Debt Dumpers - 2018

[Eureka]

Heard back from the insurance adjuster via my dad. He said the car was worth $5500. We owe $4500 on it. Sounds like a good enough deal right? He gets to pay it off and has an extra $1000 to his name. Apparently, That's not good enough for him. He seems to think that because the accident was 100% the other lady's fault, she should pay to fully replace the car with something similar, which to buy would be in the $8-10k range. While it sucks because I'll have to go buy one now instead of finishing paying off his, I don't know why he won't just be happy with the extra cash in his pocket. I guess he decided to cancel the claim with his insurance and is now planning to sue the other lady for the extra money he thinks he deserves. I honestly want no part in any of that, but since I was driving, I just know I'm going to end up in court over this crap.

The only real complaint I have is that in the manual for our car seats, it requires them to be replaced once the car is in an accident. His insurance company said they would cover them, just turn in the receipt and leave the old seats in the car so they can be disposed of. Now they're coming back saying we have to pay the deductible ($500) to file the claim to get them replaced (they were $350). It seems ridiculous to pay more to file the claim than just paying for them myself, however, I do feel like HER insurance should be the one to cover them since it was 100% her fault. So I guess he's going to try and get them to pay for them now.

I need a drink after all this drama, but I'm going in for 9 hours of overtime in a couple hours since it looks like I'm buying a new car really soon.

Your dad should know that they never give you enough to replace the car. The second you sign the papers and drive it away, it's already worth less than it was before you bought it. I think you're getting a great "deal" if you want to call it that. But hey, if he wants to fight with insurance, that shouldn't affect you, right?

 

[imbatman]

The other thing that my spreadsheet really helps me do is manage my money so I don't have to put things on a credit card (well, technically I use my cc to get cash back rewards, but I don't put anything on it that I don't have the cash in hand to immediately pay it off). I have every paycheck planned out for the year with what bills need to be paid with each one so I know how much money I have left for the non-bill expenses (groceries, etc). So I instantly know if a certain two-week window may be a little tighter, and I can proactively be more cautious with my budget during that time. Or, if I know I am going to have more cash than normal, I can apply it towards other areas (vacation fund, savings, extra car payment, etc.). I started this about 10 years ago when I was going through my mass debt dumping challenge (multiple credit card debt, school loans, personal loan, ugh). It took me 2.5 years to get rid of about 30K in debt, but it has totally changed my financial situation around.

I would totally love to see how your spreadsheet works! I'm an Excel type of gal and have my own snowball after the facepalm of sneaky spending. Did you download it from a site?

 

[sara mom]

Heard back from the insurance adjuster via my dad. He said the car was worth $5500. We owe $4500 on it. Sounds like a good enough deal right? He gets to pay it off and has an extra $1000 to his name. Apparently, That's not good enough for him. He seems to think that because the accident was 100% the other lady's fault, she should pay to fully replace the car with something similar, which to buy would be in the $8-10k range. While it sucks because I'll have to go buy one now instead of finishing paying off his, I don't know why he won't just be happy with the extra cash in his pocket. I guess he decided to cancel the claim with his insurance and is now planning to sue the other lady for the extra money he thinks he deserves. I honestly want no part in any of that, but since I was driving, I just know I'm going to end up in court over this crap.

The only real complaint I have is that in the manual for our car seats, it requires them to be replaced once the car is in an accident. His insurance company said they would cover them, just turn in the receipt and leave the old seats in the car so they can be disposed of. Now they're coming back saying we have to pay the deductible ($500) to file the claim to get them replaced (they were $350). It seems ridiculous to pay more to file the claim than just paying for them myself, however, I do feel like HER insurance should be the one to cover them since it was 100% her fault. So I guess he's going to try and get them to pay for them now.

I need a drink after all this drama, but I'm going in for 9 hours of overtime in a couple hours since it looks like I'm buying a new car really soon.

Were they Britax? When we had our accident with Britax seats, the company covered the cost of new seats and wanted the old ones back. I’m pretty sure they covered the shipping from our house to the company.

 

[Tygerlilly]

Your dad should know that they never give you enough to replace the car. The second you sign the papers and drive it away, it's already worth less than it was before you bought it. I think you're getting a great "deal" if you want to call it that. But hey, if he wants to fight with insurance, that shouldn't affect you, right?

Well, if he goes the route of trying to sue the lady for more, I'm assuming I'll end up in court for being the one involved. I think he's getting a fair amount. I mean, it's paying off the loan and giving him $1000 of pocket change. Moral of this life lesson: my dad is kind of an a** and I'm actually fairly happy I'm being forced into getting a new car on my own instead of buying this one off him. He's incredibly controlling over things and I don't need him holding that over my head anymore.

