Debt Be Gone

Good Karma...

2009-06-13T20:14:00.001-07:00

I'm sure everyone has heard the phase, "Mind the pennies and the dollars will follow," or some sort of variant of this. Well I am starting to think this is true.

Since our financial life has started to click (by this I mean, we are not racking up new credit card debt, we are staying within budget, and we are actually making extra payments), money has been coming in hand over fist!!!

Sure, most of it is money that we kind of knew maybe coming, but it has been a rare day in the last couple of weeks that a trip to the mailbox has not produced at least one cheque. Furthermore, the hubby has been making some side cash. I actually went to the bank 3 times in one day to deposit money as it just kept coming.

Granted it is only small amounts at a time, but it's really been helping out. I just hope it keeps up.

Update June 1...

2009-06-01T19:33:00.000-07:00

As you can see on the side, my debt is finally going in the right direction. I previously mentioned that two cards (C& D) would be increasing, as they did, but everything else seems to be moving in the right direction.

One little issue, I think they recorded my mortgage wrong. From my calculations they credited the principal with the interest amount, and the principal amount as interest. Should I tell them or just enjoy it?

The Credit Gods Giveth, The Credit Gods Taketh Away...

2009-06-01T08:28:00.000-07:00

AHHHHHHHH!!! So I was checking my credit card account online (Credit Card C), and I noticed that my available credit was only about $2,000. This was a shock as this card has a credit limit of over $20,000. HMMMMM...

So I went to the statement section and noted that my credit limit was now listed as $5,000. I started to panic thinking I did something stupid, as we were considering reducing this limit anyway and I was looking at the reduce your credit limit online screen and thought I may have hit something by accident. But I thought, we were never planning to go less than $10,000, so what was going on. To the phones...

I called the credit card company and she told me that the company reviews credit limits on a regular basis to assess our qualifications for credit. At this time, it is felt that we only qualify for a $5,000 limit. She said that it did not appear to have anything to do with our usage of the card, but we should order our credit reports to figure out what could have gone awry. I have done so and should receive them next week.

So I am sure you are thinking, what the big deal if our balance was less than the limit, and we were going to reduce it anyway. This should help with the debt thing, right? Yes, you are correct, but it doesn't feel good. When we got our consolidation loan, it was on condition that they take away our credit line. That was okay. No big deal. Now one of our credit cards has dropped our limit over $15,000. This is panic time! In the last month we have lost over $20,000 in our available credit, and not by choice. The panic is, since we are still working on the debt, if something were to happen will we have no recourse? Also, for Credit Card A what happens if they drop the limit here? We will most definitely have some or all of our balance called. Where are we going to get that overnight?

This debt has to go!

Unrequited Love Letter...

2009-05-28T08:34:00.000-07:00

I have not told my husband about my blog. I have considered it, as he is in this boat with me (even though I sometimes think I am doing more rowing than him), but I have decided to keep this as an outlet for myself. I can vent and ramble as much as I want and I don't need to worry about alienating my husband, especially since I need to analyze EVERYTHING and it drives him crazy!

However, although he may never read this I have something to tell him...

"I am really happy how you have taken to our new budget lifestyle. Once you had finally understood what I have been trying to say for several years, you have really taken this whole crisis to heart and have really been trying to help me out. Although some of your naughty spending habits are still alive and try to creep up now and again, you have been diligent on asking me what we can and can't afford instead of just doing what you want. You have put a lot of your plans on hold to help our family and have really tried to find ways to bring some extra income into the household. If you can keep this up I finally think that we are going to get through this, and we will have a brighter future as there is now a light at the end of this tunnel."

For everyone else, thank you for letting me be a little self indulgent.

Bringing My Banter to the World...

2009-05-26T16:33:00.000-07:00

I love eHow. I don't know how many things I have discovered, learned, and researched on this lovely little platform. Problem is that as a foreigner I can contribute all I want, but they will not pay me. (boo!!!) I therefore figure, what the heck is the point of contributing then if my two cents isn't even worth two cents.

However, I have come across another program that does a similar thing; Bukisa. Okay so Bukisa isn't as fabulous as eHow, but it does have it's charms and it pays foreigners (yeah!). Deal is you write a how to article (or review, or upload a photo, video or slide show) and Bukisa pays you a portion of their revenues for hits on your article (or other medium).

I did my research and there appears to be good and bad:

Good:

will payout through paypal, with as little as a $10 minimum
gives you more outlets then just how to's
has a referral system, so if another contributor signs up under your suggestion, you are paid for everytime your contributor gets paid - up to three layers
based on research Bukisa does not come up when you type in "Bukisa"and "scam"
they pay non-US residents!!!
a bigger audience to listen to my ramblings

Bad:

not as well known as eHow, thus less traffic
due to the set up and promotion of the site you have to contribute more regularly to generate significant hits

So here is the plan: I just signed up for my account and have submitted 3 articles. No hits yet, it's only been an hour. But I was reading a post on http://www.smartpassiveincome.com/ in which the blogger submitted 5 articles per day to eHow for one month, and tracked her earnings and then did nothing for the following month to see if her efforts paid off. My thoughts were that 1.) This is a pretty neat idea, and 2.) who the heck has time to write 5 articles a day, let alone come up with 150 ideas in 30 days.

