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  1. #1

    Up-date the good and the bad

    So awhile backI came here seeking help with our debt load. At the time it was around 140 000 without our car and mortgage. I had been struggling with a gambling addiction. Well we went on a cruise with extended family ( only my youngest went he's 18)and every evening was spent in the casino as there wasn't much else to do. (no excuse) My hubby thought I had lost around 1000 but it was actually 10 000 plus trying to win back.. out of desperation lost another 10...terrible.The final number was 175 000 unsecured I confessed everything and now all debts and gambling are out in the open. Rocky times but very stressful. Aprox 100 000 was mine over a 3year gambling problem..the rest was just us over spending.

  2. #2
    I'm completely gamble free since March 25th...I have found an online budget and my new obsession is paying off debt. I'm using the everydollar budget I love it. I have managed to pay off about 9000 since May. I have committed to becoming debt free and gamble free no more trips purchases etc.. I'm sorta following Dave ramsay but tackling by interest rate not size of debt. I'm lucky as the interest rates are all somewhat reasonable. Our income as I stated before is 210 000 before tax... but hubby had a down turn 1st quarter this year and total income will be closer to 190 000 this year..but should be back up and continue to grow. We don't count on anything though . Anyway this is the situation..Any thoughts on Dave Ramasay? Or any other support sites for people paying off debts. Also our house is worth about 450 000 we owe 270 000 we are thinking about putting some of this in with house but I'm wondering if we should just keep paying it down .now that we are dedicated and making progress. We do not use credit cards at all now. Thanks so much. I'm very committed to the changes I've made.

  3. #3
    Good for you for getting things straightened out.

    Your income is high, so you should be able to get this paid off in a reasonable amount of time.

    I'd encourage you to become an active member here and keep asking questions and posting progress updates.

    Good luck to you going forward.

  4. #4
    All your fans at SA will be delighted to read your update. Best news is that you've made huge progress on your gambling addiction and have stayed away since March 25th. A centimeter down the celebratory chart is that you told DH the true extent of the cost to family finances. ...'being obsessed with paying off debt,' is a common trait among SA participants

    Since May you've paid $ 9 K, [averaging about $ 2,600 per month] towards debt. Remortgaging your house to add past debt is a numbers game fraught with potential problems.

    I have a number of questions you may wish to consider...
    How much time is left on the current mortgage at the current rate? Mortgage rates in Canada have recently increased and the 'talking heads' suggest they will increase again by year's end. What is included in your monthly mortgage payment? [interest, principal, municipal taxes, PMI, house insurance, HOA etc]
    How much actual value is in the mortgage and how much value is 'appreciation'?

    What fees and costs will be added by the financial institution? What is the best rate you can likely negotiate ? Do you understand by remortgaging, you go back to step one where the majority of payment goes to interest and only a tiny percentage of sum paid goes to principal for the initial 10 years.

    That brings in the retirement issues. Will the house be mortgage free by anticipated retirement date? Do you anticipate living elsewhere as a retiree? Do you each have some type of RRSP?

    The bad news is the research that confirms a very high percentage of debtors who take some version of loan consolidation get themselves back into unmanageable debt within a decade.

    I wonder if I could persuade you to read 'The Essential Retirement Guide'' {Vettese}, 'The Automatic Millionaire '[Bach] likely available electronically at your library.

  5. #5
    I think Dave Ramsey does good on the debt side of things. Don't like his 12% investment returns.

    I'd follow the baby steps and you will be on your road to being debt free.



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