Personal Finance Debt Balance Updates! And the credit card game: we so own you.

by jolyn on October 3, 2010

in Debt,On Credit Cards,Personal Finance Updates

Whew! Almost forgot this post in all the excitement of my guest post over at Get Rich Slowly. Man, I wish I had more traffic, even half a fraction of a fraction of GRS: the comments are so much fun! Even when it is, you know, about how you let $120,000 slip through your fingertips…

If you haven’t already, please go check out my post over there about How We Became Reluctant Landlords. And don’t forget to read the comments: they can be quite enlightening; and always interesting. I also know J.D. filters out any of the real nasty, crude comments, and I can’t help but wonder if I warranted any…

And thanks you guys who continue to be loyal commenters over here at my humble Budgets Blog. I  so appreciate you. Really.

Anyhoo. Here’s our numbers for the end of September. You astute ones (you know who you are!) might notice a few changes:

Debt Balances as of the End of September 2010:

  1. First Mortgage:  $169,668.33
  2. Credit Card Transfer: $23,975.00
  3. Second Mortgage:  $7,106.09
  4. Rental Property:  $107,319.92

Total Debt:  $308,729.35

This is a difference of –$660.01 in principle from the $308,069.34 owed in primary and rental mortgage debt at the end of August.

Yes, our debt snowball is still just sitting there until we sell this house.

Reminder: Regular Payments Breakdown:

  1. First Mortgage: $1538.63
  2. Second Mortgage: $283.90
  3. Rental Property: $758.00

Total Monthly Payments: $2580.53.

$1,919.93 of this was toward interest alone. But we finally got it under $2000! Woo-hoo!

Quiz: What Changed?

Ooh, we racked up a credit card! But somehow we paid down almost $24,000 from our second mortgage…? Oh, wait. You guessed it! (Or remembered me telling you from last month.) We transferred a chunk of our 2nd mortgage balance over to a credit card offer of 0% interest for one year. And the fee was just $75 — which is made up for in about ten days of not paying interest.

We’ve done the 0% balance transfer before with great success, so I have confidence we can do it again, barring any natural catastrophes or personal disasters.

Changes in Interest Paid to Second Mortgage

After “paying off” $23,000 from our second mortgage, the daily interest that accrues on that account dropped by about $5.50! (To about $1.59 to date.) And the amount of the $283.90 payment that actually goes toward principle (and not interest) almost doubled.

I like that.

Until We Sell This House…

The question I have to answer, exactly:

  • How much will we pay on the 0% offer each month?
  • How much will we continue to put away in cash savings each month?

For the last six months, all available cash has been going into a liquid savings account until we sell this house. So far, we’ve built up $9,111.50.

Part of me didn’t even want to tell you that, because I feel like it should be at least $2k more. We’ve definitely loosened up our spending a bit since we eradicated our initial snowball and found out that we’re moving.

*sigh*

Technically, if we sold our house tomorrow, we’d only owe $176,774.42 to the bank from the proceeds of the sale (give or take some interest). After all, the bank doesn’t care if we have a credit card balance that we know came from the home’s equity.

That does free us from some financial complications in case we have to sell this home at a loss (to us).

Ideally, we will sell this house soon and pay off the first mortgage, what’s left of the second mortgage, AND the credit card transfer. In that order. BUT.

What if we don’t sell in the next few months? What if it takes until Spring? (Or *egads* longer?)

I really want to take some of our savings and max out at least one of our ROTHs by the end of 2010: $5000 worth. Currently, we are not contributing anything to either ROTH. And that’s not good.

We have until April to contribute to our 2010 ROTHs, by which time I’d like to have maxed out both: $10k total. But depending on what this house sells for, I understand that may not be possible. But I’m hopeful.

What would you do? Are you still with me?

Thanks guys, so much, those of you who are still hanging in there with me. I know this is so exciting. Don’t you all wish you were me?

Finance Updates Linky-Linky

Speaking of exciting, I hope you all will link up your own debt and networth updates to my linky-linky below. If you’re reading this by email or your RSS feed, you’ll need to click over to the post itself. But please do: I’m still hopeful that this will be a monthly get-together for all of us keeping track for all the web to see and cheer us on and gain motivation. This is inspiring, people! And if I may speak for myself and others, I’m needing all the inspiration I can get right now. :)

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