12-10-2012, 10:30 AM
Join Date: Dec 2012
Re: Dave Ramsey Support Thread ~ Dec 10 - Dec 16
Hello again everyone! I'm Ashley. As I said last night, my DH and I have decided to follow Dave Ramsey's makeover plan. The next year will be a slow process for us as I am a full time student and we don't have much leftover each month. We have DS (5) and DD (2). DH provides the sole income. We both made many mistakes early on and have very poor credit and it is reflected in our auto interest rate. We are paying down the last small debts in January and by March will be left with only a Student Loan and the Car Loan. Our credit should go up enough by March, and working with our credit union we should be able to refinance our car's interest rate at that time. When we do, we will make that our priority debt to snowball. We have considered selling our vehicle, but we would come out at a loss with our current interest rate. If we can get it lowered and get ahead with a bigger snowball, then it is a possibility to sell it and buy a cheaper car. This is our big toughie but I think we are in a good place in terms of our outlook. So, help me out but go easy on the car situation as it's not going to change in the next few months at least.
Last night we went through our budget, worked through a couple months, and I wanted to discuss with you what we ended with and see what input y'all have for us. I know after reading through last week's thread all of you will be such an asset to us in our journey – and I hope to eventually be to you as well I think the next few months will be a journey for us into a new lifestyle.
Current Debts (we are current on all payments):
Medical/Dental: $52.70 (final payment in Jan 2013!)
Auto Loan @ 18% APR: $13,813
Student Loan (deferred currently while I am in school) $8,439
Credit Card; $0 balance after Jan 2013 payment!
Small Personal Loan $320 (through our credit union, good interest rate, we reviewed our finances with a loan officer to discuss refinancing the car loan and she said they would be willing to if we could show a good in house credit history with a small personal loan since we were still new members. Last payment is in March – then we will apply for refi on the car).
---So our debt is basically the student loan and the car.
Income: $610 net weekly, DH usually has a good chunk of overtime each month but it is not guaranteed income
Grocery (includes toiletries, DH lunches, 3 meals a day for me & 2 kids – No WIC or other assistance): $105
DH's gas (work commute): $60
My gas (kids to school, grocery store): $10
Auto Payment: $416.30 (read my first paragraph above, we will be working on refi so we can get rid of this debt)
Auto Insurance (2 vehicles, one full coverage, 1 liability) & Renter's Insurance: $115 (I have shopped extensively, this is the best deal I can find!)
Cellular Phones: $110 (our only phones. Verizon. Prepaid is cheaper but termination is $270 for both of our lines)... don't like this bill this high (I think it should be $75-90 with prepaid but not sure we can change it right now).
Internet: $31.36 (basic internet, no contract, necessary for my college classes)
Water/Sewer/Trash: $115 (our town is high. My sister/fiance is close to this and its just the two of them).
Gas: $30 (average – just our furnace and dryer.)
Electric: $85 (budget billing)
Netflix: $8 (on our roku, we have no cable or anything)
Personal Loan Payment: $50 (we are paying $100 a month so we can get it done by March and try to refi the car.. If DH gets overtime to add to the snowball we will have it done in Feb).
We are left with AT LEAST (depending on DH's overtime) $25 a month to snowball our debt. DH usually (90% of the time) gets enough overtime that we have $300 or so a month to snowball.
We have calculated a tax refund that is upwards of $1,500 and will be using $1,000 to establish our emergency fund, as well as getting life insurance for both of us.
So, in the end to summarize... we have a tight cash flow but we are in the green. We have a small snowball for the next few months. As of March we will have $100 extra month to snowball to the car payment (from our loan payment) and will hopefully be able to refinance the car to a lower interest rate – which will mean more money to snowball the car with.
Sorry this was so long!! I'd love any thoughts, criticisms, suggestions or reassurances :S I'm here for the long haul