“General Debt” Archive

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Learning from the Financial Wisdom of Family…

My sister is visiting from Kansas City with her husband and four kids for the next two weeks. I’d love the fact that she visits more if she wasn’t… so… well…

Perfect.

She’s debt free other than her mortgage – and even then, she’s paying it aggressively. I’d love to tell you that her husband makes loads of money and that’s how she’s able to be a stay at home mom to four kids and remain debt free but…

He doesn’t.

My sister has found ways to live below her means and actively seeks new methods to spend less. She purchases clothing and toys for the kids at garage sales in nice neighborhoods then resells them when the kids outgrow them (sometimes, she actually MAKES money on this!), doesn’t waste money on cable TV or other ‘necessities’, drives an older yet reliable car, and she cooks fabulous inexpensive meals at home (my home cooked meals are inexpensive but they are far from fabulous).

She’s the annoyingly good at being frugal but not cheap.

Naturally, I spend this time around her basking in her infinite financial wisdom, asking questions, and learning from her example…

…and I am also the queen of England.

Sorry folks, sibling rivalry is alive and well.

So, I do the second best thing, I make my mom ask the questions and I pretend not to listen.

My advice, befriend someone frugal – even if it is your sister. I find that I don’t learn as much from the books or the internet as I do from those who may not have it all figured out, but they do a pretty darn good job.

Posted by Beks on March 8, 2010 at 5:00 AM in General Debt, General Personal Finance, Kids & Money, Living Frugal | 8 Comments »
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Winning the Financial Fight…

Since this week appears to be photo week…

I was watching my brother’s Rhodesian Ridgeback puppy, Dozer, last night and was amused to see him play wrestle with my sturdy Boston Terrier, Hutch.

When my brother bought the dog a few weeks ago, Dozer and Hutch were the same size. They would tussle in the backyard and Hutch, skilled in doggie play, would pin Dozer fairly quickly. Last night, things changed…

Dozer put on a good 5 – 10 pounds of solid mass over the last few weeks. Maybe he started doing pushups when no one was looking… or maybe he’s heading to the 120 pound size of his father a little more quickly than we thought.

As they played tug of war over a stuffed dog toy last night, Dozer, who had never ‘won’ before, was able to drag Hutch across the room. His growth had made him far more powerful.

Dozer, surprised at his strength, wagged his little tail with glee.

tug of war

I couldn’t help but relate this to our tug of war with our debt. Our inexperience and lack of strength made us continually lose the battle. As we grow and learn, we win more battles. We make better decisions and become stronger in our strength to spend less-save more. In the end, I want to be Dozer. Sure I lost a lot of ground in my youth… but I’m not young and stupid anymore.

I will win… eventually.

(And for the animal lovers out there – I count myself as one – please note, the dogs play wrestle together. They do not fight or cause injury to each other. They are buddies and sleep in the same bed. Just thought I’d throw that out there)

Posted by Beks on February 17, 2010 at 12:30 PM in General Debt | 6 Comments »
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I want to know about you!

I was watching Judge Judy last night (sorry, I love that show) and was fascinated by a case between an ex-boyfriend and girlfriend. In their short three year relationship, they had accumulated $38,000 in credit card debt in addition to their three car loans and multiple student loans.

I understand my debt is HORRIBLE and I can’t wait to be rid of it, but nearly $40,000 of credit card debt can’t be average right?

What are you numbers? And how long did it take you to get there?

Posted by Beks on February 10, 2010 at 10:39 PM in General Debt | 52 Comments »
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Time to set your financial 2010 goals…

Just as I like to look back at the lessons I’ve learned over the passing year, my Type A personality likes to set goals for the coming year.

My top four:

1. Replenish savings. Our bank accounts turned to rubble after the job loss and I find myself uncomfortable without a safety net. We do still have cash – but a trip to Taco Bell for two 89 cent burritos may cause an overdraft.

2. Pay off at least $19,000 in debt. We paid down over $17,000 this year and I think we may have a chance at $19,000 if we are able to keep our jobs.

3. Continue to find ways to live below my means. To start the new year off in the right direction, I registered for classes at our nearby community center rather than at a community college. I won’t get college credit (I don’t need it since I already have a degree) but I’ll save around $300 a year without having to give up my love for learning.

4. Take another budget vacation. Tent? Cheap motel? Roadtrip? Become a train hobo? Whatever we decide, it will be an adventure.

Do you have your goals planned for the year?

Posted by Beks on January 1, 2010 at 5:00 AM in General Debt, Saving Money, Spending Money | 23 Comments »
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Bank of America… Thanks for Nothing…

My home loan was previously serviced by Countrywide. Bank of America took over our mortgage servicing quite some time ago but we haven’t been classified as official Bank of America customers yet and Countrywide isn’t around anymore. We’ve been in limbo for over a year now.

