Happy Blogiversary WEEK - Retirement and Student Loans Today!

Did you all know that I like to write really long posts that really should be WAY shorter?  You did?  Good for you! Yeah, I know I ramble....and if I was writing all of this for pay, then I probably would do it differently.  But since my AdSense takes a year and a half to add up to a minimum payout, I don't exactly see this as a money maker, so I ramble.

My actual Blogiversary is Thursday, Aug 6.  I am going to break everything down into (still too long!) chunks, with a summary on the 6th.  I hope you will stop by everyday, but there will be a summary later this week in case you don't! Here is the schedule for the week:

Aug 3:  Retirement and Student Loans
Aug 4:  Cars and Medical
Aug 5:  Credit Card
Aug 6:  Summary

I am going to write a little Way Back Then vs. A Year Ago vs. Now kind of thing....so enjoy.  Alot of it is a rehash, so feel free to skim if you are familiar with the story.  As I have realized over the years, I used my side bar to update numbers and wasn't as good at putting those actual numbers in the body of a post....so some of the numbers are estimated or are from the closest post that I can find.  So for you math-y people...I totally realize that if you add some of these numbers, they won't always equal. 

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Retirement loan

Day one of blog:  This particular loan didn't exist, but a different loan did that was not included as part of the original total
2014: $16,376.69
2015: $10,052.45

Looking back, I think we didn't "count" the retirement loan in the debt total because we were a little in denial about it.  Since it was auto-debited from G-man's pay, and we weren't "physically" making a payment, it just didn't really exist.  But that was so far from the truth.  That money was paying a loan, and it was money that we didn't have to pay other things.  Yes, we were paying ourselves back, but it was still a debt. When I started the blog, I was really coming to terms with our situation.  We were at 76k debt, and the idea that it was probably closer to $83-84k was more than I think I could handle.  So I rationalized it.

So when we paid it off in 2012, and in turn dipped into that well again (discussed here and here)....I counted it.  It consolidated all of the credit card debt (which included a Lending Club loan that was the first step in consolidating Credit Card debt and working on the amount going to interest), which certainly was REAL.  I don't regret doing this loan.  It has allowed us to really make some headway on things that we would not have been able to do otherwise. I do regret that we have used the retirement account over the years for things other than retirement. 

A year ago, we were already waist deep in the idea we were moving (it was about 3 weeks later that we received the offer).  By October 2014, we modified the terms of the loan to extend it to a 5 year loan instead of a 4 year loan as originally done.  We were realizing that the pay cut we were facing coupled with the current repayment structure would not work.  By redoing this, our repayment went from $380/pay check to $221/pay check.  Had we not done this, G-man's pay check would have covered our mortgage, a car payment, with about $100 left over.  Even with the change, we still had a $300/mon cut from his pay (just the office...this has nothing to do with a second job).  As much as it hurt my heart to realize that we needed to extend this loan because of cash flow (we would be about 9 months away from completion now), it was necessary. 

Today's total....ARGH!!  Do you see how close it is to being under 10k?  Because this is an auto-debit, it isn't as easy to just add a few dollars here or there.  In hindsight, when I figured out that the total was going to be THIS CLOSE to being under 10k, we should have made a one time $55 payment along the way (it is possible, just not as easy).  We would have been closer to $6500 left right now if we didn't make the modification.

Moving forward, this loan is in hot debate for a few other ideas we have.  That is an entirely different subject and not one to discuss today.  Right now, we are just doing what we have been doing....but it could change in the coming months.  (And in case any one is interested...the actual account has $127k in it, but I would have to have G-man look up how much is available to us for non-retirement stuff....not that we are doing that right now).

Student Loan

Day one of blog: Was split into 2 loans (Older loan from undergrad that was co-signed with my dad and was about $1,691.81, and consolidated loan from part of my undergrad years and graduate school which was $30,300 in 2003 and we did interest only payments or deferment for years)
2014:  $23,284.59
2015:  $21,311.57


Of all the loans here....this one was the most frustrating to find numbers for!!!  The website only keeps one year of statements.  I have a notebook that I keep information on, but I usually don't put the "year"....but I can tell you that in February of 2011(??), the older loan had $188.91 left, and the consolidated loan was at $28,791.39.  OMG....I am shooting my past self....

Way before this blog....there was even more student loans.  I paid for my undergrad degree on my own, so I started paying student loans in late 1996 (6 months after my graduation).  I had a $10,000 loan that was already paid off before I even started this blog.  

If I had it ALL to do again, I would have put mega money toward my loans before I had kids.  I would have liked to have had my undergrad paid off before I had to start paying my grad loans.  

OK, moving forward....

I feel like this loan is the ugly step-child of our debt.  It gets very little attention.  We pay $229 (roughly $171 goes to principal and the rest to interest) a month, and that is all we do.  I have talked about how keeping this loan for so long has been so stupid on our part.  I just didn't understand the power of interest, and by the time I did understand it, all sorts of other damage had been done.  So this poor debt is on the bottom of the pile.

