Blogging Away Debt

As I am enjoying my weeks traveling and visiting with my family, I am starting to plan my next month money wise. Per my post earlier today, I have A LOT going on in my head as I try to envision the next few years of our lives both financially and life experience wise. I am a big proponent of self-fulfilling prophecy, not that I think I’m all powerful, but that in order to accomplish something, envisioning it and planning for it and working toward it are key to success.

With that being said, I know the next month is going to be pretty tight financially as I have to:

Restock my cupboard as we were close to bare when we left and brought much of the remaining with us.
Prepare for additional travel next month (end of July.)
Equip my oldest son with everything he needs for his Navy Sea Cadet boot camp (hopefully he will make enough money to cover this, but I will pick up the tab if he is not able too.)

With this being said, I am VERY motivated to move this debt payoff along, so in addition to my regular contract work and part time job, I am looking for ways to increase my income. I entertained the idea of going back into the corporate world, but after just a few short weeks back in part time, I KNOW that is not what I’m supposed to do on a full time basis.

So here are things I am considering:

Working more diligently on listing things on Etsy: I have TONS of craft stuff as a scrapbooker and even before BAD, my year long goal was to use it up, get the scrapbooks updated and convert to digital rather than having all this stuff. I could easily with some dedicated time create some sellable crafts, but haven’t really spent a lot of time on that as I’m sure really sure what kind of ROI I would get on my time.
Purging through donating: I am getting to the point that I HATE clutter, with a passion. If it’s not used, it should not be here is my philosophy. As a result I’ve made great headway in cleaning things out of our home through donating. While this wouldn’t net much money, it could lead to substantial tax write offs and there are definitely intrinsic values to not having so much stuff.
Project work: The one that comes most naturally is to attempt to find more work on an on-going or project basis. Currently I’m contracted for 35 hours a week + 12 for my part time job so I could definitely take on 10 or so more hours with ease (much of my 35 hours is done in the wee hours of the night.

I would love to hear your ideas on this. I know I can’t keep up my rate of work and intensity forever, especially with homeschooling the kids; however, this summer’s plan is pretty much set in place and with all I have in place for the kids, I am going to have more “free” time than I’ve ever had and I want to put it to good, productive use.

Note: Our home situation is significantly adding to my growing sense of urgency and with that my research into alternatives, but that will be discussed later this summer when I have a better idea of what my options look like.

A Change in Debt Payoff Strategy – Hope

by Hope

As you may remember from my original debt pay off table, after I paid off Retail Card #1 and my Property Tax bill, I was going to focus on repaying my dad.

Here’s the original table posted on March 26th, 2014

Creditors	Amt Owed	Total Interest	Pymts Left	Payoff Date	Interest Rate
Retail Card #1	413.00	–	1	Apr-14	0%
Property Tax	700.00	–	2	May-14	0%
Loan from Dad	3,830.00	–	6	Sep-14	0%
Credit Card	4,974.00	440.68	10	Jan-15	13.9%
Retail Card #2	2,264.80	499.76	12	Mar-15	25.99%
Car Payment	31,138.00	2,800.77	25	Apr-16	6.79%
Line of Credit	1,248.00	58.25	6	Sep-14	15.95%
Student Loan	31,687.00	2,622.91	42	Sep-17	2.88%

So I was successful at paying off Retail Card #1 in April and the Property Tax bill is on the chopping block for this month (stay tuned to next week’s debt update post to see what happens with that,) but I’ve really been taking to heart your comments on my next move…paying my dad back. I am unimaginably grateful for his assistance in getting into my home and having a stable place for my kids, and then add to that his help last fall when I floundered a bit after losing a large client (which led to this debt.) UNIMAGINABLY GRATEFUL! That must be put out there first and foremost.

But I am also really starting to look at the long haul here. The pressure is on to get the house in my name. My dad is not getting any younger or healthier and with four siblings, things could get pretty messed up if I don’t get that done. Unfortunately, I am nowhere near where I need to be to do that. With my marriage failure, my finances got turned upside down, I haven’t made the smartest decisions with the money I do have, and I am really evaluating what I want my life and my kids lives to look like for the next 3 years (twins go to college) and 8 years (younger two will be off to college.) In addition, I have to keep in mind my desire to foster/adopt other children as the need arises. So there’s a lot going on in my head these days.

With that being said, I KNOW the debt to my dad will get paid with the house situation, it’s all tied in together. And in paying off the other debt more quickly, I will be in a better place financially to deal with the house. So…I’ve decided to remove the Personal Loan from this debt payoff journey at this time, focus my highest interest debt next. From what I’ve read in the comments, this is the consensus of this knowledgeable community…so the next target with be Retail Card #2.

Agree, disagree, have some advice for me…I would LOVE to hear it!

I used college as a milestone, I am fully aware that they might not go to college, but I am anticipating they will have a life change around that time that will hopefully take some financial pressure off me…at least that’s the goal: college, trade school, job…I’m open and supportive, just used college as the mile marker indicating they are done with high school/homeschool.

Blogging Away Debt Blogging Away Debt follows real people on their journey to debt freedom — with tips on the debt snowball, budgeting, cutting expenses, and staying motivated.

Goals for the Next Month – Hope

A Change in Debt Payoff Strategy – Hope