Hitting a pretty big SNAFU on the debt payoff goals. We’ve been doing great – by refinancing the cars, selling some stuff, trimming our budget we’ve managed to pay off our credit cards… only the two car loans (targets 1 and 2), student loans and a mortgage. Between all of the accounts we pay 6.3% APR – not super-duper bad.
We are being moved for work though. While we are pretty sure we will be able to sell our home for a little more than our mortgage – we will be getting killed on realtor fees (already too stressed-out to do this ourselves). We have been saving like crazy so that we can write a check to cover the difference instead of opening another loan. We have been using a rewards credit card to pay everything and then stashing the cash away. We are already half-way to our worst-case scenario estimate for cash needs. My hope is that we do well enough on the house to pay the credit card off right away.
baby steps indeed. All my progress gone in an instant of the stress compounded of a 10 month old and wife in her third trimester. That was a month ago… I was back up to my starting weight (175 lb 5’6” with a light frame) by riding along on pregnant cravings of fast food – ice creame – fatty meals… then I said enough was enough. I started working out again – started eating better – cut down on alcohol (weekends only) and got back to sneaking-in activity into down-time. And am back down to my it’s-starting-to-get-really-tough-to-loose-anymore weight of 159-161. Tomorrow I begin shifting focus and will convert half of my pure-cardio workout to strength training. I expect to loose no more pounds but continue seeing a significant decrease in BMI and try and work toward “chiseled.”
Getting out from the shackles of debt is a long trip. It’s really easy to be discouraged – this is why it’s important to keep a record of your accomplishments. I may be a bit obsessed with spreadsheets; however -as long as I have access to it I can tell you which accounts are paid off, what percentage I am complete with each account, how much LESS interest I pay now versus a year ago, where I should be after next payday, the next and next – or around forty other metrics. The most important thing to keep track of: How much less interest you pay month to month – and try to make that number grow.
When discouraged looking forward – take the time to look backwards – you’ll feel better unless you’ve been moving backwards – then you really need to look back at your errors.
Screw the buzzwords: snowball, snowflake, avalanche, calving or whatever – just remember this: Every dollar you send at your debts will decrease them.
I dare you to find $100 bucks to trim from your expenses this month and send that at a debt – next month find fifty more… then you’ll be hooked on trimming expenses.