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Hope’s Debt Update – March, 2019

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I have been writing here at BAD for over 5 years now! Can you believe that? I can’t!

This was my first ever post which included my first ever debt update. It was published in February, 2014. My total debt was $78,518!

And without further ado, here is my current debt load.

Creditor
Balance

(as of 10/14/17)
Interest
Min. Payment
Student Loans$34,9912.88%$0 (income based deferment)
Car$4,7737.00%$400
Credit Card$2,43417.00%$60
Collections 3 (Ex-husband)06.25%$0
Collections 2 (Apartment)$499$0
Total$42,697$460

Total Debt as of 3/13/2019 is $42,697

My last debt update is HERE if you want to compare the two, it was published in December, 2018.

I’ve got to admit, comparing my first ever debt post and today’s was a bit discouraging, especially when I compare myself to the headlines of others debt pay off journeys. But I won’t make excuses.

I do know that I have come a long way as far as mindset over the 5 years. Not to mention knowledge. And I am in a really good place as far as payoff mindset (finally, right, long time readers!)

The Plan

I haven’t put a lot of thought into my plan of action. Frankly, I haven’t had time to sit down and think about anything.

But in looking at my numbers, this is what I have in mind:

  • Pay off credit card! It’s time. The interest rate. I’m ready.
  • Pay off the non-interest bearing collection account because it’s not affecting anything but my credit at this point.
  • Pay off my car (if I stick to my $400 per month, it will be paid off in March, 2020 but it would be great if I could do it more quickly.)

In my dream world, I would love to have all three of these debts paid off by the end of the year. And I think it’s doable looking at my year as a whole.

Thoughts? Feedback?


The Car

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So I’m here for your advice today. We’ve had our van listed for sale for almost 4 months now, I believe, minus that month it was in the shop was being rear-ended. And while I’ve gotten a few inquiries, but nothing really solid. Then this week, I had a super low ball offer…like 33% less then what I’m asking…no thank you!

Being a commercial vehicle, it’s harder to place a value on it so I went to my bank and asked their help. They valued it at about $25K. I own right at $27K.

So here’s the question…do I continue to list it for sale and just keep on or do I explore downsizing to a used car and perhaps roll the portion I am “upside” down into a new auto loan? I’ve looked (just online) at used cars and I see two viable options:

5+ year older Honda Element
Plus: Price around $12K, great gas mileage, low maintenance
Down: Only seats 4, there are 5 of us. But we do have the ’96 Honda Accord that seats 5 and is paid off. History Buff will get his license in March. Would have to rent a vehicle for any longer distance driving, which we are certainly not doing alot of but it will happen on occassion.

4+ year older Honda Pilot
Plus: Good gas mileage (much better than current vehicle,) low maintenance based on reputation, 3 row seating so seats all of us and some extras when needed (which we actually have ALOT)
Bad: Price around $18K, and I HATE 3 row seating, it’s very inconvenient for getting in and out.

I’m certainly not rushing into any decision. And as mentioned on several occassions recently, I don’t really trust my judgment. So I’m asking for your opinions.

Just a refreshed on current vehicle situation.
Car #1: New, Financed, large commercial van that I purchased to accomodate our growing family. Currently financed $27K, insurance runs about $100 per month, taxes are about $400 per year, monthly payment is $696. Regular oil changes and tire rotations, no other maintenance expected for forseeable future.
Car #2: Older Honda Accord, in good shape, owned outright. Insurance about $20 per month and taxes will be around $50 year. Just got inspection and oil change, will need new tires and to recondition headlights in coming months but no other maintenance known. This will become the twins car as they get their licenses (starting in March.) Oh, and it is a stick shift which I have VERY limited experience with.

Ok, I think that gives you all relevant information. What do you advise?


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