My 100th post couldn't come at a better time.
I received a $4000 scholarship today from NAWIC-National Association of Women in Construction, El Paso Chapter, 248.
I was floored by their generosity and their dedication and commitment to my education and my career goals.
What a year...
After this week’s payments, my remaining debt balances will be:
Asset Retrieval- $2498.80
Dentist- $1235—will verify with my folks.
GECU- $525.89
Not a lot of debt payoff this month, but I’m thinking I beefed up my savings enough to where I can focus primarily on paying off debt the last couple months we have left.
Total debt payoff for August: $399
$200 to Asset
$130 to Dentist
$69 to GECU
I was just looking through my savings folder I have on my computer, taking a look at where I started.
Unique/Library- $111.95? paid off
CMI/Time Warner- $154? Paid off
JSZ/Sutters Wood- $212.42? paid off
RJM ACQ/WAMU- $412.47 paid off
Target card-$ 570.51? paid off
Midland/Chase-$707.50? paid off
Capstone- $2500.15? paid off-ish
Mysterious time warner? Knocked off
Total Debt payoff-ish: $6636 (inclusive for everything)
My cell phone bill is gone, my GECU loan is shrinking, Asset retrieval will be a one shot payoff for the remaining balance at the end of the challenge at which it should be around $1000 and they’ll work with me then, my dentist bill will be knocked out in 19 weeks at $65 a week or the first week of January…
I’ve received $5000 in scholarships not to mention the $7300 in financial aid each year for the next three years…
What a year. Regardless how the challenge ends, I feel like a winner. Especially with the team I’ve been blessed with.
Thank you guys for your support, your advice, and your friendship.
Showing posts with label Payoff. Show all posts
Showing posts with label Payoff. Show all posts
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I know that many financial experts recommend paying of debts - especially high interest credit card debt first, before saving. Conventional wisdom suggests that paying off high interest debt garners an immediate 13%, 18%, 21% (or whatever) rate of return on your money. Makes sense. I guess.
Here's the problem. If you take all of your available cash and pay down debt, then what will you do in case of an emergency? (eyes on your own paper) Right! You'll go into debt - whether it's putting the charge on the same credit card which now has more room, or borrow it from your next door neighbor, along with a cup of sugar. Kinda defeats the whole purpose, no? On top of that, the emergency will actually cost you more in the long run, because of the interest you'll pay, and the fee that it may cost you to use your credit card. For instance, some utility companies and insurance companies charge a transaction fee for paying with a credit card.
Sometimes the emergency is a mini emergency where you can't pay with credit. Your transmission goes costing more than the available credit you have on your Visa. Not to mention that your goal in life is to dig yourself out of debt, and continuing to charge feels like running up the down escalator. What's a debt-buster in training to do?
I say: Split the difference. I find it a bit more psychologically comforting to save some money for emergencies, even if you are paying off debt. To my mind, it works the same way as the debt snowball. The debt snowball, class, is a method of repayment where you pay off the smallest debt first, regardless of interest rate. Once you have success in eliminating the first debt, you get a psychological boost and roll the former debt payments into paying off the next debt on the list. Psychologically, a good idea. Financially, not so much. But sometimes the process is not as crucial as the end result.
I have come up with a highly complex and intricate formula: 75/12.5/12.5. I take roughly 75% of my income and put it towards debt. I divide the remaining in half - thus the 12.5% - and put it towards savings. For me, that means 12.5% goes to my emergency fund -towards the requisite 6-months, minimum, that we all should have, and the other 12.5% goes towards regular weekly budgeting.
For me, even though the savings may come in more of a drip than a gusher, it is comforting to see the balances limp along. Little by little, they will begin to pick up steam and break into a fast walk, a trot, a sprint....
Here's the problem. If you take all of your available cash and pay down debt, then what will you do in case of an emergency? (eyes on your own paper) Right! You'll go into debt - whether it's putting the charge on the same credit card which now has more room, or borrow it from your next door neighbor, along with a cup of sugar. Kinda defeats the whole purpose, no? On top of that, the emergency will actually cost you more in the long run, because of the interest you'll pay, and the fee that it may cost you to use your credit card. For instance, some utility companies and insurance companies charge a transaction fee for paying with a credit card.
Sometimes the emergency is a mini emergency where you can't pay with credit. Your transmission goes costing more than the available credit you have on your Visa. Not to mention that your goal in life is to dig yourself out of debt, and continuing to charge feels like running up the down escalator. What's a debt-buster in training to do?
I say: Split the difference. I find it a bit more psychologically comforting to save some money for emergencies, even if you are paying off debt. To my mind, it works the same way as the debt snowball. The debt snowball, class, is a method of repayment where you pay off the smallest debt first, regardless of interest rate. Once you have success in eliminating the first debt, you get a psychological boost and roll the former debt payments into paying off the next debt on the list. Psychologically, a good idea. Financially, not so much. But sometimes the process is not as crucial as the end result.