I really hope that in my next job, I get closer to the earning power that a Master's Degree should afford me.  I certainly don't have it now; while my job has allowed me to do other things...upward mobility and higher salary were not part of that.

We are still a ways away from the next milestone for this one.  Le Sigh.  Poor student loan....no love here.  I promise you....one day you will get some attention!!

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Hope to see you tomorrow for the cars and the medical stuff!!!

New Year, New Totals

Here we go....the new, updated totals for the new year!  (note, graphics are from various sources.  The car pics are not out actual cars, but pretty close look alikes!)

For prosperity:

Retirement Loan:   $13,460.50

As I stated previously, we adjusted the terms of this loan in October 2014 to allow a greater cash flow in anticipation of G-man's move to NC.  Previously this loan was going to be paid off in April/May 2016, and it is now April/May 2017, based on the current repayment of $221 per paycheck (26 checks a year).  Previously it was $380 per check. 

Student Loan:        $22,474.73

This loan is the last on the list of priorities of repayment.  It always has been.  We pay $229 a month for this loan.  I *think* I am out of deferment or forbearance time for these loans, so even though we are dealing with some income fluctuation, I am not sure there is much I can do.  If we get to the point where we have to find a place to reduce...I will call and ask.  The worst they will say is no.

Credit Card:          $9,998.97

*sigh*  This total is a self-soothing, psychological game.  I couldn't deal with it going into 5 figures, so I made sure it was UNDER 10k, even if it is only by $1.03.  This is by far the BIGGEST area for improvement.  We have used it as a crutch, and we know it.  Especially in the past 6 months...there has been so much change, we failed to really pay attention.  That is on us.

Mysti's Car:           $5,150.00

At $230 a month, and a very low interest rate....this loan just gets chipped away each month.  It is scheduled to be paid off in November 2016.  I have started this little habit of paying an extra dollar or two to the principal to round the number off.  I just like the zeroes at the end. 

  

G-man's Car:         $3,500.00

This loan started at $6,000 at the end of October 2013 (first payment was November 2013).  So in 14 months, we have paid off  41.7%, and this was scheduled to be a 5 year loan (even though we never planned on taking that long).  This loan was done as a personal loan due to the age of the car (2001 Camry), so it also comes with a hefty 9.99% interest rate. 

Med/Dental:          $0.00

This is our starting number.  The question mark for 2015 is if this will STAY this way.  Bossy's supplies are on a 100% financial waiver that expires in February.  We will reapply for assistance, but there is a chance that we could lose the waiver, or have it reduced.  At that point...this number is going to go up.  Other medical and dental procedures will hopefully be covered by insurance and our FSA.  But we also have put aside extra to cover costs once the FSA is used up. 








Lastly....our EF.  It is currently sitting at $3,000.  My EVENTUAL goal is to have this at 5k. (In my perfect world, there will also be an account that has 6 months of expenses, but that is so far down the road, I don't really think about it). 

Just for Prosperity

Since I update our sidebar totals, if I don't note the starting amounts, I will never figure it out later.

On 1/1/13, our numbers stand at:

• Retirement Loan  - $31,603.91
• Student Loan - $26,314.80
• Car Loan - $10,320.08
• CC - $4,877.75
• Medical/Dental - $2,965.61

• Grand total - $77,245.15

Here is the kicker with this stuff....the Retirement Loan, Student Loan, and Car all have fixed minimums.  None of them are going to go back up since they aren't "revolving".  Just the minimum payments for the year equal $15,388 (give or take a few dollars for the miscellaneous cents we pay).  Doing nothing else but paying the minimum pays off 22% of those loans this year.  Doing nothing but what we are already doing....those 3 loans will be reduced to $52,850 from $68,238.

The remainder...that is the problem.  The medical/dental will go up.  As long as we continue on the payment plan we are on, it only satisfies the company that we are paying SOMETHING.  Each month, the amount we are charged is more than what we pay.  So that impacts the bottom line.

The CC....as long as we don't use the card, it will go down.  Any "extra" we have toward debt repayment will go toward the CC.  But again, the medical will go up by roughly the same amount we are paying.  In the end, I don't see the CC and Medical numbers really "moving" over the coming year.  They will probably end up swapped.

My as long as we can handle any emergencies (using EF, overtime money, side hustle money)....our grand total number a year from now will be about $62,000. 

Let's see how it goes.

I am not setting any real goals this year financially.  I do understand goals...but for me, the disappointment of not making a goal is way harder on me than the excitement of reaching a goal.  I just end up not feeling good about anything.  So I am not doing it this year.  I will say that I am hoping that we will just be able to maintain what we are doing.  Tax hikes, gas prices (we spend over $600 a month in gas....)...those will drastically impact our bottom line.

We have a few home maintenance projects that we need to complete.  We would love to do some IMPROVEMENTS, but I don't see that in the cards at this junction.  The few dollars we may be able to save toward the improvements won't be enough to actually complete any part, so it will just be a continuing saving effort.