When I call Bank of America, they never know where to transfer me and my call is often magically ‘dropped’. We never received paper statements and our online statements have been a nightmare. Other than a statement of monthly payments, no other information was made available. I had no idea if or when our property taxes or mortgage insurance where paid and I could never find our principal balance. I called to ask why our mortgage payment jumped $150 a month and the best answer they ever offered was ‘I don’t know. Taxes maybe?’

Bank of America finally listed my full account information online this month.

Holy. Cow.

First, we were not notified that the cost of our homeowners insurance jumped by 50%. Call me crazy, but that’s kinda something I’d like to know.

Second, the extra money we’ve been paying on our principal balance the past two and half years has been offset by a reduction of our monthly payment.

This is hard to explain, but it’s sneaky by Bank of America none the less. We pay $20 extra per month on our second mortgage through Wells Fargo. They apply the $20 toward our principal balance but keep our payment the same. Since our principle balance is reduced and our payments are the same, our $20 is stretched to around $50-$75. Our $20 a month to Wells Fargo has paid off around $3,000 of mortgage debt instead of $720.

Bank of America has taken the $20 we designated toward principal and reduced our balance by exactly $20. Then, since our principal balance is reduced, they reduce our monthly payment. Unlike our loan with Wells Fargo, Bank of America has made it so we aren’t shaving any time off the life of our loan and we’re saving no money. Very Sneaky.

Realistically, I should have pushed harder for the information from Bank of America and demanded an explanation of the $150 hike. I assumed it was all from the recent property tax hikes, and most of it was, but I could have saved money by knowing there were other reasons behind the higher monthly payment. And, I would have liked to transfer the $20 I’m spending for no benefit at Bank of America and switched it to our Wells Fargo account.

I assumed my mortgage was the one payment I didn’t have to monitor closely – but I was really, really wrong.

Thank you Bank of America for making me your babysitter.

Posted by Beks on December 7, 2009 at 5:00 AM in General Debt, General Personal Finance, Home Ownership | 36 Comments »
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Turning to Reality TV for Help…

I’ve been trying to figure out creative ways to remodel our home for low to no cost. As I watched HGTV this weekend, I thought, ‘I’ll have reality television remodel my home!’

I assumed this wouldn’t be a difficult task. It’s not like there’s a strong filter for reality tv. Come on. I’ve seen Jerry Springer and Tila Tequila.

California’s official nickname is ‘The Golden State’
San Diego calls itself ‘America’s Finest City’
Humility isn’t our strong point.

It only seems obvious that we would point a camera of reality tv at our Southern California city. I went to the HGTV site, Pie Town Productions, and the DIY network. Do you know how many home remodeling shows are based in ‘America’s Finest City’?

Zero.

But, there are two shows that film anywhere, anytime – Extreme Home Makeover and Deserving Design. For Extreme Home Makeover, we lack a compelling unique story. ‘My husband lost his job… just like everyone else’ isn’t nearly as impressive or distinctive as ‘Timmy is allergic to the sun’ or ‘Little Bonnie Sue doesn’t have sweat glands’.

And remarkably, Deserving Design didn’t call me back after I submitted my husband as ‘deserving’ because only once during the last five years of our marriage has he left the toilet seat up. It’s sweet but not as gripping as Jane Doe saving the world over the last 20 years rescuing one sweatshop child at a time.

Bummer. I really needed a new back patio before the toothpicks, dental floss, and tin foil holding it together collapse.

Posted by Beks on November 30, 2009 at 5:00 AM in Free Stuff, General Debt, General Personal Finance | 4 Comments »
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When saving… isn’t.

Southern California residents have suffered through some pretty hefty water rate hikes. It seems like every bill has a brand spanking new price tag.

Residents in our area are often sent letters asking to reduce water use. Thanks to ‘Navy showers’, reduction in roommates, and landscaping akin to the dust bowl, we personally cut our water usage by 50%. According to water company reports, our fellow residents cut their water usage by nearly 10%.

I received a letter titled ‘Water Rate Increase’ with my bill. The water company is raising rates in part because of… get this…

Lower water sales.

Um. Didn’t you ask me to stop using water? And now I have to pay more because I actually stopped using it?

Our 50% reduction in water usage resulted in… a bill that was 5.5% less than last month’s.

Striking oil in California won’t make you rich – but striking water just might.

It’s times like these that you just have to laugh.

Posted by Beks on October 27, 2009 at 5:00 AM in General Debt, General Personal Finance, Life Experiences | 18 Comments »
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