Wednesday, November 26, 2008

The Facts As They Stand Today:

I had a request to tell what amount of debt I have. I suppose I've intentionally avoided putting this information out there, much like the way we don't like to state just how much we weigh when talking about losing weight.

So, I'm stripping down and getting on that debt scale, and the results are:

Credit Card: 15,000
Home Improvement Loan: 8,000
Car Loan: 7,000
Student Loan: 19,000

TOTAL: 49,000

Now, that does seem (and feel) like a lot of debt. And, just as carrying 50 extra pounds of physical weight makes me feel sluggish and keeps me physically inactive, carrying around that debt makes me feel financially sluggish. But, it is what it is. I just need to take out one chunk at a time. Here are the possibilities for how to tackle it.

1,000 a month = 49 months (4 years)
1,500 a month = 33 months ( under 3 years)
2,000 a month = 24 months (2 years)

So, just as losing 50 pounds takes 1-2 pounds a week (accomplished through controlled portions), so will debt payoff be accomplished. Little by little, month by month.

I'm aiming for 2,000 a month, but I'll be happy with any amount that lowers balances and closes accounts over time.

Happy Thanksgiving!!

Wednesday, November 19, 2008

Getting that Ball Rolling Again! ($620 to CC)

Patience is indeed a virtue. Although I was disappointed that I had made poor choices that kept me from dwindling our debt for a while (and indeed increasing it through unwise purchases), I am happy to report that the money is rolling in again.

I've taken on a regularly scheduled testing session, and we're tightening the family budget a little more to squeeze out what we can from there.

I'm very happy to report that as a result of "falling off the debt snowball wagon" I have seen the light and taken on renewed vigor in paying off debt and living a life of cash.

Saturday, October 4, 2008

Adding Insult to Injury

So, the spiral started off with a couple of luxury purchases, then turned into necessary spending. Then, along came a defining moment. My dog got very sick, so I took him to the vet. He had gone from 18 lbs to 14 lbs. And, it turned out he had a tumor the size of a softball attached to his liver. It was surgery (with no guarantee that he would survive or that it wouldn't be cancer) or euthanasia. The estimated cost was over $1,000. I knew we had already spent money we didn't have on electronics, furniture, and then teeth and tires. The "logical" decision would have been to put him down. I couldn't choose to put him down. And, I have a husband who, although he doesn't love my dog (who sometimes pees in the house) he loves me so much that he said, "I want you to do what will make you happy. I don't want you to regret that you didn't do what you could."

Well, approximately $1,600 later, the dog is recovering wonderfully. The giant tumor was indeed cancer, but they got it all, and he has a good prognosis.

Oh, and did I mention that my testing sessions have "dried up"?

Well, I'm still in good spirits, economy as it is and all. And, here's why...


1. We can afford to pay our bills every month(even if not aggressively as I'd like)

2. More work will come along again that meets my needs (maybe more testing sessions will open up again, or tutoring, or something else.)

3. The worst-case scenario for me would be that we remain as we are for 2 more years until my youngest starts kindergarten, then I get a teaching job. One year of teaching income would wipe out what we've got in credit card, student loan, home improvement laon.


I have to remind myself that my work situation is a luxury, not a necessity, because I intend to be home more than anywhere else while my kids are little. And, if that means the snowball stops rolling on debt, then that's okay. I also learned that when the money IS coming in, don't take a break from the debt snowball to treat yourself to a luxury. It would feel so much better buying a flat screen or laptop with cash!!

So, lessons learned.

I hope my setback has not discouraged anyone from their goals. Instead, learn from my mistakes. And, just as we plateau when dieting, so it seems we can plateau in dropping debt. However, the only way we can truly fail is if we stop trying.


Blessings!

Tuesday, September 23, 2008

Confessions of a Shopaholic!!!

Well, I wish I could say that I've just been drastically reducing debt. But, unfortunately, I have to confess I have fallen off the wagon, BIG TIME. Well, maybe not big time. But, my balance isn't going down right now.

Here's the deal: The summer began, I did very well with budgeting for our family vacation trips to see family. Took cash from savings that I'd saved up all year.

