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Debt Update – January, 2015 – Hope


And time for the big reveal…after the dust has settled from the house sale, the car sale and the refinance of my highest interest loan.  Here are my numbers as of today!

Debt NameCurrent BalanceInterest RateMin. Mo. PymtOriginal BalanceStatus
Checking Account$7410%$0$741Going down, Jan 2015!
CC Intro Rate - Retail #2$35003.99%$39$3500Retail #2 refinance
Personal Loan - Car$500012%$96$5000Car Sale Difference
Credit Card - Consumer$504313.90%$105$4,974Minimum Payments
Student Loan$32,8052.875%$0$31,687Forbearance until Feb.
Credit Card - Retail$025.99%--$2,265Refinanced - Dec, 2015
Car Loan - Accord$00%--$1,900Paid Off - Dec, 2015
Car Loan - NV$06.79%--$31,138Sold - Dec, 2015
Line of Credit$015.95%--$1,248Paid Off
Credit Card - Retail #1$00%--$413Paid Off
Property Tax$00%--$700Paid Off

So a couple of things to note.

CC Intro Rate – Retail #2: I was able to refinance my high interest debt (Retail Card #2) to a 6 month introductory rate of 3.99%…so of course, my goal is to pay it off within the 6 months.

Personal Loan: I had to take out a personal loan in order to pay the difference in what I owed on the NV and what I sold it for.

Because of all the stress, changes and a little bit due to the holidays I did not accomplish my December goal of paying off the utility bills on the old house or closing out the checking account debt so those are #1 on my list this month.

So goals for this month…in priority order:

1. Pay off checking account debt

2. Finish paying off utility bills for old house.

3. Work on paying off CC Intro Rate – Retail #2

With the selling of the van, I’ve freed up approximately $1000 per month…$696 car payment, insurance payment and gas.  I am confident I can accomplish these three goals this month!


  • Reply AY |

    Great update Hope! This is exciting!

    Just wondering–is the $1000 or so you’ve freed up to pay toward debt each month in addition to any other extra money you have to lay toward debt or is that he total amount? I know you have $240 in minimum payments, but are there fewer expenses with your new living situation so that you can pay extra toward debt? I know your income is somewhat variable, I’d just love a number that is your total debt sinking number (or goal) every month. If it’s $1240 right now that’s great! If it’s more, awesome! I know paying off the checking acct and refinanced loan are first priority, which should he able to happen in 6 months. If you get that done I wonder how close you could get to paying off the other two loans (so only having your student loans left!!!) by the end of 2015? Or at least getting close? Would love to see your projections for these goals.

    Very excited for you and keep up the good work!!

  • Reply Walnut |

    This debt update looks awesome, Hope! I think a key element here is just how low your minimums payments are. Not only will you be able to knock out debt at a faster clip, but you’ll also be able to weather setbacks a little easier in the future. I don’t recall if you’re planning to try to live on last month’s income, but the low minimum payments will definitely make that easier.

    • Reply Hope |

      I would like to live on last month’s income, but first…I MUST pay off this debt, especially with that 6 month intro rate…I definitely want that gone ASAP!

  • Reply Brooke |

    Wow, you’ve completely changed your debt situation with these big moves! I know it was difficult, but now you are seeing the results. Only $240 in minimum payments …. that is amazing! It means you are better able to handle big expenses AND pay off chunks of debt each month.

    Like the first commenter, I would love to see some projections through the end of the year. You have some high spending months, low spending months and variable income. Given that, what do you think your debt payoff will be for the next year? 6 months if a year is too far out to project (I personally have only been able to project out to September-October). Also, like the first commenter said, a sense of what you think your new monthly debt payment goal would be very useful to see as well. These things are not just interesting/useful for the readers to understand your progress, but it might give you some targets to work for as well to stay motivated!

    • Reply Anne |

      I thought that too. Not to rain on your parade, Hope, because you have made some major adjustments to your debt, and I really enjoy following your journey and am crossing my fingers for you, but: the way this is presented right now makes it seem the $3,500 were part of your original debt when you started blogging here and the $2,265 were paid off by you. Just for tracking purposes, this overstates how much you have paid off in debt. It makes it seem as though you have lowered your debt by $2,265 since you started blogging here when for this specific debt, you seem to have actually added $1,235 to your debt. Does that make sense?

    • Reply Hope |

      Good catch, I should have explained that. The sale price of the car and loan difference needed the balance available on that CC (still intro rate for 6 months, plus the personal loan.)
      To simplify it here, I just lumped them all together, hope that explains.

  • Reply Den |

    Excellent Hope! You are kicking some debt to the curb – love it!

    How much do you pay to debt each month? That would really help us see how quickly you’ll be making progress – thanks!

So, what do you think ?