Women in Red Savers 2017

[chiver78]

the 0% on #5 goes until the summer sometime, I'd have to check for exact. I won't pay it off before it resets, if I keep that payment at the $75 it is now. 

I know that the fees to transfer balances will take away from the savings, but my motivation in wanting an empty shell as quickly as possible is that if #3 is empty, I will (routinely do, actually) get offers for that card, and maybe I can move some or all of #1 or 2 over and minimize interest that way, too. where I get a little lost is trying to weigh the interest saved vs fees vs how long to pay it off. I know that it isn't going to happen tomorrow, but I also know that I want to try to build savings back up at the same time. my ultimate goal is to pay all of this off and get rid of all but 2 or 3 cards. (my preferred cards are a Discover and Amex, which aren't both accepted everywhere.) 

[shanendoah]

shanendoah: 3/10/2017 $100 (Goal: $480)

Payday today, so another $20 in the savings account.

[teachermom]

chiver78 So, if you pay off card #4, pay the rest of the $5500 on card #3 and transfer as much as you can then to card #4 to get a lower interest rate what is the plan then? If you do the payments and transfers right, you could end up with 30 days without a payment on #4. Will you be able to pay the balance of #3 off in that time? Then snow ball your payment starting with card #2 (next highest rate)....what would be your snowball amount?

What does the interest rate on #5 go to this summer? Is it higher than the others?

As for your question about interest versus balance transfer fee....1 yrs interest on $7500 making no payments would be $1086.75....obviously you will have a declining balance on it making payments....at minimum payments your interest would me more than the transfer fee of $375. Paying $500 per month on $7500 it would be $468 in interest after 6 months (I only calculated 6 months and only on the $7500 transfer) of payments.....so it definitely will save you but how much will depend on how fast you pay it off.

Teachermom

[debthaven]

Chiver, congrats on the bonus!

I'd pay off 4, put the rest on 3, and then transfer what's left on 3 to 4.

I'd only do another BT to 3 if you could transfer the entire amount from either 1 or 2.

Then get rid of one of those cards. You have too many.

ETA: Also, I still don't get why your housemate isn't paying you any rent. Even a small amount would be a real help with that much on the cards. And he is living there ... he's not a charity, and you're not Mother Theresa.

Otherwise I'd ask him to leave and get a paying housemate. If I were sharing my house, I'd at least want to get some income from it.

Also, are you getting a tax refund? If so, I'd try to knock some more out. I think you need to get rid of a chunk of it to make it easier on yourself.

 

[sealy]

I'm going to use $500 of my savings to finish one of my races.

[sealy]

Mar 10, 2017 14:24:08 GMT -5 minnesotapaintlady said:

How long is the 0% on #5?  What is your monthly snowball amount?

I think Dave Ramsey nailed it with his debt paydown advice.  It's not about the numbers, it's behavior and momentum.  I would try to knock out the smaller balances first.  If you want to transfer more onto #4 after, it's not a bad idea, but I don't think it's really saving you as much as you think when you factor in the fee and having to continue to make minimums on it while also trying to pay on 4 other cards.  There's a lot to be said for the feeling of accomplishment of wiping one out completely and being able to focus all your energy on the next in line. 

I agree. That's why I'm refucing my savings by $500

[sealy]

Feb 17, 2017 23:55:11 GMT -5 TheHaitian said:

Bills, bills, bills!!!!

My share of the birth bills comes to about ~12k... and I am considering using HSA Account to pay for it.

So that is about ~2 years of contributions to pay it off, it is depressing to save money only to spend it right there.

So why be part of a saving group if really not going to save for the year, more so pay down debt.

you can still stay and support others. I've been here for years and just now can start saving again. you are doing great because at least you have the hsa to pay your share. you should be proud

[forwardwego]

Shoutouts Part 1 of 2:


seriousthistime Thank you for the smilies. So glad that with Jaguar 's help on making the borders it will be a bit easier. And the tagging function is a nice way of letting us know if we forgot to update, and that the group monthly update has been done. Congrats on $2447 saved, better than on target for the year, and your first  by end of March. 

chiver78 Hola! Kudos on your weekly savings!! Good work facing the debt sitch head on. The Savers thread is amazing, because many of us have graduated from, or are making great progress in the debt race.Plus the vibe here is real without being too harsh. I'm so glad you are active here. You can do it!!! And I'll jump ahead with the prediction that as you kill the debt you are going to amaze yourself with your savings!!!

azucena Congratulations on being at 32.4% on your March 31 goal. With your recent events you will make the goal, right?  It takes courage to open up your budget for input, but the input should help you brainstorm regarding your home purchasing decisions. Congratulations on your advancement and the associated financial gains....well deserved. 