So I am going to try to submit 1 article per day for a month and see how it goes, then cut back a bit to see how the program works. The blogger above made $20 in the first month, $90 in the second, and $100 in the third. As Bukisa is far less travelled, my ambitions are much lower at hoping to make $120 in the next year ($10 per month - starting June 1). If I actually make any money I pledge to put it all on debt. Granted it may not be much, but at least it's something. The interest clock stops after every dollar you pay after all.

If anyone out there is interested in this program, join and see how you do. If you want click the link below and it will be noted that you referred to the program by me. It doesn't affect your own network of contributor, but it sure would do me a favor. It can be your way of help me pay off my debt, without actually having to give me money. Warm fuzzies for everyone!!

http://www.bukisa.com/join/17287

Spending to Save Money...

2009-05-25T07:21:00.000-07:00

Well we got a new car. (ducking and hiding behind a chair)

I know, I know, people are probably saying that we are crazy for doing this, but looking at the numbers it make sense. The sad part is that the lease cost and the cost of gas (as this car is far more fuel efficient then our current one) is cheaper then what we paid in gas alone last year.

Plus, the lease cost is tax deductible for us, so there will be even better money saving opportunities come tax time.

It is definitely hard to give up our family friendly SUV, but the kids are young and a few years of cutting back financially will really help us out.

I guess 100K in debt really forces you to make some hard decisions.

The Stars are Aligning...

2009-05-23T11:03:00.000-07:00

Just read my horoscope for the day, it says:

"Wise Leos are reducing their debt. Continue to play things lean and mean right now. Fortunately, you're giving a lot of thought to your cash flow and your possessions, and what's worthwhile and what is superfluous and excessive. Of course, Leos are never excessive. (That was a joke)"

Who knew I needed cosmic help! But at least it looks like the stars are in my corner.

Trying to Brighten the Future...

2009-05-22T17:25:00.000-07:00

Today I tried to get my preschooler more involved and cognizant about money. We sat and pulled his money out of his piggybank and sorted it into different coins. I took care of the silver, but he sorted all the "brown" ones. We then counted the coins and put them in rollers.

Then I explained how we were going to take his money to the bank to save for something later. He proudly took his little plastic bucket of money to the teller and watched intently as she counted the money and stamped his receipt.

Not much of an accomplishment, but I'm trying to instill some good habits on my kids. Something good might as well come out of my mistakes.

The Fabulousness of Found Money...

2009-05-19T07:33:00.000-07:00

Well not really found money, but forgotten money.

On my quest to get things paid off, I scoured my life for ways to get a little extra coin, here is what happened:

- I noticed a shelf and brackets that I was going to put up "tomorrow" for the last six months. In actuality this will never get done, and I don't even need the shelf for what I originally intended it. So I returned it to the store. Another $35 in the pocket. Granted this was gone as soon as I received it, as my son needed something (actually needed, not wanted - although we do spoil him pretty badly). However, I still think this is an accomplishment as I managed to buy something without it touching a credit card, or my actual budget.

- I filed an adjustment to my tax return this year which should yield me about $500. I knew about this adjustment before, but as I was going through the process I decided to look at past years, and lo and behold I found another $600 bucks that I could get back from 2005 and 2006. Now I just hope the government sees things the way I do.

- I realized that on a recent trip I took, (that I couldn't afford, but there is nothing I can do about that now). I had not applied to receive the state tax back on my purchases. Yet another $100 when it comes in.

- And lastly, the change jar. It's been sitting there for a while, but I finally rolled it. Only $29, but cash I didn't have yesterday.

Granted some of these things will take time to come in, but opening the mail to a big fat cheque will be nice. Here are some tips to "find" money in your life:

1. Rebates - How many times have we thrown out those pesky little rebate cards because the $3.00 rebate isn't worth your time. Well it might not buy a vacation home, but it money you didn't have before. If the take to much time to fill out, leave it in your purse or wallet for when you are waiting at the doctor's, or better yet in the bathroom for when you a couple of extra idle minutes in there. If the rebate is more than the postage to send it in. Do it!!

2. Returns - Scour your home for items you don't use that still have the tags on and return it!! Even if you don't have the receipt, or it is after the return policy period you can usually manage to get a gift card in the amount of the item (you might lose money as it may be at the current bprice, but if you are not using it you are gaining nothing by keeping it). Keep the gift card to buy things you really need, or use it to splurge for "free" when you have earned a treat for yourself.

3. Loose Change - Doesn't add up fast, but it does add up. If you can keep your fingers out of the jar, it could be pizza delivery on a really bad day.

4. Consolidate Accounts - Do you have a few bucks in Paypal, $2 in an unused bank account, etc. Clear out these amounts and gain a couple bucks. Yet again, not much, but something. Besides the sooner a dollar is paid on a credit card the sooner the credit clock stops.

5. Sell Stuff - Yes, the power of eBay and it's followers. I'm not going to spend too much time here as we have all heard this before, but remember anythign can sell. I just sold used balloons.

6. Check Your Records - Although you might not be able to pull out a tax refund like I did, be sure to check things like your tax returns, credit card statements, or anything else where someone could slip up or the amount could be negotiated. You can very often find mistakes that cost you money.

7. Clean - I have often times been amazed at what I have come across from cleaning. Gift certificates I hadn't used, tons of loose changes or bills in old wallets, purses, and clothes, even cheques I hadn't cashed at the bottoms of drawers. I even know someone who found $200 in an old wedding card. Plus, it's a free thing to keep you busy.

