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OG
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Discussion Starter #1 (Edited)
The official "get out of debt" thread, this is for all of us in debt, and want to get rid of it.

Post your story here. Tell us why you're in debt, and what you're going to do about it.

Trying to increase your income? What are you doing to make more money to get out of debt faster?

Did you sell something to get out of debt faster? Let us know.

Make a payment on something? Make a payment towards the principal? Share it here.

Share pics and stories of things you almost bought, but decided not to, because you're dedicated to getting out of debt.

Help motivate others around you by sharing the sacrifices you're making to get rid of your debt.

Let's stand united and slay this beast together.
 

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Great topic. I won't let my house sit paid for. I can get 2.7% money out of it, and it's easy and safe to make more than that with it.
 

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Had no debt after college except for student loans. Bought a cbr600rr right after I got my first paycheck and put it on a 3 year loan. My credit was already 730 (had a credit card since I was 18, but always kept it paid off), so my interest was low. Paid the bike off in two years. Decided to get rid of the mustang that I had had since I was 15 (parents bought me a brand new that I didn't deserve. Yep I was that kid). Bought a jeep 4x4 for work since I do a lot of driving there. Unfortunately I did a 6 year loan on a used car, but like the bike I plan to pay it off early. Then, I decided to get engaged. Bought a diamond ring for the lady on a credit card of 12 months same as cash interest free.

So, to pay off the debt...

I'm joining the military, and due to having a degree will actually allow me to make more than I do now in the public sector.

It's not smart but... I'm going to pull all my retirement and deferred comp. Use that to pay of her ring, my credit card, and about 60% of my car payment.

While in basic she's going to double up on my car payment to get it payed off.

I'm probably going to sign away my gi bill, so the Army will pay off my loans.

That's about it for me.


Sent from Motorcycle.com Free App
 

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OG
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Discussion Starter #4
X - Thank you, sir.

So what do you mean by 2.9? Do you mean by refinancing your house at 2.9, then reinvesting the money for a higher return, elsewhere? Curious as to what you're doing...

Dan - Very cool. If you do your 20 or 40, retirement will all be taken care of. That's outstanding!

Look forward to hearing how all of this works out! :thumbup:



My story started with a 500 credit score. I was able to pull it up by getting a secured credit card, paying it (completely) off every month, then after six months, I applied and was accepted to get an unsecured card. I did this for another six months and then applied for more credit cards. I had five credit cards in rotation, would pay each off as I would receive statements, and I would use each card at least once every six months. Within a few short years, this procedure got my credit rating to a 750.

I bought a house right after that and paid it off in just 4.5 years.

I was clean and clear of all debt and my credit rating was in the 800's.

Then, I bought a truck and motorcycle. That cost me about 100k, and is now down to $85,115. I am also into some serious debt with my parents who bailed me out of a bad decision to chase a girl. I owe them approximately $15k. That makes my total debt owed about $100k.

To make matters worse, because I have 8 hard credit inquiries. My score went plummeting from the 800's to mid-700's. You can see this as it happened literally overnight...



Also, quick tip: creditkarma will give you an actual free credit score without filling your inbox with a bunch of crap, and you don't have to pay for it. Ever. Highly recommended.

Anyway, so I need desperately to get this paid off. My parents getting paid off is my first priority. Then, I will tackle my truck and motorcycle at the same time. I will share my story with all of you as I hack and slash my way through all of this debt.

:cheers:
 

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I can refi for 2.7% right now, and I only owe $40K on the house. I'll be pulling money out and investing it for a higher return.
 

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I'm working on simplifying (getting rid of one of the cars) and refinancing one of the rental properties. The objective is to buy another rental property, but this one I'm going in on with a friend who has more rentals than me. Goal is to stay where I'm at until I'm fully vested in the pension, keep trying to acquire more rentals, and eventually be able to work for myself. Or marry a rich guy. Whichever comes first hehe

Great thread, we can all help keep each other in line.

One thing I did last year to cut out impulse buys was unsubscribing to EVERYTHING. No special offers or sales to tempt me
 

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A few years back, I ditched my sports car along with my hobby of going to the track. Got my wife an SUV to make it easier with the kids.

Decided to acquire my motorcycle license and settled for a CBR300R when I developed the itch / crave. Used that as primary transport while planning out and brainstorming my first business opportunity and picked up my work truck for a pretty coin.

Now, I'm working and marketing every chance so that I can grow and develop my current occupation. After a couple of years, I hope to invest in an additional business opportunity for my wife. Working, saving, working, and more saving...