Were they Britax? When we had our accident with Britax seats, the company covered the cost of new seats and wanted the old ones back. I’m pretty sure they covered the shipping from our house to the company.

No, I had safety first car seats, but they no longer sell them in the store, so I went with the next comparable seat. He told me today the lady's insurance said cut the straps of the old one, take them to the fire station, and give him the type of seat they were and the receipt for the new ones and they'd work out a compromise.

 

[Eureka]

@Tygerlilly ...sorry your dad is being a PITA. But glad you will be able to get this new car on your own.

I realized today during one of my long commutes (only used EZ pass once this week!) that even though we had to dip into our savings, we had a good debt-dumping year. We got rid of the home equity loan, credit card balances and one car payment, and got our mortgage under $100k, so now all the debt we have is mortgage and one car payment. Which is good since college tuition is looming. To that end, we have booked a tour with one of our state schools in a few weeks and are going back down to NC when the kids are on break to tour Duke. I cannot believe we are already doing this. I swear they were just babies.

 

[MamaBelleRN]

How often do you update your spreadsheets with what you have been spending? We have an Excel spreadsheet for our budget as well, but our food budget seems to get out of hand quickly unless we check it daily. Even then

I kinda make a budget, too. But mine is more about staying within my annual income overall, vs specific categories. I keep a pretty detailed spreadsheet and have been tracking expenses for the past 10 years. So using all of that information, I can estimate how much I will spend in each category and try to stay within range, but it's not down to the penny kind of thing and only if I seem to be tracking much higher in a certain category do I have to go back and look at the numbers and decide where I will spend less. Last year turned into The Year of Gifts but we were apparently also very boring last year because I was tracking well under in our Entertainment category so it all balanced out in the end.

The other thing that my spreadsheet really helps me do is manage my money so I don't have to put things on a credit card (well, technically I use my cc to get cash back rewards, but I don't put anything on it that I don't have the cash in hand to immediately pay it off). I have every paycheck planned out for the year with what bills need to be paid with each one so I know how much money I have left for the non-bill expenses (groceries, etc). So I instantly know if a certain two-week window may be a little tighter, and I can proactively be more cautious with my budget during that time. Or, if I know I am going to have more cash than normal, I can apply it towards other areas (vacation fund, savings, extra car payment, etc.). I started this about 10 years ago when I was going through my mass debt dumping challenge (multiple credit card debt, school loans, personal loan, ugh). It took me 2.5 years to get rid of about 30K in debt, but it has totally changed my financial situation around.

 

[jackers]

I would totally love to see how your spreadsheet works! I'm an Excel type of gal and have my own snowball after the facepalm of sneaky spending. Did you download it from a site?

No, just something I created myself. The bill schedule part is nothing fancy but does the job. Have the weeks across the top axis with my take home pay (I’m salary, so this is always the same) and the individual bill categories along the side and then I estimate what the bill will be and have all the calculations set up to tell me what I have left. Once I pay the bill or schedule the payment, it gets highlighted so it also keeps me on track so I have never missed paying a bill.

The expense tracking piece (I import it from my bank’s site) is a little fancier with pivot tables and calculations and color formatting so I can see at a very quick glance when I may start getting out of range on a budgeted item. I’m an analyst by trade, so I’m a dork that loves this stuff.

 

[jackers]

How often do you update your spreadsheets with what you have been spending? We have an Excel spreadsheet for our budget as well, but our food budget seems to get out of hand quickly unless we check it daily. Even then

2-3 times a week, usually. We are small rural and use a local bank so it can sometimes take a couple of days for transactions to show up so that’s realistically all I can do. I’m old school and still keep a check register for this reason as well - while I pay most of my bills online, I do still have one local utility I pay by check because they charge $3 to use their online services. I like to know exactly what my bank balance is at all times so this helps me to not forget that “XYZ bill is scheduled for Monday but won’t show up til Wednesday in my bank balance” kind of thing.

I use my credit card for all day to day expenses, and probably check/export data out of that 2-3 times a week as well (depending on our frequency of use). I try and treat it like a debit card - I don't use it if I don't have the cash to pay it off and I pay it off immediately so that my bank balance reflects the most accurate picture of my finances. I realize I'm lucky enough (stay away Murphy) to not have had any major issues that have required me to put a large charge on the card, but it has taken many years to get to this point as well.

