by Hope
I was so excited last week when I published my new budget…$2000 every month to figure out what to do with…yeah, no, I totally forgot about the impending Braces for Sea Cadet and Princess. They go on in just a couple of weeks, and thus the $500 per month payment begins in September. I know it’s a great cause, but UGH! So as I publish this new debt update, you will see what I anticipate will be my debt for the braces.
| Debt Name | Current Balance | Interest Rate | Min. Mo. Pymt | Original Balance | Status |
|---|---|---|---|---|---|
| Student Loan | $33,325 | 2.875% | $98 | $31,687 | IBRP effective Aug, 2015 |
| Yukon | $3568 | 0% (6 months) | $104 | $3568 | Ex pays $246 mo. towards this debt |
| Orthodontist | $10,800 | 0% | $500 | $10,800 | Begins Sept, 2015 |
| Checking Account | $0 | 0% | -- | $741 | Paid Off - Jan 2015! |
| CC Intro Rate - Retail #2 | $0 | 3.99% | -- | $3500 | Paid Off - May, 2015 |
| Personal Loan - Car | $0 | 12% | -- | $5000 | Paid Off - July, 2015 |
| Credit Card - Consumer | $0 | 13.90% | -- | $4,974 | Paid Off - June, 2015 |
| Credit Card - Retail | $0 | 25.99% | -- | $2,265 | Refinanced - Dec, 2015 |
| Car Loan - Accord | $0 | 0% | -- | $1,900 | Paid Off - Dec, 2015 |
| Car Loan - NV | $0 | 6.79% | -- | $31,138 | Sold - Dec, 2015 |
| Line of Credit | $0 | 15.95% | -- | $1,248 | Paid Off |
| Credit Card - Retail #1 | $0 | 0% | -- | $413 | Paid Off |
| Property Tax | $0 | 0% | -- | $700 | Paid Off |
| TOTALS | $47,693 | $702 | $97,934 |
I have not taken any time yet to figure out a plan of attack. I am certainly open to suggestions.
A couple of things to note:
Student Loan: I just got approved for a IBRP (income based repayment plan) that began this month. Making my minimum monthly payment $98 and the interest rate is still 2.88%
Yukon: This is my ex-husband’s car loan. The minimum payment due per the refinance onto one of my recently paid off lines of credit is $104 per month, but he pays $246 per month on it.
Ortho: The dreaded braces. No interest, they divide the payments up over 18 months. This is my guesstimate total as I won’t actually see or sign the paperwork until August 31 when the braces go on.
Hope is a creative, solutions-focused business manager helping clients grow their business and work more efficiently by leveraging expertise in project management, digital marketing, & tech solutions. She’s recently become an empty nester as her 5 foster/adoptive kids have spread their wings. She lives with her 5 dogs in a small town in NE Georgia and prefers the mountains to the beaches any day. She struggles with the travel bug and is doing her best to help each of her kids as their finish schooling and become independent (but it’s hard!) She has run her own consulting company for almost twenty years! Hope began sharing her journey with the BAD community in the Spring of 2015 and feels like she has finally in a place to really focus on making wise financial decisions.
I thought the Sea Cadets braces were covered by the insurance he receives from the adoption? Is that not the case, or is this actually the cost for just Princess but you are lumping them together?
His FIRST braces were covered, I think I wrote about that horrid experience. After two years, countless visits to the ortho a 45 minute drive away, he (the ortho) says ok so now we either pull some teeth or break his jaw. I told him to take them off then.
It was just an overall bad experience. There is only 1 other “local” and by local I mean 45 minutes in the opposite direction that takes his insurance. So I’m paying for his and Princess out of pocket. They are lumped together in this total.
Look at all those zeros! Your lifestyle changes have paid off big time.
Yes, they have. Still quite a struggle to stay so tight, but I have my eye on the prize…housing and being able to help the twins with college after being debt free!
It’ll all be worth it in the end. In ten years you’ll all laugh about the two years you lived in a tiny quarters. I look back fondly on the super classy concrete shower my family used for awhile. It was cold, ugly, but certainly got the job done!
You are under the $50,000 mark!!! Are you starting to see the light at the end of the tunnel? Great job!
Absolutely and counting the days til I can step out into the light completely. Well, maybe not days, still months or even years…but I’m okay with that. In a much better place these days for sure!