Credit score is about 800+. Business credit was zero, but that should hopefully change now.

I'll come back to the fun and games later in life after these priorities.
 

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I'm a few months away from having zero consumer debt at all. The only thing I'll owe on is the house
 

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This thread would be more fun if it was about how to get into more debt.

But anyways, my story... Just graduated and had about 8k in loans. I had almost that amount saved up but moving to a different state and settling in used a lot of my funds. My credit score was 751 at the time of graduation but I was scared that paying off my loans would reduce this, so I decided to finance the motorcycle to increase my total accounts. Unfortunately since my credit history isn't long the added debt knocked me down 35 points. I am okay with this though because as I pay everything off my score will bounce back. The important thing to me is maintaining open lines of credit. My overall goals is to have strong enough credit to get the best rates when it is time for me to buy a house.

So that is how I got into debt. At this exact moment I owe 10,300. My plan to get rid of this is to just pay it off in large sums (1000+) over the next 6 months then make minimum payments for another 6 months to milk the credit history.

My advice, make a tracking sheet with all your debt. I also have a monthly budget, I use it more as a guideline though since I don't track my day to day spending enough to be strict on myself. Then I have a sheet with my financial goals and debt. It's good to be able to see everything in one place so that I know where my money is going and where I wish it was going. Always plan ahead with finances and try to make your money work for you.
 

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you guys all seem like your doing i right, so can anyone tell me a better way to get student loans , or more money for school I should say? I am 27 and after applying to FAFSA for loans and the state grant I only get about 12k in a loan each year which only lets me take 2 classes a semester online (because I cant afford moving to california and pay rent/dorm fees and leaving my gf and animals,guns an cars behind). SO instead of taking 9 classes a year I take 4 and this is extending my time so much I even asked the admissions office woman whats the point in going to college for like 7 more years for a bachelors when everything Im learning will possibly be outdated? Im going for computer animation btw
 

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I don't understand the obsession with credit scores. It's like people are competing with each other to see who can borrow the most. Ridiculous


The US system has designed a nation of compulsive borrowers, the next bubble is coming very soon
 

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OG
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Discussion Starter #14 (Edited)
Beh - Great tip on unsubscribing to everything!

Fanatic - Wow! I'm impressed with the sacrifices you've made for your family. Very, very humble. Very, very cool. And huge grats to hitting the 8's!!


MotoFreak - Lol!

Great advise. Thank you so much for sharing!

Also, a little advice for you as well: on an auto, motorcycle, boat, or rv, 2 years is the minimum you want to take to pay it off, otherwise it will actually hurt your credit score. At a two year payoff, it will minimally improve it. You might want to consider throwing payoff in a separate account, having it automatically withdrawn from that account, and forget about it. I don't know the length of time you financed your bike for, or the finance rate to consider, but this approach will definitely maximize improvement to your credit score.

Hughie - No idea, brotha. Sorry I can't help you.

Wibbly - That's outstanding that you're almost debt free, save the house.

As far as your commentary goes: We are here to discuss our credit and debts in order to encourage one another. You can take your hauteur elsewhere.
 

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T. BOTM Winner 10/11
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.

My advice, make a tracking sheet with all your debt. I also have a monthly budget, I use it more as a guideline though since I don't track my day to day spending enough to be strict on myself. Then I have a sheet with my financial goals and debt. It's good to be able to see everything in one place so that I know where my money is going and where I wish it was going. Always plan ahead with finances and try to make your money work for you.

That's a good call. When I didn't make as much money I used to keep a spreadsheet for my budget each month. I accounted for everything, and if $35 wasn't in the budget, it wasn't in the budget




you guys all seem like your doing i right, so can anyone tell me a better way to get student loans , or more money for school I should say? I am 27 and after applying to FAFSA for loans and the state grant I only get about 12k in a loan each year which only lets me take 2 classes a semester online (because I cant afford moving to california and pay rent/dorm fees and leaving my gf and animals,guns an cars behind). SO instead of taking 9 classes a year I take 4 and this is extending my time so much I even asked the admissions office woman whats the point in going to college for like 7 more years for a bachelors when everything Im learning will possibly be outdated? Im going for computer animation btw
My first attempt at grad school I went to a state school and got a scholarship. I ended up making money on what I got back on taxes. Not sure if you get in state tuition at your current school, but that made a huge difference for me
 

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....back in the day I used to get the 12 month no interest credit cards and transfer all other balances from other cards to that, that way I was able to slowely pay down stuff without having to shell out money for interest.....

No joke, at one point I probably had like 20+ cards :tard: young and irresponsible.
 