Happy Hunting!!

Starting Over Yet Again...

2009-05-17T07:11:00.000-07:00

As you can see I updated my debt amounts the other day on my sidebar. I'd be interested to know the noise you all made when you actually read the total. Six digits worth of debt, makes my skin crawl.

You must keep in mind that some of this is from fees and such to get the equity loan, but my mistakes nonetheless.

A few little things to note:

Things are going to get worse!: Credit cards B-D have all had partial payments from the equity loan, so for 3/4 of the month they had a balance in the 10's of thousands at a disgusting rate over 19%. So therefore, the when the interest charge hits at the end of the month it will be big and ugly, coming close to doubling some of the balances. It's okay, I know this is coming.

Charging the Opportunity Cost: The equity portion is not just current mortgage less balance before the loan (well it is right now, but it will not be in the future). To make sure that the balance is the most accurate, I have maintained an amortization chart of my old mortgage, so the amount owing will be the current mortgage value less what my old mortgage value WOULD HAVE been on that date. I figured that if I didn't take into account where I should have been under normal mortgage payments had my financial life not gone to hell, then I would be attributing money I pay on my mortgage to debt reprayment and basically over accounting my actual progress. This is a process, I will not get thorough it quickly or easily, I have come to terms with that.

But there it is; the writing on my blog wall. Things are going to go better this time around. They have to.

Never Leave Home Without It...

2009-05-15T07:48:00.000-07:00

So, I went grocery shopping today. Nothing new, but I have been trying to stay within or go under my budget as much as possible. Well, today I found the best tool for this...wait for it...my calculator!

Yeah, it may seem like a no-brainer to bring a calculator to calculate sales and determine if certain sales/sizes are worth the money, but I actually added up each item I was planning to buy as I put it in my cart. It provided a running tally for my items and I found myself really watching what I was picking up. It may have been a fluke, but I spent about $50 less than I normally do at the grocery store and still manage to get everything on my list (plus a couple extras- I'm only human).

I guess it just gives you a more in your face view of what you are actually buying, instead of waiting for the end, where you just buck up and pay the bill.

Getting Down to Business...

2009-05-13T10:47:00.000-07:00

So the money for the loan went through today. Of course there will be clean up with some residual interest payments and a couple little things here and there, but we have now successfully consolidated two of our cards and are working to get the other ones gone.

It's a good day.

Things To Do In Bed...

2009-05-08T10:01:00.000-07:00

Sounds exciting. Not so much. Last night me and my husband curled up under the covers and revamped our budget. Probably makes most people turned on just thinking about it ;)

So the other day we set our appointment to sign off all of the documents for the loan, but we were asked to bring in our credit card bills. I mentioned to the hubby, "so what are we going to say when she asked why they have increased over the past 3 months." Looking at me dumbfounded he responds "how did they increase?" This conversation continues in which he asks the hard question; Even with the loan, can we afford to live in our house, or do we need to move and start over? It wasn't a threat, and he was very level headed indicating that sometimes reality isn't what we want it to be.

So after the kids went to bed, we curled up with my laptop and hammered out a more realistic budget. It included a lot of things that I didn't include before that had been ending up on credit cards. Based on this budget, we have a small shortfall for about the next 3 months, but then we actually have an extra $23 per month ongoing. Not a lot but it's something.

We also estimated that it will be about 3 years before we pay off the residual on our actual credit cards. But at least we are moving in the right direction. It's weird how in the midst of your darkest hour, you finally start to feel better.

This communication thing was a long time coming, but much needed. Hopefully, the transparency will do us good.

Ding Dong the Debt is Dead (Sort of)...

2009-05-06T06:29:00.000-07:00

When I mean debt, I mean 3/4 of the amount...

and when I say dead, I mean reincarnated at a more manageable interest rate.

That's right people, the consol loan came through (clouds parting, angels singing), but not for the full amount (boo!). I guess in these economic times, not to mention the ridiculous debt load we are carrying, it just wasn't feasible. However, about 3/4 of our debt just dropped it's interest rate by about 3/4 of it's original percentage. Small victory, but a stepping stone on the right path.

I feeling much better about this today.

$4 slap in the face...

2009-05-01T20:40:00.000-07:00

$4...

This is the balance in our home bank account right now. After getting cleaned out by the tax man, and being on permanent standstill for that loan we are probably not getting, we are cash crunched beyond belief.

Granted there is a paycheque from the hubby coming on Monday (which is late, and I don't know how much it will be - damned commission work!), but it is already allotted to other things, like say the utilities bill.

I am exceedingly frustrated right now. I feel like I am just drowning and can't seem to find my way out. I know I just need to breathe and regroup (which is what I'll be doing this weekend, as what else can you do with $4 in your bank account).

"Suck it Up" and other lessons...

2009-04-30T13:53:00.000-07:00

Panic has officially set in. After pretty much wiping out my cash flow for the next three weeks (boo), I have managed to pay off the tax man (yeah!). We had a hefty sum owing this year, and I am in a very precarious bittersweet scenario in which I have no money, but I have one less monkey on my back.

The panic however, is from my husband and his way of hitting me over the head with reality. This consol loan has now been in the works for months, and he said to me today "it shouldn't take this long -assume it's not going to happen!" This of course is better than the "these things take time, if we would have done this three months ago like I said it would be solved by now" attitude from last month.

