Introduction post

[jamethiel]

Are you sure that you will never, EVER be able to save anything? Do your debts inspire you to hyperventilate and you don't know where to begin?

That's what this community is for.

We aim to provide a non-judgmental and nurturing environment so that you can face your financial demons and start getting your shit together. None of us are financial professionals. We're ordinary folk from all walks of life with a range of incomes and circumstances. We're here to provide advice and handy hints. So, WELCOME. This is the first ever post. Post in the comments! Introduce yourself, tell us your best and worst financial habits, what kind of post you'd like to see in this community. Say hi to others!

As a note: I can't crosspost to the LJ community of the same name automatically, but I'll do it manually. All posts will be mirrored both here and there from now on.

Comments

[zeenell]

Hi all! I'm nell.

I'm pretty on track with where I need to be or so I assume.

I finally finished paying off the money that was owed to the first college I went to - meal plan, pretty much (my dad said he would pay for it in the divorce decree. I had the fun of getting collection notices. I paid it all off - about 50 dollars a week, to the tune of 3200).

I have a student loan that's still subsidized, so I've been paying down the principle while the governments been paying the interest.

I get paid every week, and split all my bills in quarters (cell phone, credit card, student loan, and 2 others), and have everything debited out of my account on payday. Otherwise, I'll spend the money on whatever, because it's just sitting there.

(Yes, part of the quarters on things includes my two savings accounts. I also have a 401k that's taken out pre-taxes).

I know you are supposed to keep money until the bill is due, to collect interest, but I just can't do that.

I have credit card debt, but now that I don't have to pay money to the collection agency, I put 25 extra to the credit card and 25 to the saving accounts.

Uhm. What else - I have two savings accounts. One is where the money for my (eventual) apartment is making baby money - there's a few year savings bonds also attached to it, and the other is for whatever shiny technological thing I want (new computer, lalalala)

[jamethiel]

Ugh, family. Are you going to let it go as being too much aggravation, or will you get him to reimburse you?

The thing is with money is you have to do what works for you. Even if it's not the SMARTEST thing, if it keeps you out of/reduces debt, then you can live without a few benefits.

(I've been reading a couple of finance blogs, both of which are very smart, both of which advocate different things when it comes to credit cards. I think what it boils down to is: do what is best for you. If you can't trust yourself to have a credit card and pay it off every month, don't have one. If you can, then it's a useful tool.)

Have you considered something like an ING (or similar. Not endorsing a particular product) account for your debts? Something with a reasonably high interest rate and no direct access. I've found I can transfer, say, half my rent into my "Upcoming bills" account and I won't touch it: it takes a business day to access my money, so it earns interest, I can't spend it with my card and come rent being due, I just transfer it a business day before. Something to consider, anyway.

Good on you for splitting the extra money between your credit card debt and savings! In percentages (or figures if you want to give them, but you may not), how are you doing on your progress to be out of debt? Got a specific time goal?

[zeenell]

I do have an ing direct account - it's second savings account. the first one is from the same bank as my checking account, and I have that set up for overdraft protection just in case I somehow screw up.

It takes about 4 to 5 days for the money to transfer back out of that account, which is why I put the money for my eventual apartment there. If it's rly an emergecy, I can access it, but if I just want to buy a video game? I don't transfer it out because it takes too long.

The credit card debt actually isn't much to begin with. I have two cards, one w/a 500 limit and one w/a 300 dollar limit.

OTOH, I have a mother who doesn't always see the point in paying bills for things she doesn't use. (hell, she went over the minutes on the cell phone. My sister and I suddenly had to cover 150 extra on the bill. Hell, each of us is supposed to pay 1/3 (I pay 1/3 plus 30 to cover my cellphone data plan). My sister and I have just been paying it. OTOH, that's in her name, and her credit is fubar anyway).

To get rid of the collection agency as fast as possible, I maxed out both credit cards. Paid half back and then had to pay for classes. Uhm. Bad planning that (I lost track of semester start. Bad nell, no cookie). I should have them just about paid off after christmas. Just in time to pay for next semesters class.

OTOH, I won't have to get holiday gifts for anyone, so I'll have more "fun" money that will just go to the credit cards.

I mean, I live at home and since I'm in school, I don't have to pay rent. And I have my mom convinced I'm so bad w/money that I never have any for her to borrow (because I'm not stupid enough to let her borrow any) when it's in savings accounts.

And yeah, I could pull the money out of the ing account and just pay off the credit cards fully, but I psychologically need that account. It's my escape plan.

As to my dad - the man can't even be bothered to pay child support. My dad technically gets a trust fund check (...he get's about 7k every three months), but it goes to a 'receiver' who gives my mom child support out of that and gives the rest to my dad. My dad stays just under 10,000 in arrears, because as soon as he goes over 10k, he can lose his license.

I could file suit to get the money back, but it'll be garnished out of his wages (min. wage job he deliberately took so his child support payments wouldn't be raised), and it's not worth the hassle of doing all that legal paperwork.

[jamethiel]

Also, well DONE on paying that debt off!