“General Debt” Archive
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The talk went well. There was good news and bad news. The good news is we are going to put the “found” money in savings…so our emergency fund should increase by $400 by the end of April. That keeps us on track for the goals I set forth back in early March. We decided on $1600 as our emergency fund goal. It’s a long story how we got to that number but we are both happy with that goal.
And now the bad news…as to our debt payoff approach, it’s a “snowball hybrid” of sorts. We have decided that we will pay off the second line of credit of $145 this week. That’s just to motivate us to scratch one more off the list. Then we are going to work to knock out the debt with higher payments–not the highest, but not the small $25 minimum payment accounts either. More specifically, we are going to snowball the minimums from the two we’ve paid off (the $60 something first one and the first line of credit= $45 freed up) to the Dad debt. That will pay him off in June. That will then free up $145 in minimums to go to that heinous 24.9% store credit card with the approximate $2000 balance. That card has a $105 minimum payment. By increasing the payment to $250 in June we estimate that one will be paid off in 10 months. Let me take a moment to express just how much that sucks! I was sure those calculations were wrong but that is the beast called “denial” creeping in again. Hello. It’s a 25% interest rate! What would I expect?! Totally stinks.
Next, we discussed tackling the Discover card that sits right around $7,000 @ 18% and with a $140 minimum payment. Using the snowball we’d be paying $390 per month toward that and using a very basic calculation that would result in a 1 year, 10 month payoff timeframe. That’s looking pretty far down the road but that is good to keep all of this very, very real.
On the upside now–digging deep to find an upside–these numbers do not reflect any additional income we can put toward this mess. We aren’t considering an income increase,we aren’t consider any additional money we free up by cutting monthly expenditures and we haven’t taken into consideration the $400 extra per month that we will be putting into the emergency fund for now. I have to keep those numbers at bay in the calculations but I can allow myself to keep them in mind so I don’t go running out into traffic! 
Good thing I’m a pretty upbeat person or I could see me spiraling into a very dark place!
Until next time…
…Will be coming your way shortly. Not a huge difference from the last update but every penny counts! I am very proud of our savings account. I cannot believe it has only been one month though since I started blogging! While every other part of my life feels like it flew by this month…I feel like I’ve been blogging for YEARS! I think that is the result of really paying attention to money for the first time in my life. Until that habit is built and solid–it is going to feel like work.
One accountability note–I’ve realized that I have an addiction to the “shell game.” What does that mean? I like the rush of moving money from one place to another and back again…often before I even have the money in my account. Case in point: The first $145 line of credit balance you see here…I initially put $0 there…not because I am a LIAR Sarah 
…but b/c I know I have money in my account that I can use for that right now (b/c it is earmarked for an expense later in time) and then I have money coming in that can replace that money I took out so I get the good feeling of paying something off EARLIER than I otherwise would….but…I realize in my frontal lobe (wikipedia break: frontal lobes involve the ability to recognize future consequences resulting from current actions, to choose between good and bad actions, override and suppress unacceptable social responses, and determine similarities and differences between things or events. Therefore, it is involved in higher mental functions) that this thing I do is ALL A FICTION! I’m a Dream Weaver! I don’t at all have an intent to be DECEITFUL but…do you see what I’m saying here? And so, my husband is RIGHT (yes dear, that’s in writing for the world to see)…I can’t do that anymore! That’s a bad, bad habit that must stop and I feel super charged that I’m stopping it today with the posting of these new numbers! Woo-hoo!
And this is why you never ever count your chickens before they are hatched…and I am very glad I didn’t do so in this situation! Oh it would have been nice to have extra money to dump into debt, but I was not “counting” on it! The big boss announced today that a decision has been delayed until the summer. While I certainly have some irritation about that announcement, given the stressful situation it creates b/w co-workers and individually for me, I am also happy to have SOME news. I always do better when I have information even if that information is “no new information.”
I am going to set aside time this weekend to call credit cards and start playing hard ball! My payment history is excellent and I need to use that to my advantage. My interest rates increased b/c I was running so close to the limits on so many. While I don’t have any credit cards with Capital One (is that the bank that someone said will not budge?) I do have an account with Bank of America. I read on one of the posts when Beks was still writing something about that emotional energy that certain cards can create in us…the cards we love to hate. Yep. That would be BofA for me.
I’m looking forward to this weekend. It is springtime in Texas friends and that means we have about 2.5 weeks of enjoyable weather. I’m not kidding. By mid April…the heat is on and then, of course, by July…hell is on. I am already reminding myself not to make every post something to do about the unbearable heat come May b/c that will get annoying fast. Last year was horrendous. I believe it was near 60 days with 100+ degree days. Air conditioning can’t keep up–residential or commercial. I dread it. We are doing a few things now to try to knock the utility bill down but with a very, very mild winter and temps already in the 80′s…we have an uphill battle indeed!
