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The Debt

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(*Update*  I just updated this post with a few more exact balances and interest rates)

First off, I want to thank everyone for the warm welcomes that they have given me! I really do appreciate having someone in my corner cheering me on!

It’s time for the nitty gritty details of our debt and I can honestly say that I am embarrassed about admitting how much debt we have, however, I am even more embarrassed to admit that I had NO idea how much we had until I started adding this up! In fact, I still don’t have an exact amount because I am waiting for a few statements to come in. I am going to include a rough estimate until I get final numbers, just so that we can have an idea of where I am at. I will then update the info!

CC#1 $43.30 (this will be payed off on Friday!)

CC#2 (7.24% interest) $ 2,999.84

CC#3 (27% interest ouch!) $4,833.17

Auto loan (6.99% interest) $5,695.29

Appliance loan (0% until Oct 2017) $2,072.79

Student loans-Amy (5.8% average interest) $34,392.19

Student loans-Hubby (5.7%  average Interest) $18,060.61

Student loans-Amy (3.25% Interest) $1,800.00 (estimate)

Student Loans-Hubby (4.725% average Interest) $3,111.46

$73,008.65

Wow. That is a lot of debt.  I really had no idea that we were carrying such a high debt load. This doesn’t even include the mortgage! I can’t describe the emotions that I am feeling right now as I look at that number.  Overwhelmed, shamed, sadness, frustration…they are all emotions that are fluttering about.

Here are the details on what each debt is about:

CC#1: This is a credit card that I have been working on paying off for the last couple months. I thought about leaving it off the list since it will be paid off on Friday and the balance is so small, but I decided that total honesty was required. If I start fudging numbers..it would be easier to continue doing so, which contributed to me getting here in the first place!

CC#2: This is a credit card through our credit union. I have no idea what we used it for.

CC#3: This is a credit card that we got because “the rewards are so great”…and they would have been if we had used the card responsibly! We used this card for some home improvements and fertility treatments.  We have already paid off a ton of this debt.

Auto Loan: This is for an older Prius that the hubby uses to commute.

Appliance Loan: This is the debt that I want to tackle first. Simply because it annoys me! We bought a used fridge a year ago trying to save money….but when it suddenly died we decided to finance a new one so we didn’t end up going through the same hassle.

Student loans: The first two loans with the large balance are federal loans from both hubby and I, while the second two with small balances are state level loans for the both of us. The student loans are lower on my priority list to pay off because we are on income based repayments and have been for a several years.  However, we are also paying the most interest on them because the balances are so high, so perhaps I should reconsider that.  What do you think?

When you started working on your debt did you know how bad it was, or were you surprised like me?

My Loan Request Was DENIED!!!

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First thing’s first. Welcome, Amy! I’m so excited to have another blogger up in the mix! I was a reader long before I was a contributor here so I’m super pumped to be able to follow another blogger on their debt journey! Yay!!! I can’t wait to get to “know” Amy as we share this debt-reduction journey together!

(Side Note:  I’ve also seen many people ask about Hope in recent comments. I don’t have any updates, but I’ll send her a quick email today just to pass along our warm thoughts and kind regards. I honestly don’t have any additional information at this time but I wanted to address it because I know lots of have asked about her recently).

I hope all our American readers had a lovely Thanksgiving this past week! It was JUST what I needed! Quiet, low-key, relaxing, etc. We spent a solid 3 days in a row at home (we had friends over for play dates on Friday & Saturday so we weren’t all alone), and it was GLORIOUS to just hang out and relax. This was our first Thanksgiving in a very long time where we were just at home – we didn’t go anywhere and we didn’t have any guests here, either. I used it as an excuse to go super easy for Thanksgiving. We just had meat, 2 sides, and a single dessert. That’s it. I have to admit that I kind of missed not having a ton of Thanksgiving leftovers (my favorite is a thanksgiving sandwich with cranberry sauce, stuffing, and turkey – but we didn’t even do ANY of those foods this year! Our main was ham and our sides were green beans & sweet potato casserole). We did buy a mini (2 lb) butterball turkey that I’ll probably cook sometime this week, but hubs had specifically requested ham for our main meat for Thanksgiving so that’s what we had.

And then I applied for a student loan consolidation….and I was DENIED!!!!!

I couldn’t even believe it.

According to Credit Karma, my credit is in the “excellent” range. They have my credit at a 760 or 785, depending on the site (Equifax & Transunion, respectively).

What possible reason would they have for denying me a line of credit?

An outstanding collection.

That’s what they said. The thing is, I’ve literally only had one “derogatory” mark on my credit in my life. It was from when I was 18 or 19 (nearly 15 years ago now) for not paying for those 10 DVD’s for 1 penny thing (mine was via Columbia House, but surely you’re familiar with those programs – there were several in that time-frame). It was a legitimate debt that I owed and, funny thing is, I even tried to pay for it a few years after-the-fact, but I couldn’t get the creditor to send me a letter stating that the debt would be settled in full after payment, so I never sent the payment. It aged until it fell off my credit and I haven’t even thought about it in years.

According to Credit Karma, I have no derogatory marks/late payments/etc (like I said, due to its age, this one negative mark long-ago fell off my credit report). I’m telling you, I’m kind of a stellar client from a lender’s perspective. I’m conscientious, pay on time, more than the minimum, etc. etc. Plus the lender who denied me also had me link my different bank accounts so they could see that I had lots of assets available (not only from my EF, but also my retirement, and I’m listed as a joint account holder on my Dad’s account, too, so although  I don’t consider his money “mine”, its a lot of additional liquid assets that are mine from a legal perspective since it’s a joint account). Soooo…what the heck? I don’t get it. But that’s that.

So this lender is out. I still have other options, but I was just shocked about this denial. Truly, genuinely shocked.

Have you ever been caught off-guard about an unexpected credit denial?

How did you spend your Thanksgiving holiday? What’s your favorite Thanksgiving food?