So on comes the panic. It's good, I need a bit of a wake up call, as I have left my budget and repayment plan on auto pilot for the last couple months (not in a good way) to wait for this loan to materialize, but alas I think I must return to the drawing board. I have to get reacquainted with our debt situation and devise a new plan for payoff, and getting those freakin' interest rates down. If the loan happens; bonus.

Lessons learned:

- no one is going to pay your debt for you, just deal with it. However, if there are still knights in shining armor (with big wallets), CALL ME!
-banks are not the enemy, but they can sure piss you off sometimes
-getting money loaned to you kinda requires that you have money already
-never, EVER, lose control of your repayment plan. I haven't done the tally, but I think that I am in a worse boat then when I started.
- the further you are from getting what you want, the more you want it.

This weekend will definitely be another long overdue wake up call. Fun times!

I'll let you know how it goes. If you have something more depressing to do this weekend, let me know. I might perk up a bit.

Diet Tips That Save You Money...

2009-04-27T09:16:00.000-07:00

With summer fast approaching, a girl's mind goes to one thing. Get bikini body ready and looking freakin' hot at all those summer events (weddings, parties, bbq's, etc.)

I have never been much of a dieter, due mainly to a lack of discipline (might explain the debt problem too), so I just try to trim and make better choices instead of following a specific diet. From this strategy I've noted a couple diet tips that will keep off the calories, and keep the cash in your wallet.

1. Order water. Many diets suggest not "drinking your calories," by drinking water at meals. Not only is this an easy calorie reducer, it will save you a ton of cash. Assuming the average person eats at a restaurant once a week (yeah- a little conservative I know), and a beverage cost an average of $1.50, then you would save you $78 a year. Times this by the amount of times you actually eat out and see the savings increase.

2. Shrink your "fix." Some people have coffee, I'm a slurpee and iced cappucino junkie. One thing I've tried is to buy the smallest size. This still allows me to have what I want, curbs the craving, reduces my calroie intake from these treats, and saves money as the small costs less. Sure it might only be twenty cents, but figure that out by how many times you actually have these things and it could be a modest dinner out by the end of the year.

3. Be a kid again. One way to save money and help with portion control is to order the kids meal. Portions are more reasonable, and you these meals generally cost less (some are even cheaper if you decline the toy). Disclaimer: Check your pricing. Sometimes fast food restaurant value items can be cheaper and about the same size as a kids meal.

4. Walk. This goes without saying, but exercise will always help you lose weight, but it can also be a great money saver. One summer I decided to walk home from work (too sweaty to walk to work) every day that I could. Based on the amount of money I spent on the bus, I saved $150 in 3 months, and with the 1 hour and 15 minute walk (only 5 minutes longer than my bus ride), I dropped a couple pounds and had a great a**. This also cuts down on gas and parking if you drive. Granted this is not reasonable for every location, but you can always walk to the store, out to restaurants, or anywhere else that is within walking distance.

These may only be a few little pointers, but a little goes a long way.Use your savings to by some new clothes when you drop a few pounds.

On a roll...

2009-04-25T22:37:00.000-07:00

In an effort to re vamp my site, I want to update my blog roll. If there is anyone in my boat (debt up to their eyeballs), that would like to be included, please post a comment with your site and I will check it out.

I have already discovered some new (to me anyway) and exciting blogs that I have been following during my time away that I will be including, but if anyone wants some exposure, I would love to read about your struggle.

Misery loves company, so comment away!!!

Back...but a little disgruntled

2009-04-24T10:12:00.000-07:00

I'm back!!!! I know it has been awhile, but with frustration comes apathy. When I last wrote the hubby and I were in hot pursuit of a consolidation loan to lessen the cash flow burden of our debt. I had planned, once this was resolved to come back with a fresh new strategy for payback, and hopefully a new lease on my problem.

Two months later...still waiting. It is infuriating. We have been at this for over two months and we still don't have an answer as to whether we are getting the loan or not! If they at least gave us an answer one way or the other I could plot my next move and get on with things, but right now I am in limbo.

First off when we went in, it didn't seem like it would be a big deal, so I started paying the minimums on my cards, afterall I didn't want to put a lot of my cash on my debt just to have it paid off in a lower rate lump sum a couple days later.

So now I am behind on my credit card payments (not my minimums, my repayment plan minimums) and I am scared to touch any of my credit for fear that my loan with get denied. Seems like a vicious cycle.

Apply for loan to get out of credit cycle and increase cash flow...have cash flow crunch waiting for approval...can't use credit to alleviate crunch (even though available) since waiting for approval.

GRRRRRRRRRR!!!!

But on a happier note, I'm happy to be back and will be posting regularly again, as well as updating my blog site.

Hope you all hang around for the drama.

Making Some Extra Room...

2009-02-25T06:26:00.000-08:00

On the $100 amonth plan I have made a reasonable start. I sold a bunch of my maternity clothes to a reseller for $35. I would have made more, but I had a lot of winter stuff that they aren't buying for a few more months. It's a start.

A Date with Our Debt...

2009-02-20T07:34:00.000-08:00

Talked to the husband the other day about the state of our debt. From our conversation we have decided that it is time to go to the bank for some assistance. I whined on about the needing to learn our lesson, and my level of embarassment for trying for our fourth consolidation loan, but he had some good points and I gave in.

