who is in debt?

[ebaker]

so im going to start this thing called Financial Peace by Dave Ramsey. Anyone ever heard of it? He is a very knowledgeable man and has some very good thoughts on staying out of debt and what to do to make sure you are set for retirement later on.

any thoughts?

[b-wake-racing]

i need to learn

[grendel]

my 401k keeps going down, fucking stock market

[vic]

i need to learn also...

[ebaker]

sweet when I get home tonight I'll start a thread with all the steps he tells you to go through to become debt free and stay debt free. You might not like it though because you have to get over your desire for instant gratification. I'm struggling with that right now because I really want to take a loan out to get my trans am but dave says no. LOL anyone else intersted?

[vic]

I am. I need to learn to be more responsible with my money. Especially before next year when I get my settlement check :) I am a impulse buyer from hell... I need to stop. I just loaded up on Monaro parts, HID's and all kinds of crap I dont need.... AHHHHHH

[ebaker]

Haha I know how you feel man and this will help you out alot. First thing you need to do is save up a grand dude. Start on that and then I'll tell you the rest tonight

[abstract_zer0]

dave ramsey really does have a great program. I used to listen to him every day he was on this past summer in the shop...hes pretty strict on "beans and rice..rice and beans" and never borrowing money.

if you dont have the funds, you dont need the fun
or something like that lol


good luck to all those who get into his program

[vic]

okay what if you are already in debt? lol i have credit card bills out the yin yang and 2 nasty car notes... plus other things i care not to discuss

[ebaker]

first you save up a grand for emergency use. One thing you have to do is set a budget for how much money you will need monthly for food, gas, and any other things that you need to pay for. And then after you have that set to the side you can't touch it unless a real emergency happens. Then you list your debts from smallest to largest(not including mortgage if you still owe on that) and then make the minimum payment on everything else other than your smallest debt. And pay as much as you can on that smallest debt and knock it out.

[b-wake-racing]

i actually believe in debt however.....but healthy and controlled debt....

so idk if this is the program for me if its as abstract says....

[ebaker]

like meaning using a credit card but paying it off every month? Or what kind of controlled debt are you talking about?

[Bulldog Stang]

Like always having a house payment, always having a car payment, and other things like electricity, phone, water, gas, etc ...

[ebaker]

you don't always have to have a car payment or a house payment.....my dad doesnt have a house payment. I know quite a few people that don't have house or car payments. Yes phone, electricity is something you will always have but the house and car and credit cards you can get rid of. Don't say its not possible......LOL

[b-wake-racing]

im just saying that i dont believe that it is always best to only buy when you have the money....like buying a house.. if the payments are reasonable and the intrest is right. i believe things like that help your credit and arent necessarily a bad thing

[ebaker]

oh gotcha. im not sure if im going to go without a mortgage or not. im going to try my hardest not to because i hate having to pay for crap on a monthly basis. its too much of a pain. i would rather have on the electric, phone, and what not to pay for and be able to spend my money on things i want to not on a car payment or a house payment or a credit card payment.

[ebaker]

so i take it no one else wants any info?

[grendel]

damn wife and my credit card...... enough said there

[ebaker]

haha that's why I'm glad my girl is doing this class with me

[Karen]

Well I dont see how having a mortgage is a bad thing, yeah of course its always nice to not have the payments. But most of the time you can't really afford to buy a house with just straight up cash, unless you win the lottery or something lol. But there is a way to get lower payments and lower interest rates (bigger down payments, buying down the rate). My opinion might be a little biased since I work for a mortgage company.
Now about water, electricity, etc...stuff like that is just necessary. I wouldn't really consider that dept.

[jordanj]

it all depends on how well you manage your money.I have a 420$ car payment,$40 gas every week,and a credit card payment,and still have money left over to do other things and still work a part time job and goto school.

[Bulldog Stang]

how old are these people that dont have house payments that actually own a home ??? And I dont mean those little rich kids that inherited a house either ...

20 - 30 ??? I think not ... prolly more like 45 - 60

[Karen]

how old are these people that dont have house payments that actually own a home ??? And I dont mean those little rich kids that inherited a house either ...

20 - 30 ??? I think not ... prolly more like 45 - 60
I dont know anyone that doesn't have a house payment that owns a home, well thats my age anyway lol. Hell I don't know that many people that are my age that own homes. But we do have people come in here quite often that are in their 20's trying to buy homes. Sometimes some dont succeed, but some do. I'm not sure how we got on mortgages and house payments lol, but I think if you are financially secure and you can afford a house then more power to you. Its a lot better than paying rent on something you are never going to own.

