“Debt Updates” Archive

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Debt Update…

We still made slow progress this month. My husband only received one regular check in January and anything extra we had we put into our emergency fund. Both our jobs have become slightly more stable but neither of us feel comfortable without a sturdy safety net.

Overall, the job loss was good for us. We were able to adjust and refocus but more importantly, we were able to prove to ourselves that we could survive our fear. Sometimes knowing what you are capable of is the best lesson.

Here are this month’s numbers…

Original Debt: $38,495.86
Paid: $19,149.13
Remaining: $19,346.73

Broken Down
Auto Loan 1: $0
Credit Card: $0
Student Loan: $9,501.52
Auto Loan 2: $9,845.21

Yup, we’re about $100 from HALFWAY!! Woo Hoo!!

We will hopefully receive our tax refund check in March so we should have a nice jump next month.

Posted by Beks on February 9, 2010 at 5:00 AM in Debt Updates | 8 Comments »
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Debt Update…

It’s time to update our numbers! Our progress slowed but at least we continued to move in the right direction.

We’re nearly halfway through our debt free journey!

Original Debt: $38,495.86
Paid: $18,212.82
Remaining: $20,283.04

Broken Down
Auto Loan 1: $0
Credit Card: $0
Student Loan: $9,608.58
Auto Loan 2: $10,674.46

Posted by Beks on January 4, 2010 at 5:00 AM in Debt Updates | 13 Comments »
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Employment!

As expected, my husband was offered his old job back. He will start January 4th.

For the first time in two and a half months, I’m going to sleep very well.

Looks like we can start to chip away at our debt again. Woo Hoo!!

Posted by Beks on December 22, 2009 at 10:13 PM in Debt Updates, job loss | 27 Comments »
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Debt Update…

Well, we aren’t moving at nearly the pace we were.

The good news?

We’re still moving in the right direction – FORWARD!

We decided to pay less on the truck this month and set aside the cash since we were ahead on payments. I’d rather have a little more cash on hand just in case. In light of the current economy, we’re playing it as safe as possible.

Here’s where we’re at –
Auto Loan 1: $0
Credit Card: $0
Student Loan: $9,680.19
Auto Loan 2: $11,379.87

Posted by Beks on November 17, 2009 at 5:00 AM in Debt Updates | 12 Comments »
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How long can we hang on…

My husband and I sat down with sharpened pencils and sketched out a plan of action. We would have sketched this out earlier but we just received the unemployment numbers on Friday.

The big question…

How long can we hold on without my husband’s job?

Our initial numbers (without unemployment benefits) put us at 8 weeks. Our reductions to debt paired with our cash in savings and unemployment benefits put us at…

9 months.

Had this happened before we had taken control… had this happened before we made the decision to live below our means and reduce debt… we would have made it through a month, maybe two tops.

But now, we’re looking at 9 safe months. 9 months to find a job before things get hairy. Sure we won’t make progress other than minimums and we certainly won’t eat anything other than Ramen noodles but, we can hold on.

I have four words to say –

Thank. You. Dave. Ramsey.

Posted by Beks on October 25, 2009 at 5:00 AM in Debt Updates, General Debt, General Personal Finance, Home Ownership, Living Frugal, job loss | 30 Comments »
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Making Home Affordable Tips…

I learned a lot about the Making Home Affordable/Home Affordable Modification Program (HAMP) in my 2 hour call with Bank of America.

1 – If you are hoping for a huge change… this is not the answer. Not all changes are permanent and/or large. Some adjustments may last as little as 3 months.

2 – Loan modifications are not quick. If you can’t wait the standard 9 weeks for the review of your file and another 5-9 weeks for paperwork processing, you don’t have enough time and you may want to move forward with other options like a short sale or foreclosure.

3 – Give an accurate listing of all your expenses. Don’t exaggerate but don’t minimize either. Have a good understanding of exactly how much you are paying. Keep this information available for when you call the bank.

4 – You will be rejected if you have recently made large purchases or if your credit score is low. You shouldn’t be making large purchases anyway so I can’t say as if I blame the banks for this stipulation.

5 – If you have a second mortgage with another lender, they will likely require you to get approved for the Making Home Affordable Program on your first loan before they will consider a change to your second mortgage. If you are accepted for the program on your first loan, it’s easy to submit the same paperwork for your second mortgage.

6 – This should not be your only option. It’s worth a try, but don’t fool yourself into thinking this will solve your problems.

7 – If your home is not a Fannie Mae/Freddie Mac mortgage, this program does not apply to you… BUT some lenders are still willing to modify other types of loans.

8 – This is a voluntary program. No one HAS to help you. Sure it’s good business sense to lessen foreclosures on the banks part, but if you are a problem child, don’t expect any help. Banks don’t want to keep you as a customer anyway. Be kind, courteous, and polite even if you are frustrated.

According to the bank’s calculations, my husband and I qualify. We are now in the first 9 week waiting period while they review our files. We have stellar credit scores and we haven’t made large purchases in a long time. We are good candidates for an interest rate reduction from the over 7% it is currently, down to the market rates of 5-6%.

Do I really think it will really happen?

No. But it’s worth a try.

Posted by Beks on October 23, 2009 at 5:00 AM in Credit Reports/FICO, Debt Updates, General Debt, General Personal Finance, Good Info, Home Ownership, Loans, Making Home Affordable Program | 13 Comments »
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Another Round of Layoffs – Too Close to Home…

My husband’s company has reduced their workforce by about 70-80% from the peak. He’s been fortunate to survive and, since things had calmed down a bit, we got comfortable. We participated in weddings, did little remodel jobs, and went out to dinner a few times.

That was a mistake.

Today, my husband’s co-worker was laid off and another was reduced to part-time without benefits. It looks like less than a 3 month count down until my husband gets the axe.

I am terrified.

At this point, since we had to clear out part of our savings, we can only last 8 weeks without his paycheck.

That number sends a terrifying chill through my bones.

I’m focusing on the good though:

1. He still has a job today.
2. I lost my job last year and we survived.
3. We’re both healthy.
4. The new seasons of Private Practice and Grey’s Anatomy have started.

It’s all about priorities.

Posted by Beks on October 9, 2009 at 5:00 AM in Debt Updates, General Debt | 14 Comments »
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