Okay–below are the nitty gritty dirty details! Please please keep in mind that the minimum payments here exceed what I have paid down amount noted on the right hand column…because I still have 11 days in the month to pay those bills that are not due until the last part of the month. I have paid extra on cards this month–even if only 5 dollars extra! I paid off a small bill and am ready to move on to the next. In short, the total amount paid you see on the right (currently $1,458.45) is not comprised solely of minimum payments. Does that make sense? Remember that we get paid weekly so a little bit each week is going to overall debt reduction.
Take a look and tell me what you think. Now…when I say “tell me what you think” might I suggest that we all practice that tried and true “if you don’t have anything nice to say, don’t say anything at all.” In other words, just throw me a flippin’ bone and tell me ONE good thing I am doing…I am human after all and even if just ONE thing before a list of 20 I am doing wrong…I promise I can hear the 20 bad things better if I just have that ONE! Sorry if that sounds sensitive but this continues to be a HUGE deal to put my neck out every single day…and then someone comes along with a HATCHET and…well…you get the rest of that terrible picture.
Side note: big boss in from Houston tomorrow and Thursday. If we don’t hear the announcement this week…just anticipate my next post to be from an undisclosed location where they had to send me to manage “things.” Ha!
- Credit Union Line of Credit: $163.67
Minimum payment: $20.00
Interest Rate: 12.25%
- Credit Union Line of Credit: $163.64
Minimum payment: $20.00
Interest Rate: 12.25%
- Credit Card: $217.00
Minimum payment: $15.00
Interest Rate: 9.9%
- Personal Loan: $550.00
Minimum Payment: $100
Interest Rate: 0% (LONG story on this one…to my Dad…)
- Credit Card: $760.54
Minimum payment: $25.00
Interest Rate: 23.99%
- Credit Card: $1042.72
Minimum payment: $29.00
Interest Rate: 18.65%
- Credit Union Credit Card: $1,834.16
Minimum payment: $50.00
Interest Rate: 15.70% (closed at my request)
- Credit Card: $2062.73
Minimum payment: $105.00
Interest Rate: 24.9%
- Credit Union Credit Card: $2,460.13
Minimum payment: $50.00
Interest Rate: 11.70% (closed by Credit Union b/c of divorce)
- Credit Card $7071.02
Minimum Payment: $140.00
Interest Rate: 18.24%
- Credit Card: $14661.00
Minimum Payment: $268.00
Interest Rate: 11.9% (totally the divorce on this card)
- Honda Civic: $16340.05
Minimum Payment: $280.00
Interest Rate: 2.9%
- Credit Card: $23868.07
Minimum payment: $560.00
Interest Rate: 12.9% (closed at my request)
- Honda Mini Van $25447.49
Minimum Payment: $436.00
Interest Rate: 2.9%
This is going to sound crazy. As I was leaving the office today, I received an email with a comment from a reader. I took a look at the brief comment and it was suggesting I visit www.debtinfocus.org. From memory, the comment said they weren’t sure if the website had been mentioned before and it was helpful to set out a plan of attack. Before I left the parking garage, I quickly visited the site on my phone and it looked very user friendly on its opening page. I drove home and after a few hours I sat down to explore the site further. Here’s the crazy part—I could not and cannot find the comment from the reader! Maybe this is user error as it IS Friday and I am fatigued but there was no email, no comment on the blog itself and then no comment on the site I access the blog through! I felt like I was and feel like I am losing my mind! Thankfully, I had accessed the site on my phone so I was able to find the website address again.
I want to know who gave me this tip so I can thank you! OR if another reader locates the comment let me know where! I can hardly contain my excitement with this fabulous find of a debt payoff website. I’m sure many of you have seen similar ones but for this rookie debt reducer, this is awesome! Now…it wasn’t without pain as I had to input ALL of the information on ALL of my debt. Honestly, that’s like poking myself in the eye with a stick (and I know some of you will say “IT SHOULD HURT…WE HOPE IT DID HURT…YOU IRRESPONSIBLE MESS OF A BLOGGER!”) to go through all of those numbers again. BUT what a great exercise that yielded results for me to get my mathematically challenged brain around! It will generate all sorts of reports for you to consider for your approach to paying things off. It has the standard “minimum payment until well after you are dead” plan…the “pay the highest interest card first” plan…the “pay the lowest balance first” plan…AND then you can input what extra dollar amount you can put toward debt each month to see the impact of your efforts. It will also provide a printable 12-month payment plan telling you exactly what amount to pay to each debt. Now, maybe this is what some of you are already doing on your own by creating your own spreadsheets (my husband was very interested in discussing what went into creating the program to make all of that information come out in the end….soooooo not my thing to know the details behind it…) but I am amazed! I now have several scenarios to consider and chew on. I KNOW this will relieve many of you as even without a direct mention for a few days, I ”hear” many of you shaking your computers and yelling “CLAIRE! WHAT IS THE PLAN?!” I will figure out how to post a payment plan once I learn for sure what that April raise nets us.
