hefty emergency fund in place.  You're seeing it now needing $8k at a time for a major repair which would completely wipe out your current savings. 

So, with that, here are my further suggestions*:

1. Open 3 new liquid savings "buckets" - rental 1 EF, rental 2 EF, and 6-month living expenses**
2. Immediately transfer $X from checking to rental 1 EF and rental 2 EF.  IMHO, $7.4k in each would be a good place to start.  This covers some pretty major expenses and will leave $7.6k in your checking which is two months of bills wiggle room.
   
3. Divvy up your extra $504 between your savings accounts, maybe after rounding your two mortgage payments up to the nearest $100
   

*these are just my personal suggestions using my personal risk profile and experiences.  What makes sense for you may vary wildly :-)
**Could you seed this with the $7,351 you already have in savings?  That's almost 2 months of expenses right there...

[shanendoah]

shanendoah: 12/15/2014 $10,327.57 (12/30/2009 $76,536.33 WU7, WU31, WPT512)

LOC	Current Balance	Starting Balance	Originally Borrowed	Total Paid	% Paid off
Chase CC	$-	$2,171.85	-	$2,171.85	100.00%
BofA CC	$-	$432.55	-	$432.55	100.00%
LaZBoy CC	$-	$882.58	-	$882.58	100.00%
Care Credit	$-	$3,196.57	-	$3,196.57	100.00%
Car	$-	$4,771.88	-	$4,771.88	100.00%
Basement Solutions	$-	$4,775.30	$4,775.30	$4,775.30	100.00%
GSL	$-	$42,150.85	$39,000	$42,150.85	100.00%
USL	$10,327.57	$18,154.75	$16,000	$7,827.18	43.11%
Total	$10,327.57	$76,536.33	-	$66,208.76	86.51%

It's been a little over a year since my last update (12/11/13). I guess I'd like to start by apologizing for not being around, especially since I'd kind of been a captain on the West thread. It has been a rough year, but I'm working on getting myself organized again.

A little about me. I live in the Seattle area. I am late 30s, married, and have one daughter, Pop Tart, who we adopted in 2013. (She's 11 years old.) We are foster parents and occasionally will have another child living with us. We are looking to adopt a second child.
I am the sole earner for the family. I have a state job with good pay and great benefits. My husband, C, is a stay at home parent, for which I am incredibly grateful. My life would not be possible without him. He did complete his combined BA/BS in anthropology and math just this summer. It is possible that he will get a job at some point in the future, but for now, him staying home and being the primary parent works really well for us.

I started racing right at the end of 2009. C had been laid off that year. I had not yet received my first post-MBA job, and we were drowning. Without the extended unemployment, we would have lost at least a car, maybe our house. I needed somewhere I could talk freely about my financial concerns, get advice and ideas. I was never comfortable doing that with friends because there were two options- either they were friends that were doing well, and I didn't want to feel like I was whining/complaining or they were friends who, even when we were at our worst, were in worse shape than us, and I didn't want my concerns to feel like bragging. I'd been reading MP's articles in the original WIR since they had started, and finally bit the bullet and joined the group. While our marriage probably would have survived if I hadn't come here, it came through the hard times in much better shape than it would have if I hadn't.

I feel a little silly still racing. My original goal was a five year payoff plan. While I could technically still meet it (I do have a little over $10k in savings), it is not going to happen. I currently pay $200/month on the undergraduate student loan, and given it's 3.5%APR, I am not going to rush any faster to pay it off. That does mean I still have roughly another 5 years before this race is over.
We do have a mortgage, but I am not racing it. We had hoped to move this summer, but I was unemployed for 9 months, which ate a considerable amount of our savings, and made moving unrealistic. We now need to decide if we want to move or start pouring a significant amount of money into renovating our current home. We do like our location, but there are things about the house - tiny kitchen, single bathroom - that just aren't working for us.
In addition, we have a HELOC on a rental property, but that will be paid off in 4 days. I never raced that loan because it wasn't really our loan. My MIL took it out, and we inherited it, as well as the condo it was on, when she passed in 2012. The rent on the property was pretty much a break even with the loan. Now that it's paid off, we'll have some extra income to set aside for savings.