I wish I could have the enthusiasm that we are going to beat debt this year!  That we are going to hit it hard and intense!  We are going to have a great year!!!  But I have done that already....hasn't happened.  2013 is going to be the year of.....let's just get by the best we can.

Skipping to the Bank! And a look ahead.

Today is payday, so off to the bank I go.  This is going to sound so silly, but today, I can't wait!  I will go after I pick up the kids, so it will be about 3:30pm by the time I get there.  And here I am....counting down the hours.

I have many things to accomplish at the bank today:

The Basic Stuff

1. The obvious....deposit my paycheck!
2. Withdraw (or technically, subtract from my paycheck in cash) money towards our EF (remember, we do $25 a week, but I am a little behind, so I need to get some extra)
3. Get money for the kids lunches for next week (my new cash system is working wonderfully!!)

The Bigger Stuff

1. Notarize our loan papers
2. Notarize papers for "found" money that the state has been holding for us for TEN years and we just found (no idea how much this is...the site won't tell us that.  It could be $5 for all we know.)

The Kid Stuff

1. Get Lollipop
2. Get info about opening savings accounts for them
3. See what we can do about Sassy's ripped money

Once we have money in the account again, I can pay the bills that I have been itching to pay.  None of them are terribly exciting....electric, phone.  Next week will be much more exciting.  Two credit card bills, dentist, car....those actually effect the bottom line.

The loan papers will get submitted tomorrow (after G-man has his part notarized), and we are hoping that it will fund within a week.  But until then, we will keep going, business as usual.  Depending on when it actually funds will determine final payouts.  There is a chance that there may be a little CC debt left from residual interest, but that would get paid off in the next paycheck.

We should get our tax return soon, and be able to work on the repairs on Bossy's room.

G-man has ALOT of overtime this month, that will go into our overtime account, to be withdrawn at the end of June towards "something."  As it stands now, April will bring about 20 hours of overtime.  With May and June to come, we are hopeful that the overtime account will be plump, and I would love to make a big, fat payment to something.  I am thinking if it we can make an extra $1,000 payment somewhere, anything left over in the account can go towards the repairs needed for the deck.  Since we already know of 20 hours of OT, with 2 more months to go, plus anything that changes with me....I think it is a do-able goal.

Only 6.5 hrs to go until I hit the bank!!!

ETA:  All missions accomplished!  

Waiting

I am not the most patient person.  I have infinite patience for some things....and NONE for others.  And one of my biggest peeves is having to WAIT for others to get their stuff together.  GRRRR.

We have applied for our loan, and received the standard "we have received your stuff...." reply.  Per the reply, it will be processed in 7-10 business days from date of receipt.  We know we submitted everything on 3/26, but that doesn't mean that is the date of receipt for them.  We didn't get that response until 3/30 or 3/31.  So if we use 3/30 as "date of receipt," then the loan should fund no later than 4/13.

That is another 10 days.  Granted, that is the long side of things.  But let's get the show on the road.  Meanwhile, we keep paying the bills that are due, and will see what the pay off amounts will be when the loan funds.  Wait, wait, wait.

Additionally, I have an aunt who is terminally ill (she has been battling brain cancer for about a year, and the doctors have said there isn't anymore they can do).  My mom hasn't been able to determine from her brother (my uncle), how much time we are looking at.  There seems to be some conflicting information....most likely because my uncle is not fully hearing what is being said.  I am not close with my aunt and uncle, but of course when the time comes...I will go to pay my respects. 

I asked my mom what their (my Parents) plans will be when the time comes.  She didn't know.  Now, I realize that she isn't supposed to have it all together...but my parents are famous for "not imposing" and setting my world into a tailspin.  I finally managed to determine that they will most likely come to visit for a few days after the funeral.  Obviously....no one knows WHEN this will be, but at least have a clue that will happen.

I also need to add....I was raised Jewish (although I am not practicing....I lead a more alternative spiritual life).  In Judiasm, burial usually takes place within 24 hrs of death.  Unless that falls on a holiday or Sabbath.  So everything happens FAST. 

And we are waiting on the school to figure out when our future planning meeting will be held.  Bossy's annual paperwork is due 4/26.  We have Spring Break next week.  Let's get the show on the road, people!!  We are trying to do the future planning meeting BEFORE we have to write up his annual.  If we have to write the annual, THEN do the future planning, there is a good chance that we will have to CHANGE his paperwork again.  So that means another meeting.  Why am I the only one that sees that is so inefficient???

What are you waiting for today??

How do you define Progress?

***ETA:  I wrote this post last night, and scheduled it to go live today.  Almost no one actually GOT the point of the post.  Everyone is still on the "should we buy tickets" bandwagon....which for the record, I never asked if I should or shouldn't.  

In my GBU yesterday, I mentioned that we were "thinking" about getting concert tickets.  Our last concert was almost 10 years...oops....8 years ago (the kids were ALMOST 2).  Are they pricey?  Yep.  We were thinking about it; no decision made.  We have had 2 big date nights in the past year....and this would be the next one (not counting the wedding we have in May).

