Debt Dumpers 2020

[potterfanatic]

Jan update - When I was a teen I saved all my money from my summer jobs and when I found out I had a full ride scholarship I combined it with the money I got as a graduation gift and put it all in savings bonds. This month (20 years later) I cashed them out. I used most of it to completely pay off one of my credit cards and the rest to pay off our 6 nights at POR in feb. We will be going into this vacation having it fully prepaid, and for the first time in my life my week there will be paid vacation time off work. As much as I hated cashing out the bonds, I’m really happy with paying off one c.c. and still using some for fun!

 

[barkley]

Jan update - When I was a teen I saved all my money from my summer jobs and when I found out I had a full ride scholarship I combined it with the money I got as a graduation gift and put it all in savings bonds. This month (20 years later) I cashed them out. I used most of it to completely pay off one of my credit cards and the rest to pay off our 6 nights at POR in feb. We will be going into this vacation having it fully prepaid, and for the first time in my life my week there will be paid vacation time off work. As much as I hated cashing out the bonds, I’m really happy with paying off one c.c. and still using some for fun!

congrats! just remember for 2020 tax planning to keep in mind the extra income those bonds will add to your return.

 

[ruadisneyfan2]

Oh one thing I forgot to mention! I just lowered our household car insurance bill by $1000/yr just by dropping a tiny part of our coverage. Way back in 95 when we were first married our agent offered us extra PIP coverage for not a lot of extra $. It offered income continuation for up to $700/week (max) if we were unable to work due to injuries resulting from a car accident. Also it provides $$ for "essential services" such as housecleaning, snow removal, etc if you're unable to do those too. The income continuation limited to a max of $72,000 per insured person on policy. For a little more, we could opt for "unlimited" so as to not be cut off after 72k payout.
Back when we young & were sooo living check to check, it offered a lot of peace of mind. Probably didn't help that I was working in our trauma center then too so seeing that kind of thing every day kind of skews your viewpoint a bit. Well over the years, changing cars, changing ins. companies, adding kids, adding more cars, we always kept the same coverage without really looking at it.

I got to thinking, really, what are the odds of being in an accident bad enough to leave us unable to work more than 2 years. (Two years is the max of 72,000 divided by $700/week, the max weekly payout.)
So just by changing our coverage from "unlimited" to "limited to 72,000" that knocked $1000/year off our bill.
That included all 4 of our cars so really $250 per car per year.

So now our biweekly amount to send to our Ally Car Ins account is $67 instead of $90. Also since ds19 is my biweekly housecleaning service in exchange for his car ins, I only have to send that acct $85 instead of $95.
I realize they're not huge amounts but it adds up over time. $858/yr to be exact.

 

[ruadisneyfan2]

congrats! just remember for 2020 tax planning to keep in mind the extra income those bonds will add to your return.

Do you mean you have to declare them as income? I thought municipal bonds were tax free?

 

[dina444444]

Do you mean you have to declare them as income? I thought municipal bonds were tax free?

Any interest earned on a savings bond counts as 1099-INT interest and you have to pay taxes on it at the federal level when you cash them out.

 

[RamblingMad]

Do you mean you have to declare them as income? I thought municipal bonds were tax free?

It sounded like the poster had savings bonds, not municipal bonds, which have a different tax treatment.

 

[jen7233]

Oh one thing I forgot to mention! I just lowered our household car insurance bill by $1000/yr just by dropping a tiny part of our coverage. Way back in 95 when we were first married our agent offered us extra PIP coverage for not a lot of extra $. It offered income continuation for up to $700/week (max) if we were unable to work due to injuries resulting from a car accident. Also it provides $$ for "essential services" such as housecleaning, snow removal, etc if you're unable to do those too. The income continuation limited to a max of $72,000 per insured person on policy. For a little more, we could opt for "unlimited" so as to not be cut off after 72k payout.
Back when we young & were sooo living check to check, it offered a lot of peace of mind. Probably didn't help that I was working in our trauma center then too so seeing that kind of thing every day kind of skews your viewpoint a bit. Well over the years, changing cars, changing ins. companies, adding kids, adding more cars, we always kept the same coverage without really looking at it.

Intrigued, what is PIP coverage?

 

[jen7233]

OK, so googling is personal injury protection. Going to go take a look at my auto policy again.

 

[afan]

OK, so googling is personal injury protection. Going to go take a look at my auto policy again.

You'll want to see if your state requires it because some do. Your ins will pay put and then if the othet person is at fault they get their money back from that person's ins.

 

[imbatman]

I have a conundrum. No...not really, more of a decision that I need to make by Friday and I'm struggling. So I thought I'd stop by here and see if some opinions will help.

Many of you know that I'm trying to get my feet under me with a second career--an author. My first traditionally published book is coming out in May. That said, I've been contracted to novelize a movie to a book (HURRAY!). Now please understand that I am under no delusion that I'm a J.K. Rowling or Tom Clancy or John Green. But writing is my hobby and it's now starting to pay.

