November Update

So it was pointed out to me that I was long overdue for update. It is a nice thing though, when updates are few and far between not because of stressful setbacks... but because things are good, and there's just not as much to update about!

As of this summer, we are officially OUT of credit card debt. Zero credit card debt. (as she pauses and waits for the cheers and adulation to die down) We have one card - just one - that we continue to use for groceries, gas, and daily expenses, and faithfully pay it completely off every paycheck. It makes life (and keeping up with the checkbook) so much easier to use a card for everything, and, bonus, we rack up Amazon points like crazy! Having no standing credit card debt is the. best. feeling. ever.  

Current debt includes:

My car - $19,000 Which sounds like a lot, but it's worth much more than that, so that's a plus. We pay more than the minimum every month. AND, barring any unforeseen circumstances like last time (RIP Sparkle), I fully intend to keep driving it long after it is paid off. It's a Toyota, so it'll run for 17 trillion miles.  I love this car.

Our primary mortgage - $156,000 Since we were able to refinance, we are no longer upside down on our mortgage, and will be in a good position to sell (if that's what we choose to do) in a couple of a years.

Our secondary mortgage - $31,000.  This is currently our targeted debt.  We increased our monthly payments recently so that it will be completely paid off before a balloon payment is due.

And... that's it!  My one concern for next year, money-wise, is that we have an expensive roof repair coming up (is there any other kind?) that we can't put off much longer.   But it's one of those inevitable joys of home ownership that just come, no matter how hard you try to will them away.  So I know that there's zero point in stressing about it.

Otherwise, we're feeling good about our financial plans in general, have saved up for Christmas, and are looking forward and ahead to the new year.

2015: Numbers, Goals, and Baggage

A long overdue update:

As of February, 2015.... our house is worth more than we owe, so hurray for that! We took out a car loan about six months ago (for the first in quite awhile) after my car was totaled in an accident, but it's a payment we can make easily every month. And the car too is worth more than we owe on it.

We are down to a balance on ONE credit card, and it's a small balance. Well, at the time of this writing, it's around 5K... which I realize isn't a small balance, but it feels small when you've dealt with balances across several cards in the tens of thousands each.

Interestingly, my biggest and most increasingly frequent money frustration at the moment is a mental one.  It seems that over the years, as we've made more money, paid down more debt, become comfortable financially, it's brought to light all the issues I developed surrounding money when we didn't have any.  Unlike so many of the people around us, we don't talk about how much money we make.  We don't aspire to "keep up with the Joneses."  We live simply, and don't feel any sort of need to upgrade our houses or cars or lifestyles just because we can.  And because of it, we're looked down upon, and we're treated as if we're less-than in some way.  It's condescending and it's frustrating and it's exhausting as all hell.    I recognize that it's my issue though, and beyond making different choices about what kind of energy we allow in our lives, it has nothing to do with anyone else.

Money baggage aside, all is well.  We just increased our payment on our second mortgage so it will be paid off before the balloon payment is due.  Next step is to pay off the last of the credit cards.

May Update: Slow Going

Even though we're stilling steadily coming down, I'm starting to feel like we've been in a holding pattern, and that we've been holding back a dam that is going to burst (if not burst, at least leak, trickling all over our best laid plans for the next couple of months) Some big expenses coming up over the next several weeks, and we're trying to figure out how best to take care of them without completely derailing all our progress.

The little victories are encouraging, but dang is it hard not to get frustrated and discouraged sometimes.

Still, another month down. Another dent made. On to June we go.

Total debt for May:
Down by $1706.33

April Update, and Catching Up

Once again, life took over and I got behind on my updates. We've kept plugging though, and haven't forgotten what we're doing here. And really, when you're in debt, is it ever far from your mind? Unless you're purposely burying your head, with your fingers in your ears, I submit that it is not. It's the cloud that never leaves.

We have made some HUGE strides over the past couple of months: We paid off (OFF. ZERO.) a Chase credit card that for many years had a five figure balance.

Which means that we're down to only two cards, one of which we've managed to knock down to under $5000.  Which means that in a couple of months, that one will be zero too.   Which means, that after all this time, I can see a light at the end of the tunnel.

