Not Impressed with our Debt – Week 39 of 80 – April 2019 Results

April was catch up month for us so as expected the results are not spectacular.

We started off the month with $25,421 and as of today we are at $24,750. That’s down $671 which is the lowest I think I have had so far. But hey, it’s still forward progress right?!

I was only able to make a regular payment to the home equity this month so that debt went from $900 to $578. In the month of May baring anything unforeseen we should be doing our happy dance for paying it off! Fingers and toes crossed.

Even though April was less that productive in my mind I did realize something very exciting which will keep us motivated and moving forward in getting our debt gone for good.

I really started all of this paying off debt stuff in August of 2014. Our starting point was a whopping $143,775.35. Totally embarrassing right? Keep in mind that part of all of that is our mortgage but only about $50,000. That means over $90,000 was pure car, credit card, and home equity loans. Yikes right?

But here’s the cool thing, in less than 5 years, we have paid off an astonishing $71,300! Our total debt right now including house, car, credit cards, and loans is down to $72,475.

I couldn’t believe it when I tallied it. I have kept a white board since 2014, diligently marking down our progress every week and month for each debt when have. Cars have come and gone and credit cards have been paid off one by one.

My husband and I are pretty proud of what we have accomplished. It makes it worth the hard work we put into it. Hopefully some day we can pay for a vacation by swiping our debit card and not our credit card right?

We will see what May brings! See you next update. -MM

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Not Impressed with our Debt – Week 35 of 80

It’s been a stressful month in lots of ways but being at week 35 of our 80 week debt paying challenge, I expected it.

We are to the point in our debt payoff that each week we get closer to blowing this thing wide open but it’s a delicate balance as well.

Two weeks ago I overdrew the checking account. I should have done things a little different that week and not pushed so hard. I lost $40 of our hard earned money which sucked but I had to move on from the massive guilt I felt over it. Feeling guilty is not productive. I am a grown woman and I constantly am pushing the envelope with this. I take full responsibility.

Unfortunately I did not get the home equity paid off this month like I wanted but I did pretty good! At the beginning of March it was just under $1900. Right now that balance, without closing fees, is $900! Almost there!

My husband’s car was in need of a pretty major repair that cost $500 today. He was nervous even driving it very far. Although I was bummed because I knew that meant I couldn’t finish paying off the loan, it did make me feel good knowing we could pay for that repair in cash and not use the credit card. Huge progress for us!

At my last results update in mid February our debt was $27,011. As of today our debt is $25,421.

I am happy to report since August, which is 8 months, we have paid off $10,500 in total debt. Yippee!

We will see what April brings us. I will check in again in a few weeks.

How are you doing on your debt paying journey? -MM

Not Impressed with our Debt – Week #33 of 80 – Paying off the Home Equity Status

I am determined to pay off our Home Equity this month. We only had $1900 left to pay on it and this week our Federal Tax refund came in so I pay $543 right to the principal of the loan. Right now the balance is about $1346.

Keep in mind that figure is not actually the payoff amount. When I made that payment I asked the teller for a loan payoff amount through the 31st of March. The actual payoff figure is around $1400.

So why is the payoff figure more than what is says I owe when I look at my account on-line.m? It’s more for a couple of reasons. One, because the interest is not fully figured in there and two, the bank charges a fee to file your mortgage discharge with your County Clerk.

Let me back up to when you sign for a new mortgage or home equity loan. When you buy a new house or apply for a home equity on your existing home, your mortgage is recorded in the county clerk’s office where you live. It shows up on your property’s history report which they call your Abstract. When you pay off your mortgage or home equity the bank is supposed to file a discharge of mortgage with the county clerk that you have paid the loan in full thereby your mortgage has been satisfied.

When you go to sell your home later, your Abstract should show the bank has filed the discharge of mortgage. If they fail to do that, that can be a real problem. Many times your original mortgage, if it was a 30 year mortgage may have been assumed by another bank more than once. Many old banks have closed and new banks have assumed the mortgages from those banks. This may be the reason a discharge was never filed.

When you pay off any mortgage or home equity, follow up with your mortgage company to make sure they indeed filed a discharge. It will save you time and money later on and a whole lot of aggravation.

I hope to get another good chunk of that loan paid off this week. I’ll check in with you again next week! -MM

Not Impressed With Our Debt – Weeks 28-30 of 80- Home Equity Loan

Home Equity Loans can be wonderful things if you are doing a major project on your home, like renovating your kitchen. A new kitchen adds value to your home but unfortunately when you take out a home equity loan just to consolidate debt you don’t have a pretty new kitchen to show for it.

We took out a home equity in 2014 for $17,000. It is due to be paid off in August of this year. I don’t want to wait that long though. I want it gone, and I want it gone NOW. We owe just under $1900 on it. I am paying that sucker off next month. Seriously. I mean it. I don’t care if we have to eat peanut butter and macaroni all month, that home equity will be history by March 31st.

I have a plan. It may not be popular with my family or the financial experts but sometimes you just gotta take a leap of Faith. For me it’s all about cash flow. Paying this loan off now will not save us much on interest but that’s not the point. Paying it off will free up $328.00 a month and that burden that has kept our hearts and minds hostage for the past 5 years will be gone. Paying off the Old Navy freed up $300 a month and saved us thousands in interest a year.

I also realized after looking at our cell bill that we were paying $26 a month just for protection for two cell phones. Oh yeah…you bet I canceled that real quick! Scott’s cell phone was just paid off this month and it’s 2 years old so if he drops it in the toilet we’ll just get another one. The payment for that phone was $30 a month. Hey, now look at that, we just had our bill go from $297/mo to $239/mo. Every little bit helps!

I had a feeling all last year and I continue to have it this year, the feeling I should pay off any loans that are attached to our house asap. I don’t know if it is the political climate or what but I am listening to that feeling. I paid off the home equity line of credit with a no interest credit card and now I want the regular home equity gone too.

Say Geronimo my friends! I’ll check back in soon. Hope your debt is shrinking too! -MM

Not Impressed With Our Debt – Weeks 24-27 – Up to Date Results

Hi all! I looked back to see the last time I posted a monthly result and I haven’t posted results since October! Yikes! Sorry about that.

Between Christmas shopping bills and property tax bills that came due in January I am a little behind in paying off debt but I do have some progress to post about!

In October I posted that at the end of the month we were down to owing $30,531 in debt.

As of now our debt owed is $27,011. That’s down $3520.00. Remember I talked about owing for medical bills for a night in the emergency room that added up to at least $3500? Well I haven’t gotten the bill for it yet so as of right now that $27,011 is still a solid number.

Now that, the Old Navy balance is gone I need another bill to focus my energy on so this time I am picking a bill that has a smaller amount owed, our home equity loan. Right now the balance due on that loan is $2,207.46. Seems a much smaller goal to pay off than that $6500 Old Navy balance right?

If I can get this bill paid off quickly it will free up that payment of $328.00/month which will give us a much greater cash flow.

I told my husband every time we pay a large bill off we will add another $10 to his 401k retirement a week. Doesn’t sound like a lot but when his employer matches that amount it will definitely add up. So far we have increased his 401k contribution $20/week since December.

How are you doing on your debt? Do you use a budget? See you next week! -MM