Is it the BEST use of money?  Depends on your definition of BEST.  No, it isn't going to debt.  But if you define BEST as "the ability for a couple to have a night out, see a show we both would enjoy, and have a night off from the stress of our life,"  then yes.  We have also considered only having G-man go (as he wants to go more than I do, even though I do want to go).  Then we would only have 1 ticket and parking.  No sitter or anything.

Consuelo made a comment regarding our numbers and our "lack of progress" in the past few months.

I am not going to deny that numbers are ugly.  I never have.  We were making progress, and last year really wrenched that.  No denying that.  But to say "lack of progress" in the past few few months isn't accurate.  I haven't updated our sidebar in the past few days because I know it is all about to change, and decided to wait until the big change to do the update.  But the comment really upset me, so I looked a few things up....a few things that may not be as apparent to you all because I don't share EVERY detail.

Since January 1....

• We have increased our EF by $324.    Prior to my root canal, we had just under $1,300 in there.  We withdrew some to float that money to get a discount.  When our FSA reimburses us, it will go back to the EF, and we will have the $1300 again, and are working toward
• We have saved over $500 towards the kids' camp for the summer, which acts as day care for us while we work.
• We have saved $550 in overtime pay.  Part of this is paying for G-man's speeding ticket and fishing license.  The rest is going toward our weekend trip to Sesame Place for Autism Day (entrance to the park is free, other than a $25 parking fee which goes to charity.  We have a gov't discount for the hotel).
• We have saved enough so far to pay for our water bill, which will come in May.  And we are on track to have the money saved for our personal property taxes in July.
• We paid off our retirement loan (whose numbers were never added into any of the tallies, but at the start of the blog....we had about $7100 left), a few year early.
• We established a "cat fund" that currently has enough for all three cats' check-ups, and have been working on saving per month for food and litter.

Based on the numbers on January 1, as reported in my Financial Goals for 2012:

• The student loan has decreased $456.
• The car has decreased $642.
• Medical has increased $50, but as long as Bossy has medical needs, this bill will always be in flux.  Considering I had a $700 root canal, and the overall bill has only gone up $50, I am happy.

This just leaves the CC bills.  Taking the mattress out of the equation, which we had planned to take a little extra out of the next retirement loan to cover....the CC has gone down about $400.  Now, what this means is that we have basically paid off everything we have charged in the past 3 months, and a little more.  This was considerably more, but as I said, we back slid a little on this in the past month.  Included in this have been a few gifts (baby shower, bridal shower, birthday parties).  Some has been eating out when we have been lazy about cooking.  But NONE of it has been shopping for the sake of shopping.  There has been no clothes, music, home decor (as tempting as it has been!!).

Once we take out the loan, I will update all the numbers.  At that point, all of the debt will be at an interest rate of 3.375% or less.  I know that not everyone will agree with the retirement loan for this purpose.  It is taking money from our future.  But in no more than 4 years, it will be paid off, and we will be just about debt free other than the mortgage (right now we are at 5 years to be debt free....but I think we may be able to shave at least some of that off).

I know this is a long post.  So if you made it this far....good for you!!!  But we HAVE made progress.  It isn't gazelle intense....never has been.  But it IS progress.

So to Consuelo....thank you for reading and spurring me to investigate this further.  I am sorry you don't feel like we are making progress, but in the end, we only have to account to ourselves.

Planning for April, May, and JUNE!

I am trying to not look too far ahead in the future.  There are just too many twists and turns in the road, and any long time readers here will know that our family has the knack for hitting every pothole, bend, water trap, and rock that is out there.  But I will say that as we are closing out the first quarter of the year....so far so good.  Time to prepare for the Second Quarter.

Our retirement loan will go in on Saturday (which really is Monday since Saturday isn't a business day).  Depending on how quickly it funds, will determine if it funds in late March (like, the 30th), or early April (more likely).  This is important because our Lending Club loan processes on April 2.  If we have the money before then, we can override the standard monthly debit and pay it off.  If not...then the April payment will go through, and THEN we will pay it off.  We already have the money in the account waiting for the April 2 debit, so if it isn't "needed", then that is $425 that can go towards other things!!

But I will be honest....part of me wants to go shopping!  I may take $100 of it to buy new "foundation garments" as they are buy 1, get one 50% off.  I would be able to get 4!  If we do this, then $200 will go towards the new lawnmower (which was already in the April Budget, as that is a 3 paycheck month), and the other $125 would pay for the kids daycamp during Spring Break (instead of using some camp money).

If that plan doesn't work out...no biggie.  The lawnmower and camp are already accounted for (and that money in April would go to debt instead).  All this would mean is our time line would be moved up a few weeks.

April will be a funky month, as G-man has 3 pay checks, plus the new loan will be coming out, PLUS he has 14-16 hrs of overtime that we know about (which will go into the OT account).  So it really won't be until May that we see a "normal" paycheck.

