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Posts tagged with: balance transfer loan

Ashley’s April 2016 Debt Update + NEW Balance Transfer Loan

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Hi all!

Thanks for your patience with me as I was out of town and kind of absent (especially in the comments) for awhile. I only logged in a single time on our week-long vacation and then had to spend a few days playing catch-up with work-related obligations once I returned before really rejoining you here. LOTS of posts to come very soon, but for now let me get up this overdue April debt update!

Perhaps the first thing to note is that I initiated another balance transfer loan! I’ve labeled it in my debt spreadsheet as “Balance Transfer #2” (to distinguish it from the first balance transfer, which I paid off in full prior to initiating this new transfer). See my reasons for why I’m okay with using balance transfer loans to help pay down student loan debt in this throwback post.

I transferred $7,500 from my Navient student loans onto my Capital One credit card. I will have 0% APR for 12 months and paid a one-time $150 transfer fee. In my debt spreadsheet I list the new balance transfer debt as $7650 (which includes the $150 transfer fee). I also altered the “original debt” column of my Navient loan, reducing it by $7500 (since that debt has been moved to the balance transfer loan).

Here you go:

PlaceCurrent BalanceAPRLast Payment MadeLast Payment Date Original debt, March 2014
Navient$731686.55%$1476April$74218
ACS Student Loans$85966.55%$20April$8215
Balance Transfer Student Loan #2$76500% (through April 2017)$0transfer initiated April 2016$7650
Medical Bills$58360%$25April$9000
Balance Transfer student loan #1$00% -Paid off in March 2016$5937
PenFed Car Loan-2.49%-Paid off in January 2016$24040
License Fees-2.5%-Paid off in April 2015$5808
BoA CC-7.24%-Paid off in June 2014$2220
Mattress Firm-0%-Paid off in May 2014$1381
Wells Fargo CC-13.65%-Paid off in May 2014$7697
Capital One CC-17.9%-Paid off in March 2014$413
Totals$95,250 (March balance = 96,175)$1521Starting Debt = $145,472

One thing you’ll notice is that nothing was paid toward the new balance transfer loan in April. I initiated the loan toward the end of the month, so I’ll begin making payments this month (May).

Also, I edited the APR for my Navient loans. It used to read 6.55%-8.25%. But the balance transfer loan covered the 8.25% APR loan in full, so now all that remains are student loans with 6.55% APR. Wahoo! Excited to be chipping away at those loans and to get rid of my last remaining >8% APR debt!

Also, you’ll see in an upcoming budget update post that we continue to save toward our Emergency Fund and the down payment for a new home. This impacts our debt payments, as we are prioritizing savings above debt for right now. We plan to begin house hunting soon-ish, and once that’s all locked away we’ll again return our focus to paying down debt with a vengeance. In the meantime, I’m still happy with our current level of debt payments. Not too shabby, especially considering all our savings! Look for the budget update post soon!

I hope everyone’s weeks are going well! I’ll be back soon! : )


Ashley’s March 2016 Budget Update

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Hey guys! Only a week behind with March’s budget update. Trust me, one week behind isn’t too bad for me right now. heh. Work is a bit in overdrive, but I love it. I’m gearing up, getting ready to be out of town for a solid 8 day cruise and working like a crazy person to try to get everything set just right to run on auto-pilot (fingers crossed) while I’m gone.

Here’s how the month of March went for me:

 

Place Amount Spent
Rent 1200
Down Payment Savings 2000
Electricity 176
Water 61
Natural gas 105
Cell Phones (2 lines) 89
Cable/Internet 97
Trash 35
Preschool 1085
Gift-Giving 189
Restaurants 157
Entertainment 102
Kids Activities 142
Groceries 573
Gasoline 108
Household Goods 144
Clothing 157
Rainy Day Savings 1580 (minus deductions, see below)
Savings Goals 800 (minus deductions, see below)
Debt Payments 2134
Total Budgeted $10,934

 

Comments:

Down Payment Savings ($2000): This is right on track.” The goal is to get to $10,000 by summer time. I’ve had a couple questions about the house-hunting journey. We have NOT started “hunting” yet (though we’ve been doing searches on Zillow just-for-fun and grabbing flyers from homes that are for sale just for comparison). With everything going on, we decided to wait until after the cruise to start hiring people (e.g., realtor, mortgage lender). Our goal is to move late summer or possibly early fall. Our current lease is up at the end of August but our landlord will let us go month-to-month at our current rate (no increase) if we haven’t closed yet by that time. The ideal situation would be to close in late August so there’s just a little overlap of about a week or so. But I know these things can be so unpredictable and we’re lucky to have flexibility with our current landlord. We do NOT, however, want to move much earlier than August (since we’d then be paying double rent/mortgage). So we are not actively on the house-hunt yet. 

Electricity ($176): Remember our outrageous electric bill from February? Fortunately, we only got caught by surprise that one month. Since then, the A/C and heater have both been turned OFF. There have been some hot days (and some cold nights), but it’s been within a range that we as a family could deal with (nothing too extreme). It’s been in the mid-90*s a couple times this week already, so we’ll see how long we can go without any A/C. I already got the bill for April and it’s UNDER $100!!! I’m loving the lower electric bills right now but, like I said…we’ll see how long this lasts (Tucson’s summers are brutal!) The A/C will have to go on at some point.