We're buckling down right now.  While our friends are asking about summer plans, and going to exciting places like Hawaii and Europe... we're staying home this summer.  We're taking little (re:cheap) camping trips.  We're saving our money, we're putting off big purchases, we're being mindful of what we're spending. Our answer is the same, again and again:

"We're focused on paying off our debt right now."

God-willing, it will pay off, and we'll be debt-free with the exception of the mortgage by the end of 2014. Until then, it's still plug plug plug.

Total debt for April:

Down by $1226.96

January Update

Month one of a new year. We made the decision to shuffle some things around so that we can get our target card paid of sooner rather than later (yay!), which means that in just a few months, we should be down to just two cards with balances. Even though we'll still be paying the same amount to debt each month - just rearranged in a different way - the prospect of having an entire card paid off soon is HUGELY motivating.

February is an expensive month for us. Every year. Every single year. So I'm not anticipating a huge reduction for the next month. But January was fine (good even, since we celebrated my birthday, had two sets of out-town-visitors, and generally had a good time and still saw a decent reduction). One more month down, and that much closer to becoming debt-free.

Total debt for January:

Down by $821.73

December Update, 2013 Update, and The Goal for 2014

First: We're through the Christmas season, and while our reduction was modest, the holiday is paid for, and it's onward and upward into the new month and the new year.

Total debt for December: 
Down by $265.09

And for 2013... It was a strange year for us financially.  We didn't reach our goal for our credit cards.  Not even close.  Like with anything else, there are many factors for sure, but I think the biggest issue we're facing is continually trying to walk the line between trying to focus on paying off our debt without tightening the belt so much that we feel restricted and overcompensate by then spending too much.  It is a constant balance, and one we're always trying to figure out.

"But we deserve a vacation!"

"But we're trying to pay off our debt!"

"But we can afford to go out to eat more often than we are!"

"But.... debt!"

And on and on and around and around.

Still, we're plugging away, and our credit cards did come down, if just a fraction of what we'd planned.

Total Credit Card Debt for 2013:
Down by $4,266.06

The really interesting thing about 2013 though was that we re-financed our house, and took advantage of a program for people like us... people who'd been hit particularly hard by the market crash and were subsequently extremely upside-down in their mortgages.  It basically excused $60,000 of what we owed, as long as we agreed to stay in the house for 5 more years.

So our total debt for the year is down by $80,044.88.

Our total debt at the time of this writing is $212,950.61.  And because the market finally did start to show some returns, our house is finally valued over $200K once again.  Which means, for the first time in years, we're actually in the black, or very very close to it.  So yay for that!!

At some point, I'll sit down and put together a detailed list of financial goals for 2014, but for now I'll start with this:  To pay off one more credit card.  Just one, out of three.  It has a balance of $5900, which works out to $500 a month.  We can do that.  We can.  We can.

Here's to a happy, blessed, and prosperous 2014.

November Update

November turned out to be an expensive month for us, but thankfully it also happened to be one of two times a year that we get an "extra" paycheck, so we were covered. Christmas is paid for, and we even have $60+ on our Fresh and Easy card that we're saving to go towards our Christmas day feast.  So we're feeling good about moving into December.

Still, I'm.... frustrated, I guess you could say.  For the first time in the eight years that we've lived here, I'm finding myself desperately missing the small NH town we moved from, where everyone was pretty much living the same middle middle-class life, and there wasn't the division that I feel here.  I wasn't surrounded by neighborhoods and people who live an entirely different lifestyle, and through no real fault of their own just can't relate.   I feel very out of place.

It's a powerful thing to be able to talk to other people who get it, and in "real life" I just don't have that. Thankful today for the internet.

Total debt for November:
Down by $1343.62

October Update

A few weeks ago, we got back from another 2 1/2 week, cross-country road trip.  We drove some 6700 miles, through 31 states, and we saw a lot of people.    And just as I did two years ago when we took a similar trip, I'm asking myself the questions:  

Was it irresponsible for us to take such a trip?

Should we be taking ANY trips?