finnime Good job with your saving routine. Your initial planning and decisions just pay you back over and over as your savings grow. Keep up the good work. Sorry you are having to deal with the parking "challenge" at the hospital...boo on that! But it sounds like you manage pretty well and win the challenge pretty often 

Jaguar It's so frustrating that your time and energy is drained by administrative errors. You are saving in spite of that and GOOD JOB! Have you considered when they make an error that gives you extra money just put that in a safe until they ask for it back 

minnesotapaintlady Nice work with $9955 saved, over 40%, and   !
Your incentive for your son is enticing, and it seems a lot of thought went into the many angles before offering it. Kudos on your use of the refunds. RE: your vacation goal, it's good that you have it in your sights with a cushion of time between now and July. And thank you for your input and insights offered here. Like you, I also don't do the "one lump" saving method because it allows me to accidentally sabotage myself.


movinonup  Congratulations on $912 saved. Makes a nice poker hand   


nikiz628 Good job with $3869 saved. It's unfortunate you are experiencing some savings budget busters right now. Some of them seem to be "growing pains" that go along with earning more. In any case you are adjusting nicely. It's like the willow tree...bending instead of breaking 

Way to go regecko with $9873 saved       Kudos to you for being cash ready for the tattoo, Boston trip, wedding, and work trip. I'd love to hear about your "tiny house" goal.

[forwardwego]

Shoutouts Part 2 of 2:

Saving4Norway Nice work earning 2 more  with $6500 saved and 28% of goal!!!



sealy Congratulations on maintaining your savings level. Consistency will be very helpful as you break the cycle of debt. 


shanendoah Speaking of consistency...good job! Next month you'll have your first   !!


snapdragon Congratulations on surpassing goal on your Car/House Account. That will be great to also have the travel money lined up...do you have an idea or ideas where you'd like to go?
Congratulations on nearly 80% achieved!!! 

shopaholic814 Excellent update for you too!! I  your statement: "Once we get our debt paid off, we will be able to save at a higher pace." You are building the foundation...you've started lining things up, learning and adjusting. Congratulations on $7354 saved, and 35.5%!!! (so glad you joined the saving party)

(Side note...there sure are a lot of "S" ladies in the savers) 


teachermom Congratulations on your 3  , and over $3K saved. And you are so very right...the savings is in place for a purpose, and it sure is satisfying to have it in place when those needs arise. Thank you for your sharing of ideas. BTW How is it going in the personal finance classes you are teaching??


TheHaitian Your savings of $11667 is commendable even if it does then go to expenses. At times you may feel the need to step back. There is no pressure here, you can step back, rewrite, become an observer, whatever you need to do. I am so glad you are here with us on the Savers. 


tobinikui Though you just did miss getting your update included in the latest smilies, I peeked ahead and gotta say WOW!  Nice Work....Way to work a tax refund

trimatty471 Yahoo for you at $6181 saved and over 45%. Though it's unpleasant to have to put money into a house that isn't your dream, good job recognizing that maintaining beats getting behind. And so good that you've been saving ahead. Kudos on setting up the automatic update reminder

bankergurl , It's so good to see you again  Thanks for showing the details on how little things add up so nicely. Your goals are a nice blend of payoff, play, and cushion for the unknown.


megaptera Good job for you holding steady and avoiding new debt as you get the new house finished. I hope that everyone will do their part to get you done by the April deadline. 


And special shoutouts to those who cheer on the savers and offer advice and experience:
zibazinski  debthaven  lund  dee27 and NastyWoman


WIRSavers: keep up the good work! And let's all remember to update using a tagline including date and total, help out our amazing seriousthistime who is the glue that helps us stick together (pun intended) on this amazing savers thread.

[chiver78]

thanks for the answers....I took notes and want to answer some questions here. and sorry to anyone else that's posting, since I'm kind of hijacking the thread right now. once I figure out what to do with my bonus and whatever empty shells, I'll shut up for awhile. I promise!


teachermom - the 0% on #5 expires 8/2017. it resets to an ugly 22.49% (I had to hop on chat to find that out, it wasn't at all listed in my statement) so I guess my goal is to pay that one off next. yikes. 

minnesotapaintlady - you asked what was next after paying off #4 and moving most of #3 to #4? originally it was going to be pay off the rest of #3, then move to either #1 or 2, but see above - I'm paying off #3 and then attacking #5. 22.49% is obscene for someone that has no late payments on their credit report, period. 