As you can see from my tag line, I started on 12/30/2009. Each year on my anniversary, I try to do a big "state of shanendoah" post, and 2013 version was my actual last post on the West thread. My goal is to do another one here at the end of the month, so I'm trying not to say too much now (so it doesn't feel like a rehash in two weeks). Mostly I wanted to pop on now to say, I am still here, I am still reading, and I love the new combined thread.

[shanendoah]

The question about debt vs savings.
As I mentioned in my above post, we still have over $10k in savings, so could just pay off the last of our non-mortgage debt and be done with it. We are choosing not to do so.
My 9 months unemployed this summer truly proved the need for a liquid cash savings, so my goal is never to have less than $10k in savings. If we get to the point that we have $10k more in savings than we owe on the debt, AND we have no plans for that money, we might pay off the last of the debt.
But right now, the last of our debt is at 3.5%APR. That's really cheap money. Cheaper than we'd likely be able to borrow now. So it makes sense to have the cash on hand, especially if we do decide we're going to renovate our house.

[forwardwego]

scrgrl47 Thanks for the perspective on my situation. When I was laying it out for you to understand better, it also helped me see a few things.... I need a mental boost in this race, so in January I'm going to do just a basic savings effort, allowing me to throw a BIG punch at my race debt, hopefully bringing it below the $10K mark. In Feb through Nov I plan to reduce the balance @$700/month. That should bring the balance to @ $2900 in November.  December I make some O.T., plus it's an "extra check month" and those two things could nix the final $2900. In 2016 I'll keep $500/month going as a car replacement fund, and the other $200/month can go towards savings goals. This plan feels good. It will be a "reach" but worth it.

[sealy]

Dec 15, 2014 9:40:28 GMT -5 Rocky Mtn Saver said:

Dec 13, 2014 22:01:27 GMT -5 sealy said:

I made my final payment on CC #2 and have my car payment down to $999. I want to pay it off at the end of the month. Downside my EF only has $13 in it. I would like to restart in 2015. Hopefully I'll only have CC #1 and mortgage left then. I'm praying Murphy leaves me alone.

While I applaud  your determination about your debt... I also have to ask what's so urgent about paying the last $1000 on the car that it has to be done this month?  What if you blow a tire the next day, and you have only left yourself $13 to pay for it?  You'll most likely add to your debt, is what will happen.  And you'll put yourself backward on your debt-free journey.  Why not put the extra money in to the bank instead, and pay off the car at the normal pace?  An all-or-nothing approach leaves you and your family very vulnerable and often prolongs your journey toward financial freedom. 

ETA:  Even Dave Ramsey wants you to keep $1000 in your emergency fund.   

Rocky Mtn Saver you are right.  I have no idea what is wrong with me.  I keep trying to hurry up and get out of debt only to pay too much and revert back to the card.  Not this time though because I figured since I'd be off I would be ok but am finding that isn't the case.  I'm beginning to get on my own nerves, feeling like a drama queen.  My guess is I just want to be debt free and am trying too hard to get there.  

Thank you for always speaking the truth.  I really appreciate it.

[scrgrl47]

forwardwego - awesome, thoroughly considered plan.  You can really see the energy behind your post.  You're pumping me up for my 2015!  We'll have to keep each other accountable past April

shanendoah - that's a heckuva post.  If it makes you feel better, I've also been around since the MP Dunleavy and Coffeegirl days and am more or less in the same place just with different debts.  Thanks for the insight as to why you turned to the boards.  That's the sort of stuff that makes people feel comfortable enough to move from lurking to posting their starting debt.  Your progress since 2009, and there has been tons of it, highlights what's possible even when life doesn't go exactly as planned.  You're a inspiration.   

[nikiz628]

Dec 15, 2014 22:06:16 GMT -5 scrgrl47 said:

forwardwego - awesome, thoroughly considered plan.  You can really see the energy behind your post.  You're pumping me up for my 2015!  We'll have to keep each other accountable past April

shanendoah - that's a heckuva post.  If it makes you feel better, I've also been around since the MP Dunleavy and Coffeegirl days and am more or less in the same place just with different debts.  Thanks for the insight as to why you turned to the boards.  That's the sort of stuff that makes people feel comfortable enough to move from lurking to posting their starting debt.  Your progress since 2009, and there has been tons of it, highlights what's possible even when life doesn't go exactly as planned.  You're a inspiration.   