I’m probably borderline OCD about the whole thing...

 

[jen7233]

I have some decisions to make on my retirement plan with work. I could buy back or buy into if you will, some years that would essentially add to my pension in the future. I just hate to take the money out of our mutual fund to do it. It would be 12k to do it. Another option is to have deductions from paycheck until the balance is paid. I'm trying to thing through all the hypotheticals and opportunity cost that would be foregone if I take the money now from our savings to invest into a pension fund that wouldn't begin until 14 years into the future. I'm weighing on one hand, it adds another $500 a month in pension in the future if I do the buy, or on the other hand what would the same amount grow to if I left it alone in my mutual fund and didn't do the buy back. There are some other what-ifs to think through. It would put a slight pause on using the money towards a new car here in two years, which is okay, or I can explore financing the car. Anyway, decisions to make.

 

[Eureka]

I have some decisions to make on my retirement plan with work. I could buy back or buy into if you will, some years that would essentially add to my pension in the future. I just hate to take the money out of our mutual fund to do it. It would be 12k to do it. Another option is to have deductions from paycheck until the balance is paid. I'm trying to thing through all the hypotheticals and opportunity cost that would be foregone if I take the money now from our savings to invest into a pension fund that wouldn't begin until 14 years into the future. I'm weighing on one hand, it adds another $500 a month in pension in the future if I do the buy, or on the other hand what would the same amount grow to if I left it alone in my mutual fund and didn't do the buy back. There are some other what-ifs to think through. It would put a slight pause on using the money towards a new car here in two years, which is okay, or I can explore financing the car. Anyway, decisions to make.

I think if I was going to do it, I would have paycheck deductions taken. That way you're not taking a huge chunk out (which we have done recently and then I hate seeing the lower balance!) but still adding to your pension which will really help in the long run.

 

[MerissaAndMomLoveDis]

I think if I was going to do it, I would have paycheck deductions taken. That way you're not taking a huge chunk out (which we have done recently and then I hate seeing the lower balance!) but still adding to your pension which will really help in the long run.

I agree with this strategy. Many people I know left our county employment, took out their investment in the retirement system, then came back to work for the county. Without fail, all of them who ran the numbers benefitted substantially by doing the buyback, and it hurt less to do the payroll deduction than to try to come up with a lump sum. Hope that helps!

 

[Jen and Ashwin]

I have some decisions to make on my retirement plan with work. I could buy back or buy into if you will, some years that would essentially add to my pension in the future. I just hate to take the money out of our mutual fund to do it. It would be 12k to do it. Another option is to have deductions from paycheck until the balance is paid. I'm trying to thing through all the hypotheticals and opportunity cost that would be foregone if I take the money now from our savings to invest into a pension fund that wouldn't begin until 14 years into the future. I'm weighing on one hand, it adds another $500 a month in pension in the future if I do the buy, or on the other hand what would the same amount grow to if I left it alone in my mutual fund and didn't do the buy back. There are some other what-ifs to think through. It would put a slight pause on using the money towards a new car here in two years, which is okay, or I can explore financing the car. Anyway, decisions to make.

Think about it this way: If you let $12k continue to grow over the next 14 years at 8% interest (an optimistic rate), you will have about $35k. It would take you less than 5.5 years of $500 per month to match that amount in payments. So if you think that you will live more than 5.5 years after retirement, it is probably a good deal.

 

[DLgal]

Potential budget disaster AVERTED. Thank goodness for insurance!

My husband lost his wedding ring last weekend at an airport during a work trip. We've been married 17 years and it finally happened. It was not a cheap ring...it was a platinum band with 0.20 carats of diamonds.

Thankfully, we have an insurance policy on our wedding bands and my engagement ring. Our premium is $10/year for this coverage. It totally paid off. In less than 72 hours, we had almost $2k auto deposited into our checking account to cover the purchase of a new ring, based upon the appraisal of the lost ring (thank goodness we had that as well!).

So, now we get to shop for a new ring. And our budget won't take a hit. Whew!

 

[DLgal]

I have some decisions to make on my retirement plan with work. I could buy back or buy into if you will, some years that would essentially add to my pension in the future. I just hate to take the money out of our mutual fund to do it. It would be 12k to do it. Another option is to have deductions from paycheck until the balance is paid. I'm trying to thing through all the hypotheticals and opportunity cost that would be foregone if I take the money now from our savings to invest into a pension fund that wouldn't begin until 14 years into the future. I'm weighing on one hand, it adds another $500 a month in pension in the future if I do the buy, or on the other hand what would the same amount grow to if I left it alone in my mutual fund and didn't do the buy back. There are some other what-ifs to think through. It would put a slight pause on using the money towards a new car here in two years, which is okay, or I can explore financing the car. Anyway, decisions to make.