What kind of business do we have spending $4K + on travel to anywhere when we're still trying to pay off our debt?

Was it worth it?

And with the exception of that last question (Yes.  Yes, it was worth it), I don't know the answers.  I do know that I don't regret the trip.  At all.  Experiences like that are too important to regret.  

But the fact remains that once again, we made a choice that put our debt repayment on a temporary back burner.  So maybe next year we don't take a vacation.  Maybe we take a smaller one.  Maybe we find a way to bring in even more money to get the debt paid off that much quicker.  I don't know.  I just know that it's making me tired, this big black cloud that too often feels like it's Never.  Going.  Away.  

November is another month.

Total Debt For October:
Up By $288.93

August Update

Two things for some perspective before I give numbers for this month:

1) We just got back from our four day mini-vacation in Vegas. It was awesome, and a very much needed getaway. We saw some shows, walked through the ridiculous hotels, and otherwise just enjoyed a few days of uninterrupted family time, hotel pools, happy hours, and nice dinners out. And,

2) Mike is paid bi-weekly, and the way the paychecks and due dates fall every month, one check goes almost entirely to the mortgage, utilities, etc, and the other allows us the "extra" money to make a big payment towards our debt, and to pay off any out-of-the-ordinary expenses for that month. We haven't yet received that paycheck since we've returned from Vegas.

One plus two equals:

Total Debt for August: 
Up by 1031.07

In one week, we'll pay off the rest of our little trip, AND be able to take another good chunk off our debt in general (thanks in part to Mike's just-received bonus and raise, woooo!)  Then we're taking off again for just over two weeks, to take another cross country trip... with the goal of being totally back on track debt-wise by the end of October - mid November.  Onward and upward.

July Update

A few setbacks in July. My car needed new shocks... totaling almost $500. And our trip next month has fallen through (which will ultimately save us money in the long run, but in the meantime is tying up $550 that we may or may not see refunded) We decided to take a long weekend up to Vegas instead, so we booked the hotel, and bought some tickets for entertainment there as well.

We also spent more than usual on groceries this month, because we decided to try a 40 meals in 4 hours crockpot freezer plan. It meant an approximately $600 shopping spree, but should reduce our regular weekly trip down to $100 or less for the next several weeks.

All in all though, our debt still came down, and it's very encouraging to know that even on the not-so-great months, we can still see at least a modest reduction.

Total debt for July:
Down by $738.34

June Update

June is - thankfully - over, which means so ends our month of no extra spending.  It ended up being both easier and harder than I thought, and it was a good month to choose to do it too... our debt would have barely come down otherwise.  We managed to pay off a few stragglers, and are left with exactly four debts:

A mortgage, a second mortgage, and two credit cards. 

That's it!  We can do this, right?! 

Next order of business is to get in as good a shape as possible for two back-to-back trips:  One to a conference in Texas at the end of August, and one a two-week long road trip at the end of September.  They will of course prove to be setbacks as far as debt reduction (even road-trips are NOT CHEAP) but the goal is to do it with as small amount of financial impact as possible... while still having an excellent time.  We've done it before, and I know we can do it again.

Total debt for June:
Down by $1572.57

May Update

Look at me, posting twice in a week!

April was a very expensive month for us, and May was not a whole lot better... so it was with great excitement (and relief) that I did the numbers for May and found that we were regaining ground, and that our debt had still come down.  I'm actually really looking forward to our next paycheck on the 14th, because it will mean  three (count em.  THREE) outstanding little debts that have been hanging over our heads will be paid off, freeing up more money for our next targeted credit card:  a checking account credit line for $515, a personal line of credit of $159, and a Visa card with a balance of $750. 

Total debt for May:

Down by $2147.23

A Long Overdue Update.... And a Challenge

Staring at a blank screen, more than a year since my last update.

I'd very much like to report that we are now debt-free (or at the very least, in a much better position than we were a year ago) which is why I haven't been updating... but alas, that's not the case.  We're still here, still in debt, and still plugging away.

Some positives first:

1)  We have paid off both car loans, so YAY for that.

