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Posts tagged with: wells fargo

Ashley’s New Plan of Action

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In case you’re a new reader – welcome! Thanks for stopping by!

To catch you up….

I first started blogging here in March (Intro post here).

At that time, my #1 goal = eradicate credit card debt IMMEDIATELY!

And, not to toot my own horn, but I’ve done a pretty good job (and thanks to YOU for all the invaluable advice along the way! I’ve learned so much already!)

So as a follow-up to this conversation and trying to decide the next course of action for my debt-reduction plan, I wanted to give you a quick follow-up, along with my new goals:

Order of Debt Repayment (now that WF is paid in full, woot woot!):

  1. Bank of America credit card (goal date = paid by July 2014)
  2. Sallie Mae 8.5% student loan (goal date = paid by September 2014)
  3. Sallie Mae 8.25% student loan (goal date = paid by November 2014)
  4. License fees (goal date = paid by January 2015)
  5. Carmax (goal date = paid by January 2016)
  6. Remaining student loans (no goal date yet because I want to reassess in January 2015)
  7. Medical bills (no goal date yet, see above)

I was originally going to pay the higher interest student debts first, but I can’t do it. I’ve GOT to pay off the credit card debt for my own personal satisfaction and sense of accomplishment.

Next, I will try to get rid of the two high-interest student loans. Getting rid of debts #1-3 will free up $218 in minimum monthly payments (which will be invaluable when my deferment ends on the student loans in February). I’m still a little undecided regarding #4 and #5. I feel like I’d get more personal satisfaction from paying more toward the Carmax loan, but the license has a balance of about $5,500 versus $23,000 for the car, so its a huge difference. We could feasibly pay off the license fees before my student loan deferment ends (in February), but in contrast, there’s NO CHANCE I’ll have the car paid off before deferment ends. Again – I’m trying to free up those minimum monthly payments so they can be applied to the student loans and other remaining debt.

Notice my new “goal dates” for paying off these debts. I have to say as a disclaimer that these are really optimistic dates. Keeping those dates will have us paying about $3,500 toward debt each month (as opposed to the $1500/month we have budgeted). This means we HAVE to keep pulling these big income months like we have the past couple months. This may be possible….I mentioned how “I’m getting a raise” (by teaching additional classes….which started this week so its already “in effect”). Additionally, my husband has hired a new crew of workers so his income will also receive a bump from the work this new crew is able to complete. But at the risk of sounding like a hypocrite (given this morning’s post)…I don’t want to count our chickens before the eggs hatch. I think it will take a few months of my new income + my husband’s new income for us to really know what what we’ll be bringing home each month (in terms of pay). I hope it stays steady with what its been the past couple months, but there’s no guarantee. Only time will tell.

So, yup. Just an update on my new plan of action and goal dates for debt-eradication. I really appreciate all the suggestions and feedback! For example, I had NO IDEA that student loans can’t be consolidated for a lower APR. No point in consolidating then! So those will all be staying separate. I do still plan on trying to refinance the car loan, but I want to wait until my recent huge Wells Fargo payment gets updated with the credit reporting agencies (as I believe it should help give my credit score a little bump).

Hope you all have a great Memorial Day weekend!

 

 


I couldn’t wait!!!

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I broke my cardinal rule. I counted my proverbial chickens before the eggs have hatched. And I’m taking a bit of a risk to do this, but…..

I JUST PAID OFF MY WELLS FARGO CREDIT CARD!!!!!!

(*cue the herald angels singing and imagine my euphoric screams here*)

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This was a big – HUGE – deal.

Starting to write here has changed my life (I know this sounds cliche and silly given that it’s been 2 months, but I’m for real). I swear, if I had continued just as a reader (not contributing), there is NO WAY I would be here right now. These past couple months we’ve done pretty well with pay. So we’d be sporting flashy new clothes, or perhaps taking a fun summer vacation. We would put a little extra toward debt, too, but we certainly wouldn’t be throwing every single penny possible toward debt payments and, thus, be in our current position.

You don’t know how happy this makes me! Since I’ve started here: I paid off my Capital One credit card (once maxed out at $7500, balance when I started blogging in March = $413). Next, I paid off my Wells Fargo credit card (once maxed out at over $10,000, balance when I started blogging in March = $7700). Next on my radar is my last credit card, Bank of America. With “only” a balance of $2200, it should be gone within a month.

How did I do this?

First, we’ve been cutting back (I have a whole money-saving tricks series!).

But let’s not kid ourselves, this has primarily been due to increased income (well above our “average”). And every extra cent has been thrown toward debt.

How else did I do this?

Well…..I cheated the system a little. I couldn’t help it. For those with variable incomes, this is a “do what I say, not what I do” moment…..

I have mentioned before that we have a budget (for all of our minimum expenses and debt obligations). We wait until the month is completely over to determine how much “extra” is leftover, and we apply that money toward debt in the following month (as a one-time snowflake payment).

Wellllllll…….I didn’t do that this month. It was driving me CRAZY to see my checking account balance high enough to pay off the WF CC and I didn’t want to wait until May was over to apply the funds! So, this messes up my budget a little but I ended up doing two things I would generally advise AGAINST for anyone with variable incomes (1) I spent money that will hopefully be in surplus from this month (May) to apply toward the WF balance (even though we don’t know yet exactly how much surplus we will have), and (2) I used some logic to assume that, should our surplus not be as much as I’m guesstimating….then I can “borrow” the money from myself. Our current monthly payment to WF is $900, so basically I’m using the June money and applying it toward our balance NOW instead of waiting a week until June is officially here.

I was able to do this because we currently have these funds in my checking account. If something were to go wrong (i.e., husband has work problems/doesn’t have jobs the rest of the month/terrible problem that costs money instead of making money), then it is still “okay” because I had this money available in my Capital One 360 Savings (I talked about all my assets in this first post…we don’t have a ton, but we do have some liquid cash in a money market account + CapOne 360 savings).

This is definitely “counting my chickens before the eggs have hatched” because the month isn’t over yet….so I have no way of knowing whether our income will truly be high enough to justify a huge (almost $3500) payment toward this bill.

But I did it anyway.

So hopefully when the dust settles from May I’ll discover that I made a good decision (meaning, we had enough “extra” money to cover this expense). If not, then that just means that our savings has decreased a little and – oh well. I think it was worth it to get out from under the 13.65% APR credit card debt (side note:  Now all of our remaining debts are under a 10% APR. For some reason, this feels like a big threshold to cross – even though I won’t be satisfied until we have NO debts and aren’t paying ANY interest!)

Oh happy day!!!!

I am smiling from ear to ear! Bank of America….you’re next! Mwhahahaha!!!!! (<<<< I love my evil debt-paying laugh! Feels so good! ) : )

Thanks for all of your advice, suggestions, and support along the way!!!


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