A Factory Working, College Grad Getting Out of Debt

November Bill Breakdown

Alright, it’s bill payment time.  These totals are as of November 2nd, 2012.  The budget is still in the works, but now I have a little more understanding of my finances and what leeway I have to get things working.  Also, all of your comments and encouragement have been really helpful!  I’ll be taking some of your suggestions to heart these next coming months.  So… Let’s work this shall we?

 

Car loan: $4,302.77. This one does not need to be broken down.  The loan is through a credit union, and has slowly been paid off by adding an extra $50 onto the principle every month.   As discussed before, I will be doing this every month until it’s gone (or until I need to fund that extra $50 to say… my student loans). This month’s payment will be $301.00

Credit Cards: Last month I revealed that I pay more than the minimum payment.  Some of you suggested actually using Ramsey’s snowball effect however and picking a card to eliminate right off the bat, working with the smallest balances first.  Well, that’s a great idea, but I still like to have a little more than the minimum.  So this month, we’re going to try something new.  This month, I’m only putting an additional $5 on the minimum balance and the oddball change (except the Amazon and Paypal Balances just because) and then putting a major chunk on one of the card balances to take a massive bite out of it.

  • Chase: $2,298.40  Minimum payment: $48.00.  This month’s payment will be $53.40.
  • Pay Pal Bill Me Later: $1,830.01  Minimum payment: $51.00. This month’s payment will be $66.53
  • Best Buy Store Card: $1,138.70  Minimum payment: $36.00. This month’s payment will be $41.70.
  • Amazon Store Card: $822.48  Minimum payment: $20.00. This month’s payment will be $39.48.
  • DressBarn Store Card: $450.08  Minimum payment: $25.00.This month’s payment will be $30.08.
  • Capital One:  $481.99  Minimum payment: $25.00 This month’s payment will be $30.99.
  • Best Buy Mastercard: $351.65  Minimum payment: $15.00.This is the card that I have decided to bite this month, so this month’s payment will be$100.65

Total Credit Debt: $7,373.31   Total Payments: 362.83

This is compared to last month’s credit debt of $7,660.84  and total payments of:  $390.84, which means that I have downed my credit card debt by $287.53!  Not bad, but considering that more than $100 of last months payments was interest, that just blows my mind.  Does anyone else hate credit card debt as much as I do right now after putting that into perspective???

Student Loans:

ECSI: $650.00  Still in grace period.  

Direct Loan:  $18,862.74  Still in grace period.  

For the months of November and December I am going to be allowing this grace period to do its job.  I have way too many big bills in the month of December to be saving for to worry about the student loans at the moment, so I won’t.  I will be kindly nodding my head in approval to grace I’ve been given and just deal with the inner voice that’s frustrated that I won’t be able to work on these until January.  There’s not much I can do when I have an additional approximate $400 that I have to pay out for car insurance next month though…

Other anticipated bills this month:

Automotive Winter Prep: This might mean new rotors for my brakes, but the bare minimum will be windshield wiper fluid, new wipers, some de-icer, and some sidewalk salt to start stockpiling for the much anticipated winter weather (especially since my mother will be having knee surgery this month… Making sure all ducks in a row is essential)!

Complete Total Debt: $31,188.82   Total Payments: $663.83.

Slowly starting to wittle things down.  Let’s see if this new plan of attack works!

Please let it rain!

DecMeadow

Advertisements

2 responses

  1. I think its important to see the actual math results of your plan, or any plan. I think there’s a strong psychological component going on here — you want to contribute extra to all debts because it feels better. But is it the strongest mathematically? Probably not.

    Interest is getting you really, really hard on these credit cards. I don’t know which have higher interest, but for example you paid $45 toward your Amazon card last month, and yet you only moved the principal by $13. You are paying $39 this month, but I really do think the debt snowball approach is key, because if you’re spreading it out, you are letting the credit cards sort of tread water.

    It feels like progress since you are paying toward all, but because of how credit cards amortize their interest (totally different from your car loan), it is SO HARD to make progress. That’s why totally eliminating a card is the most effective way to go.

    I’d encourage you to look at the progress on each individual card from month to month so you can see the impact. And look at the interest rates, too.

    Use some snowball calculating spreadsheets to see the impact.

    It is great you are going after the Best Buy Mastercard. With that big extra payment, if you keep going after it it should be gone in a few months, which is so important. Student loans are a-comin.

    Trying to give you good advice here — feel free to email back if you want.

    November 6, 2012 at 11:23 am

  2. I have to voice my passion for your kind-heartedness for men and women who have the need for help on the theme. Your real dedication to passing the message all-around appeared to be unbelievably insightful and has frequently allowed ladies much like me to get to their goals. Your own warm and helpful help indicates so much to me and especially to my office colleagues. Warm regards; from everyone of us.

    November 15, 2012 at 2:32 am

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s