debthaven - yes, I have way too many cards. I have been saying that for the entirety of my race, but I've been using them as a shell game along the way. somewhat successfully, I might add - I got my original race debt of $45k down to under $10k before holding back to have cash while I sold my condo. I'm not putting my current number up here, I'm kind of licking my wounds on that right now, but I know exactly what the new number is but I intend to keep all accounts open for BT purposes while I blow away all of my current debt. once I've done that, I'll lower the number of cards to 2 or 3 like I said earlier. I like my Discover and Amex, but I recognize the need for either a MC/Visa since the first two aren't accepted everywhere. and while I'm not going to answer the roommate questions, they are heard. I know that what started out as helping someone turned into something else entirely, but at this point it is what it is. he's no longer a cash sink for me as far as loaning funds to keep him afloat, but I do still house him. in return, he does all of my exterior maintenance and is my live-in pup sitter. my pups love him as much as (some days more than) me. as far as having a paying roommate, if he moved out tomorrow, I wouldn't be moving someone in the day after that's paying. I'd actually probably keep the space open and move my own stuff around and figure out what works best that way. I know that's a non-answer, but the important thing is that the cash sink is no more. what I may be spending to house him is minimal, the way I shop. utilities for an additional person in a house are miniscule. right now, he's actually benefitting me more than he is costing me. that hasn't been the case since he's moved in, so I'm going to milk that for a little while. 

someone asked about a tax refund. yes, I'm expecting one, but only because I typically get one from Federal. it's usually ~$1100-1200. I have yet to hear back from my accountant since sending my records over for the year (have a RFI pending), but I do plan to throw all of whatever refund I get toward the most appropriate balance. I've left myself a buffer with the bonus, all of the refund can be used. 

there were a couple questions about snowball amounts. I honestly don't know how to answer that. I am kind of awful at actually budgeting. I have a cash flow spreadsheet that has everything I know about plugged in. basically, how I operate is that I have the "have to pay" things coded in, with minimum payments rounded up to the next $25 for ease of calculations. after that, I look at what extra money I have for that paycheck and throw it at the current target balance. lately, that's been card #3, I've been throwing $500/month at it the past few months. I've also been throwing $500/month at #2, just because there are a couple recurring payments I haven't found time to change, that are being charged to it. this is why I want to reset the shells, so to speak, and get things back under control. if I pay off #4 and transfer as much of #3 as I can, then pay off #3, I can then move #2 to #3 and have #2 be the card back in my wallet for emergencies. if that didn't make sense, lmk and I'll make a separate post with more numbers and such. 

FWIW, I hate this. I hate every part of doing this shell game. this is pretty much all of my stress lately, esp knowing that my parents are having some issues and I can't float them like I used to. as I shed cards, I know I'm not fucking going back to this. ever. I'll totally put my whole spreadsheet out there for judgment....I should not be in this position with the income I have. 

[forwardwego]

chiver78 ...good for you laying it out and facing it. Keep your chin up. You can ditch debt and save. A quick question...do you now have a plan in place that will eliminate #5 before the reset to 22.49%?

[chiver78]

plan? no more than the normal "seat of my pants" plan that I normally operate by.     I guess the difference now is that I'm not using cards at all anymore? and actually making conscious decisions to freezer dive/not eat out 95% of the time. that definitely helps. 

so I think what I need to do here is pay off #4, transfer as much of #3 as I can, and pay off the rest before moving onto #5. whether that happens before the reset or not, I think that's the plan now. even if I don't make the reset, these 0% promotional rates aren't like the ones for the big box stores, where the rate reset goes toward the whole initial balance. I'lll be okay here, there won't be that much left over, if any, by reset. there's also the $1400 on another card not listed here, that is on a promotional rate that expires in May. if I pay off that $, the remainder of the balance on the card gets to stay at the same 0% on a different promotional rate. otherwise I have two different rates on the same card, and I don't want to deal with that at all. so the $1400 is an important piece of this as well. 

[forwardwego]

okay had to laugh.....not using cards, freezer diving, and ditching eat out expenses are awesome foundation for any plan 

I'm glad that missing the reset of the interest rate for a brief bit is okay with you if you're almost there and it isn't much longer to get to the zero. I think (just my opinion) enduring the reset on a relatively small amount for let's say 4 months or less is better than paying another transfer fee.

[chiver78]

well, it doesn't make sense to transfer whatever's left of #5 at reset to anywhere else if there's only a little bit left on the balance, no? anything else I've talked about transferring is already past reset and at standard rate. (#3?) 

but yes.....I'm looking to not throw any more good money after bad (please leave any roommate comments at the door here...) and just really want the financial whiz kids to balance out the fees for BT vs interest in the interim. that's where I lose the forest for the trees. 

