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Posts tagged with: debt

Debt Update

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Sorry for the delay in getting this update up, but I’ve really been productive with the extra time (minus being sick, of course.)  To be honest, I feel like I’m starting all over again on this journey with revised debt, new debt and a new perspective. With that being said, while I typically have a plan, months in advance, I am really wanting the communities input on how I should tackle this debt now.

So here it is, listed from high interest rate to lowest with the Estimated Pay Off date blank as with your help I’m ready to re-prioritize my plan:

Debt as of June 10, 2014

Name Balance Interest Rate Minimum Payment Estimated Pay Off
Retail Card $3297 25.99% $99
Line of Credit $838 15.95% $218
Credit Card $5,080 13.9% $150
Car Loan – NV $31,043 6.79% $696
Student Loan $31,687 2.88% deferred
Joint Account $889 0% $0
Car Loan – Honda $1,900 0% ASAP

Details

Retail Card – This is a retail card that I use for my business. You’ll notice the balance has gone up several hundred dollars since I first listed this one. That was for ink for my laser printer I needed for a project, an unavoidable cost, but I am ready to be rid of this high interest debt! The minimum payment required doesn’t ever seem to make a dent so I need to really increase the monthly payment to see progress.

Line of Credit – This debt shrinks quickly as I make payments so I’m ready to finish it off and free up that $200 towards something else.

Credit CardAgain, the minimum payment doesn’t seem to make a dent here and I had started to free up some credit until this past month. I can go either way on this one as far as priorities go.

Car Loan – NV – This is our GIANT family car, a necessity but a huge money pit!

Student Loan – Speaks for itself.

Joint Account – This is new debt. I’ll explain it in my short and sweet version. During my marriage, I handled the money. Since my marriage ended, I have continued to pay 1) his life insurance and 2) his car insurance for one car that he kept but is in my name. The joint account was left open so that I could continue to pay these bills to make sure they were paid. At times, he would overdraw his personal accounts and then it would clear out this joint account (which only I used.) The account was overdrawn this last time by $1,300. I had enough and closed the account AND stopped paying his life insurance policy. I’ve paid down to the current amount this month and need to get it paid off to avoid affecting my relationship with the bank. This is just what it is. I will address the insurance stuff with a revised budget shortly.

Car Loan – Honda – Again, a short sweet version of this new debt…for the last year I have “stored” one of my parents’ cars since they moved to Texas. It was an informal agreement that the car would be made available for me to purchase for my twins when the time came that they were ready to sell it. (They left it here when they moved to Texas so when they came to visit we would have an extra car for them to use.) The time has come that 1) my twins have their learner’s permits and are now 9 months from getting a driver’s license (a privilege, not a right, but one I will be thrilled with as a single parent with lots of running around to do.) And 2) my dad wants me to pay for the car before the boys drive it for valid safety and insurance reasons.) We’ve agreed to $1,900 and he would like me to pay it off ASAP.

Note: I have removed the debt to my dad as we are both in agreement that I need to focus on my credit affecting debt in order to get in the position to refinance the house in my name.


Ok, so give it to me straight, what should my plan of action be? On a typical month my minimum payments are $1,163, I typically have a snowball payment anywhere between $200-400, sometimes more. I am listening EARS WIDE OPEN for your advice here.


The Good, The Bad and The Ugly from May

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The Good News…

Whatever knocked me flat the last couple of weeks is slowly dissipating, thank you for your concern.

In addition to my newer part time job, I’ve picked up one decent sized web design project and two on-going small part time consulting jobs. By my educated estimates, if all goes well, this could increase my monthly take home by about $600. (This doesn’t include the web design monies as they would be more lump sum.)

The Bad News…

Last month I had anticipated receiving payment for a larger project and thus had budgeted for that income. Through no fault of my own, that project is at a stand still and thus I was about $2000 short on my budgeted income for the month.

Because of this I cleared out my newly started “emergency fund” of the whopping $150 I started with.

The Ugly…

Because of the short income, debt payoffs were a mere trickle, just barely making minimum payments across the board.

In addition, there is now some new debt, some from an expected source which I had hoped to put off a bit longer but that is no longer possible and some from a “I should have known better” source.

It has been a VERY hard week back from our wonderful get away financially, but as my sickness clears so does my head and I see the silver lining.  Lots of planning going on in my head.

(It’s Tuesday night now when I’m finally able to hold thoughts together long enough to write this.  Needless to say, I haven’t gathered any financials together yet.  After working my part time job in the morning, I hope to sit down and do that. I appreciate you bearing with me.)