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Weekly Debt Payoff #20- Back on Target

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Hey everyone! I hope you’re off to a great start to your week.

I want to start off with a quick July 2015 monthly review:

  • The month was my month off, in which I took not only a physical vacation to Walt Disney World, but also used the month as an emotional and spiritual vacation from any type of debt reduction. Although I enjoyed this month off, I wrote about all my overarching feeling towards it here (Thoughts).
  • I used my extra funds from the month to 1) buy new clothes 2) enjoy some date nights with GF 3) refund my emergency fund (it was in the vicinity of $1,500.00 and now sits at $2,162.63; having anything below $2,000 makes me feel uneasy). Although I didn’t tackle everything I had on my to do list, I ended up getting a lot accomplished and feel pretty good about paying off this last $48,000.
  • Last week, GF and I had planned on holding a garage sale over the week. This plan fell flat, unfortunately. Not because we didn’t want to, but we were pretty overwhelmed with the time and effort it took to get everything properly prepared, especially after all the detailed comments I received on the subject. Between moving cleaning off and getting items ready for sale and moving them into our garage, we only got through 1/2 our stuff. Looking to hold a longer 2 day event in 2 or 3 weeks.

Ok, on to my debt payoff plan for the remainder of my balance. For anyone interested, here are my current totals:

Loan NameInterest RateOriginal Balance- May '09Current BalanceTotal Paid OffPaid Since Last Week
Sallie Mae 015.25$27,837.24$23,776.95$4,060.29$61.64
Sallie Mae 024.75$22,197.02$18,651.56$3,545.46$50.79
Sallie Mae 037.75$20,692.10$0.00
$20,692.10$0.00
Sallie Mae 045.75$10,350.18$5,310.59$5,039.59$615.30
Sallie Mae 055.25$6,096.03$0.00$6,096.03$0.00
Sallie Mae 06 and 074.75$6,415.09$0.00$6,415.09$0.00
Sallie Mae- DOE 015.25$5,000.00$0.00$5,000.00$0.00
Sallie Mae- DOE 025.25$3,000.00$0.00$3,000.00$0.00
AES6.8$9,000.00$0.00$9,000.00$0.00
TOTALS$110,587.66$47,739.10$62,848.56$727.73

Note: the paid off since last week is really the paid off since my last update in June, with the majority of the payoff coming just last week.

I know I said this before, but I’m SUPER ready to knock off these debts for good. I’m going to be as frugal as I was going into my month off, however, I have a few caveats:

  • I’m going to consciously maintain a sense of balance between life and payoff. I feel I’ve done pretty well over the last couple months and I don’t want all that effort to go to waste. My $50 a month has really helped in this area.
  • I’m going to continue contributing 10% of my salary to my company 401K. I enjoy seeing this balance go up every week and it will be awesome to start my debt free life with a sizable nest egg.
  • I’ll also continue contributing $25 to my nephews ESA account for his future college tuition.
  • I changed my mortgage payment schedule from a one-time monthly lump sum payment to a weekly payment schedule with a little extra for increased principle reduction. It’s only been active for a couple of weeks, but I like the idea of not having a huge payment due at the end of the month.

Timeline- My extra extreme schedule is to make my final student loan payment in 18 months. Is this realistic? Not really, but it’s nice to dream of being debt free before I hit 30. It’s looking like it’s going to be closer to 22 months, if none of my caveats change. I should have Sallie Mae 04 paid off by the end of October at which point I’ll start on Sallie Mae 01 (the big boy). It seems like a horse a piece between paying off Sallie Mae 01 and Sallie Mae 02, so I’m going to hit the larger of the 2 first. Good idea, or should I continue going from smallest to largest?

I plan on sharing my new budget at the end of this week.

I hope everyone has a great day!

Rising Rent

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We’re just beginning our third year of living in our little rental house. I still love it just as much as ever (though I’d also love a teeeeny bit more space – maybe a designated office), and especially the location. We’re outside Tucson city limits, but still a short drive away. We are in the suburbs: lots of family-friendly activities, parks, hike and bike trails, etc. And when we do finally buy a home, I’d love for it to be in our same general area.

So although we’ve started talking about the idea of buying a home (not now, but probably within about a year), we know we need to stay put for now in our current rental.

Our landlord is really great. We live in the landlords’ previous residence. It’s not managed by some big property management company. The owner takes care of all the repairs and maintenance. He’s very kind. We’ve made friends with his family. So I think we’ve gotten a deal with the rent, particularly considering it hasn’t increased at all since we’ve lived in the place….

…until this year. When we approached the landlord to say that we wanted to renew our lease for another year, he seemed happy to have us stay. Of course it’s less work for him (advertising, showing the house, finding a tenant, doing make-ready cleanup, etc.). But then we got the email with the lease attached…and an increased price tag to go along with it.

We negotiated a bit back-and-forth (side note: does anyone else ever try to negotiate rent? When we were living in Florida they tried to increase our rent by a whopping $300/month at the end of a year, but we were able to negotiate down to a $100/month increase). Finally we settled (and signed) for our new increased rental rate. Instead of $1055/month, we’ll now be paying $1200/month.

I still feel like it’s a fair rate. I’ve seen what other houses in our neighborhood rent for and we’re still on the low side of rent, even though our house has a lot of nice, upgraded features compared to other properties in the area. That, coupled with the fact that we didn’t have an increase last year, makes me feel like this really is a fair rate. If we were to try to move, we’d be unlikely to find someplace comparable that we like as much for $1200 or less.

So, I guess that’s life. One of the big benefits of buying, of course, is that you get to lock-in your housing rate (assuming you get a fixed rate mortgage). My hope right now is that this will be our LAST year as renters. That by next summer we’ll be looking for a place all our own. That by August of next year we won’t be signing a rental agreement; we’ll be signing our very first ever mortgage!

That’s the dream, now off to work so we can make it a reality!