[ebaker]

my girls dad has never taken out a mortgage on a house or had any debt other than college loans. He has 5 kids and has never used a credit card. They have a pretty nice house you just gotta start out with a cheap house and work your way up. Oh yea and I forgot his wife stopped when they had there second kid and there oldest kid is 21......its possible you just have to learn how to save your money and not spend it on everything you see and want.

[ebaker]

yea Karen I don't consider water, electric, and gas debt. Those things are what you have to pay. You don't have to have any of the other debt if you choose to manage your money well.

Jspeed how much did you buy your car for and how long of a loan is it? What about your interest rate? Not picking you in particular. If anyone wants to tell me feel free to.

[black_betty]

One key to having debt such as a mortgage payment, pay extra on the principal every month. If you pay it off even 5 years early, you will save tons of money in interest. Our house for example, if we don't pay extra on the P every month, over 30 years, we'll pay double for the house. Oldcutlass and I are in (even if he doesn't want to be....I'm the penny pincher!) Any advice from a pro would be accepted. :gambling:

[vic]

i agree about paying early. we have a car financed through capitol one. the note on it is 480 a month.. we pay 1000 a month and they will not send us any bill for the next month making it impossible to pay each month and do not try and work with us... its like they dont want us to pay it off early... our gto on the other hand is 600 a month and i hate to pay it haha

[jordanj]

yea Karen I don't consider water, electric, and gas debt. Those things are what you have to pay. You don't have to have any of the other debt if you choose to manage your money well.

Jspeed how much did you buy your car for and how long of a loan is it? What about your interest rate? Not picking you in particular. If anyone wants to tell me feel free to.
bought it for about 26k put 4300 down,its a 5 year loan with a 4.5 % rate

[ebaker]

Thats actually a pretty good interest rate on your car. i dont know if you have done the math or not but if you calculate the amount of interest you pay a month on your car its around $68 a month and over the 5 years you will be paying it off you will end up paying around $4100 in interest alone. so the day you pay it off you will have paid about 30,100 for the car. if i were to save up about 24-25 thousand even 23 i could walk on that lot and say i want that car for this much take it or leave it. and im pretty sure i would be able to drive that car off the lot. now imagine if the dealer screwed you with a higher interest rate? alot more money than you should be paying for the car. am i right?

yea i know you cant have your dream car for awhile but dont you think its worth the wait and money you will save if you save up for that car?

[ebaker]

i agree about paying early. we have a car financed through capitol one. the note on it is 480 a month.. we pay 1000 a month and they will not send us any bill for the next month making it impossible to pay each month and do not try and work with us... its like they dont want us to pay it off early... our gto on the other hand is 600 a month and i hate to pay it haha

yea i am doubling up on my car loan to get it paid off by august and i pay online and they wont send me a notice saying that i need to make my monthly payment. they want that interest from you. i just keep making my payments and laughing at them. lol

[jordanj]

Thats actually a pretty good interest rate on your car. i dont know if you have done the math or not but if you calculate the amount of interest you pay a month on your car its around $68 a month and over the 5 years you will be paying it off you will end up paying around $4100 in interest alone. so the day you pay it off you will have paid about 30,100 for the car. if i were to save up about 24-25 thousand even 23 i could walk on that lot and say i want that car for this much take it or leave it. and im pretty sure i would be able to drive that car off the lot. now imagine if the dealer screwed you with a higher interest rate? alot more money than you should be paying for the car. am i right?

yea i know you cant have your dream car for awhile but dont you think its worth the wait and money you will save if you save up for that car?
only reason why its so low is because my dad co-signed so i could get a lower rate.But do plan to get ahead of my payments,my friend is already 1 year ahead of his payments and he said if i have the money to do it then he recommends i do

[ebaker]

yea man i would pay as much as you can every month and knock it out quick. i have a three year loan on my car and im working on getting it paid off in about a year and a half. save you alot of money in interest.

[jordanj]

i also want to get it paid off before i go off to san marcos in a couple years

[ebaker]

you could prolly pay it off in about 3 and a half or 4 years if you manage your money right.

[jordanj]

you could prolly pay it off in about 3 and a half or 4 years if you manage your money right.
yea,or i atleast want to get about 6 months ahead of my payments so i can afford not to make a payment one month if i need to

[ebaker]

you dont have any other debt do you?

[jordanj]

you dont have any other debt do you?
just my credit card,but thats only like 230 till its paid off

[ebaker]

that's not bad at all. You got that easy man.

[jordanj]

that's not bad at all. You got that easy man.
i hope i keep it this way too

[98Aggie]

debt?

[ebaker]

so kurt I take it your debt free?

[black_betty]

We plan on paying the Cobalt off in 1 year to 18 months max. Screw paying all that interest.

[ebaker]

that's a good idea unless you have other debts that are lower. Or if you can stick with paying all the other debts off after you have paid your car off in that year or so.