I have come up with a highly complex and intricate formula: 75/12.5/12.5. I take roughly 75% of my income and put it towards debt. I divide the remaining in half - thus the 12.5% - and put it towards savings. For me, that means 12.5% goes to my emergency fund -towards the requisite 6-months, minimum, that we all should have, and the other 12.5% goes towards regular weekly budgeting.
For me, even though the savings may come in more of a drip than a gusher, it is comforting to see the balances limp along. Little by little, they will begin to pick up steam and break into a fast walk, a trot, a sprint....
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Hopefully I will never have to say that out of fear. I've devised the coolest system known to man. I wanted to wait and test out my system before I blogged about it and I've got to admit its worked out better than I can even begin to tell you about.
First step, visit Powerpay.org and get your Debt Snowball going. Questions about this, see my second or third post to learn about how to use this helpful website.
Second step is to set a calendar for repayment on each snowball step to each debtor. This is going to be your financial plan until you are debt free.
Third step is to get a box of envelopes. One envelope for each debt you plan on repaying until all your debt is paid back. An optional step is to include a letter inside your envelope explaining your anticipated payment plan with dates and amounts, the final envelope should request a receipt of full and complete payoff.
Fourth step is to neatly organize the envelopes by date in a shoebox or other box.
Do you know what you have now? A box. Full of your debt. Its something you can see, feel, smell and once you throw your payment (in the form of check, cashier's check or moneyorder) something you can lick and mail. Its your debt and you are now responsible for mailing out each and every single envelope until you are debt-free. What does this mean? Well your debt is now in physical form. You can see the envelopes disappearing over time and it means significantly more to you. You can't avoid something that you are physically responsible. Having your debt scattered over little bits of paper, in your mind or in a filing cabinet keeps it out of sight and out of mind. A box full of your debt strategically placed on your dresser, kitchen counter or next to the front door is something you'll have to interact with.
My debt is in an old fedex box. I put christmas paper lining the bottom and my debt repayment calendar taped to the front. Its on my dresser in my bedroom. I know where it is, I have a better understanding of what my debt situation is like and I couldn't be more happier! Sending the first envelope out was terrifying, but you know I'm getting better. And the envelopes are disappearing! AND I CAN SEE IT HAPPEN!!!
So, I ask you... Where's your debt?
First step, visit Powerpay.org and get your Debt Snowball going. Questions about this, see my second or third post to learn about how to use this helpful website.
Second step is to set a calendar for repayment on each snowball step to each debtor. This is going to be your financial plan until you are debt free.
Third step is to get a box of envelopes. One envelope for each debt you plan on repaying until all your debt is paid back. An optional step is to include a letter inside your envelope explaining your anticipated payment plan with dates and amounts, the final envelope should request a receipt of full and complete payoff.
Fourth step is to neatly organize the envelopes by date in a shoebox or other box.
Do you know what you have now? A box. Full of your debt. Its something you can see, feel, smell and once you throw your payment (in the form of check, cashier's check or moneyorder) something you can lick and mail. Its your debt and you are now responsible for mailing out each and every single envelope until you are debt-free. What does this mean? Well your debt is now in physical form. You can see the envelopes disappearing over time and it means significantly more to you. You can't avoid something that you are physically responsible. Having your debt scattered over little bits of paper, in your mind or in a filing cabinet keeps it out of sight and out of mind. A box full of your debt strategically placed on your dresser, kitchen counter or next to the front door is something you'll have to interact with.
My debt is in an old fedex box. I put christmas paper lining the bottom and my debt repayment calendar taped to the front. Its on my dresser in my bedroom. I know where it is, I have a better understanding of what my debt situation is like and I couldn't be more happier! Sending the first envelope out was terrifying, but you know I'm getting better. And the envelopes are disappearing! AND I CAN SEE IT HAPPEN!!!
So, I ask you... Where's your debt?
Greetings,
I have an insane amount of debt. Nothing to show for it. I decided in the summer of 2006 that I was going to sell everything I owned, charge up a bunch of credit cards and move to another city. Another country. I went to Thailand. I'll say it once and I'll say it again: I don't regret going, I just regret how I went.
And I'm still trying to get my life back on track. But now I can officially start, and here's my plan that you can follow too.
First, if you're anything like me, you need to know exactly who you owe and how much you owe. If you stop paying on your credit cards, like I did, or if you have floating utility bills, like I do, that you didn't make the last payment on, chances are the company you had those bills with has sold them off to collections agencies. They've probably accrued some amount of late fees, interest or collections fees. The easiest way to get all of this information is to obtain a credit report for all three credit unions. I say all three because some companies report on all three, only two or just one, so you want to be sure you've got all the information you need to start your financial recovery on the right foot.
Second, take a look at all the reports and make sure you can account for each purchase. You'd be surprised how many things sneak onto your credit report. If you search google for the company's name that is handling your debt, or you do an inquiry with the various credit companies, you can find their contact information. If you feel that there has been an error on an entry or entries on your report, dispute it. Even if you're wrong in the end, better to be safe than sorry.
