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Posts tagged with: debt payoff plan

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?


A Change in Debt Payoff Strategy – Hope

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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.

Just thought I'd share a picture of my youngest at his first day of FlipFest in Crossville, TN on Monday.

Just thought I’d share a picture of my youngest at his first day of FlipFest in Crossville, TN on Monday. This was posted on their Facebook page this morning and I was thrilled to see him, it was hard to leave my 8 year old yesterday no matter how ready he was – I wasn’t!


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