First off, one of the home equity loans was not a consol loan (which I had always thought it was). It was a loan to buy our car, and our banker suggested this loan as opposed to a conventional car loan or financing. That was on our prior homes mortgage so it was eliminated when we moved.

Consol loan #1: 6 years ago $17000 - was a result of my final year of school and our first year in our new home. Yeah I had some credit card debt, but no student loans. Loan was taken out for 5 years, repaid in 1.5.

Consol loan #2: 2 years ago $60,000 (home equity)- this was a result of costs associated with our new home (ie. appliances, building upgrades, etc.) which we were told that we could add to our mortgage once the home was finished (I seemed to have forgotten that point). Granted there was some consumer debt in there (about $15,000), but the majority was house stuff.

Potential Loan: Looks to be about $90,000 when all is said and done - however, hubby made me tally up all the costs (both credit card and cash paid) to determine what money we have still sunk into our new home for landscaping and other improvements that increase the equity in our home. I am not completely finished going through the files, but I am currently at about $50,000 and I know that there is about $10,000 more in "cash" transactions where no receipt was given or my husband traded product for services. The consumer portion still exists, but it's making me a little less apprehensive about talking to the bank.

We have devised our plan of attack and have decided the following:

a.) We present the debt as equity expenses, and fess up that we should have persude a loan instead of our own "financing" efforts. Ask for a loan for the entire amount. Due to the dollar value, we are not expecting a positive response, but if you don't ask you'll never know.

b.) Propose that the debt associated with our home (the $60,000 or so) be added to our mortgage. Which is reasonable as our home was assessed last year (without any landscaping or driveway - which have since been added) at even higher than our mortgage plus the additional $60,000. I know what you are thinking, the market sucks right now, but where I am from it's still pretty solid and I have researched five houses for sale on the street over from my house (built the same year, and similar amenities) and they are listed for over $100,000 more than the 2007 appraised value of our home. We figure this way we can save on appraisal fees, and hopefully get a quicker answer. For the balance we were going to request an increase in our credit line. Yeah I know, this is dangerous, but if we have other projects, which we expect in the future I would much rather use a lower interest credit line and eliminate our credit cards all together.

c.) If this isn't feasible, see what we can get our credit line increased to and put the rest on our home equity.

d.) No dice - try b.) and c.) again with home equity and a conventional loan. The interest rate may be a little higher, but the overall interest will be lower due to a shorter amortization period.

e.) Go full boar on the home equity and work to pay down the priniciple as quick as possible.

f.) Go home.

Wish me luck!!

At Least My Kitchen Was Clean...

2009-02-18T11:24:00.000-08:00

Last night was officially the third time that I had take out that I paid for (when other people treat I don't count it as eating out - This is a debt issue, not a diet one), since about the 27th of December. I think this is a pretty considerable feat considering we would eat out more often then eating at home in an average week. Yeah me.

One complaint though; my kitchen is a disaster! No matter what I do I just can't seem to get my kitchen clean. Between my life and kids I barely get everything reasonable clean and then I am cooking another meal, causing yet another mess. I'll admit, I am not the tidiest person anyway, but the constant state of gross in my kitchen is just that: gross! I'm saving money, but my messy kitchen is starting to drive me mental.

Save Money Through Your Mail...

2009-02-16T06:53:00.000-08:00

I came across a great website a few weeks ago for getting coupons (there is no shame in using coupons). It's called www.save.ca and has helped me save a few extra dollars. The site lists coupons for a bunch of name brand products, and all you do is click on the ones you are interested in and the company will ship you a sheet (or more) of the coupons you want for FREE!!! Granted a printable option may be better, but I am always nervous about redeeming coupons I print myself.

The only catch is that the site asks that you redeem your coupons (usually about 60 days), and if you don't redeem a decent amount of the ones you order they reserve the right to cut you off.

Happy shopping!!

Inadvertant Credit Card Payment...

2009-02-13T06:10:00.000-08:00

If you have been reading I have rambled on about points rewards quite a bit lately. However, I came across something by accident. I purchased something on points recently and had to return it as I purchased the wrong size. Normally I assumed that the purchase would simply replace the points on my card, but apparently I was wrong. The purchase came off my credit card in cash. Therefore, $55 came off my credit card principal. Very exciting!

The Cheque is in the Mail...

2009-02-11T06:06:00.000-08:00

Wooohooo!!!! I opened the mailbox today and found a $300 cheque from my gas station for a rebate on the gas I paid during the year. I guess I found my $100 for the month.

Unfortunately, as I had indicated before, February was not going to be a better month than January, so yes I have another $100 on my debt, but I can only swing minimum payments this month so I still have a shortfall.

Coming Up a Little Short...

2009-02-04T07:30:00.000-08:00

February will not be any better. I found a shortfall in our budget for the month based on my husband's income and could only make minimum payments on our debt, and my monthly accruals (insurance, etc.) could not get covered.

Unfortunately, I received his pay statement for February and it's better, but still short. The even worse thing is that when the income does start coming in, we will need to cover the shortfall from the prior months, leaving no surplus when we should have some "extra" funds.

My plans are well intentioned, but if I don't have the money in the bank to cover it what do you do. I'm trying to make some extra cash, but it's very frustrating.

New Month - New Start (again)...