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I have always been really good at avoiding debt. I always bought cars and trucks outright so that I never had to worry about a payment, and kept one credit card with not a ton of money on it. Max about 5-600 on the card at once. This obviously did not help my credit score and made it difficult when I wanted to buy a house the first time. I needed to buy a truck so I could haul stuff around and have a more reliable vehicle than my old VW bug so I bought an older tacoma for 10 grand. I pay extra on it every month to knock down the principal nice and fast, and hope to own it soon. I traded my bug for the bike, so I own that, and my other project I bought after a contract job that landed me some good money. For a while I was pouring money into my 401k and diversified that quite a bit (trying to retire with millions). Buying the truck helped my credit a lot, and allowed me to buy a house rather than throwing money away on rent every month. A house is actually a really good investment if you take care of it. I plan to make one full extra payment every year at least, to get the house paid off faster than 20 years. My partner and I are also reducing the amount of cars we have, trying to get rid of the sports car and drive vehicles we own.

I got lucky on the school thing due to my career, and my employer is paying for me to go to college. So I am taking Engineering classes through Embry-Riddle. My partner is also taking flight lessons so he can become a helicopter pilot. Mind you, there was a point in time where we were living off of my credit card, and almost got into a lot of trouble since we were both unemployed, and moved across the country with nothing. Sometimes you have to take chances to better your situation.

I think the best advice I can give, even though my credit has yet to break the 700 mark, is to evaluate wants vs. needs. You can afford to pay for that new car, but do you need a 30k sports car? Do you need a new CBR when the older ones are just as much fun etc. I really love the feeling of owning vehicles furniture and the like, and only owing people for bills and necessities, not paying off loans or debt. Having a credit card is great for emergencies, but if it is maxed out then you are screwed.
 

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OG
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Discussion Starter #19
Voltaic - Great stuff there! :thumbup:

Mechanic - Awesome advice. Good to hear your story, brotha. Stay the course!


I just put in my 30 day notice at my gym. It was costing me $100/mo, and I wasn't using it for any of the amenities, just for the gym. Will be joining another gym just around the corner for $25/mo. An extra $900 in my pocket/yr.

Goodbye old gym!!!







 

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you guys all seem like your doing i right, so can anyone tell me a better way to get student loans , or more money for school I should say? I am 27 and after applying to FAFSA for loans and the state grant I only get about 12k in a loan each year which only lets me take 2 classes a semester online (because I cant afford moving to california and pay rent/dorm fees and leaving my gf and animals,guns an cars behind). SO instead of taking 9 classes a year I take 4 and this is extending my time so much I even asked the admissions office woman whats the point in going to college for like 7 more years for a bachelors when everything Im learning will possibly be outdated? Im going for computer animation btw
I am a huge advocate of completing school on time. If you do the math on it, it almost always comes out cheaper to take out loans and do what ever it takes to finish in 4 years than to extend your time in college due to living and housing expenses. I would look into if it would be worth it for you. Sell the guns and cars if you have to, work a part time job/internship. I worked throughout college, finished in 4 years, never had fancy things, and now I can buy all the things I wish I had only 4 years ago. It is worth the sacrifice you just have to be committed. Aside from that advice, look into scholarships.


I don't understand the obsession with credit scores. It's like people are competing with each other to see who can borrow the most. Ridiculous


The US system has designed a nation of compulsive borrowers, the next bubble is coming very soon
Anything above 750 is an obsession and doesn't help you so much. But the idea behind it is that if you work at building your score like I am trying to do now, is so that when you go to finance a house you will get a better interest rate and save in the long run. If all the effort I put in now saves me even 0.5% on interest, it will be worth it since a house is usually a person's largest purchase throughout their life.

MotoFreak - Lol!

Great advise. Thank you so much for sharing!

Also, a little advice for you as well: on an auto, motorcycle, boat, or rv, 2 years is the minimum you want to take to pay it off, otherwise it will actually hurt your credit score. At a two year payoff, it will minimally improve it. You might want to consider throwing payoff in a separate account, having it automatically withdrawn from that account, and forget about it. I don't know the length of time you financed your bike for, or the finance rate to consider, but this approach will definitely maximize improvement to your credit score.
Thanks. I don't plan to take longer than two years. The bike will be paid within a year.

....back in the day I used to get the 12 month no interest credit cards and transfer all other balances from other cards to that, that way I was able to slowely pay down stuff without having to shell out money for interest.....

No joke, at one point I probably had like 20+ cards :tard: young and irresponsible.
Watch out for those transfer fees. They are usually like 3% but that adds up.
 
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