Then, instead of putting our tax rebate $ on the debt snowball, I finally acquiesced after a year of my husband wanting a flatscreen TV. I let him splurge on something he wanted so much. Well, it was "free" money, right? The sprial began shortly thereafter.

My laptop (which was free for me-a hand-me-down from family) went dead. So, I decided I could buy a new one. I was making good money, and I would make this one purchase for myself. Then, we'd be back on the wagon. So, I did it.

Next, my husband noticed that our dining room chairs were falling apart. He actually didn't sit on certain ones for fear of collapsing them. So, we looked around, and decided to buy a new dining set. Again, more $ on the card.

OK...it was time to stop the bleeding. No more purchases! We're done.

Around this time, my testing schedule slowed down. So, my money coming in to put on debt was coming at a trickle instead of a pour. Well, as long as something was being put toward our debt we'd be fine. It would just take a little longer to pay off. Still, we're in good shape...


Then, I cracked a tooth. Went to the dentist...maxed out an entire year's dental coverage and paid hundreds out of pocket (or on the card as it were), only to have to return for MORE out-of-pocket work.

Now, the truck needs tires!!!


Agghhh!!! This is that point in a diet when you just say, "To hell with it, and eat an entire cake!!" BUT, I'm not going to do that. I'm going to appreciate that I'm better off today than I was before. I'm just not where I wanted to be. I re-assess, and I move forward.

Blessings.

Sunday, August 3, 2008

$580 paid

Another payment made to the card. :-)

Tuesday, July 1, 2008

$2180: So Busy Paying, Don't Have Time to Post!

I made a $320 payment to the plastic monster on early June, and another $360 a couple of weeks later, AND, I just put $1500 toward kicking that money-sucking monster out of my house & wallet.

:-)

Monday, May 26, 2008

$950 paid

I've been so busy that I neglectd to report this payment when it was made. It is becoming an ingrained part of my routine that I just take my check to the bank and plop a huge payment down on the card that it slips my mind to come home and report it on my blog. That is a wonderful situation to be in. It means I've establish a habit of paying off debt!!!

Thursday, May 1, 2008

$2227 Down!

1 more payment closer to financial freedom!

Friday, April 25, 2008

Tuesday, April 15, 2008

$500 Down!! Sorry Mr. Wallace

Sorry Ed Wallace. Instead of having a $500 car payment (or Fleece...I mean lease payment), I took $500 and put it toward paying off my credit card. I apologize in advance if my decision causes our economy to collapse. I can't say you didn't warn me, Ed.


Yes, I'm still utterly annoyed. See previous post if you're confused.

:-)

Thursday, April 10, 2008

The Most Absurd Widespread Lie About the Economy!

I was listening to Ed Wallace on the radio, and he told a woman essentially that she shouldn't sell her car to get rid of having a car loan because THE ECONOMY NEEDS PEOPLE TO BORROW MONEY AND BE IN DEBT. He said that if everyone stopped borrowing money the economy would collapse. THIS IS RIDICULOUS!!!

If everyone stopped borrowing money, started paying off their debts with what they earned, then they would have CASH in hand to buy what they want/need. When you don't have $1000 a month in loan bills to pay, you have $1000 a month in money to spend. This is not rocket science.

The people who want to sell new cars, houses people can't afford, and furniture on credit would LOVE for you to believe you are helping the economy by going into debt for getting what you want but can't afford outright. The ONLY people who benefit from your buying what you can't afford on credit are the banks who collect the interest and the sales people who close the deal and earn commission.

Our economy WILL NOT collapse because people STOP borrowing money.
Our economy WILL collapse if people CONTINUE to borrow money to the point they cannot pay it back, thereby causing the banks to go under.

$864 to the Credit Card!

I made another big payment on the card. I LOVE seeing that balance dwindle. Due to a small setback, we will be getting this card paid off by August, instead of this month. BUT, we should have the card AND the home improvement loan paid off by the end of the year. THEN, all we'll have left is the student loan and the house!!! I can't wait.

