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Posts tagged with: debt

Debt Update – January, 2015 – Hope

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And time for the big reveal…after the dust has settled from the house sale, the car sale and the refinance of my highest interest loan.  Here are my numbers as of today!

Debt NameCurrent BalanceInterest RateMin. Mo. PymtOriginal BalanceStatus
TOTALS$46,794$240$83,566
Checking Account$7410%$0$741Going down, Jan 2015!
CC Intro Rate - Retail #2$35003.99%$39$3500Retail #2 refinance
Personal Loan - Car$500012%$96$5000Car Sale Difference
Credit Card - Consumer$504313.90%$105$4,974Minimum Payments
Student Loan$32,8052.875%$0$31,687Forbearance until Feb.
Credit Card - Retail$025.99%--$2,265Refinanced - Dec, 2015
Car Loan - Accord$00%--$1,900Paid Off - Dec, 2015
Car Loan - NV$06.79%--$31,138Sold - Dec, 2015
Line of Credit$015.95%--$1,248Paid Off
Credit Card - Retail #1$00%--$413Paid Off
Property Tax$00%--$700Paid Off

So a couple of things to note.

CC Intro Rate – Retail #2: I was able to refinance my high interest debt (Retail Card #2) to a 6 month introductory rate of 3.99%…so of course, my goal is to pay it off within the 6 months.

Personal Loan: I had to take out a personal loan in order to pay the difference in what I owed on the NV and what I sold it for.

Because of all the stress, changes and a little bit due to the holidays I did not accomplish my December goal of paying off the utility bills on the old house or closing out the checking account debt so those are #1 on my list this month.

So goals for this month…in priority order:

1. Pay off checking account debt

2. Finish paying off utility bills for old house.

3. Work on paying off CC Intro Rate – Retail #2

With the selling of the van, I’ve freed up approximately $1000 per month…$696 car payment, insurance payment and gas.  I am confident I can accomplish these three goals this month!


It Isn’t All About Income

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Yesterday I read something over at Budgets Are Sexy that really resonated with me.  J. Money read an article from Mr. Money Mustache (a pretty famous blog that I follow).  In this article MMM said:

“The most important thing to note is that cutting your spending rate is much more powerful than increasing your income.  The reason is that every permanent drop in your spending has a double effect:  it increases the amount of money you have left over to save each month, and it permanently decreases the amount you’ll need every month for the rest of your life.”  

I still stick to my guns in saying the easiest way to make fifty dollars is to save fifty dollars.  I had this mantra since I began my coupon journey about five years ago.  This was a time when I went from a single man living alone to having a built in family.  Feeding three people was an eye opener to say the least, especially when you were allotting yourself about $100 per month for food before.  Remember I was in the food industry, and usually always fed myself at work.

What this article did for me was realize that it really isn’t my income that is a problem here.  I have been making it work, and know full well that we could live on the income we do have.  It is really all about eliminating all the unnecessary monthly expenses.  

The biggest being DEBT.

Now I am not saying that I won’t challenge the other expenses, but debt is the biggest.  I have been paying anywhere from $800 to $1,000 every month for the last four and a half years, just on debt!  

What if I was using this amount to put away for savings and retirement?  I would be in a totally different situation than I am today.  

This is also not saying that I will not be looking for opportunities to increase my income.  Because let’s be honest the two go hand in hand.  If I increase my income it will be a much faster route to get out of debt and start becoming the provider that my family knows I am.  

So for the month of July I will be reviewing more of my expenses and seeing ways to cut them out of my life.  Who’s with me?


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