Thirdly, don't feel overwhelmed. You knew you were in debt, this is just giving you a number to tell you how far into it you were. You can use this as a source of motivation to empower you to turn information into action. Visit Powerpay.org to create a detailed list of your debts in an easy to read excel sheet. You can enable a payment calendar that will allow you to see what would happen if you put x amount of money towards each debt. Once one debt is paid off, the alloted money that was going towards that debt is now going towards another and so on and so forth.
Once you've selected what state you live in, created an account and arrived at the main screen, you can then enter in your debts. Include the company name, amount and interest rate. Save and the website will computer how long it would take you to pay off your debt:
This is what it should look like.
Now click on the "Payment Calendar" link above the debt information. This will take you to a second page. Select from a few options at the top, I recommend Highest Interest Rate First or Lowest Balance first.
Select calculate and scroll down to the bottom of the screen to view your projected calendar:
You will notice that when one bill is completely paid off that allotted amount is assigned to another bill until all bills are paid off. In just over a year and a half you can pay off almost $2500 in debt including interest! This website is truly a valuable resource.
And finally, take this information and roll with it. Its not going to be as easy as it was getting yourself into debt in the first place, but it will be worth it. If things get too tough, recalculate your powerpay plan. Its okay to stumble, just don't give up! Stick with it, stick with me and we'll make it together!
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
I save, you save is brought to you in part by... me! Krystal! I'm 23 years old and I'm out to save some money. I'm participating in a savings challenge here in El Paso with a great credit union, GECU. If I manage to achieve or exceed my goals for the year 2009, I will win the grand prize of 10,000 dollars! So help me out, by posting tips, links to helpful websites and ideas to help me save money! :)
Money might not by happiness, but not having to stress about money problems will make you a happier person.
Peace, love and a handful of pennies.
Krystal
I have an insane amount of debt. Nothing to show for it. I decided in the summer of 2006 that I was going to sell everything I owned, charge up a bunch of credit cards and move to another city. Another country. I went to Thailand. I'll say it once and I'll say it again: I don't regret going, I just regret how I went.
And I'm still trying to get my life back on track. But now I can officially start, and here's my plan that you can follow too.
First, if you're anything like me, you need to know exactly who you owe and how much you owe. If you stop paying on your credit cards, like I did, or if you have floating utility bills, like I do, that you didn't make the last payment on, chances are the company you had those bills with has sold them off to collections agencies. They've probably accrued some amount of late fees, interest or collections fees. The easiest way to get all of this information is to obtain a credit report for all three credit unions. I say all three because some companies report on all three, only two or just one, so you want to be sure you've got all the information you need to start your financial recovery on the right foot.
Second, take a look at all the reports and make sure you can account for each purchase. You'd be surprised how many things sneak onto your credit report. If you search google for the company's name that is handling your debt, or you do an inquiry with the various credit companies, you can find their contact information. If you feel that there has been an error on an entry or entries on your report, dispute it. Even if you're wrong in the end, better to be safe than sorry.
Thirdly, don't feel overwhelmed. You knew you were in debt, this is just giving you a number to tell you how far into it you were. You can use this as a source of motivation to empower you to turn information into action. Visit Powerpay.org to create a detailed list of your debts in an easy to read excel sheet. You can enable a payment calendar that will allow you to see what would happen if you put x amount of money towards each debt. Once one debt is paid off, the alloted money that was going towards that debt is now going towards another and so on and so forth.
Once you've selected what state you live in, created an account and arrived at the main screen, you can then enter in your debts. Include the company name, amount and interest rate. Save and the website will computer how long it would take you to pay off your debt:
This is what it should look like.
Now click on the "Payment Calendar" link above the debt information. This will take you to a second page. Select from a few options at the top, I recommend Highest Interest Rate First or Lowest Balance first.
Select calculate and scroll down to the bottom of the screen to view your projected calendar:
You will notice that when one bill is completely paid off that allotted amount is assigned to another bill until all bills are paid off. In just over a year and a half you can pay off almost $2500 in debt including interest! This website is truly a valuable resource.
And finally, take this information and roll with it. Its not going to be as easy as it was getting yourself into debt in the first place, but it will be worth it. If things get too tough, recalculate your powerpay plan. Its okay to stumble, just don't give up! Stick with it, stick with me and we'll make it together!
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
I save, you save is brought to you in part by... me! Krystal! I'm 23 years old and I'm out to save some money. I'm participating in a savings challenge here in El Paso with a great credit union, GECU. If I manage to achieve or exceed my goals for the year 2009, I will win the grand prize of 10,000 dollars! So help me out, by posting tips, links to helpful websites and ideas to help me save money! :)
Money might not by happiness, but not having to stress about money problems will make you a happier person.
Peace, love and a handful of pennies.
Krystal
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