May is busy.  My birthday, Mother's Day, a wedding (which equals gift, babysitter, misc money). 

And then we are zooming toward June!

Gotta slow it down and not look TOO far ahead.

Take that!

Our retirement loan is gone!!!!!!  YIPPEE!!!  We shaved one full year off of the loan and it is paid in full!!


We made a bulk payment of $345 that posted too late to change the debit amount from G-man's check.  So they took out the "full" payment of $105.  So in reality, the loan has an over payment of about $15 (it is $14.XX because of interest, so not entirely sure of the exact amount yet).  We spoke to the representative who said that the overpayment will be refunded to us by check.
 
Not a big deal.  We will get it back, and it isn't a massive overpayment that will make a difference one way or another.

We are going to feel like we are rich....since both the retirement loan and the car loan have been coming out since November, things have been tight.  Now we will have $210 more in our check (minus taxes), which was designed to cover the cost of the car.  I can already feel a small shift for the positive!!!

In late March we will take out another loan to wipe out the CC debt (at 1.5%!!!).  The new debate is if we should take out an extra $1000 to get a new mattress.  It is a difference of $10 a month.  It isn't about the money per se.  For me it is about the principle.  We have a few months to decide. 

But look at that.....a plan actually WORKED.  We put $115 per paycheck aside to accelerate the repayment of the retirement loan, and it is now gone!!  One more paycheck worth will go into our savings, and then we will resume saving for Camp.  We are totally on track!

Good thing I am super busy today

Today is my wedding anniversary.  Please....no Happy Anniversary.  We (more ME) decided not to acknowledge it.  We aren't at that point emotionally.  Wounds of the past year run deep.  Add in that this is a super emotionally loaded day for me, and I will be honest with ya.....what I really want to do is go buy stuff to make me happy....even though I know that 5 minutes later I will not be happy anymore.

All rolled into the emotion of today.....

• Wedding Anniversary - 14 years today
• It was the due date for my twin girls who died (they were due on our 10th wedding anniversary)
• My "surprise" baby, that I miscarried was conceived (sorry...TMI) on the aforementioned 10th wedding anniversary.

All of this is weighing heavily on me.  I started getting upset last night, and was so off my game.....I just went to bed.  It is strange this morning....G-man and I have talked all morning, blah blah blah.  Part of me wonders if he forgot since we already decided that we aren't acknowledging it....out of sight, out of mind?

My day consists of 2 doctor appointments, work, shopping for PTA, and bookfair planning meeting tonight.  It is full to the brim with responsibility and no time to think about "stuff."  If I didn't have all of that....I would probably perseverate on everything....do on-line window shopping and eventually convince myself that for everything I have been through....I deserve something!!!

But don't worry.....I won't.  Promise.  Knowing that I am making progress on our debt (we are down $1,200 since the first of the year, not including the $500+ we have paid on the retirement loan this month) is enough to keep me from back-sliding. 

If I may direct your attention....

To the bottom of the Keeping Tabs on the Benjamins side bar, on the right left side of your screen (you really would think I would know my right from my left by now).  Scroll down to the bottom of it.  See where it says Retirement Loan?  Notice anything?

That is right.  Only $88 left until that bad boy is paid off!!!!!  G-man gets paid on January 23 again, and then it is DONE.

It was a $10,000 loan, originated in February 2008, for 5 years.  We used it to replace the roof and paint the house, along with a few other minor things.  We will have paid it off in 4 years, PLUS, it is a few weeks earlier than anticipated!!!  Yay us!!

I have put $115 aside each paycheck since our Christmas fund was fully funded towards this.  It has been TIGHT, as we also started paying my car loan in December.  But we have managed, and along with the bi-weekly amount of $105 that goes towards it (automatically deducted from G-man's paycheck)....we are down to one last payment.  

We are seriously considering taking out a $35,000 loan from the retirement account and wiping out the credit cards.  The rate has now dropped to 1.50%, and if we do a 3 year loan....we would still be paying almost $150 less per month.  We are leaning toward a 4 year loan, just to give us some breathing room, and pay extra on it as we can...to try and knock it out in 3.5 yrs. (more on this to come)  We have to wait 60 days from the payoff date of the current loan before we can do anything, so this won't happen until late March/early April.

My math must have been off, because I thought we would pay this off in early February.  The $115 that I ear-marked for the retirement loan for those 2 paychecks will be split between the EF and our general savings account.  After that, the $115 will now be directed towards savings for Camp for the kids (which will be fully funded by the end of May).  Once Camp is funded, the $115 will go to the Christmas account, which will be fully funded by November, which will leave us the remainder of the year towards our $500 goal for something for US.

But I am just happy dancing that we managed to pay it off early, and with the car payment!!

The retirement loan was never part of the debt total.  Best that I can tell, at the start of the blog, we owed about $7,000 on it.  If you add that to the original debt number, our "new" number would have been over $83,000.  So in that sense, we have made progress.

