December Debt Update -$27,681

December Debt Repayment

 

Starting-October 1 December 1 January 1 Change from last month
Visa 1 $11,109 $9,789 $9,739 -$50
Amex 1,007 $2,856 $2,810 -$46
Mastercard $8,864 $8,733 $8,475 -$258
Visa 2 $1,920 $1,871 $1,645 -$226
Chase $1,000 $975 $725 -$250
Visa 3 $3,014 $580 $3,160 +$2,580
Best Buy $1,154 $1,635 $1,127 -$508
Total: $28,068 $26,439 $27,681 +$1,242

 

Well, considering I put my $1800 property tax bill on my credit card, I guess I did okay. It is demoralizing to see the balance go up again, but at least I have made marginal progress since October. Right now I am not paying any interest on my cards, but I might pay some interest starting next month.

 

A loan?

 

I spent a few days at my Godmother’s house for New Years Eve. I prepared a proposal to present to her and her husband asking for a $7,000 loan. The purpose of the loan was to pay down my credit cards so that when I refinance the house my rate will be better. My Godparents are well off but I don’t know any details about their finances. While I know they have the 7k, I don’t know if it’s liquid. After thinking it over I decided I wasn’t going to ask them for the loan.

 

First, I don’t know when I will refinance. I was hoping this month but it is look like next month at the absolute earliest. Second, I actually have more money than what is in savings. I inherited my mom’s retirement accounts and I just let them sit and grow until it’s time to take my yearly disbursement. It would be no problem to liquidate some of the accounts to pay my cards off if I wanted. I don’t want to because it’s taxed as income so that is a bigger bill at tax time and also because it will lose out on market growth. But if I’m put off by taxes/potential growth, why should my Godparents risk the same for me? That is ridiculous.

 

So, instead of asking for money I mentioned to my Godmother about how much I need to buy for the house and she happily took me shopping. I only chose things that I would still choose if I was paying for them myself, because I don’t want to take advantage of her kindness. (Okay, I kind of took advantage by asking for three different 6-packs of beer!)

 

A weight has been lifted because I now have most of the necessities to get by on a day to day basis-a bed, curtains for privacy and cookware. I have a few more things I want to buy (a stock pot, a toaster, a roomba..or any vacuum) but those can wait until I find a good deal.

 

The Plan

 

Today I took the plunge and transferred $725 from savings and paid off the Chase credit card! I still had a couple more months of 0% but I wanted to have an empty “every day spending” card. I put my property taxes on the card I normally use for everyday spending and I was worried about paying it before interest kicks in. It will also free up $250/month that I can put to other loans.

 

I will keep plugging away the best I can and I still have the option of asking for help later. But right now I am doing it myself. It’s not the end of the world if I pay interest on the credit cards for a couple of months. Of course I would rather than money go into savings, but in the larger scheme of things this is nothing. I am trying to keep to a strict budget, but I think this first month in my new places means I have to be flexible. There are somethings I just don’t have a need to buy (like salt and pepper. Fruit. Food.) I am serious about righting this ship.

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