Debt Balances as of the End of January 2011:
- First Mortgage: $168,888.42
- Credit Card Transfer #1: $23,160.00
- Credit Card Transfer #2: $5,753.23
- Rental Property: $106,041.05
Total Debt: $303,842.70
This is a difference of -$1,514.30 in principle from the $305,357.00 owed in primary and rental mortgage debt* at the end of December.
*The credit card transfers used to be our second mortgage.
We reached an arbitrary amount in our emergency savings account in January, so I decided to put every extra dollar after that toward debt.
I say arbitrary, because I just picked a nice, round number. I can’t say it’s “3-6 months of our living expenses” or anything fancy like that; what with John running a bachelor pad in California and the kids and I holding down the fort here in Ohio, I really couldn’t tell you at this point what “three to six months of expenses” would even be. I simply decided I was tired of looking at our snowball, just sitting there. I had to give it a little push.
Ideally, this house will sell and at closing we will pay off its mortgage, as well as both credit card transfers. Which used to be the second mortgage. But I think I already said that.
Until then, we’re going to keep rolling that snowball through the Credit Card Transfer #2. If we actually have money left on the table at closing (gasp) and it’s before April… well, then, I guess I’ll actually be able to make some ROTH contributions in time for 2010 taxes.
Breakdown of Regular Payments:
- First Mortgage: $1641.58
- Credit Card Transfer #1: $250.00
- Credit Card Transfer #2: $0 ~ no minimum due in January! But we paid $746.77. Ha! We sure fooled them!
- Rental Property: $758.00
Total Monthly Payments: $3,396.35.
$1882.05 of that went toward interest.
Yes, over half of our payments went toward interest.
I still hate typing that out in black and white.
And now it’s your turn! Don’t forget to link to your post, not just your blog. Happy number crunching!