2009-02-02T07:21:00.000-08:00

So January was not so good. I thought we were doing okay, but a little business trip from the hubby and the fact that our fax machine and printer gave up in the same month has made some significant steps backwards. I am so sick of this!!!!

Back to the drawing board (again). Hopefully this month will be better.

"Tick"ed Off and Other Changes...

2009-01-28T06:56:00.000-08:00

Some may notice that my debt "ticker" has been removed. I chose to do this since this project has had a rocky start and I find that I am only making minute dollar changes - a waste of time and definitely disheartening. Yes I can hear the critics out there saying that this is a reminder of my harsh reality, but fact is, just posting reminds me (plus the lack of sleep!) I promise it will return when I have fallen under the $80,000 line that I just can't seem to crack. It just seems that there is no point in posting a ticker if it doesn't move.

I have also adjusted my blog roll. As some readers may already know "My Debt Blog" has been deleted by the publishers. (Moment of Silence please) I feel really bad for them as I feel that they were kinda pushed out by some not so nice commentary. I agree sometimes we need someone to give our head a shake, but criticism should always be constructive not hurtful. I wish them luck in their quest for debt freedom.

Speaking of blog roll - If anyone is interested in being on mine I would love the company (plus, it saves me from having to Google debt blog every time I want to read something online). Please provide a comment with your site and I'll check it out.

The Kids are Alright...

2009-01-26T07:55:00.000-08:00

For anyone out there who has kids, is considering having kids, knows someone with kids, or is still a kid themselves (literally or figuratively) - I have a great resource for you.

I came across a website www.makeitcountonline.ca which is put out by the Manitoba Securities Commission. This website is designed to help parents to teach their youngsters how to handle money, make financial decisions, and generally have a better concept of money and finance then we did growing up.

You can even order a guidebook for free with great worksheets and information (all of these are also downloadable on the website).

So if you have five minutes today, check out the website and maybe make a difference in someone's life.

(Do posts like this count as community service?)

$100 Update...

2009-01-23T07:43:00.000-08:00

So the 20th of the month has come and passed, and I have to note that I did not reach my $100 extra per month goal this time. (BOOOOOOO!!!! HISSSSSSSS!!)

I tried ebay, but really didn't make all that much this time around, so I have left the cash in paypal for another month, my initial scheme for the month was denied (but may resurface in February - I'll let you know), and things were crazy hectic with time slipping through my fingers a little too quickly. So yes, I have failed for January.

However, I would like to note that I did make some strides this month. I added an extra payment to credit card #2 (if you remember, this is from my own stupidity of paying too early, but I'll take it as a positive anyway), and I managed to reduce the interest rate of 1/4 of my debt to about half.

Ideas for February:
-more stuff on ebay
-selling my maternity clothes (that are sitting in my basement collecting dust) to a second run store
-investigate selling used books on Amazon

So my question is out to you (again):

What can I do to make a little extra scratch every month? Online gambling, prostitution, and black market organ sales are not options. (sorry if any of these have worked for you)

I Had a Dream Last Night...

2009-01-21T06:36:00.000-08:00

No this is not one of those political entries spurned by the inaugaration - but I must admit I did like the speech (Pretty empowering stuff!) However, I did have a dream last night. It went like this...

I won a million dollars (I think we have all had some version of this dream). I divided up the money to what I owe and made a few purchase (new car, vacation, etc.), but at the end of the day I still had a few hundred thousand that the hubby and I were going to put away for a rainy day.

However, instead of putting it all away, I gave a proposal to my closest friends. I offer to pay off their debts, and in return they would pay me the going T-Bill rate times the total debt divided by 3 years (read: no compound interest). Prepayments were allowed and encouraged. In dreams some people are superheroes, I'm a banker apparently.

But then I woke up. Sorry friends, maybe another day.

I'm so nice when I'm unconscious!

What Was I Thinking...

2009-01-20T06:01:00.000-08:00

Okay, so I read over my last post and realized that everything I said on Friday was BS, and frankly, a little whiny. How the heck am I supposed to get out of debt, or remain debt free for that matter, if I can't even muster up enough willpower to pay off the bloody credit cards in the first place.

Yes, I have had issues in the past, but they will never get better if I put my head in the sand and waste hundreds playing the safe, although stupid, debt repayment game.

I deeply apologize for wasting your time reading that post.

New Game Plan:

1.) Suck it up - I'm in debt and never getting out if I don't shape up.

2.) Transfer as much debt as I can from high interest card #2 to low interest card #1. I know this is just displacing my debt, but it will reduce the amount of interest I am paying. Plus, as I will be closer to zero on my higher interest card I will pay that balance off quicker, and I will be a lot more reluctant to add charges when the balance is nil.

3.) Annhilate my high interest credit card #2 will everything I possibly can. (I think I might even undertake the mythical debt snowball.)

4.) Once paid off, revisit plan and see what my next step/strategy will be.

There, now that is a post I can be a lot more proud of!

Smart vs. Stupid with a Purpose...

2009-01-16T06:07:00.000-08:00

Okay, so I have an interesting dilemma. Since, I have managed to lower the interest rate on one of my credit cards it would be assumed that my repayment plan would take a bit of twist to account for the lower interest and reduced amount required to pay that balance off. Also, it would be reasonably assumed that this credit card would be shuffled to the bottom of the debt repayment deck. But due to emotional reasons, I'm really not sure....

