Comments on: 2009 Debt Snowball Challenge http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/ Live Well for Less Thu, 09 Feb 2012 18:04:03 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Debt Snowball Update! | Common Sense With Money http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-17087 Debt Snowball Update! | Common Sense With Money Wed, 17 Jun 2009 18:20:22 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-17087 [...] months ago I shared with you my family’s plan to pay off in six months our new minivan.  As I spelled it out back then, I talked my husband into sending every bit of [...] [...] months ago I shared with you my family’s plan to pay off in six months our new minivan.  As I spelled it out back then, I talked my husband into sending every bit of [...]

]]> By: Katie http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9607 Katie Sun, 22 Feb 2009 12:55:45 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9607 Hi Mercedes, This was a really cool post. I still have a car loan and a student loan in addition to our mortgage. I'd really like to pay off the car at least so we have more money to put in an emergency fund and towards our mortgage. Thanks for the good information! Hi Mercedes,

This was a really cool post. I still have a car loan and a student loan in addition to our mortgage. I’d really like to pay off the car at least so we have more money to put in an emergency fund and towards our mortgage. Thanks for the good information!

]]> By: charlene http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9574 charlene Fri, 20 Feb 2009 19:08:27 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9574 Hi Mercedes, We did the debt snowball a few years ago to pay off our cc and cars. One thing that was really motivating to me was having a simple sheet of paper on the fridge with the running balance. Everytime we could squeeze and extra $100, or $20 or whatever I would take a pen and update the balance. It was so motivating to have the balance constantly updated and to face the challenge every morning. We actually got notices from our CC company that I couldn't make any more payments because I would be paying toward the balance several times a week :) Hi Mercedes,

We did the debt snowball a few years ago to pay off our cc and cars. One thing that was really motivating to me was having a simple sheet of paper on the fridge with the running balance. Everytime we could squeeze and extra $100, or $20 or whatever I would take a pen and update the balance. It was so motivating to have the balance constantly updated and to face the challenge every morning. We actually got notices from our CC company that I couldn’t make any more payments because I would be paying toward the balance several times a week :)

]]> By: Kelly http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9569 Kelly Fri, 20 Feb 2009 16:43:34 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9569 Mercedes, I am curious about an aspect of buying a car on ebay. With any other ebay purchase, I am totally committed if I bid. Is it the same for a vehicle? Since the distance is too far to personally check the vehicle before the end of the auction, what recourse do you have if it has a problem that should have been disclosed? Leaving negative feedback would just not be enough! Also, as for minivan opinions, we have a Nissan Quest and we love it. We don't understand why it has not grabbed more of the market than Honda or Toyota. The specific reason we bought our 2004 model (new) was that we could get the DVD player at a standard trim level. To get the DVD player on Honda or Toyota, we would have had to spend thousands more to buy the upgraded trim package. Minivan vs. SUV: My brother has a Ford Expedition and I looked up cargo space on our two vehicles. The Quest has about 1/3 to 1/2 more space because its floor is so much lower than the Expedition. People get SUVs because they need to haul a bunch of stuff but guess what, a minivan has a lot more space. Just my two cents worth. Mercedes, I am curious about an aspect of buying a car on ebay. With any other ebay purchase, I am totally committed if I bid. Is it the same for a vehicle? Since the distance is too far to personally check the vehicle before the end of the auction, what recourse do you have if it has a problem that should have been disclosed? Leaving negative feedback would just not be enough!

Also, as for minivan opinions, we have a Nissan Quest and we love it. We don’t understand why it has not grabbed more of the market than Honda or Toyota. The specific reason we bought our 2004 model (new) was that we could get the DVD player at a standard trim level. To get the DVD player on Honda or Toyota, we would have had to spend thousands more to buy the upgraded trim package.

Minivan vs. SUV: My brother has a Ford Expedition and I looked up cargo space on our two vehicles. The Quest has about 1/3 to 1/2 more space because its floor is so much lower than the Expedition. People get SUVs because they need to haul a bunch of stuff but guess what, a minivan has a lot more space. Just my two cents worth.

]]> By: Mercedes http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9555 Mercedes Fri, 20 Feb 2009 03:08:55 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9555 Nancy, the reason I don't want to do that is not to drain our emergency fund. the way things are right now, who knows what the future may hold and we would like to be prepared. We prefer to aggressively pay the loan. Mercedes Nancy, the reason I don’t want to do that is not to drain our emergency fund. the way things are right now, who knows what the future may hold and we would like to be prepared. We prefer to aggressively pay the loan.

Mercedes

]]> By: Mercedes http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9554 Mercedes Fri, 20 Feb 2009 02:59:26 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9554 I'll let you know Jennifer, I am new to minivans so it's a learning experience for me still. I do love the room though. Mercedes I’ll let you know Jennifer, I am new to minivans so it’s a learning experience for me still. I do love the room though.