There is a writer's conference in April that's about 4 hours away (driving time). My tax return will be over $3-$4k. (Do NOT talk to me about how I file, please...that's not the point of this) This conference is $1200.

As I posted earlier this month, I went into debt in December. And as I also posted, I will be able to pay it all off by year's end. That was not factoring in the tax returns, which will allow for quicker repayment.

Going to the conference doesn't guarantee any forward movement in my writing career, but I did land my agent by going to this same conference. Also, there are persons involved with the film industry presenting classes. Also, another editor who is looking for the same type of genre that is publishing in May.

My question to pose to you, for opinions (which I may blow off) is this: go to the conference or put that money toward debt? All opinions welcome, other than the ones who chose to grind an ax that I went into debt to begin with. I'm working on that, which is why I'm here.

 

[RamblingMad]

I have a conundrum. No...not really, more of a decision that I need to make by Friday and I'm struggling. So I thought I'd stop by here and see if some opinions will help.

Many of you know that I'm trying to get my feet under me with a second career--an author. My first traditionally published book is coming out in May. That said, I've been contracted to novelize a movie to a book (HURRAY!). Now please understand that I am under no delusion that I'm a J.K. Rowling or Tom Clancy or John Green. But writing is my hobby and it's now starting to pay.

There is a writer's conference in April that's about 4 hours away (driving time). My tax return will be over $3-$4k. (Do NOT talk to me about how I file, please...that's not the point of this) This conference is $1200.

As I posted earlier this month, I went into debt in December. And as I also posted, I will be able to pay it all off by year's end. That was not factoring in the tax returns, which will allow for quicker repayment.

Going to the conference doesn't guarantee any forward movement in my writing career, but I did land my agent by going to this same conference. Also, there are persons involved with the film industry presenting classes. Also, another editor who is looking for the same type of genre that is publishing in May.

My question to pose to you, for opinions (which I may blow off) is this: go to the conference or put that money toward debt? All opinions welcome, other than the ones who chose to grind an ax that I went into debt to begin with. I'm working on that, which is why I'm here.

I’d set up meetings at the conference with people I know and go. I wouldn’t just go to attend panels if I’m already in debt.

 

[pblack]

I have a conundrum. No...not really, more of a decision that I need to make by Friday and I'm struggling. So I thought I'd stop by here and see if some opinions will help.

Many of you know that I'm trying to get my feet under me with a second career--an author. My first traditionally published book is coming out in May. That said, I've been contracted to novelize a movie to a book (HURRAY!). Now please understand that I am under no delusion that I'm a J.K. Rowling or Tom Clancy or John Green. But writing is my hobby and it's now starting to pay.

There is a writer's conference in April that's about 4 hours away (driving time). My tax return will be over $3-$4k. (Do NOT talk to me about how I file, please...that's not the point of this) This conference is $1200.

As I posted earlier this month, I went into debt in December. And as I also posted, I will be able to pay it all off by year's end. That was not factoring in the tax returns, which will allow for quicker repayment.

Going to the conference doesn't guarantee any forward movement in my writing career, but I did land my agent by going to this same conference. Also, there are persons involved with the film industry presenting classes. Also, another editor who is looking for the same type of genre that is publishing in May.

My question to pose to you, for opinions (which I may blow off) is this: go to the conference or put that money toward debt? All opinions welcome, other than the ones who chose to grind an ax that I went into debt to begin with. I'm working on that, which is why I'm here.

I'd vote for going to the conference. It could help benefit your second career (which could turn into your first, who knows!) and it sounds like even if it doesn't benefit it in an obvious way you'll at least network with people who may be beneficial in the future. Plus there's no airfare charges since it's within driving distance. You don't mention if there would be hotel charges, but even if there are you could probably find something off-site that's cheaper. If I've learned anything from working in education it's that conferences are the perfect opportunity to expand your knowledge about numerous things in one space and network with people that you may not otherwise get to network with.

 

[Jen and Ashwin]

Headache.

Our paychecks just posted and mine had an additional $207.00 in federal withholdings using the new filing status. DH's had an additional $54.00. Not really sure why there is such a huge difference between them since I make more than DH, but not 4x more. Not even twice as much. Since we only owe $1600 this year, this is just too much additional withholding, so I think I am going to put mine back but keep DH's the same. It is likely that with a second child tax credit on our taxes next year, we won't owe nearly as much anyways, but I would rather get a smallish refund next year rather than owe again. Hopefully this works.

 

[imbatman]

I’d set up meetings at the conference with people I know and go. I wouldn’t just go to attend panels if I’m already in debt.

You mean contact the people attending the conference and make arrangements to meet with them after/before the conference without attending? Not an option. They attend the entire conference to network with attendees.

I'd vote for going to the conference. It could help benefit your second career (which could turn into your first, who knows!) and it sounds like even if it doesn't benefit it in an obvious way you'll at least network with people who may be beneficial in the future. Plus there's no airfare charges since it's within driving distance. You don't mention if there would be hotel charges, but even if there are you could probably find something off-site that's cheaper. If I've learned anything from working in education it's that conferences are the perfect opportunity to expand your knowledge about numerous things in one space and network with people that you may not otherwise get to network with.

