February’s Progress
- Debt #1 Original Balance (in May): $2260.17
- Paid Off June 2009
- Debt #2 Original Balance (in May): $6493.00
- Paid Off August 2009
- Debt #3 Previous Balance: $1,627.71
- Paid $1,627.71
- Paid Off!
Original non-mortgage Debt (in May): $19,375.72
Current Grand Total: $0.00!
Oh, but this isn’t the end! Folks, we will now be moving on to Mortgage Debt and all its dirty laundry: Primary Mortgage; Second Mortgage; even Rental Mortgage! We’ve got it all!
For a Grand Total of…
$312,030.70
How That Breaks Down
- Second Mortgage: $31,621.58
- Primary Mortgage: $171,009.05
- Rental Mortgage: $109,400.07
- With the lowest balance and an interest rate of 8.34, the second mortgage will be what we tackle next in our snowball. We really should never have taken out a second mortgage in the first place, but that’s neither her nor there.
- First we will work on bulking up more savings, starting with contributing to our ROTH for the 2009 tax year. As Frugal Dad pointed out in a comment on a previous post, ROTH contributions can be tapped penalty-free: it’s for the interest/earnings that you need to wait. (At least five years?)
- Once we have made all the ROTH contributions we can muster before the deadline in April, we will bulk up some more savings in a Money Market account and start tackling the Second Mortgage. We haven’t yet decided how much is enough in a Money Market account before we start snowballing the Second Mortgage.
- Remember, we’re scheduled to move Summer of 2011. The whole point of this blog is not only to become debt-free, but to stay that way! Moving expenses have always been our Achilles’ Heel. Our Expected Emergency, so to speak. It’s time for that to stop.
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You the man! You’re amazing!
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AWESOME – congrats! $19K in less than one year, though? HOW?! Guess I’m going to have to go back to the beginning & start reading for the answers. I’m getting a sizable tax return and am going to pay off 3 debts – could pay off another, but want to keep some money in an emergency fund so I don’t go down this path again. Have a vacation fund & Christmas fund set up to automatically withdraw from my paycheck, so hopefully I will end the year better than I started it. My goal is to have all non-mortgage debt paid off by the end of 2011 – will be sooner if I get off my butt & get a 2nd (PT) job for awhile…
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jolyn Reply:
March 2nd, 2010 at 3:52 pm
Hmm… HOW? Good question! I thought about answering real quick here, but that probably deserves its own post. Yes, you could read from the beginning. But I do think a recap is called for. A summary, of sorts. Good idea!
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Congrats! I see now that it is possible to chip away at this consumer debt
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I love your transparency and such an encouaragment for those struggling to do the same. And your writing style is delighttful! You are a gifted writer and worth my time for that, if nothing else. Press on.
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jolyn Reply:
March 2nd, 2010 at 10:06 am
Donna,
Did someone pay you to say that? Why, you must made my day! Make that my week. My month. Why, your comment might even keep me going for another year! *sigh*
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What a monumental thing you have already done in less than a year! I know you will reach your goals and you will be blessed for your efforts!! So amazed by you…
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first of all: I love the title of this blog, brilliant. Second, I have very little debt on my credit cards but it’s hard to pay for day to day things and still pay the mortgage. I struggle but I believe if I just keep working the money will come.
Thanks so much for stopping by my blog. Loved your comment. Dead on! Ha ha
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jolyn Reply:
March 2nd, 2010 at 10:09 am
I wish I could take credit for the title! But I kind of “stole” it from something. “Shhh”, don’t tell.
Ah, yes, work. The crux of the matter, isn’t it?
I think we might have a mutual friend? Christy (Potter) Kass? Christy and I went to high school together. Oh, that our debts would be so small as this world.
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We are so proud of you!
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Rock on!!! Now, to get that house sold in NV!!!
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jolyn Reply:
March 2nd, 2010 at 10:11 am
Are you in the market?
HAHAHAHAHa! HEHEHE! HOHOHOHO! HAH! I just crack myself up.
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WOW! This is awesome! I too fell victim to the 2nd mortgage. We told ourselves every excuse under the sun. What was supposed to be a three year plan turned out to be about seven. But that’s o.k. because if we hadn’t finally made a goal to pay off our debt, it would have been 25yrs (LOL!).
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jolyn Reply:
March 2nd, 2010 at 10:14 am
Oh, yes, that is definitely okay. I always say it is much easier to edit a plan than it is to start one in the first place — you’re over half-way there! I just try not to think of the savings we could have if it weren’t for that 2nd-mortgage payment…
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