Consolidating

 

 

I haven't posted much because dogedly paying your bills every month isn't that exciting.  Well, until you start making some headway, at least.  So what has been happening lately?

 

1.  Well, after a year or so of being lazy and putting it off, I finally shipped off all of my jewelry cast-offs to a company called Gold Stash.  It came highly recommended by Dave Ramsey.  I had several pieces - some earrings, bracelets, necklaces given to me by my ex that I knew I absolutely did not want to keep.  I also had no idea what they were really worth, but I am too reluctant to spend much time putting effort into trying to get the best deal.  The Gold Stash method of getting rid of your unwanted gold is painless and pretty easy.  Was it worth it?  Well, given what I had sent them - 2 pr. earrings, 4 necklaces, 2 bracelets and 2 rings, I only garnered about $120.  Nothing worth running to the blog to write about, but it was better than letting these unwanted items languish in my dresser drawer for another 10 years.  I don't feel ripped off, but given the price of gold right now, I was expecting something more in the $200 range.

 

2. We are now celebrating 18 mo. of credit-free living.  We paid off the second of Dean's three credit cards and closed one of them since it required an annual fee.  We will begin using the one that is paid off on a quarterly or monthly basis by using it on something small and paying it off immediately.  Our loan officer said that we don't want the card to go completely inactive, because for purposes of raising the credit score, active credit that is paid in full every month looks really, really good.  We are considering maybe putting something really small like Netflix on there, and then paying it immediately.

 

3. I called my credit card company last week to request that they lower my interest rate.  I've had this account for about 20 years now, so I have a long history with them.  Most of it good, with a few mistakes here and there, and because of those mistakes, I got penalized with a ridiculous rate of 29.99% a few years back.  I got that reduced after some tough negotiating, and I've been stuck paying 19.99% for almost two years now.  I called about a year ago, and they refused to budge, even though my payment history for the prior year was spotless.  So, I thought it was time to try again.  I got nowhere (of course - they don't ever give in immediately) with the first person I talked to, so I requested her manager.  In the span of a couple minutes, he came on the line and agreed that they would reduce my rate to 12.99%.  It's that easy!  Don't ever take 'no' for an answer.  If you keep up with on-time payments AND your credit/loan payment history with other lenders looks good as well (on-time payments and so forth), you should be able to make your case and get the rate reduction that you are looking for.  It is worth the phone call - so be patient, be persistent and don't delay!  This move alone, when we plugged the numbers into the remaining snowball payment spreadsheet, saved several hundred dollars in interest and moved up our debt-free date by a month.

 

4. Debt consolidation.  The day after my phone call to the credit card company, I went into our bank to make a deposit for Jordan.  The teller asked me what rates we were currently paying on our credit cards and car loan.  Was it prying?  Yes.  Was I irritated?  Hell no - I was proud of the fact that I had scored a huge win against the evil credit card people, so I was only too happy to share!  He asked if I would be interested in exploring the possibility of reducing our auto loan rate.  Sure - call me up!  So, the next day a loan officer from the bank called me and we set up an appointment for later in the week.  We have been paying on our van loan for about four years now.  We will be using the van as collateral to secure a debt consolidation loan at a 4.99% interest rate.  We will be using the funds to pay off the remaining balance on the van loan (7.25%), the last of Dean's credit cards (17.99%), and about a third of my remaining credit card balance (now 12.99%).  By shuffling our debts around like this and consolidating them, we will be saving an additional two thousand in interest and moving up our debt pay-off date by another month.  Another bonus is that Dean will no longer have any revolving debt, and come September, our next debt target - my credit card - will be paid off in full, which means I will no longer have any revolving debt either.  This fact alone will boost our credit scores by around 70-80 points, putting us back in the range of 750-780.  I don't know how to express how HUGE this is.  We will be officially in the market for a new home at the beginning of next year, and our debt-payoff date is that October, so things are really, really looking up. 

 

This has, at times, felt like an endless slog that was getting us nowhere, but we are finally seeing the results of living on a budget.  Had we stuck to our budget with absolute rigidity we might have kept our original payoff date of July '14, but we've needed wiggle-room every now and then.  We've still got this final goal to meet, but with the end in sight, it will be easier to say 'no' to the financial wants and desires that have sent us off-track in the past.

 

 



"Sell so much of your 'stuff', your kids will think they're next"...



So we are in the midst of a massive Craig's List sell-off in order to raise funds for our "stick of dynamite".  I've managed to off-load a handful of baby items and a couple of other things so far.  I like Craig's List - it is very efficient.  It can be a pain to get stuff posted on there, but it is worth it because things typically disappear within 24 hours.

Here are some tricks...

* Take a picture.  Nothing is better than having an actual picture to look at.  Make it as flattering a picture as possible.  Keep in mind of what is in the background.  Nobody wants to see a messy room behind what it is you are selling - it is distracting.  I have taken to creating a 'staging' area on my kitchen table.  I spread out a light yellow table cloth on the table.  I remove all of the chairs and shut the blinds.  It makes for a wonderful neutral backdrop.  If it is big, I move the kitchen table out, make sure the floor is clean, and put the item on the floor.

* Include as much information as you can in your post.  I have no shame - I'll admit it - I copy and paste like a demon when it comes to giving information.  I'll steal descriptions from Amazon, eBay, other Craig's List posts - all in the name of saving time.  Since a lot of what I am selling is brand name - like Fisher Price, I can find product descriptions pretty easily.  Give accurate dimensions, descriptions of any defects and so forth.

* Include bonus info like that it came from a non-smoking home, that you have owner's manuals, and stuff like that...

* CLEAN IT!  Vacuum it out, wash it, scrub it, dust it...anything to remove any and all traces that suggest use.  You want it to look pristine.  - Same goes if you are holding a garage sale instead.

* Include your phone number.  When people see something they want, they typically want it NOW.  If you give your phone number, that says (at least to me anyway) that I will be much more likely to get what I want - and quicker too.

* Give your first name with the phone number, and also include your husband's.  If you don't have a husband, invent one. Ex: If interested, please contact Kirsten or Dean at xxx-xxxx.

* Use your best judgment when inviting someone over to view or purchase the item.  I've only had female customers so far, with the exception of when we sold our stove and our W&D.  For all of the females, I went with my gut.  I've haven't had a bad experience yet of getting an 'off' feeling.  Mostly it is just mom-to-mom kind of stuff, and that always makes me feel good.  We chat about our kids, exchange money and goods and we're done.  Any other time, I arrange a pick-up in the evening, when Dean is home.

* If you are selling a lot, keep a spreadsheet.  That way you can keep track of when you listed it, how much you are selling it for, when you sold it and how much you made.  Kind of cool to look at it over time. 

* Always check current listings before you put your item up.  No one will be interested in your bouncy seat if there are five others currently available too.  Best to wait a couple of weeks and try again.

* If you are patient, dedicate a safe place to keep stuff while you are selling it.  That way, if you have to wait to post something, it will stay clean and in one piece.

* Immediately delete a posting after you sell something.  It's only courteous.

* Wait until the right season.  Choose September/early October to sell that Halloween costume.  Don't try to sell inflatable pool toys in January.

*Wait a few days, and if there are no bites, go back and choose the option to renew your posting.  This is a new feature - and you can move your item back to the top of the stack.

*If you can, post your stuff late on a Friday night or at the crack of dawn on Saturday.  Early Saturday morning Craig's List addicts will start calling!

Lastly - don't blow your money that you make selling the stuff.  Take it directly to the bank, and put it towards your debt snowball.  Buying all the crap you just sold is how you got there in the first place!!