Mercedes

]]> By: Mercedes http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9553 Mercedes Fri, 20 Feb 2009 02:58:37 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9553 Thanks for the heads up Kacie. I double checked with my husband and there's no penalty for prepaying. phew! Thanks for the heads up Kacie. I double checked with my husband and there’s no penalty for prepaying. phew!

]]> By: Lisa Fischer http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9548 Lisa Fischer Thu, 19 Feb 2009 21:03:22 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9548 Great post. For Xmas a couple of years ago, my parents gave each of their six kids & a few of the older grandkids, Dave Ramsey's TOTAL MONEY MAKEOVER book. My husband read it in a couple of days & got right on it....it took me a few weeks but I finally gave in & read it as well. Sad to say, but we were the ONLY receivers of the book that read it. And the funny part, all of those that got the book deal with financial issues...except for my husband & I. My only wish is that I would have been given that book 15 years ago when dh & I first got married. Even though we have done so well, there was a LOT more we could of done. We are also believers of paying in cash for big ticket items. We've had one car loan (borrowed the money from my sister & paid her more than the interest at the bank but less than what a loan would have been for us). Our last van purchased 2 years ago (around $18k) was paid for in cash. My husband believes that if we can't pay for it, we don't need it!! We have the one nice vehicle & he drives a 1995 Geo Metro that he paid $2000 cash for & when gas was near $4.00/gallon, he could of probably sold that thing for more than he paid for it! LOL And I like how you stated that you are not showing off, but stating this IS something a person can do. Like us, we have 4 kids, one measly income of $35,000/year & are living comfortably in this wretched economy. The only debt we have is our mortgage of $110k. Our monthly pmt is still based on when we had two incomes ($720/mo) & haven't had any problems paying that. Now if we'd have a $300-400/mo car loan....we'd be hurting. I think that is what hurts people, paying one or TWO loans and a boat, RV etc & then they wonder why they are broke!? HELLO! Great post. For Xmas a couple of years ago, my parents gave each of their six kids & a few of the older grandkids, Dave Ramsey’s TOTAL MONEY MAKEOVER book. My husband read it in a couple of days & got right on it….it took me a few weeks but I finally gave in & read it as well. Sad to say, but we were the ONLY receivers of the book that read it. And the funny part, all of those that got the book deal with financial issues…except for my husband & I. My only wish is that I would have been given that book 15 years ago when dh & I first got married. Even though we have done so well, there was a LOT more we could of done.

We are also believers of paying in cash for big ticket items. We’ve had one car loan (borrowed the money from my sister & paid her more than the interest at the bank but less than what a loan would have been for us). Our last van purchased 2 years ago (around $18k) was paid for in cash. My husband believes that if we can’t pay for it, we don’t need it!! We have the one nice vehicle & he drives a 1995 Geo Metro that he paid $2000 cash for & when gas was near $4.00/gallon, he could of probably sold that thing for more than he paid for it! LOL

And I like how you stated that you are not showing off, but stating this IS something a person can do. Like us, we have 4 kids, one measly income of $35,000/year & are living comfortably in this wretched economy. The only debt we have is our mortgage of $110k. Our monthly pmt is still based on when we had two incomes ($720/mo) & haven’t had any problems paying that. Now if we’d have a $300-400/mo car loan….we’d be hurting. I think that is what hurts people, paying one or TWO loans and a boat, RV etc & then they wonder why they are broke!? HELLO!

]]> By: Jennifer http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9546 Jennifer Thu, 19 Feb 2009 20:59:43 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9546 We need to replace our minivan and hope to do it by the end of the year. Currently we have about $550 in savings for it. I hope to have $10,000 saved by the end of the year, we will see how close I get! We might do what you are doing and take out a small loan at the end of the year and then pay it off quickly in the spring. Not sure yet, let us know how you like the Toyota because that is one of the ones we are looking at. I know you can do it! Good luck! We need to replace our minivan and hope to do it by the end of the year. Currently we have about $550 in savings for it. I hope to have $10,000 saved by the end of the year, we will see how close I get! We might do what you are doing and take out a small loan at the end of the year and then pay it off quickly in the spring. Not sure yet, let us know how you like the Toyota because that is one of the ones we are looking at. I know you can do it! Good luck!

]]> By: Deb http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9543 Deb Thu, 19 Feb 2009 20:15:17 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9543 A Debt Snowball is when you have more than one bill and you pay off lowest bill and take what you were paying on that and apply it to the next lowest and so on and so on. Thus, the snowball! Kudos to you folks taking FPU! It's an awesome program. I'm blessed to be a facilitator and I've seen the Gazelle Intensity in action...it works!! A Debt Snowball is when you have more than one bill and you pay off lowest bill and take what you were paying on that and apply it to the next lowest and so on and so on. Thus, the snowball!

Kudos to you folks taking FPU! It’s an awesome program. I’m blessed to be a facilitator and I’ve seen the Gazelle Intensity in action…it works!!