Oh....Coffeegirl. I had almost forgotten about her.

[chelsea727]

I found out that we are getting $500 bonuses this year! I've never worked at a place that gives out Christmas bonuses, so I'm pretty pumped.  I'm struggling with what to do with it though.  After taxes, I'll take home $372 of the $500 bonus (stupid taxes).  I'm trying to figure out which would be the best option:

1. Throw it all in savings (I currently have $100 in my EF)

2. Payoff my next debt of $280, save the rest.  This would free up $20/month minimum payment.

Thoughts?

[Ombud]

chelsea727, I'd pay off the quick cash loan, add the $20 freed up to the highest interest debt, and save the rest.

[Ombud]

Ombud: $11,877.85 (11/23/14: $13,384 C2)

Progress! Putting extra against my savings goals instead of debt this month. Honestly, I cannot avoid spending extras all year or I'll melt down and spin out. I admire those who can

[sealy]

I've been here since MP and Coffeegirl too. Won my race then charged again. I'm going to break the cycle this time.

[nikiz628]

chelsea727

I would knock out the quick cash loan at $280.00 and take the remaining bonus money and throw it into your EF! Then you would contribute to both "causes"

[nidena]

Dec 15, 2014 22:17:43 GMT -5 chelsea727 said:

I found out that we are getting $500 bonuses this year! I've never worked at a place that gives out Christmas bonuses, so I'm pretty pumped.  I'm struggling with what to do with it though.  After taxes, I'll take home $372 of the $500 bonus (stupid taxes).  I'm trying to figure out which would be the best option:

1. Throw it all in savings (I currently have $100 in my EF)

2. Payoff my next debt of $280, save the rest.  This would free up $20/month minimum payment.

Thoughts?

Ze-ro!  Ze-ro!  Ze-ro!    I'm thinking option #2.

[nidena]

Let me just share how awesome #USAA is (even the small things totally matter): Last week I scheduled my final HEL payment. The projected payoff balance was actually a dollar and change more than the balance on the day I scheduled it but I couldn't schedule a future payment for more than the balance on that day and since the payoff amount is kind of a moving target, I just put the dollar amount as close as possible. Well, the payment posted and, of course, it paid principle and interest which left me with a balance of $1.10. USAA nulled out that amount as a "Closing Adjustment" and my HEL is totally, completely, and officially PAID OFF!!!

[Rocky Mtn Saver]

Dec 15, 2014 22:29:14 GMT -5 Ombud said:

chelsea727, I'd pay off the quick cash loan, add the $20 freed up to the highest interest debt, and save the rest.

What she said!  This is a good balanced approach.  You're giving yourself a small win, some immediate gratification, but also putting more into your savings so as to prevent backsliding in the future.  That's the best way to not only get out of debt, but stay out of debt! 

[muffyinthered]

MuffyintheRed here for the first time on the new boards.  It is great to actually have alot to read, haven't had that since back when I first started on the board.  A little back ground:  I turned 60 here on the boards and now 62 and collecting Social Security!  My DH is collecting too but he also works full time.  I was working when I started in 2008 and then got laid off my job 3 months later.  I am a snail.  We have had lots of things happen in all this time including just recently my husband having prostate cancer.  Well, we are cancer free now, and I will take the increase in debt to get to this point.

Included in this update was going to be a "0" in some old medical bills but I have to add in some new medical bills.  I will increase my starting debt to reflect this $977.85 and will start paying that down.  We are lucky because we have the added Social Security money to help but we are saving the majority of it till we see how it will affect our taxes.  Then we will put it towards our debt in a big payment from the money we recieved in 2014 and will do the same in 2015.

I am a little scared with the first check of 2015 because we have more money being taken out for health insurance and my husband's life insurance policy and we are reducing our deductions so the tax withheld will be more, so not sure of the actually take home.

Teachermom:  You have probably already made a decision about what to do with that big check but don't forget to leave some money out to live on for the next month.  Also you can call the manufacturer of the drug your son takes and tell them you can't afford it.  They should be able to help or tell where you can get help.