Gift-Giving ($189): Similar to last month, almost all of this was a charitable donation I made so we could max out Arizona’s tax credit. $25 was for a wedding gift, which was the only non-donation portion of the gift-giving.

Entertainment ($102): A few bucks of this was for music on itunes. The rest was from a date night. As promised, hubs and I are planning to do about one date per month this year (in the past 2 years we rarely ever had date nights). So expect this category to be a bit higher this year in compared to previous years.

Kids’ Activities ($142): This was a high-spending month for kids’ activities. The bulk of this was from our weekly swim lessons (April is the last month for our lessons; we may re-start once it’s summer time, but the initial point of the swim was to get the kids comfortable around water before our cruise. They’ve been making great strides with safety and although they aren’t fully able to swim, of course, they have learned all kinds of life-saving measures if they were to fall in. Safety was my main concern). $40 of this was from horseback riding lessons and farm time that we did while the girls were on Spring Break. The person who does it is a friend-of-a-friend. She is the Benson Butterfield Rodeo Queen. She lives on a nearby farm and lets kids come out and experience “farm time” (basically feeding and petting/playing with all the animals) for $15/hour and horseback riding lessons for $20/hour. I split the lesson so each child had 30 minutes of instruction and tipped an extra $5 just because she was extremely accommodating. Still kind of spendy for us, but it was a ton of fun and was a great way to spend a couple hours during Spring Break week.

Groceries ($573):  After months and months of struggling to keep this number below $600, we finally pulled it off this month. I think it helped that I had increased flexibility over Spring Break (so I was at the house, able to do more food prep, etc.). I’ve also been making a really conscious effort to prep foods on Sunday for the week to come. I’ve gone so far as to portion out daily portions of fruits and snacks; I’ve pre-cooked chicken breasts for lunches; I’ve pre-washed, peeled and chopped up carrots into sticks for snacks; I’ve pre-made breakfasts (e.g., like making a big batch of pancakes that can be refrigerated/frozen and re-heated in a toaster), etc. etc. etc.  It’s tedious and time consuming and not always the way I want to spend my Sunday afternoons (I typically do everything while the girls nap), but it’s made my life MUCH easier during the week when I do my prep versus when I don’t.

Household Goods ($144): This category is pretty high this month because I spent $100 on stuff for my office. I bought a 5 x 7 rug, a big wall clock, and a painting (all from Big Lots).  I started this job last July, but it just now looks like I’ve actually moved into my office space. It’s really nice, especially since I spend a lot of time there.

Clothing ($157): This is a bit higher than normal for us. A good chunk of it was new shoes for the girls. Kids feet just grow so fast, I tell ya! But we’ve gone the cheap shoe route and they tend to fall apart, so we opt for slightly nicer tennis shoes. This also includes a couple of new work shirts from me from Wish (see my review here) and new summer PJs for the girls since they’ve gotten hot and sweaty a couple of times at night in their long-sleeved jammies (still using no A/C, remember?) ; )

Rainy Day Savings ($1580): I deposited $1580 into my various rainy day funds (though some money was also withdrawn from these accounts.) See below:

  • 3-6 Month EF: $1,000 (goal is to get to $5,000).
  • Birthdays: $200. The girls’ birthday is on the horizon in June. To date, we’ve never had an actual birthday party for them, but we want to this year for the first time. It will still be simple (at our house, not another venue), but we’re going to start throwing a couple hundred a month toward this savings category so we don’t get caught by surprise in June.
  • Travel/Christmas $50. We like to save at least $50/month in this category, as finances allow (sometimes we skip it if needed).
  • Annual Fees: $280 deposited (though I withdrew $484 for a vehicle emissions inspection and registration for 2 years. That leaves us with $150 still in the account currently)
  • Girls’ College Savings: $50. This is a standard auto-payment that we do every month. $25/month per child isn’t a lot, but it’s better than nothing and that’s what we’re comfortable doing right now while we’re still financially focused on getting out of debt (and buying a house!!!)

Savings Goals ($800): $800 was deposited but there were also withdrawals. See below:

  • Savings for 2015 Roth IRA: $300 deposited. Another note about this is listed below.
  • Cruise 2016: $500. I also withdrew $35 from my cruise fund to buy some new clothes for the trip.

Debt:  I gave a full debt update here.

Final Thoughts:

We ended up putting more toward debt this month than we’d originally thought we would because the balance transfer really needed to be paid off before April (and we did manage to make that happen). It all worked out, though, because we still hit our goal of $2,000 toward the house down payment fund, and we still started hitting several of our other savings goals. We’ll continue to beef up our emergency fund, specifically, in addition to our other “rainy day savings” funds in the months to come.

Related to savings, I didn’t report the “withdrawal” above because it technically occurred in early April, but I took $1500 out of the “savings for 2015 Roth IRA” and put it into our Roth account (last year was the first year we opened a Roth, with a meager $1300 contribution). Our contribution this year wasn’t great either, but it’s better than nothing and 10% of my paycheck is auto-deducted and invested into a 401(k), so this is actually a little deceiving because we certainly saved more than just $1500 this year.

So there you have it. The big goal remains the same: Save up money for a downpayment for a house, beef up our emergency fund, and continue knocking those student loans in the face. It’s more like little jabs right now while we’re saving so much. But soon it will be full-blown punches! I’m coming for you, student loans! Mwhahaha (<evil debt-paying laugh).