You have no idea how that $88 is killing me!  But I need to let the plan just do its thing.  Less than 2 weeks and it is over.

Not now...but maybe in a few months??

One of the biggest hurdles we had with our credit cards has been the interest rates.  At one point, we were paying 19.24% on a large balance card!!  We did a Lending Club loan and a few other things, and worked around it.

As it stands right now the interest rates are:

• CC2 - 11.99%
• CC3 - 14.24% (but the current balance was a balance transfer offer of 1.99% through January '13)
• CC4 - 9.24% (but over half of the current balance is at 5.99% from a balance transfer offer)
• Lending Club - 7.88%

I would really like to get as much of this revolving credit down to as low of an interest rate as possible.  The place that has the lowest rate....our retirement account.  Once the current loan is paid off, we can dip into it again in 60 days.  The rate?  1.75%.  Of course any money we would withdraw would not be earning interest for our retirement.  We would have to be sure that the overall benefit would be worth it.

The reason we are considering this is that G-man isn't even eligible to retire for 19 more years.  Once the debt is paid off completely, we plan on aggressively saving for retirement.  And if we can get the debt paid off within 4 more years, that would still give us 15 years to really save and invest.

I have kicked around a few thoughts.

• We can take out $6500 for a 24 month term and pay off Lending Club.  If we increase the minimum payment so that it is paid off at the same time Lending Club would have been paid off....it is a net savings of roughly $40 a month for 17 months, or a total savings of $680.  That $40 savings would go towards another CC.
• We can take $10,000 out over 3 years, which would be $130 a paycheck, and pretty much wipe out CC2 for the same amount we are paying per month now.  

Another idea we had was another Lending Club loan.  More interest, but doesn't effect our retirement.

We aren't going to do anything now...it would be April the earliest that we would do ANYTHING.  We have to wait for 2012 to settle....wait for the current retirement loan to be paid off for at least 60 days.....so nothing anytime soon.  I just really want to find the right avenue to make progress!!

We do well with the "set it and forget it" stuff.  We set up payment plans, and just let them do their thing.  Lending Club has been fabulous for that.  We got the loan....we put money aside each paycheck...and once a month they debit our account.  Once the January payment posts, we will be almost half way paid off!

G-man's car was the same way.  We had money direct deposited into the account, and it was debited once a month.

I am trying to do the same thing with the rest of our debt.  Just trying to get it to the lowest interest rate possible!   Any thoughts????  Right now we have $1105 in the budget that is designated for CC payments (minimums + $150 extra).  This is JUST for the CC and current Lending Club loan.  Not the car, student loans, or medical.

I updated it....

The side bar.  With the new numbers.  *sigh*  Total is now $3,000 MORE than it was at the start of the blog.....

The cash we were using towards the difference between the car loan and the final price was sent to the retirement loan.  Since the retirement loan payment will become the car payment, we decided to try and get rid of this as soon as possible.  Right now it will be the beginning of January, but I am going to TRY and kill it by the end of December.

We had to transfer some money from our EF to the new checking account at the credit union for a short period of time.  The CU will autodebit the car payment from the checking account, and until the direct deposit starts with the next payperiod, we needed to make sure we had enough in there to cover the Dec 15 payment.  Once we have enough in the checking account to cover the car (it will take a few months because we are one pay check off from where it was supposed to be), that money will go right back to the EF.

As I have said previously...the remainder of this year is more about survival and reset than paying down debt.  We really need to let the dust settle and see where we are.  We have a tentative budget for January, which will have the retirement loan paid off, the new medical FSA reimbursements, and hopefully a small cost of living increase.

On the positive side:

• The student loan is going down now that it is out of deferment. 
• Lending Club gets paid at the end of the week, so that will go down as well (which will bring us to 44% paid off).

Am I feeling good about all of this....heck no.  We have spent a great deal of money this year.  All of my plans went down the drain.  But it is what it is and all I can do is keep digging my way out.  This coming year should be much less expensive (no crisis repairs to the car, the pool is fixed.....).  As I have said before...we aren't that family that will pay this off in a year and boast how we survived on 4 Cheerios a day to make it work.

So there they are.....the new numbers.  One other note....I removed the progress bars.  They depressed me. 

Some new debt? UGH

My car.....yes, I know, you missed hearing all about my car......has yet again another problem. A new acquaintance mentioned that her soon-to-be hubby is a mechanic, so she said she would talk to him. He is supposed to come by later today, but he said it is probably a blown gasket. This could be a easy fix....or not so easy. I will find out later.  Couple this with the actuator door that is now stuck.  I am really DONE with this. 

I have a feeling that a new-to-me car is in my near future.

I really haven't talked alot about the retirement loan.  It is listed in the debt list, but not tallied as part of it.  I am not denying that it is debt, but I guess I just see it in a different light.  We have taken 2 loans out over the past 15 years.  The first was when we bought our house....and used that as our closing cost on our home (we had a rotten realtor who didn't help us get anything from the seller).  The second (and active) loan was in 2008 when we needed some home repairs.