Tuesday, April 1, 2008

$260 on the Card!

Made another payment. I love watching that balance go down.

:-)

Friday, March 28, 2008

$3285.75 to Credit Card!!

We got a bonus check, and put it ALL on the card!! Yippee!!

Cutting Costs

It pays to do some research and make a phone call.

I currently have my home phone, DISH, DSL, and Cell bundled with AT&T. I noticed that my DSL rate went up, and I had been told it would stay the same low rate as long as I didn't change my current setup. Well, that clearly didn't change, yet there went my bill, DOUBLE what I had originally been told it would be. Also, my DISH bill went up by $10.

So, I called ATT, and I let them know I wanted the rate I was promised. I was told there was nothing they could do. I asked for a manager. I was told by her that there was nothing they could do. I let her know that she could accomodate me and knock the $20 off my bill I was requesting, or I could take my $200 a month services and find a new provider. She again said there was nothing she could do. So, I kindly asked her to cancel my DSL service.

I then called the local cable company, and they offered me a package for all services that was the rate I wanted. So, with that information, I called ATT DISH services, and explained that unless they could offer me a competitive rate, I would be transferring all my services to the other company. The person I spoke with this time was very helpful and looked at ALL my services with them and how they could reduce my bill. AND, she even offered me what I had wanted in my original call to ATT DSL services. So, I reinstated my DSL with them.

Here's what I ended up with after that call...
$10 off my DISH rate (so, back to what it was)
$20 off DSL (back to what it originally was)
$15 off my home phone package (which I hadn't even asked for)
________
$45 saved from my monthly bill just for making a few calls.

:-)

Sunday, March 16, 2008

How Have I Done it?

Ms. Ambitious posted that question, and it's such an important one that I decided to make it a posting.

First, the debt I have paid down is not all credit card. I paid off 2 cars, sold our motorcycle (which we also were making payments on and paying insurance for), paid off and closed a department store credit card, and then paid off a major credit card.

What I have left, one more credit card, a home improvement loan, student loan, and then the house.

How did I do this?

1. I started checking out books at the library on anything about money management. See the list of recommended books on this site. THE most important book you could read would be Dave Ramsey's Total Money Makeover. But, read LOTS of books. Until you change your THINKING about your money, you will not be able to change your ACTIONS.

2. I wrote down all of our expenses. I looked for ANYTHING I could cut out of our spending. In the beginning I cancelled our cable and cell phones (may seem drastic for some, but it was a decision I felt comfortable making).

3. Since I was/am a stay at home mom, I decided I could do something part-time and put the money I earn toward paying off debts. When I get my paycheck, I drive straight to the bank and put it on the last of our credit cards. I am so excited about the day we pay that off and close that account!

The bottom line is that you HAVE to be willing to sit down, put all the information in front of you (no matter how painful it will be to see the truth), and then be willing to do whatever it takes to solve the problem (i.e. no more eating out, cable, cell, new car, new clothes, etc.)

I would sign off by saying "Good Luck," but the truth is that YOU make your own luck. YOU have the power to change your situation, one strong step at a time.

Blessings.

Monday, March 10, 2008

$480 more PAID!

Made another payment today! I love it!!

Wednesday, February 27, 2008

$640 Paid today!

Got a paycheck. Drove to the bank, and paid a whopping $640 on the credit card! Yay!

Wednesday, February 20, 2008

$400 more!

Made another $400 in payments to the card! Yippee!

Monday, February 11, 2008

$150 Down

It's not as big as the last payment, but it's a payment. And, more $ will be coming soon...tax refund!!! Payday!!! I anticipate this card being paid off by APRIL!!!

Saturday, January 12, 2008

$1,000 to CC!!!

Had a big payday and put a grand on the card!!! I love it!!!

Tuesday, January 8, 2008

$600 to CC

Well, Christmas may have been a time in which I stopped digging OUT of the hole called debt, but the nice thing was that it wasn't a time I started digging down farther INTO the hole. So, life is good. In fact, life is so good, I didn't even post that I'd made this payment over a week ago. Life is good.

I'd better get back to my digging.