As of today…
- Debt 1: $2,260.17
- Debt 2: $6,493.00
- Debt 3: $10,622.55
Grand Total: $19,375.72
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Debt #1 is our credit card that we use and pay off on a monthly basis. That is, we usually pay it off on a monthly basis.
It got a little out of hand at the end of last year after our tenants bailed on us in a house we own and rent out in Las Vegas (another story). About the same time, the heat pump in the house we live in started going kaput and we incurred several hundred dollars in repair expense. Also, our timeshare maintenance fee became due. All of this happened right up to Christmas; thus, we started out the New Year with new debt from our convenience card. Otherwise known as, “Just put it on the card and we’ll worry about it later” card.
We got it under control about the time we went on our Spring Break trip to San Antonio. Yea. So much for that. We have continued to use it since then on the usual things: gas; auto parts and services; registration for kids’ activities… You get the drift.
The plan is to pay off this remaining balance and not to use the card unless absolutely necessary. Not even for gas — we’re switching to the debit card for that. I know, I know … Dave Ramsey would have you budget a cash envelope for gas. But I’m just not willing to forgo the convenience of using a card at the pump.
I had originally stated that we found $2000 a month to put toward debt — $1500 above and beyond the regular debt payments. Time will tell how this works out: I’m actually hoping to pay even more.
Where we are finding the money:
- The Hubs is stopping his TSP contributions.
- We are limiting our giving to our smaller commitments: Compassion International; as well as monthly contributions to a pastor plant in Moldova.
- The house in Vegas finally has a new tenant. We should get our first full rent check this month.
The Hubs not contributing to his TSP — to our retirement — makes me very nervous, I must admit. But it’s also the greatest motivator right now to see this through and to reach our goal as soon as possible.
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{ 4 comments… read them below or add one }
I applaud everyone who is willing to blog about their debt and their journey to getting out of debt. I'm tempted to do the same, but I fear many people would faint at our debts (most of which is business related). We used to be debt free, so I am confident that we will be there again. Not as soon as I would like, but there nonetheless.
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That would make me nervous too , but I hope soon you’ll get to where you are feeling good to start again.
And yay for new tenants.
Are you renting because you can’t find a buyer or you’d rather rent than sell? (You don’t have to answer if you don’t feel comfortable ok
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Good stuff! Congrats!
Be careful of WHEN you pay your credit card bills off each month-you want to find out when they actually report to the credit bureau each month. If the bureau can record that there was a balance and it was paid off in full, it helps your credit but only if the balance and payment can get reported to the bureau. (you may want to research more articles regarding that)
Also, be careful with the debit cards at the gas pumps. For you it may not matter because you’re on top of your budget, but what most people don’t realize is that gas stations take out $1.00 at the time of a gas purchase and take the rest of their funds few days or a week later (if you use a debit card as debit or credit; does not apply to credit card). So if you’re particular about your checkbookeeping, this may drive you nuts.
Thanks for a good post and for being the budget guru for everyone to see!
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I got Dave’s book from the library and am currently working my way through it. We don’t have any debt other than our mortgage but we will have soon if we’re not careful.
We have repairs that need doing. So we need to buckle down and save more money in order to replenish our EF.
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