Here’s my debt update now that March is over.
Feb End Balance
March End Bal
|Capital One CC||17.9%||$413||$0 (Yay!!!)|
|Wells Fargo CC||13.65%||$7697||$7429|
|Carmax – Car Loan||7.75%||$24040||$23736|
|Bank of America CC||7.24%||$2219||$2198|
|Mattress Firm||0% until Sept 1, 2014||$1381||$1281|
|Medical Bills||0%||$9,000 (approx.).||$8328|
A couple things to note:
First, I removed my student loans from the spreadsheet. I shared them in the first debt update to give you a big picture of all my debts. I’m not opposed to sharing them with you and am happy to do a big quarterly update if people are interested, but I always said my focus was on credit cards and I’m paying so little toward the student loans that I’d rather look at this reduced spreadsheet so you can really see where I’m making dents in my debts instead of just having a HUGE looming debt amount that barely budges every month (which would be the case if student loans were included).
Second, the medical bill debt is no longer approximate – this is the actual amount owed. Just so you know, the total amount was actually over $9,000 but we had already been making some payments, and when we had extra money last month we put a big chunk of it directly toward a lot of the smaller medical bills we had received (more details this afternoon when I discuss our revised budget). Some may argue this was unwise since they were interest-free, but we had 8 different medical entities to pay and now we have reduced this number down to 4 and have established payment plans for the remaining debt (except the Mayo Clinic – details this afternoon). It was important to me to knock out a lot of the smaller bills so we could have fewer monthly debts to deal with.
Third, in regard to the license fees, many people commented on my last post to look into the “service” fee, saying it might be more than I think. I checked it out and discovered that the service charge is a percentage of the payment received. I played with the numbers and for a payment of $50 it was $1.38 (2.7%); for $75 it was $1.74 (2.3%); for $100 it was $2.50 (2.5%), so it appears the percentage of the fee goes down with larger payments. Regardless, 2.7% is still much lower than any of my credit card debt so I will continue making smaller payments to that entity at this time.
I also plan on drastically increasing the amount we pay toward debt, overall, each month. I feel like this is a tease, but I’ve got to tell you just to make sure you check back this afternoon for our full revised budget where all these details will be revealed.