Monday, December 28, 2009

The new, more focused challenge

I am a typical chaotic overachiever who thinks that my personal world has 48 hrs in the day and that I can take it all on at once, deflecting problems with my golden wrist bands, and still can make it to the kids' concert, cook dinner, and do it all with a smile.

(I am not blonde....but you get the idea.)

Notice I said THINK. This reality only exists in my head (must be a happy place in there.....) No, the reality is I think I can do it all, take it all on, and get overwhelmed. I muddle through (usually without help because of the "I can do it all myself" attitude), and in the end it is ok. But not without lots of inner turmoil.

I would love to say that all at once I am going to reduce my carbon footprint, meal plan all meals, coupon with the best of them, magically find a way to pay half our debt in the next year while sticking to a zero balance budget. Not gonna happen.

(you know, the title of this post is deceptive.....I am rambling here!)

I decided that the interest rates on our CC (19.24, 14,24, 11.99) are a big culprit in why we are treading water and not moving forward. Over half our payments are just the interest. And without anything extra to pay toward principal, this ain't gonna cut it.

( we are getting to the real point)

I really think paying back G-man's retirement loan is the the first step. Currently, we owe $6,492. At the current repayment schedule, we have 3 yrs left. That is way too long to tread water.

So, here is the new plan (rough numbers, since interest will change with an accelerated repayment):

1) Use $2,500 of insurance check to pay bulk amount....bringing us to about $3,992

2) Increase per paycheck repayment from $84.15 to $105.00 (this might change...once we figure out what his cost of living increase will be, account for increase in medical insurance premium, and the FSA change).

3) Put tax refund toward repayment....I am estimating $1,000 (but I am hoping to eek out maybe $1,250). By this point, it will be about March (so 4 paychecks with new contribution) the estimated balance will be $2,572.

4) And here is the new part of the attempt at selling $350 worth of "stuff" per month. We have too much. And especially if we might move, I don't wanna move all this stuff. So, assuming I am able to pull this the end of April I will have collected $1,400. Add in 4 more paychecks worth of repayment....and we are at $752!!!!

5) And look at May, he gets paid 3 times!! So $105 x 3 = $315. Our balance is down to $437....and if I am able to continue to sell off stuff, and with a little sprint to the finish line.....TA DA!!!

By the end of May, this debt will be repaid!!! We have to wait 60 days (end of July) before we can get a new loan, which will pay off the high interest cards, and hopefully give us some cash toward closing on a new home (fingers crossed!).

In an ideal world, that is when a move would happen and we won't have to use our CC, but we will see.

If you actually read all of is your sticker of achievement. *placing big ole gold star on your shirt* Free Clipart Picture of Large, Gold Star. Click Here to Get Free Images at Clipart Flaws in the plan? Other than the $350 a month that I think I can generate???? Let me hear it!

And just to keep me honest....I have added this new section to my debt tally as it's own category. ;)


  1. Having a plan at all is a great step! That's really over half the battle. $350 a month? I'd be curious what you have to sell! But go for it. Not trying at all is already earning you $0;)

    And everything sold, for however much, is that much less to move, which saves that much more overall!

  2. The $350/month might be ambitious. But I have tons of kid stuff, and in the past I have done well selling it. I have cleared $200 easy on just some clothes.

    Kid stuff (clothes, toys, toddler equipment), some extra furniture, formal dresses, little things here and there....

    I have some collectibles that I don't collect anymore, household items.

    I might be off base. But I am gonna try!

  3. Hi Mysti - I took out a 401K loan myself to get rid of a Shark (ahem CashCall) Loan. The interest rate is significantly less and my credit card debt will be gone in 3 years. Sometimes we have to do extreme things to get out of our debt.

  4. Hi Rhitter....thanks for digging back in the archives! This plan fell apart:

    Basically...the insurance check went to car repairs and the rest to pay for camp for the kids this summer. We did increase the repayment amount to $105. Tax refund of $900 (we ended up owing some state) went to home repairs. And my selling of going to the Christmas fund (minus $100 for car repair).

    Talk about chaos!!