We took out a $10,000 loan to replace the roof, do exterior painting, and a few other repairs.  It was a 5 year loan.  A while back, we increased the repayment amount so shave off some time.  As it stands right now, it would be paid off in April 2012 (vs Feb 2013 as originally slated).

What do they say about the best laid plans???  Anyone who reads my blog knows that we are the King and Queen of Change in Plans.  Alas, the ORIGINAL plan was to start contributing to G-man's retirement fund again once this was paid off.  He is creeping up on 40, and we aren't where we are supposed to be.  We stopped contributions 2 years ago to help with cash flow, but I really wanted to resume those.

So now the plan is to take G-man's extra paycheck, and a little from our home improvement fund to pay off this loan by the end of the month.  This will yield $200 "extra" before taxes....so maybe $170 net???  And that will now become the new car payment.

NONE of this is official.  We have to wait on a few other pending things.  But by the end of the month, we should know what is going on.  I am just hoping my car will hold out!  I am sooooo unhappy about all of this.  A new car will completely undo everything.  Seriously....I started this blog in August 2009....and a new car will bring us back to that original number.

Two years....and almost nothing to show for it.  Terrific.

Would you dip into your 401k to be debt free?

Remember my friend J?  I have blogged about her Wanting to be Mrs. Jones, and complaining about debt.

Her husband is an accountant.  And he wants to take a withdrawal from his 401k to pay off debt.  Not a loan.  An actual withdrawal, with penalties and all.  The idea is that he wants to be free and clear.  He is in his mid 30's, so he figures he has time to make it back.  But feels that they aren't making any headway, so this way all the debt is gone.  And then they will live on cash.

First off....I know them too well.  They won't be able to live on cash.  They will run through money like water through a sieve, and when it runs out, they will run to their CC.  Guarantee it.

Second...I know they stopped their 401k contributions a while ago to increase cash flow.  So not only would he be draining the account, but hasn't been adding to it in a bit.

Third....they think this is a solution to the problem.  They have yet to discover that that problem isn't debt...it is poor spending habits, lack of budget, and an overall selfishness that they want it all.

Would you consider doing this?  Take your retirement, and pay it all off.....no loan.  Free and clear.

A spin off to getting sick....

OK, this might not be directly related to getting debt, but hey, work with me people (and by the way...thanks for the well wishes!).  I am on the road to recovery, but still not there.  I am feeling better than 48 hrs ago (better living through pharmaceuticals!).  Not quite well enough to really go go go, but not quite sick enough to be in bed constantly (seriously, I have barely moved from my bed in 2 day, and while there, mostly I slept).

Came downstairs this morning to get the kids off to school.  And what a disaster down here!  While G-man mostly took care of the basics, (some of the dishes were washed, and he did feed the children and do homework and showers for the past 2 days) the other stuff I guess wasn't on his radar.  There are piles of stuff everywhere (I swear, it has only been 2 days!!!  Where did this stuff come from???)

I guarantee I will find things of importance while I go through the piles.  I guarantee I will find at least one bill, some action items from school, etc.  This is why I have a system for this stuff.  So it doesn't get lost.  So the bills get paid.  So we are on time for things.

Some people are fly by the seat of their pants.  I am not.  Having a system for taking care of things in your life is so important.  It takes awhile to find YOUR system.  I could tell you mine, and it might not work for you.  That is why you have to develop your own.  A place to put those bills.  A calendar (which I have to say, I am terrible at....I tend to keep it all in my head....Heaven forbid I am hit by a bus).

I started a control journal (thanks FlyLady) a few years back that is supposed to help anyone run my household, incase I can't.  Without going into alot of detail about this....I almost died in pregnancy in August 2007.  Like, the doctors gave me about 48 hrs to live.  That is quite sobering.  And I realized that I couldn't keep all my knowledge in my head anymore.  It had to be SOMEWHERE else.  Enter, my control journal.  While I would like to think that G-man, my parents, a babysitter, will never need it....I am glad we have it, just in case.

So, in my ramblings this morning....I urge you to develop a system help organize your life.  Just in case disaster strikes (even if it is a temporary one).  It is freeing knowing that all that important information is documented somewhere so you can refer to it, or have others help you.

ETA:  Well, crud!  Remember last month when my computer crashed?  Apparently G-man didn't back up my control journal when he was trying to save stuff.  I now have to re-create it.  I have the print outs for most things, so it is just a matter of re-keying it.  But what a pain!  I discovered this when he asked me for all the user ID and passwords for our financial stuff so he can do his financial form.  I never put this info officially into the journal since we have had parents and sitters look at it.  Guess what I am doing this morning????

A Generous Offer...but no

G-man informed me that yet again, he has damaged his car. 

On the wheels of being rip roaring angry, I talked to a good friend.  She is my IRL confidant about my marriage, financial stuff, etc. She and I are 2 peas in a pod....our joke is that she and I just need to run the world.  The world can't be trusted to run itself.

