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Posts tagged with: pay off debt

Plan #1: Pay Off Debt

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I truly appreciate everyone’s thoughtful guidance and feedback to my last couple of posts on my Current Debt Load and desire to Increase my Credit Score. I am still working through all my lists of tips and suggestions. And frankly, it is too overwhelming to me to come up with a master plan. Thus, I’ve come up with a few bite size plans that give me immediate action AND immediate gratification! The OVERWHELMING advice that stood out, as expected, is pay off debt.

Thanks to our mostly No Spend Month, I have some extra money sitting around here at the end of the month. And it is burning a hole in my pocket, let me tell you! That leads us to the first plan.

Pay Off Debt

I will be tackling three debts with everything I’ve got with the goal of $0 balances on all three by the end of this calendar year.  Here’s my plan:

  • Amazon (current balance $527) – pay in full November 3rd with $$$ saved through No Spend October. This will bring it to a $0 balance before the statement date for the month of November. Question: do I leave the account open or close it? Bearing in mind the affect on my credit score.  Guidance please.
  • Computers (current balance $2,655) – pay $500 the first week of November with $$$ saved through No Spend October. And review November and December budgets to see if I can find a way to bring it to a $0 balance before the end of the year. Maybe a modified no spend month…we’ve still got quite a bit in our pantry. This will drop the balance quite a bit before the statement date for the month of November (yes, I’m still thinking of my credit score, but only as a benefit of making wiser financial decisions.) Question: do I leave the account open or close it? Bearing in mind the affect on my credit score.  Guidance please.
  • Collection Acct (Apartment) – call and see if I can negotiate a 1) pay to remove arrangement and 2) settlement amount, effectively decreasing the amount I must pay. Again, I will attempt to close this account out by the end of the year.

What about my credit card?

For the time being, I am going to keep using my one credit card as a revolving line of credit, effectively paying it off every month so I do not accrue any finance charges and using it to pay all my regular budgeted items.

I think this plan is very do-able for me. It’s definitely trackable. And if I could eliminate these three debts over the next 2 months. Well, that would be AWESOME!!!!

If you are going through different situations and want to know how they affect your credit. Like repossessions on credit report there are plenty of great resources.


An Introduction to My Debt – Hope

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Note: This is the application post from Hope wanting to be the next blogger for BAD. Feel free to ask any questions, leave your opinion and express your feelings in the comments

I’ve been asked to introduce myself before and that was hard, but introducing my debt as a first assignment is like asking me to appear at an interview in the most horrific outfit I own, unshowered and without doing my hair and make up. Talk about intimidating!

The worst of it is the shame, trying to keep up appearances that everything is fine when I’m really just drowning in debt. Deciding who to pay, how much to pay and when to pay is really stressful. Juggling the payment dates to try to avoid a late penalty, a ding on my credit score and still have enough money to cover groceries and gas for the month. You are probably getting the gist of my overwhelming dilemma.

For the last three years or so, I have been trying to pay off debt. I have had some successes, but also some major backslides. But I am truly and thoroughly sick and tired of being so stressed about my overwhelming debt and I’ve recently added some serious motivation to 1) getting out of debt and on solid financial ground and 2) setting a good example as a steward of my financial well-being.

With that being said, I must tell you a little about myself. I am an entrepreneur, who has successfully run a home based business for the past 8 years. I have a Masters degree and market myself as a high tech virtual assistant which typically translates into either business system consulting jobs or technical customer service and project management for small businesses. I love what I do.

I am also a single mom, who gets sporadic financial support for two of my kids from their dad and an adoption subsidy for my other two. My kids are my joy, my reason for everything I do and the reason that I work from home rather than going out and getting a fabulous corporate job with a six figure income (at least that’s how it would work out in my head.)

This past fall I was blessed to fulfill a lifelong dream of adoption and welcomed twin teenage boys into our home on a permanent basis (they had been placed here two years earlier as foster kids and since going home did not work out…) They are my new motivation. You see, my other two children are younger and I anticipated having at least another 6 years to get right financially before I had to think about cars and college, etc. But now, that run is very short, the twins started high school this year and could possibly drive next year (it’s a privilege, not a right, of course.)

So I’ve GOT to get a handle on this. I’ve got to get on solid financial ground. I’ve got to be a good example. And I’ve GOT to do it now.

So now you’ve heard of my greatest shame and my greatest joy. My income comes solely from my business and some support for my children. Now, a drumroll please, my debt consists of:

– a student loan incurred during grad school
– a car loan (I had to get a bigger car with the addition of children, purchased early last summer)
– three revolving credit lines
– a personal loan from my dad (no interest)
– a maxed credit card
– a tax bill (that was due in Dec, 2013)
– a consumer loan.

The total owed is $77,792.80. Ugh, just makes me sick. But I am ready for a fight. I am ready to tackle this and frankly I can use all the help, advice and nudges to stay on track that I can get.


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