[debthaven]

Chiver, you paid it off once, you can do it again. But I think you have to get super serious about it now. And, I'll say it once more and then stop, I think you need to lose one of those cards (forever) sooner rather than later.

No more roommate comments (for now), I promise. Just remember it's only because we care about you, and when I look at your numbers, I think what a difference an extra $500/month could make for you. But I'm done.

And also, remember I've gone backwards too ... besides what's in my signature (and the kitchen loan is relatively new) I also owe my sister $2500.

Thanks for the shout-out forwardwego !

ETA: Sorry Chiver just one more (different) thing about the roommate ... I would announce that you're geting serious about paying off your debt so life is going to be very frugal going forward. I don't know your dynamics (and I don't need to know) but you seem very generous with him. Maybe it would be better to spell things out so he's not surprised or disappointed: hey pal, this is the beginning of a new, frugal era LOL.

[Jaguar]

Mar 11, 2017 7:05:04 GMT -5 forwardwego said:

Shoutouts Part 1 of 2:


Jaguar It's so frustrating that your time and energy is drained by administrative errors. You are saving in spite of that and GOOD JOB! Have you considered when they make an error that gives you extra money just put that in a safe until they ask for it back 

I didn't spend the extra that they gave me. I had it so was able to pay them back pronto. But what this whole situation done to me was this, SAVE, SAVE,SAVE. Do it in spite of them cause frankly I've found they are stupid as they come.


And an update : they are still removing money from my account. I'm beyond fed up at this point. I'm doing my taxes and I'll mail it in on April 11 the day after the next screw-up on their part.

I'll include a very extremely detailed letter about this whole situation with my taxes. They know I paid, they just have not updated my end.

[chiver78]

grr... I had a big reply back to debthaven that got eaten. I'll revisit in the morning, I'm tired.

[debthaven]

Jaguar I know it's not easy for you but might it be worth going to see them in person? You've been going around and around with their incompetence for months!

[debthaven]

freezer diving

LOVE this forwardwego! I always say "eating" or "shopping" out of the pantry/freezer but I much prefer "freezer diving" (or "pantry diving" LOL)!

[Jaguar]

Mar 11, 2017 19:40:58 GMT -5 debthaven said:

Jaguar I know it's not easy for you but might it be worth going to see them in person? You've been going around and around with their incompetence for months!

I can't it's up in Sudbury, ON that's so far up north, I wouldn't bother.

[Jaguar]

I'm going to walk down to the bank on the next nicest day we get here and I'm going to have the bank trace that payment that I paid. I'll add that paper to the pile that I'm mailing in with my taxes.

[Deleted]

chiver78 - I think you're spending too much time worrying about the interest rates.  I would aim to have #4 and #5 wiped out ASAP then close the accounts.  That's $175/month more to go to #3 and you'll only have THREE balances, not 5.  There's obviously been some pretty bad credit card issues going on for quite some time and while it's great that you've vowed to not use them again I really think you risk burning out and crashing with all the juggling of accounts while trying to pay them down. 

[finnime]

Finnime - 3/11/2017            $212.25  [ $2,996.50 ]

	Saved	Goal	% Saved	Periods Completed
Weekly Challenge	$98.00	$1,378	7.11	10/52
Daily Dime Challenge	68	$954.20	7.13	70/365
Penny Challenge	46.25	$664.30	6.96	70/365
Total    EF	$212.25	$2,996.50	7.08%

Keeping on keeping on.

[lund]

Chiver, First, IMO, pay off #4 as you intended. That way, you may get new balance transfer options for later, plus you get one payment less, plus a little boost of confidence from getting rid of it.

Then throw the remaining money at #5, and work to pay it off next. 22.49%!? Yikes!
Take some of the extra now going to #3 too, in order to pay it off not later than early July if the promo expires August 1st. (And verify that it is paid off in July.)

Then work on #3. Once #4 and #5 are history, you can pay it off with 500+100+75=675/month, which is about 15 months.

When #4 and #5 are both paid off, I think that you should consider paying some extra to #1 and #2 in order to get your degree of utilization down to under 89.4%.
(For any reader not knowing, utilization=debt carried on the card/card maximum. A high degree of utilization, both on a single card and over all, may impact your credit score negatively. It is best to be under 30%, but the lower, the better. Getting under 90% might be a good thing.)
It would probably be under $80 to #1 but a more substantial approximately $970 to #2.

(Please don't close any card at this time. Keep them frozen instead if needed.)
(And also remember to check your annual free credit reports regularly; if there is something wrong on it, you want to remove asap it in order to get better offers.)