I hope you are encouraged by all those “paid off” lines!! You’ve come a long way! Your new braces investment is making me remember how grateful I am to have straight teeth, thanks to my parents!
Alexandra,
Yes we are t-minus one week until we start the braces adventure. As an adult and parent, I know this investment will pay off in the long run. But I can’t help but cringe at the number. But you know what…I can do this! And I know it’s the right investment of money for my kids.
Yes, you can! It’s awesome that you can fit this into your budget for the kids BECAUSE of all the progress you have made. Your sacrifices are really paying off.
My suggestion would be to throw everything you can ($1,300) plus your ex’s car payment ($246) at the Yukon loan and get rid of it (in about 2.5 months). Then take your ex’s car payment ($246) to you plus your extra money ($1,300) and throw it at your student loan debt.
The end of this debt is in sight – you are doing awesome!!
Thanks, Den, that is kind of the way I’ve been thinking too, but there are a couple more bumps coming in the next couple of months…tuition for kids homeschool co op classes, two trips to GA…will be writing about those soon as I really look hard at numbers and make a plan.
Not to mention, the littles need all new clothes this year since for some reason they keep growing.
You’re so thrifty with finding “new to us” things, maybe you can go the same route with the kids… maybe from the coop or your friends families there is some clothing that can be handed down?
or from the thrift store?
Congrats on so many “paid off” lines of credit.
Keep up the good work!
This is really helpful, Hope. I ride you sometimes because it’s hard to know how you’re doing without a budget or debt update, so these last 2 posts have been great. And so you thought you’d have $2000 to play with, but it’s ‘only’ $1500 after the orthodontist costs? That’s still a lot of money and I hope you stay the course on wiping out this debt.
Can you clarify on the Yukon? I know you took out a line of credit to pay it off, and given the low loan balance, I agree with that (if the balance were say, $20,000, I would not have). So where is the ex’s $246 going? Does he send it to the current line of credit? Or to you? And if he sends it to you, do you always send the full $246 to current line of credit? And are you planning on having it paid off in the next 6 months, to keep the 0% interest rate?
Anon,
The $246 is what his payment was before the refi, he pays me and I pay the loan. I haven’t had to make a payment yet to the new loan, but I will continue to throw all of his payment towards it.
The question is how to use the $1500ish to pay off the remaining debt in the most smart manner with all factors included.
Yes! Definitely planning to have it paid off in the 6 month time period!
Thanks for explaining. I agree with Den–I’d try to wipe this one out in the next 2-3 months, both for peace of mind and to then have just student loans and orthodontist’s costs. Think of how freeing it will be to move forward with just those 2!
Below 50k is great progress! Just a testament to all of your sacrifices! It says 0% for 6months on the Yukon, what will the interest be after that? If it’s lower than the student loans Or if the total month interest amount is lower (it maybe since the debt is so small), you may want to throw a little extra at the student loans since you minimum payment is not covering the accruing interest. If the terms of your loan are altered and the interest is rolled into the principle it would suck!
I believe the interest after the 6 months will be right around 13-14% so I definitely want to pay it off in the 6 month time period.
Lots on my “list of things to consider” as I create my next plan of attack. More to come on that soon.
Great progress!! And yes, thank you for the hard numbers!!
I agree with Den. After paying on the braces and the minimum on your student loans, throw all the rest and get the car loan gone! Then you can make a $1500 (plus your ex’s $246/mo) at your student loans and have them gone within 18 months. That is so exciting!
You’ve done a fantastic job! I would recommend having the cost in writing before your visit. I know, on our recent dental visits we asked for this immediately regarding the recommended treatments and it was no problem. My rule of thumb is; I don’t let other people spend my money. I want to know all the details up front.
You might what to check the dates on some of those payoffs. For example, I think you paid off the Accord loan in December of 2014 not 2015. 🙂
When our kids had braces, the total was like $5800 each. We had to pay $1000 up front and then the $4800 remaining was divided into 24 months and we paid $200 per month.
I suggest calling the ortho if you have not gotten detail like this. We got it at the consultation so we knew what we were getting into.
Also, you are doing so well! I know some of your decisions have been controversial but you have to live your life the way you need to. And, look at your progress while still living your life!
Thanks for putting the numbers together.
You’re doing great. Keep up the good work. Debt reduction is HARD!
Ugh! Dental work is super expensive. I have both my eye doctor visit and my dental visit this week and it’s going to stink!!