I apologize, that is the total cost, including lodging and meals. It is at a conference site, not a hotel. Costing out a nearby hotel is actually more expensive. And thank you...I'm leaning this way, but I'm just trying to make a wise decision.

 

[imbatman]

Headache.

Our paychecks just posted and mine had an additional $207.00 in federal withholdings using the new filing status. DH's had an additional $54.00. Not really sure why there is such a huge difference between them since I make more than DH, but not 4x more. Not even twice as much. Since we only owe $1600 this year, this is just too much additional withholding, so I think I am going to put mine back but keep DH's the same. It is likely that with a second child tax credit on our taxes next year, we won't owe nearly as much anyways, but I would rather get a smallish refund next year rather than owe again. Hopefully this works.

I hate the new withholding tables.

 

[RamblingMad]

You mean contact the people attending the conference and make arrangements to meet with them after/before the conference without attending? Not an option. They attend the entire conference to network with attendees.

I mean set up meeting times at the conference with your contacts and go to the conference. But you actually want to get them on your calendar, rather than hoping to run into them.

 

[Searc]

I have a conundrum. No...not really, more of a decision that I need to make by Friday and I'm struggling. So I thought I'd stop by here and see if some opinions will help.

Many of you know that I'm trying to get my feet under me with a second career--an author. My first traditionally published book is coming out in May. That said, I've been contracted to novelize a movie to a book (HURRAY!). Now please understand that I am under no delusion that I'm a J.K. Rowling or Tom Clancy or John Green. But writing is my hobby and it's now starting to pay.

There is a writer's conference in April that's about 4 hours away (driving time). My tax return will be over $3-$4k. (Do NOT talk to me about how I file, please...that's not the point of this) This conference is $1200.

As I posted earlier this month, I went into debt in December. And as I also posted, I will be able to pay it all off by year's end. That was not factoring in the tax returns, which will allow for quicker repayment.

Going to the conference doesn't guarantee any forward movement in my writing career, but I did land my agent by going to this same conference. Also, there are persons involved with the film industry presenting classes. Also, another editor who is looking for the same type of genre that is publishing in May.

My question to pose to you, for opinions (which I may blow off) is this: go to the conference or put that money toward debt? All opinions welcome, other than the ones who chose to grind an ax that I went into debt to begin with. I'm working on that, which is why I'm here.

What is your ultimate goal of the conference? What is the main thing you hope to get from it? Is that goal something you can do outside of the conference or is this your only chance to network with industry people?

 

[pblack]

I apologize, that is the total cost, including lodging and meals. It is at a conference site, not a hotel. Costing out a nearby hotel is actually more expensive. And thank you...I'm leaning this way, but I'm just trying to make a wise decision.

Ahh gotcha. I don't think $1200 is terrible all-in-cost. Good luck with your decision making!

 

[Jen and Ashwin]

Headache.

Our paychecks just posted and mine had an additional $207.00 in federal withholdings using the new filing status. DH's had an additional $54.00. Not really sure why there is such a huge difference between them since I make more than DH, but not 4x more. Not even twice as much. Since we only owe $1600 this year, this is just too much additional withholding, so I think I am going to put mine back but keep DH's the same. It is likely that with a second child tax credit on our taxes next year, we won't owe nearly as much anyways, but I would rather get a smallish refund next year rather than owe again. Hopefully this works.

Ok, I just ran everything through the IRS withholdings calculator and it gave me amounts to put for "additional withholdings" for each of us. It should mean that we don't owe next year if their calculations are correct. Here's to hoping.

 

[Jen and Ashwin]

I have a conundrum. No...not really, more of a decision that I need to make by Friday and I'm struggling. So I thought I'd stop by here and see if some opinions will help.

Many of you know that I'm trying to get my feet under me with a second career--an author. My first traditionally published book is coming out in May. That said, I've been contracted to novelize a movie to a book (HURRAY!). Now please understand that I am under no delusion that I'm a J.K. Rowling or Tom Clancy or John Green. But writing is my hobby and it's now starting to pay.

There is a writer's conference in April that's about 4 hours away (driving time). My tax return will be over $3-$4k. (Do NOT talk to me about how I file, please...that's not the point of this) This conference is $1200.

As I posted earlier this month, I went into debt in December. And as I also posted, I will be able to pay it all off by year's end. That was not factoring in the tax returns, which will allow for quicker repayment.

Going to the conference doesn't guarantee any forward movement in my writing career, but I did land my agent by going to this same conference. Also, there are persons involved with the film industry presenting classes. Also, another editor who is looking for the same type of genre that is publishing in May.

My question to pose to you, for opinions (which I may blow off) is this: go to the conference or put that money toward debt? All opinions welcome, other than the ones who chose to grind an ax that I went into debt to begin with. I'm working on that, which is why I'm here.

I think it is important to put resources towards your career. If the $1200 is your only major expense towards networking this year and you feel this is the right way to spend your money, then I would look at it as just $100 per month towards your future and increased earnings potential. Good luck!