She and her hubby just took out a loan against his 401k, which was to pay off CC, purchase a new car, some home repairs, and some cash reserve.

She offered me the $6100 (from her cash reserve) to pay off our retirement loan, so we could take out the new loan we have been planning.  Of course we would pay her back with interest first thing.

But no.  I thanked her for her generous offer.  I am touched that she would trust us that much.  But I don't feel comfortable taking a loan from a friend.  $5 to cover lunch is one thing.....$6100 is a whole other story.  I know she was being totally heart-felt and genuine.  Didn't want anything but to help a friend.  But there is no way I could do that.

But is sure is nice to know that I have a friend that would be WILLING to do it.

A few updates

Car - We spent $100.99 fixing the wheel studs on G-man's car.  We used cash from the sale of stuff (you know, that money was supposed to go to the retirement loan, but that blew up in our face).  At least we didn't go into debt for this.  I e-mailed my friend whose hubby works for the car company to see if he had any ideas on what to do about this.

Taxes - I am still missing one W-2 (GRRRR).  But I am going to plug in all the numbers I have and add it in later.  I am curious where we will be.  The original plan was to put a refund toward the retirement loan, but I am rethinking it.  I might put it on Student Loan #2, and hopefully wipe that out shortly.  That will free up $60 a month, and combined with the $60 we will save  from getting rid of the land line phone, it will balance out the hike in the oil bill.

Decrease in electric bill - decided that extra $50 per month will go first toward the student loan, then toward Hospital #1.  Putting an extra $50 toward Hospital #1 will help chip that one away.

I have turned into one of THOSE Craigslist people

A Craigslist person whom I dislike.

When I first started with CL, I was so disheartened that I would set up a time to go see the item, just to get an e-mail 20 minutes before I left that said "sorry, I sold it."  I was like, "hey, I had an appointment!"  But after having numerous people no call no show, I get it.

If your aim is to sell the item, the first to the door with the money wins.  No allegence to anyone.  Business is business.

The guy who said he wanted to buy both our cribs flaked out.  Whatever, dude.  Good luck to ya.  So I reposted them.  Had one lady flake out.  One lady who says she is interested, but hasn't committed to a time.  Another lady who says she is opening a daycare and is interested in both. Hopefully between these people, SOMEONE will buy them.

I also posted my glider from the kids' nursery.  Had one scammer.  Another person wanted to know the glider's name (I am assuming she meant the brand...but I sort of wanted to tell her we lovingly call the glider Elmo.) 

In January, we sold $160 worth of stuff.  A far cry from my $350 goal.  But if the glider and both cribs go....I will be up to $250 for February so far.  Our repayment plan for the retirement loan is shot, so we are trying to decide how to use the cash.....the contenders are:

1)  Save for Christmas (this is what we did last year)
2)  Pay off dentist
3)  Put a chunk toward the hospital debt

Each has their merit.  From an emotional standpoint....I want to put it toward the hospital debt.  This debt is a thorn in my side, and I really want it GONE.  From a more logical standpoint.....saving for Christmas seems to be the way to go.....

Need to ponder that.

Well, there went THAT plan

Our plan to repay the retirement loan fell apart.

If you recall, the plan was to take the check from the car accident to pay a bulk amount ($2500) toward the retirement loan.  We confirmed with the insurance company that the money was ours and they couldn't "make" us fix the car.  We could do what we wanted with it

However, the check was made out to us and the credit union who holds the loan for the car.  So we were told we had to forward the check to them for endorsement. Got a call from the credit union today.  They won't endorse the check without a work order for the car.  AKA, they are making us fix the car (or we don't cash the check).

So there goes that plan.  The retirement loan will have to get paid back at the snail's pace we are at.  Tax refund will knock a little off....but we are probably looking at roughly 2 yrs now to pay it in full.

We are completely circling the drain.

Cribs

Today is particularly hard. I posted both of our cribs on Craigslist, and a guy responded that he was having twin boys and wanted both. G-man brought them down from the attic, and they are sitting here, staring at me.

Per our phonecall on Tuesday, he would call me this weekend (probably Saturday), to arrange a time to come by. Didn't call.....tried calling him on the number I had....it's his work number, so I got voicemail.

Today was our due date for our twin girls who died. And it is also the day that our singleton baby girl was conceived. And our anniversary. So I am staring at cribs that we don't need because our babies died. Had things turned out differently....I would have children using these cribs. The twins would have been 2 today. Our rainbow baby would be 15 months.

These cribs should just be cribs. But I am making them into more than that. I am making them into a symbol of failure. Failure because our babies died, therefore we don't need them. Failure, because I am selling them for money to dig out of debt. We are selling them to pay off stupidity. Apparently my failure and stupidity is worth $125.

Part of me wants the guy to call and come get them. It will be hard to watch them walk out the door...but it needs to happen for emotional healing and to move forward in our debt reduction. Part of me want to stick my head back in the sand and bring them back to the attic and not look at them again.

Whatever will be, will be.