Which reminds me…no announcement on the promotion. It has been 8 weeks now since the interview process began. I think we are all beyond obsessing about it and will almost be surprised when they do announce it b/c we’ve all put it on the back burner just to get through our regular work duties!
So, thank you Mystery Commenter! That little tip was a goldmine for this weary brain. I feel energized and motivated by what I saw on the timeline. If it goes according to plan, I will have my debt paid off before I am looking at nursing homes to check into for my golden years.
I’ve taken some advice from other comments and have come up with some possible additional sources of income. It will take some sacrifices of time but nothing so detrimental that we can’t cope. That’s one of the few perks to divorce…we are kid free every other weekend so we have time we can use to increase income. I’ll fill you in on those things soon!
Have a great weekend!!!
UPDATE: I just found it! Thank you Lys. Although the info is not showing up on your comment under “Perspectives” but I found it in my email! Forgot to mention this website is sponsored by the Credit Union Association. You don’t have to input any personal info and help is offered, but not pushed. Totally anonymous! And yes, we do bank at a Credit Union. Love my credit union!
Of course my husband’s company sent him to Vegas for company business. This was the first time we decided to add a short vacation to a business trip. Please know I am not trying to throw my shoulder out patting myself on the back on this trip–but I am excited to share how this all went on the money front.
First, we are not Vegas people. No offense to those who are but it has never been a destination that we even discuss going to visit. We do enjoy spending time together though without the kiddos and if the travel gods make it happen for very little out of pocket cost, we probably are not going to pass it up. I realize that will open me up to criticism and that is okay–time with my husband is worth it.
Now–the breakdown of things…hubby’s airline ticket was, of course, paid. My airline ticket was also paid because of the travel points I’ve built up through my work travel so airline was $0. Hotel was covered for Tuesday and Wednesday. We gave Priceline “name your price” a whirl for Saturday, Sunday and Monday and managed to get The Wynn for a total price at 70% off the regular price. While we did book and pay for that hotel stay before I started this blog, I still could have walked away from the money already spent but I didn’t. While I didn’t walk away, I DID leave on that flight the morning of March 3 knowing in many ways that I should not be flying to Vegas…that I should be cancelling the entire thing and not spending a penny more. While I did not cancel like many of you absolutely positively think I should have done…I did carry your voices with me as I spent 5 days in Las Vegas! And I do not think it was an accident that I found myself in the city that is DESIGNED to get you to spend money as I kicked off this blog and my “attack on the debt.”
I’ve only been to Vegas twice before and definitely did not have spending limits when I went! This trip I had some serious self imposed spending limits. I was completely prepared to read my book in a gorgeous hotel room or by a pool while spending quality time with my husband. Honestly–those were my only expectations. Good news is I did not exceed my usual weekly budget that I would have had at home AND thanks to a slot machine at the airport, I managed to come home with only spending $70! How did I do that? Well in addition to some good fortune, I also followed some tips that you guys have already given me on this blog. I bought all the fixings for PB&J and avoided even fast food low prices while there—I easily battled through the voice inside of me wanting a lavish meal reminding myself that I cannot afford a lavish meal. I created a spreadsheet where I input every single penny spent each day of the trip so I could take a complete look at it at the end of the day and make appropriate decisions on the next day. I did Vegas on a budget.
I never ever gamble (there’s a great story to share of me at the craps table breaking every rule they have in a matter of about 60 seconds and just for your future reference…they are very serious about those rules!!) I don’t know what possessed me to put all of $2 in that airport slot machine about 15 minutes before my flight left b/c WHO wins at the slot machines at the Vegas airport?!? But I did and hit for $137.00! I promptly took my money and RAN to my plane! Meanwhile, hubby was doing that networking thing in the casino after work stuff and while he is definitely not a gambler either he has definitely figured out the statistics behind the craps table. I told you he did numbers well and he managed to turn $20 into near $400. The good news is we’ve used that $537 toward debt reduction and savings. No, we do not have plans to pay $100,000 in debt off with gambling but as people who do NOT gamble, it was a nice little shot in the arm to make good decisions as we won the money (not ride the wave to nothing) and then manage to get home with the money and make good decisions again. I won’t apologize for taking this trip–it was a wonderful time with my husband and we learned so much as we were cautious and thoughtful through the process. It was helpful in many ways to hold on to all of the moments of this trip and embrace them because we recognize that we won’t have these trips after this year…for a very long time–until the debt is paid off.