Attention:
MuffintheRed 12/16/2014 $78,766.78 (9/9/08 $129,640.22 S37, SU395, PRO77, 81, 137) NC
Paid off since joining:  $50,873.44  Percentage:  39.2%
Paid off this month:  $277.42
Medical Bills:  $987.36 - $209.51 =$777.85
CU Savings:  $1450.14 + 50.00 = $1,500.15


At least I was able to earn $50 in Swag Buck rewards and add it to our savings!  Just remind me that slow and stead wins the race cause this is taking way longer than I ever thought.

[lulu0312]

UPDATE:

lulu0312 12/16/14  9,606.31  (9/21/2007 88,069.92 N571,608)

A small $179.98 update...  I'm 89% paid off, though!   

[lulu0312]

Looking for opinions --

My husband's been off work for 6 months now with his illness, and in accordance with our employer's policy his status at work is now officially terminated.  We knew that was coming and it's perfectly OK. 

My question is... we are thinking of taking $100,000 out of his 401(k) to pay off our mortgage. Because he's over 55 and is no longer employed there, he can now make withdrawals without penalty, we'll just have to pay the taxes.  This is about half of his total 401(k), and will free up $500 per month for us going forward.  He also wants to leave me with a paid for house... 

Are there any ramifications we should be considering that we might not be thinking of?
Thanks for any thoughts you all might be willing to share.  

 

[missk82]

I was just lurking a little - wondering if I should join the racers for our student loans - and I saw lulu's post. I'm not sure what type of illness your husband has, but I'm very sorry to hear about it. Do you expect it to shorten his life expectancy?
My first instinct is to NOT withdraw 401k money to pay off the house. You will lose a good chunk to taxes -do you know what your tax bracket is? Are you still working? Also, if he were to pass (and I hope not!) does he have life insurance? A lot of people use life insurance to pay off a mortgage when a spouse passes. Just a few things to think about. 

[Rocky Mtn Saver]

Dec 16, 2014 10:49:55 GMT -5 lulu0312 said:

Looking for opinions --

My husband's been off work for 6 months now with his illness, and in accordance with our employer's policy his status at work is now officially terminated.  We knew that was coming and it's perfectly OK. 

My question is... we are thinking of taking $100,000 out of his 401(k) to pay off our mortgage. Because he's over 55 and is no longer employed there, he can now make withdrawals without penalty, we'll just have to pay the taxes.  This is about half of his total 401(k), and will free up $500 per month for us going forward.  He also wants to leave me with a paid for house... 

Are there any ramifications we should be considering that we might not be thinking of?
Thanks for any thoughts you all might be willing to share.  

 

As a generality, I wouldn't advise to take out half of your retirement monies.  Some relevant questions, though, would be:  How badly do you need the $500 monthly?  What types of income streams do you have for retirement, and how secure are they?  Do you know how much taxes you'll have to pay with this additional distribution?  What kind of future medical expenses will he be looking at?  Can you afford the mortgage on your own if something happens to him? 

[forwardwego]

lulu0312 That's a big question. Have you talked with a CPA or tax accountant? A big lump sum in a single year could throw you into a much higher tax bracket. However it seems there's a strong emotional desire for him to personally see you have the house paid in full. (That's a very loving desire for him to have, and would probably give him some peace of mind.) Personally I'd have a trusted accountant review the plan, and if nothing major comes up, I'd probably do it. So that's one WIRRs opinion, hope others will weigh in soon.  


ETA: what is the interest rate on your mortgage?

[Rocky Mtn Saver]

Dec 16, 2014 11:44:50 GMT -5 forwardwego said:

lulu0312 That's a big question. Have you talked with a CPA or tax accountant? A big lump sum in a single year could throw you into a much higher tax bracket. However it seems there's a strong emotional desire for him to personally see you have the house paid in full. (That's a very loving desire for him to have, and would probably give him some peace of mind.) Personally I'd have a trusted accountant review the plan, and if nothing major comes up, I'd do it. So that's one WIRRs opinion, hope others will weigh in soon.  

Keep in mind that if something happens to him, his widow might have a paid-off house, but she will still have all the other expenses of life.  And if one depletes one's retirement to get rid of one expense (and it still doesn't make the home 'free', keep in mind), is there going to be enough for her to continue to pay all the other expenses for the rest of her life?  $100k doesn't go as far as it used to.  Putting all your eggs into an asset doesn't always free up money; sometimes it actually reduces choices because that money is not available for anything else now.