Buy in if it's a guaranteed $500/month added to your pension.

Any other investment isn't guaranteed for squat. If the market crashes, your mutual funds will be effected. You could lose that $12k overnight.

This is basically like purchasing a guaranteed annuity. Also, consider that right now the market is at an all time high....better to take that $12k out now vs. when the market is at a lower point (buy low, sell high...and all that).

 

[Alexle2007]

Potential budget disaster AVERTED. Thank goodness for insurance!

My husband lost his wedding ring last weekend at an airport during a work trip. We've been married 17 years and it finally happened. It was not a cheap ring...it was a platinum band with 0.20 carats of diamonds.

Thankfully, we have an insurance policy on our wedding bands and my engagement ring. Our premium is $10/year for this coverage. It totally paid off. In less than 72 hours, we had almost $2k auto deposited into our checking account to cover the purchase of a new ring, based upon the appraisal of the lost ring (thank goodness we had that as well!).

So, now we get to shop for a new ring. And our budget won't take a hit. Whew!

That's terrific. DH lost his several moons ago at his parent's house and we never thought about the insurance coverage. (It was also platinum with .50 carats of diamonds.) We just chalked up the loss and never replaced it.

 

[Eureka]

That's terrific. DH lost his several moons ago at his parent's house and we never thought about the insurance coverage. (It was also platinum with .50 carats of diamonds.) We just chalked up the loss and never replaced it.

My husband lost his band a few years ago at the beach. We never had insurance on it (plain gold band) but found the price of gold had gone up a lot over the years when we bought a new one!

 

[jen7233]

My husband lost his wedding ring last weekend at an airport during a work trip. We've been married 17 years and it finally happened. It was not a cheap ring...it was a platinum band with 0.20 carats of diamonds.

Thankfully, we have an insurance policy on our wedding bands and my engagement ring. Our premium is $10/year for this coverage. It totally paid off. In less than 72 hours, we had almost $2k auto deposited into our checking account to cover the purchase of a new ring, based upon the appraisal of the lost ring (thank goodness we had that as well!).

Wow-that's great you had the insurance on it!!!

Thanks for all the great ideas on retirement plans. I have been running numbers to see what to do. I've had some of the same thoughts mentioned!

 

[Tygerlilly]

Well, as much of a butt as my father can be, cancelling the claim against our insurance and having it filed against hers was a good choice. Her insurance adjuster came out and assessed the car and totaled it (obviously), but valued it at $7880! $2380 more than geico offered. AND they are 100% covering the car seats!

I let him know our plans to purchase a new car next month with $1000 down payment out of my taxes. I'm hoping maybe he'll give me that out of the claim, since I was buying the car off of him to begin with. (His reply to my plan was "we'll see what we can do", which usually means good things for me. Lol) But this has been a huge relief from my stress.

 

[jen7233]

Well, as much of a butt as my father can be, cancelling the claim against our insurance and having it filed against hers was a good choice. Her insurance adjuster came out and assessed the car and totaled it (obviously), but valued it at $7880! $2380 more than geico offered. AND they are 100% covering the car seats!

I let him know our plans to purchase a new car next month with $1000 down payment out of my taxes. I'm hoping maybe he'll give me that out of the claim, since I was buying the car off of him to begin with. (His reply to my plan was "we'll see what we can do", which usually means good things for me. Lol) But this has been a huge relief from my stress.

Glad the other insurance gave you a better deal. I wonder why Geico was so much lower? Well, no matter if you ended up with more!

 

[DisneyMandC]

Potential budget disaster AVERTED. Thank goodness for insurance!

My husband lost his wedding ring last weekend at an airport during a work trip. We've been married 17 years and it finally happened. It was not a cheap ring...it was a platinum band with 0.20 carats of diamonds.

Thankfully, we have an insurance policy on our wedding bands and my engagement ring. Our premium is $10/year for this coverage. It totally paid off. In less than 72 hours, we had almost $2k auto deposited into our checking account to cover the purchase of a new ring, based upon the appraisal of the lost ring (thank goodness we had that as well!).

So, now we get to shop for a new ring. And our budget won't take a hit. Whew!

I'd love to know who you have for insurance! I think I pay $80/year for insurance on just my engagement ring...