First let recap my debt:

Credit Card #1 - My first priority. Balance started at about $20,000, and it is a card that is not normally used and has not had a charge since June of last year. A good place to start as nothing is being added, only paid off.

Credit Card #2 - Next in line. Balance started at about $20,000. Unfortunately, this is my "operating" card. I try not to charge anything, but if there are any slips or shortages in our home life this is where they end up.

Credit Card #3 - The business card. Balance started at about $40,000. This was made the last priority as any slips or shortages on the business side are charged here, and I actually don't have access to this card. As much as the hubby is reining in the spending, he's a little more prone to charging than me. (He is really trying, believe me.)

This payoff scheme was reasonable in the past as all interest rates were similar so where I started was really irrelevant. However, Credit Card #1 has just dropped rates by almost half. Obviously, the smart thing to do would be bump Credit Card #1 to the back of the line and focus on Card #2 and #3, let #1 sit charging much lower interest. I repeat this would be the SMART thing to do.

In the back of my head, however, is the problem that I always encounter, Cards #2 and #3 are never really frozen. It's kind of like that "I'll never drink again" thing that people always say, only weeks, days, or hours before they are double fisting pints of pilsner. Although we have actually come incredibly far in terms of not being dependent on credit, there is still the looming feeling that I will be trying to pay off Card #2 and #3 forever as when I finally get somewhere it'll get racked up again. At least I know that when Card #1 is annihilated, it'll stay that way as it is never really used much to begin with.

So what's a girl to do? Play it smart, with the risk that my debt repayment plans will be foiled when history repeats itself again? (I know it's pathetic, I think I'm stronger now, but I'm nervous - I think I need a 12 step plan) Or do I continue on the same journey, guaranteeing that at least $20,000 will be out the door for good, at the cost of hundreds in interest from my other cards?

I've been in this place before, and as much as I know it needs to stop, I can't help but think that I will never really see the end of my debt. So do I play it SMART or play it SAFE?

A Decreasing Interest in Credit...

2009-01-14T06:59:00.000-08:00

Well it finally happened, I managed to drop my interest rate on one of my cards by 8% points. WOOOOOOOOOHOOOOOOO!!!

After Christmas I decided that I will give it another go with the credit card companies to try and reduce my interest rate on my cards (or at least the outstanding balances) as I am sure I am not the only one out there dwelling on their debt at this time of year. Plus, I actually had a balance transfer option in my hand that I had fibbed about having the last time I called in, so I thought that Karma might do me a favour for being honest this time around.

Well after calling a not so nice Customer Service Rep at one of these companies, she indicated that "their credit cards have a set rate, and my card is 19.5%, so I would have to just deal with that." Nice.

That got me to thinking though, well what other cards does this company offer that would have a lower rate. Turns out they have a card at 11.5%. I called back and spoke to a much nicer CSR, inquiring as to whether I could transfer my balance to the low rate card. Jackpot!!!

So here is the deal, they close my old card (which I lose my piddly rewards, that I wasn't receiving as I haven't been charging on this card) and set up my new one, but it isn't considered to be an account closure and new credit on my credit report, just a change in product. My credit history from my old card stays on my report (it's good and is for almost 10 years), and the balance on my current card is transferred to the lower rate.

The only downfall is that the new card carries a yearly fee, but it is nominal in comparison to the over $1500 in savings from interest this year alone. Besides, when I pay the card off, I can try to switch to different no-fee card, or because I will be debt free, cancel the card and start a bright new beginning.

Finally, something is going my way!!

Use the points, Luke...

2009-01-12T06:44:00.000-08:00

In a follow up to my menu planning post from last week, I wanted to address a subject that is near and dear to my heart: supermarket credit card reward points!!

I'm sure everyone has encountered/or has a credit card that has points to be used for free groceries/merchandise at your local supermarket (which of course no longer just includes food, but electronics, home items, cosmetics, and sometimes clothes). I have one of these cards, and although I am trying to decrease my debt, I often funnel my grocery purchases onto this card and then transfer the money when I get home. (I can manage this for groceries, but no other purchases in my life - go figure)

So what is the best way to maximize the use said points? Through conversation with the flesh and blood people in my life, I have come up with the following methods:

More Santa, Less Scrooge: This concept is to save up your points all year and use them at Christmas time. You can use them to eliminate the extra cost of holiday baking, appetizers, and other food costs, as well as actually buy gifts (video games, DVD's, boxes of chocolates, etc.)

Use them or Lose them: Not the most strategic method, but many people simply use their points for groceries as soon as they get to a redemption point providing several little budget boosters throughout the year. I ask the question though, does the $10 savings actually get recognized somewhere else, or does it get lost in the shuffle?

Budget Overdraft: This is the method I use personally. I budget $250 bi-weekly for groceries, but sometimes this is just not enough. We have all had those weeks where you run out of shampoo, toilet paper, toothpaste, and detergent at the same time, or you were so diligent with incorporating the food in your freezer to your meal plan that you have to buy more meat- which can be costly. For the times that I go under budget I simply charge the groceries (and pay when I get home), for the day I go over budget I redeem points to bring me down to the my budgeted level of $250. This helps me from ever going over budget on groceries.

Whatever you choose, if you are paying for rewards on a credit card make sure you use them, and use them wisely!!

