Is this how you feel while clawing your way up while paying off your debt?
*To view this video on YouTube Click here
Sometimes it does for me too. When it does, what better time to do a recap and look back at your progress?
This gives me a lift. Plus, I get to write snarky comments for each of my piles of debt which is funny in my head. They have taken on animated caricatures as I wrestle with them month over month. They cannot try and hide and multiply like a bevy of rabbits anymore. Not that I don’t think these are adorable, but I know because my daughter has one, rabbits can do a lot of damage.
The figures below cover about a seven week time period from March 13 – May 3. I should try to do this monthly going forward for proper comparison.
|May 3, 2014||March 13, 2014||Decrease||Name||Comment||Snarky Comment|
Mortgage #1 named “Mini”
|Plan is to get Mini paid off by Jun 2015 when she is up for renewal. She’s at a sweet rate of 2.5%.||Mini is sweet and gentle and the only part of our original mortgage, even though she did put on a little weight back there in the 90’s. She’s my Mini Mouse and I don’t mind her at all.
Mortgage #2 named “Small”
|We renegotiated small last year for 4 years @ 2.89%. He will be fully paid by Jul 2017, using snowball method with money not longer needed once Mini is paid and car is paid plus possibly some other funds redirected from Big, if needed, but I hope not.||Small has a bit of an attitude. Meh
Mortgage #3 named “Big”
|Big is our consumer debt that we rolled on our mortgage at D-Day. Big is now at 13 years 2 months down from 15 years 7 months. I’m doubling up the bi-weekly payments which is why such a dramatic decrease. Big is @ 2.79% and up for renewal in 10 months.||Big gets all the attention. He dominates the room in a Michelin Man kinda way. I still have a hard time fathoming him. I keep taking air out of his body suit. He doesn’t seem to notice.
|bought 2011 at 0% interest – will be gone July 2016||She doesn’t bother me too much, she’s my next favourite after Mini.
|This includes a low rate balance transfer card which has $8K owing on it and needs to be fully paid by August, when the interest rate increases from 0.99% to whatever prevailing interest rates are. Not gonna happen. Otherwise we put all our expenses two credit cards that are paid off monthly and that we earn Cashback rewards on. Normally we are paying about $2,500/month for expenses on these two cards.||These are like friends you stay with when you go out of town or family members who host great meals. Like you’re gonna pass up the opportunity for good food or free accommodations? I mean, what are family and long lost friends for?
|4% decrease||OK, I can see I’m seriously kicking some butt here. YAY!
THE TOTALS for the 7 weeks March 13 to May 3:
Mortgage and Monthly expense debt – $70,644 down $5,756 from $76,400, 8% decrease. (This was larger than normal because we had some catching up to do on our low balance credit card. The Irishman had a bit more income in April that I was able to partially catch it up.)
Car Loan – $10,466 down $712 from $11,000, 5% decrease.
Consumer Debt – $179,276 down $5,737 from $185,013, 3% decrease.
Our monthly expenses including Mortgage, Car Loan, utilities, groceries, business expenses (The Irishman is self employed) etc. is about 5K (excluding the Consumer Debt amount above). Could we do better? Probably. Does it feel like we could? Not much.
I do feel better now. Living on a tight budget needs to become a way of life as I approach the retirement home stretch. This is giving us practice.
What do you think of our debt repayment progress?