2)  We're down to three credit cards with balances, one of which is due to be paid off in a matter of weeks.

3) I am bringing in a bit of money through teaching yoga, and most exciting of all:

4)  We refinanced our house through a new AZ program for people who like us who were so ridiculously upside down on our mortgages.  It has saved us about $700 a month, AND we are no longer upside down!  In fact, our overall net worth is actually in the black for the first time in forever.  One condition of the refi was that we need to stay in the house for another five years, which I've come to terms with.  We never really made it a home, because we never intended to stay here.  But now we are, so a home it shall become.

Finally, after a few months in a row of a lot of expenses - the kind of months where it felt like money was just leaking from our pockets - we decided to take a 30-day "no extra money challenge" in the month of June.  No going out to eat, no "extras", no running to the grocery store if there's something we can already make in our cupboard/fridge/freezer, no new clothes or shoes or anything that's not absolutely necessary.  Just for 30 days.  Partly because I want the challenge of just doing it, and partly because I know that a month of belt-tightening will surely help us get back on track debt-repayment-wise.

So, here we go.  Again.

February Update

Nothing special to report this month... happy that we held our own in February, even with two birthday parties, and various other "extras" that we'd neglected to plan for. We're looking forward to an even better March.

Total debt for February:
Down by $732.83

January Update

February is nearly over, and this is me finally updating for the month of January.  Two positive things of note as of late:

1.  We just transferred the balance of one (of two) of our cards with balances from a 16% APR to 2.9%.  If all goes well, it should be completely paid off in five months anyway, but the savings in interest will be huge, and will give our payments more power, and

2.  Our tax return was the exact amount needed for the deposit on my yoga teacher training.  The rest does not have to be paid until July, and while it will of course slow down our debt repayment for a month or two, it is going to be money very well spent.

February will show a very modest decrease (if at all), but March should get us back on track.

Total Debt for January:
Down by $340.24

A much overdue update...

It's been brought to my attention that I have been woefully ignoring this blog.  And it's true... it's been months, and it's embarrassing.  But take heart, faithful readers (all three of you):  I have not forgotten about this blog, and I have definitely not forgotten about its mission.  Paying off our debt is still a hugely important part of our life, and will continue to be for a long time to come.

So, for that update...

2011 was a good year.  I am thankful and humbled that even when the country as a whole was still having a terrible time financially, we were personally finally starting to feel an upswing (the depressingly sinking value of our house notwithstanding).  All told, our total debt went down $12,565.83 in 2011, and we hit a very cool milestone when we dropped below 300K - including house, cars, and other debt.  And that was with taking a 3-week, cross-country road trip.  Now, one could argue that it wasn't very smart or responsible to spend so much money on a vacation when we still owe 5 figures to credit cards alone.  And hey, that may very well be the case.  But having done it, having taken a family adventure like that, a trip that was literally a once-in-a-lifetime experience, would we do it again?

Yes, yes, a million times yes.

Did it slow down our debt repayment for the year?  Of course.  Was it worth it?  Yes!

We're cautiously optimistic about an even better 2012.  There won't be any three week vacations this year, but there will be a week to ten day trip to San Diego this fall, and starting in April I will be doing something I've wanted to do for years now, and start the process to get certified to teach yoga.  Those two big expenses aside, our "extra" money will again be earmarked for debt.

A couple of tangible goals for the year:

1)  Pay off another credit card, leaving us with just ONE remaining card with a balance.
2)  Pay off my car, leaving us with ZERO car payments, and two outright-owned vehicles!  We'll keep putting money aside, so that when the time comes, we can pay cash for our next used car. 
2)  Refinance our house.  Like lots of people, we are ridiculously ridiculously upside down on our mortgage, and there is finally a refinance option that may show some benefits for us.
4)  Bring in some additional income.  This one is all on me.  And I don't really want to bring in an income for the sake of bringing in an income.... but as a side effect of finally allowing myself to pursue some of my own passions:  writing, blogging, and teaching yoga.  And I am SO EXCITED about all of the above.

As for this blog, I want to commit to updating it at least a few times a month again, both for those of you reading, and for myself.

