$900 down, $1,600 to go!

I just paid $900 on my car. The balance is now down to $1,600. I can see the finish line on this one, and I'm so excited! The momentum is building. Once I pay off this one, I've got the home improvement loan of under $8K. Once that's done I only have the student loan and the house.

Cashing in on A Valuable Lesson

I spent 6 hours on Wednesday dealing with what appeared to be a fraudulent charge on our family's debit card. It was roughly $24 charged to a Subway restaurant in a city about 45 minutes away that we never go to.

A call to the bank. A police report filed. Then, the detective work began. I didn't have a phone number to the store on my charge information. So, I Googled the restaurant name and the city. I called the first store on my list and told them I was looking for the store that made this charge. I was directed to Corporate headquarters. Called them. I was told the store was actually located in the town adjacent to me, rather than what was listed on the charge. I spoke with a trainer from that store (it had just opened this month) and he assured me he was going to look into it.

By the afternoon, the trainer called me back and mentioned some problems with the bank mixing up their accounts. They own a Subway and a Little Caesars. Well, the mystery was solved right then. My husband had been to Little Caesar's in our town.

So, I wasted 6 hours of my day investigating a legitimate charge thanks to the bank!!

I was very frustrated and upset at that valuable time I spent due to someone else's mistake. Well, that got me to thinking...how can I avoid having to do this again? I can't keep the banks from making mistakes. The answer: pay with cash. If we had paid for that pizza in cash it wouldn't have mattered how the credit card machine was set up.

I've wanted to switch to the envelope system for some time, but my husband has never been too gung ho on it. Well, now I had a good argument for why we should just pay cash.

So, this weekend, when my husband was paid, I took out the requisite amount for gas, groceries and lunches. I gave him his amount, and I took the grocery money to the store. I knew I had an exact amount I could spend, and refrained from tossing in a People magazine, extra snacks, candles, ice cream, and more b/c I knew I didn't have enough for them. So, the 6 hours I spent on my crazy hunt for an ID thief may just pay off in money saved. Knowing exactly how much cash I have in my wallet to last the week will also make me less likely to stop at a drive-thru. It's much easier to swipe my card than hand over my cash.

Goal-Setting & Goal-Getting!

It's been too long since I've posted. The good news is that business has picked back up, so I'm bringing home money and tackling those bills.

Status update:
Car balance: 2,500
Home Improvement Loan: 8,300
Credit Card: 17,000
Student Loan: 19,000

I'm confident I can knock out that car payment within the next month. The goals as I've laid them out are as follows:

2009: Pay off car and home improvement loan
2010: Pay off credit card and student loan

What's it going to take? 2,000 a month toward one bill until it's gone. Then, move on to the next!!!

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!!

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.

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!

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.