You need to be careful if/when using these transfers. I think that there is money to save, but that you need to be sure that you can pay them off on time or can afford the new rate without hardship. Your 12% cc are roughly half as expensive as that scary 22.49%.
And the fixed costs can be more expensive in comparison.

Math approximation exercises (I hope that they are correct, it is very late here):
1.
You intend to pay off $2000 during 4 months, $500/month.
Transfer costs: A flat 5%, which is $100. Then 0%.
Keeping it on the 14.49% cc, the interest will be approximately 0.1449*2000*(4+1)/12* 1/2 = $60
2.
You intend to pay off $6000 during 12 months, $500/month.
Transfer costs: A flat 5%, which is $300. Then 0%.
Keeping it on the 14.49% cc, the rate is approximately 0.1449*6000*(12+1)/12* 1/2 = $470

So obviously, the promo time and how much per month you can pay are very important here.
Paying 22.49% can quickly outweigh any interest savings.

Good that you are working on getting these paid down!


Edit: Change of order due to new information:
Pay off #4.
Pay off the unlisted cc.
Pay the rest, any tax refund, any extra (including part of what at present goes to #3) etc. to #5. Get it paid off preferably not later than July, and verify.
Then work on #3.
And please make the math (or ask the board) before transferring debt; not all options are good.

[chiver78]

thanks, all. I just fired up the laptop to set up the payments now. the deposit should be officially posted by now, it was showing as pending on Friday. 

MPL - honestly, I only actually use 2 or 3 cards. the accounts that have been BTs, I don't even have the physical cards for. I shred them as soon as they come in. my downfall has been knowing I have those accounts available for BTs when I can't reign myself in (to really oversimplify things there). 

lund - thanks, I have typically asked the board before making most BTs, and don't expect that to change any time soon. I am one of those engineers that loses all sense of math when the $ goes up in front of the numbers.      and yes.....wtf is that 22.49%?! 

[lund]

I think that it is a trap. Many may just see the 5% one-time fee, transfer a lot, and then get stuck with the 22.49%....

But you are escaping .

[chiver78]

so I just went back to triple-check the balance on the expiring promotional rate on the "unnamed card" - a BofA card that's linked to my checking account. apparently if I don't pay that $1400 and let the rate reset, that one's going to 21.49%. yikes. 

so that payment is set for tomorrow. $1400 off that $5500. that will also bump my monthly payment for that card down some. will have to wait til next statement to know whether that's $25 or $50 for my spreadsheet. but at least I know I'll keep the 0% for the rest of the balance. yay. 

and seriously with the traps. many people don't really look at what the rates are. hell, I'm guilty of it myself some. look at #5 that I had no idea was going to go to 22.49%. at least I knew to check in advance of the reset so I won't be surprised by it when it does reset. 

[Deleted]

I don't mean to sound judgy.  I was in the same place you are 20 years ago, so I totally get your thought process.  I was constantly moving money around, consolidating, getting teaser offers...  I thought I was being smart, but I think I ended up treading water a lot by buying myself more time periodically.

Same thing with my house, I refinanced 4 times since I built in 2000.  If I had just stuck with the original terms and buckled down, I would only have 3 years left.  Instead I have 10.    I made the mistake of not reducing the term with every refinance. 

What you really need to commit to is NO NEW DEBT, and you'll need a working budget and some kind of emergency savings to ensure you can do that otherwise, the car is going to break down and you'll be thawing out the cards.

[chiver78]

you don't come across as judgy, sorry if my comments made it sound that way!

I'm 100% committed to NO NEW DEBT, which is why I'm removing cards from my wallet and not taking on any new projects for the foreseeable future. I just set up payments to pay off #4, pay the $1400 on the "unlisted card" and now have $1100 to direct.....somewhere. part of me wants to just set it up for #5 right now, another part wants to send it to my Amex savings account. what I think it going to happen is that I sit on it until I find out what my tax refund situation is going to be. 

[lund]

A perfectly good reason to wait!

But I would like to add that cutting down on the extra to cc #3 in the next round of payments might be a good idea, and instead redirect that to cc #5.
(If #5 gets paid off sooner than anticipated, you can always send more to #3 at that time, earlier than anticipated....)

You need to continue with your buckling down project until you can claim all the cc money for yourself.
Just imagine the interest staying in your account:
#1 $129/month
#2 $140/month
#3 $122/month
In all $391/month

If you are paying down $25 of each of these cc debts each month, that plus the above is a maxed out Roth IRA [edit: each year] (and a cup of coffee [edit: each month]), and it would be for you.