Happy, healthy, and abundant New Year, just a couple of weeks late.

September Update & Naysayers

I have been keeping this blog for three years this month, and for the vast majority of that time, everyone has been extremely supportive and kind. In fact, it took almost this entire time before I received even one negative comment about my writings about money. It wasn't even here; it happened when I took the - rather uncomfortable - step to talk about one of my shortcomings when it comes to money on my main blog. I think it's interesting that it's practically commonplace for people to brag about money, and it's completely socially acceptable to complain about money... but somehow saying the hard things and admitting an area where I might have need for improvement, and I'm ripe for ridicule.  And you know what?  Go right ahead, be cruel.  Make fun of me, throw my vulnerability in my face, try to make me feel bad. I'll pick myself up, remind myself of Dave Ramsey's words, "live like no one else so you can live like no one else", and shake it off. While it would be nice to be debt-free and, therefore, free of the need for the blog in the first place... it isn't happening in the near (or not as near) future. So, I'll keep plugging and I'll keep blogging... naysayers be damned.

Total debt for September:
Down by 2020.11

August Update

I spent a good portion of last month extremely stressed out about money... feeling the impact of a three week cross country vacation, and anticipating another 4 day, 4 figure jaunt to San Diego for a conference. What on earth were we thinking spending that kind of money? Was it a responsible thing to do, given that we should be focused on getting out of debt? But I don't regret it, on either front. It's paid for. And this month, I'm once again feeling hopeful and positive, because 1) we have no more vacations or extra big expenses planned for a good long while, and 2) we just took advantage of a great transfer interest rate and paid off one of our existing cards... which means that we're down to just two cards, our payments will have much more spending power and our balance will come down even faster. Yes!

Total Debt for August:
Down by $1263.16

Updates, Vacations, and Staying on Budget

It has come to my attention that I skipped an entire month of updating. I thought about going back and doing an update for June too.... but ultimately decided that I'd just consider my hand slapped and move right along into July.

Our three week vacation has come and gone, and if you read my main blog, you'll know that it could not have possibly gone any better. Truly. We've been home for almost three weeks now, and I'm still a little awed by it (and still a little tired by it.) In hindsight, was it really the best idea to take such an expensive vacation when we're trying to pay off so much debt? Probably not. Was it 100% worth it anyway? Absolutely. And the great part - financially speaking - was that it held no unpleasant surprises when it came to money. Husband worked for weeks and weeks on a budget... figuring gas money, hotel money, food money, entertainment money. Over and over he'd make these little tweaks here and there until he finally pronounced it finished.

Anyway, when all was said and done, and we'd visited all our people and gone all our places and bought all the souvenirs... we added up all the receipts. And we were over his proposed budget by barely $200 ($80 of which was an unplanned nose piercing) Pretty amazing really. I couldn't even begin to make a budget like that, but he did it well, and even seemed to enjoy it (which might have something to do with the fact that he is involved in making budgets for a living, and I am not)

Of course, facing expenses now that we're home is another story. There are suddenly a lot of them, from Cub Scout and basketball and gymnastics registrations, to Diamondbacks games and birthdays and an unschooling conference. It'll work out, and we'll get there. Of this I'm sure. And I am very, very thankful that we're able to do all the things we do with not only not going further into debt, but also continuing to pull ourselves out - however slow it may seem at the time. Still, it is frustrating to have that constant feeling of, "Next month we'll get back on track."

I need to say it though: Next month we'll get back on track.

Total debt for July (only because our most recent payments for the trip are not yet reflected):
Up by $1334.69

May Numbers and Car Repairs

It's been a bad couple of weeks to be a vehicle in this household. First was husband's brakes. Next was a pricey timing belt (and some other things I can't remember) on mine. This past weekend husband's transmission went, and yesterday mine decided to simply not go after it had been stopped at a red light.

Some of it has been paid for, and some of it has not. Coupled with trying to prepare for nearly a month long vacation, it's made for a financially stressful spring. Still, we're making (slow) progress, even if it's of the two-steps-forward, one-step-back variety.


Total debt for May:
Down by $586.10