So, the post this morning about our debt reduction goal for the new year went out of date (the forecasted numbers part at least) almost as soon as it posted. My spouse’s dad emailed him late last night and told him that he (the dad) had gotten a small inheritance from a relative and was giving a portion of it to my spouse and my spouse’s brother to the tune of $1000 each. My spouse and I discussed it thoroughly and we haven’t quite decided in stone what to do, but we are leaning towards putting $900 towards the credit card debt, and $50 in each of the kids college savings accounts. Yes, I know – no room for fun (although it is paying for past fun after all) – and we may change it slightly. But the idea of paying down the credit card by $900 at once is so…. satisfying. The idea of paying it down by $1000 is even more satisfying but we want to give the kids a little bit of the money in a responsible manner. I don’t know when the money is arriving, the email said it was coming by insured letter and we’d have to sign for it, but not if it was sent yet or not.
I could write a whole series of posts on how cool this is and how amazed I feel and yet how much it sucks when you’re in debt and $1000 just melts away to deal with it. I’ll probably limit it to just one post though .
So, the debt numbers should get a shakeup sometime in the future. It seems my under $30,000 total goal for December 31st wasn’t ambitious enough, because if this all works out we should blow right past that. Let’s get to those current numbers and then I have some potential income-related updates to share.
Debt at start of blog (6/19/07) : $36,451.71
Current total as of 11/27/07: $30,595.43 (principal paid to date $5,856.28)
Broken down into:
- Credit Card: $3,144.20 (snowflaked $196.73 on 11/23/07)
- Student loan: $11,878.03
- Spouse student loan: $12,002.27
- Car loan: $3570.93 (made minimum payment of $228.32 this week)
% of debt paid (by NCN Network Chart) :16.07% (last week 14.95%)
So I paid the car payment this past week, and since the interest is low (only 4%), most of that goes to principal each month (about $212 last month did). That makes that total shrink fast and I love that. I also snowflaked a large amount to the credit card – that was in itself a mini-windfall. Part of that was a number of survey payments I finally received, and another part of that was for the pretty Prosper ad on my site. And the final portion of it was for doing some website copyediting work that fell into my lap from a friend for their family business. It was an unexpected project and I was very grateful for the opportunity, which I did as a favor and was unexpectedly compensated for. The debt will be gone! I will beat it down. 16% down! Only 84% to go. Heh.
I am very positive that the credit card will drop below $3000 by the end of the year now, and my new goal is to have it drop below $2000. Amazing. But I am positive we can do it. In fact, I would love to see it drop below $1500 by the end of the year. We might just pull that off… $900 from the windfall, $200 standard minimum we pay, leaves $544.20 to knock down to meet $1500. That is not probable, but it is definitely possible. I just have to earn ~$700 somewhere, or we have to have some good surpluses this month and next! Frugality and increasing income… a winning combination. I hope. I’m really happy about likely being under $2000 regardless of where we actually end up on December 31st.
Speaking of earning, I had my mock tutoring exam last night for the online tutoring I applied for and I haven’t heard the results yet, but it felt like it went really well. Tutoring online is harder than in person, I think. But I was solid in my content knowledge and I felt like I was effective as a tutor. Getting this contract position would really help. So I’m just waiting to see if I move on to the next step in the application process, but I am feeling very good! On to this week!