$560 on the Car!

Got another paycheck, and I'm off to the bank! I am so close to the finish line I can taste it!! WooHoo!!

Selective Memory Strikes Again!

So, on my last post I said I would just have the home improvement loan, student loan, and house left after paying off the car. Well, that was a bit of wishful thinking and selective memory. I left out the lovely credit card. What do ya' know? You'd think I would remember that one. I must have bought some wonderful things with it. I'm sure they were necessities. Right? (Insert sarcastic smirk here).

Ahh, I can't wait to be debt-free and a cash queen!

$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.