Now…talk amongst yourselves.
I know I said this post would be about the trip we took…but there’s too much other stuff I want to share!
Wait a minute—was I supposed to make debt reduction my primary focus of this blog?! I think I misunderstood. I thought this was a How To Secure Your Financial Demise blog!
Kidding! Kidding! I AM serious about getting out of debt! Exhibit A: Laundry Detergent. I made my own tonight. Gosh I wish you all knew me a little bit better so that you could laugh along with me at this image. The kids were very interested in what I was creating! But the funniest moment was when I started hacking and coughing because of all the powder dust I was creating! I’ll do better next time but most importantly, I spent only $10 on the supplies that should create laundry detergent to last through the summer! I’m so excited! I know this isn’t the only solution to paying off $100,000 in debt….but it IS very motivating and at this early point in the marathon, that’s a very good thing!
On a more serious note, we have certainly made some small dents in the overall debt. We will post updates on a monthly basis even though we are making almost daily progress! I hope this helps some of you sleep at night re: my debt. I am absolutely asking myself the very question many of you suggest, “Do I really NEED this?!” and I am finding empowerment in that process. I am so fortunate in that the debt I have is NOT the result of having over-indulged my children and as a result their adjustment will be one of the easier parts of this process. To quickly address the issue of knowing how I got here I’ll share that a HUGE part of that is divorce. I don’t recommend divorce as part of your financial planning. My divorce is easily a good $35,000 to $40,000 of my debt. Another HUGE part of my debt is paying for “convenience.” As I dissect my past spending so much of it was this facade of doing what was seemingly easier and more convenient….but cost me big time! I’m quickly growing accustomed to making changes to that facade. I’m not talking about keeping up a facade to impress others b/c I truly just don’t worry about that but instead this facade of my life running smoothly…but only b/c I was paying out the nose for “convenience!”
And finally…to briefly address comments regarding “negative” comments and my response to them: I have pretty tough skin. In my profession, I have to have tough skin. In my personal life…because I come from a gigantic family I have to have tough skin. This isn’t a matter of not wanting to hear very valuable constructive criticism from those who have been there but instead just a wish that people not try to guess who I am, who my family is, how I got here and how I plan to get out of here—after a handful of posts. I absolutely, positively do not get hurt feelings from any of the tough talking comments regarding my debt. Those are EARNED and not lost on me at all—quite frankly, the only comments I took issue with were the ramen and milk posts. In fact, I’ve turned that into a tag line of sorts “Ramen and Milk!” The meaning of that tag line is essentially “jumping to conclusions.” We are all guilty of it—and that is all I meant with my 10,000 page book comment–that until we all get to know each other, we can’t say “Ramen and Milk!” For those of you wondering, I promise my children are not eating ramen and milk at every single meal (insert chuckle here).
And so it began with making my own laundry detergent. We all have to start somewhere, don’t we? Thank you all so much for your input. I truly am implementing so, so many of them! I’m thankful for all of you! Even the Ramen and Milk crew!
I do hope you laugh along with me on this journey. Take a look at my “about me” info and you will see that humor is so a part of who I am. As Readers Digest says…laughter IS the best medicine!
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About This Site
My Debt
- Original Debt: $97,293.06
- Paid: $1,927.89
- Remaining: $95,365.17
- Emergency Fund: $1100
- Broken Down
- Line of Credit 2: $0.00
- Line of Credit 1: $0.00
- Credit Card 1: $0.00
- Credit Card 2: $245.00
- Credit Card 3: $405.00
- Credit Card 6: $1,785.00
- Credit Card 7: $2,381.17
- Consolidation Loan: $11,000.00
- Credit Card 10: $14,519.00
- Auto Loan 1: $16,093.00
- Credit Card 11: $23,873.00
- Auto Loan 2: $25,064.00
Finance Blogging Buddies
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- Free Money Finance
- From the Brink of Bankruptcy
- Generation X Finance
- GRACEful Retirement
- Grad Money Matters
- It’s Your Money
- Josephsangl.com
- Kick Debt’s Butt
- Lazy Man and Money
- Low Income Life
- Make Love Not Debt
- Mapgirl’s Fiscal Challenge
- Mighty Bargain Hunter
- Money, Matter and More Musings
- My 1st Million at 33
- No Credit Needed
- One Million and Beyond
- Personal Finance Advice
- pfblogs.org