]]> By: Stephanie http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9542 Stephanie Thu, 19 Feb 2009 20:01:18 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9542 My husband and I decided that we were going to pay off debt as well. Through our church we are taking the Dave Ramsey course called Financial Peace University. He is very inspiring and makes you totally think differently about your spending habits and saving habits. We are currently doing our Debt Snowball as well. We will be debt free (except the house) in about 1 year! Dave uses the expression Gazelle intense. We are SO Gazelle Intense! We are incredibly excited! My husband and I decided that we were going to pay off debt as well. Through our church we are taking the Dave Ramsey course called Financial Peace University. He is very inspiring and makes you totally think differently about your spending habits and saving habits. We are currently doing our Debt Snowball as well. We will be debt free (except the house) in about 1 year! Dave uses the expression Gazelle intense. We are SO Gazelle Intense! We are incredibly excited!

]]> By: chris http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9541 chris Thu, 19 Feb 2009 19:59:31 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9541 Mercedes that was a GREAT post. I agree with you that it CAN be done, and I look forward to hearing about your progress. I think you have given a lot of people something to think about today. It is so refreshing to read about someone who feels the same way I do about debt. Mercedes that was a GREAT post. I agree with you that it CAN be done, and I look forward to hearing about your progress. I think you have given a lot of people something to think about today. It is so refreshing to read about someone who feels the same way I do about debt.

]]> By: Kacie http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9540 Kacie Thu, 19 Feb 2009 19:56:50 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9540 Oh and of course, be sure your extra payments are marked 'principal only!" Oh and of course, be sure your extra payments are marked ‘principal only!”

]]> By: Kacie http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9539 Kacie Thu, 19 Feb 2009 19:56:26 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9539 Good luck! We're working on paying off our car loan early as well. Our loan terms state that if we pay it off in under 36 months (we intend to), then we'll have to pay a 1% fee. No biggie, but it's something to check into. Good luck! We’re working on paying off our car loan early as well. Our loan terms state that if we pay it off in under 36 months (we intend to), then we’ll have to pay a 1% fee. No biggie, but it’s something to check into.

]]> By: Andrea http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9538 Andrea Thu, 19 Feb 2009 19:52:42 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9538 Way to go! We're paying off our credit card debt (10,100K total) and my car loan (about 1300 something left) off this month and early next month. I am SO EXCITED! If we're able to refinance our condo too, that would be about another $142 a month....All in all, the credit card payment, the car payment, and the potential $142 would tally up to $612 extra a month! I think I might try and save some, as well as get my husband's student loans paid off early...seeing as I have 48K currently (and growing) in student loans myself. It would be really nice to pay cash for my grad school, even. :) Oh, the possibilities once you get some debt knocked out of the way, no? Way to go! We’re paying off our credit card debt (10,100K total) and my car loan (about 1300 something left) off this month and early next month. I am SO EXCITED!

If we’re able to refinance our condo too, that would be about another $142 a month….All in all, the credit card payment, the car payment, and the potential $142 would tally up to $612 extra a month! I think I might try and save some, as well as get my husband’s student loans paid off early…seeing as I have 48K currently (and growing) in student loans myself. It would be really nice to pay cash for my grad school, even. :)

Oh, the possibilities once you get some debt knocked out of the way, no?

]]> By: Nancy http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9536 Nancy Thu, 19 Feb 2009 18:37:51 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9536 Mercedes, After all your contributions to reduce the loan to 9200 -would you not pay cash out of your EF for the balance and then pay yourself the $680 to replenish the EF - Would this not save some more on interest? I'm new to this concept and just curious. Thank for a great post - it gets me to thinking how to pay off a couple of bills that we have hanging over our heads that I have goaled to pay off by end of this year. Mercedes, After all your contributions to reduce the loan to 9200 -would you not pay cash out of your EF for the balance and then pay yourself the $680 to replenish the EF – Would this not save some more on interest? I’m new to this concept and just curious.
Thank for a great post – it gets me to thinking how to pay off a couple of bills that we have hanging over our heads that I have goaled to pay off by end of this year.

]]> By: Miss http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9531 Miss Thu, 19 Feb 2009 16:49:35 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9531 You should check out daveramsey.com He has a radio program and a new tv program. He is all about wiping out debt and has a Debt Snowball technique. He is very inspiring! You should check out daveramsey.com He has a radio program and a new tv program. He is all about wiping out debt and has a Debt Snowball technique. He is very inspiring!

]]> By: Sara http://www.commonsensewithmoney.com/2009/02/2009-debt-snowball-challenge/#comment-9522 Sara Thu, 19 Feb 2009 15:03:22 +0000 http://www.commonsensewithmoney.com/?p=2157#comment-9522 Great post! We don't buy into the american reasoning of always having a car payment either. We own our cars and vow to never have a car payment again. It sounds like your family got a fabulous deal! Great post! We don’t buy into the american reasoning of always having a car payment either. We own our cars and vow to never have a car payment again. It sounds like your family got a fabulous deal!

]]>