I plan, therefore I save...

2009-01-09T10:17:00.000-08:00

Menu Planning. This has been a long time recommendation to save money at the grocery store, yet it can be quite time consuming and often frustrating when best laid plans don't quite work out. Well although I haven't quite got everything together, anytime I get my menu plans on track it has saved me time and money. Here are a few points:

Remember to take inventory: One of my biggest past mistakes is not taking inventory of what I had in the fridge/freezer/pantry and just assuming I knew what was there. Many times I have returned home with a great menu, just to find that someone has eaten a main ingredient I thought I had on hand, or you buy something you already have (that is why I have three containers of parmesan cheese!) The key here, actually take the time to look and write it down. Use the list to help come up with your menu for the month, and stroke items off as they are incorporated into your schedule.

Use a calendar format: Enter all your menu choices into the days of the week on a calendar. You don't have to stick withtuna casserole on Monday just because you wrote it in there (I usually don't serve my meals in the order I write them), but it helps to incorporate your plans and time constraints into your planning. Is Wednesday a busy night? - plan a quick meal for that day. More time on weekends? - plan something requiring more preparation. This will reduce the amount of tiem you will eat out as your menu options available at home don't fit in with your lifestyle. Also, in a calendar you can incorporate any dinners out so that you don't overbuy.

Book in Non-Perishables: In my world an impromtu dinner invitation is the case more often than not. Unfortunately, this reeks havoc on my menu plan (and my budget) as I find that I tend to throw out a lot of rotten food as I do not get to my recipe in time, and often times have to rebuy ingredients. To avoid this, I always book in one completely Non-Perishable (and quick) item per week (read: frozen pizza). If an invitation arises I simply skip the pizza altogether and incorporate it into another week down the road. At first I tried just booking a tentative blank day, but I found that if we didn't have short notice dinner plans we would simply take that day to get take out or go to a restaurant, often on a credit card for a ridiculous amount.

Keep a copy of your calendars: One of my biggest vices with menu planning is compiling the menu items. Sure, the standards are always at the top of my mind, but I always try to do at least one new recipe on a bi-weekly basis. Problem is: I find great recipes, use them once, then forget about them. Keeping your old calendars or a compiling a spreadsheet with what recipes worked will help with the planning time. On any winners, I also write the cookbook it came from to save time later.

Overall, menu planning is a great way to save time at the grocery store, decrease your stress during the week as you always know what could be for dinner and that you have what you need, and it decreases the chance that you will waste your food budget on incomplete or unneccessary food purchases.

Post holiday debt hangover...

2009-01-06T06:12:00.000-08:00

So we did well by spending mostly cash this year but we are still in the "I'm never spending again" phase of January. Credit cards bills are coming in, and although the balances haven't really increased, we now have more time to reflect (read: dwell) on the havoc that is our debt.

Plus, January is always our lowest income month so the belt just gets tighter and tighter making this miserable month more so, trying to avoid a budget shortfall and not having a spare dime for anything other than food, housing and debt payments.

It's been incredibly cold here, so we have been hermiting in our house for the last week and that seems to be okay on the budget, but terrible on the psyche. I think I am going a little stir crazy. Granted I have a mile long list of projects to do around here the house, but I have acquired a general malaise, and housework (however satisfying in the long run) is not exactly on my mind.

Oh well! Once the year starts to pick up again I will definitely be in better spirits and hopefully hit the ground running on those goals I talked about last week.

Present Maximizer Tip...

2009-01-04T06:23:00.000-08:00

While chatting with someone the other day they had indicated that they had recently pulled their annual Present trick to maximize what they had received for Christmas. The plot goes like this (works best on clothing):

- Take any presents that were received with a gift receipt. Find out if the item has recently gone on sale after Christmas.

- Return the gift.

- Repurchase it back at the new lower price and use the store credit you are issued to buy additional items at the same store.

Voila!!! Now you have your presents back and a bunch of new things too!

(Beware - I have heard that some stores are picky and will not put returns back on the shelf until the end of the day, meaning you will not be able to buy back your gift if it is not currently in stock)

Drought in the cash flow...

2009-01-02T07:09:00.000-08:00

In an effort to be a good little debt destroyer I made my credit card payments just after the cut off for the month(on the 23rd) to a.) reduce my interest as it is calculated on a daily basis, and b.) get some of my payment out of the way before Christmas so I wouldn't be putting it off. Big Mistake!!!!

Apparently Credit Card #2 does not have a set cut off date and although none of my statements were cut off later than the 22nd of the month, they decided to make the cut off the 24th. This means that my monthly payment was applied to the prior month, thus requiring me to make another $500 payment, that I thought I had already paid!!! GRRRRRRRR!!

After throwing some things around my home office I called the company and explained my situation. The friendly CSR on the phone indicated there was nothing he could do. Although I did consider asking for a manager I figured an extra payment on my credit card (especially since this is my highest interest debt) would not be the end of the world. Problem is: I have to manage my finances to come up with the $500. Oh well I guess it wouldn't be a challenge if it were easy.

For Auld Lang Syne...

2008-12-31T06:39:00.000-08:00

Well it's that time of year again - the end of it. At such an occasion, like most people, I like to take this time to reflect and look forward to the upcoming year. However, I don't believe in making resolutions, I create goals. All that "I resolve to..." nonsense makes me feel like I am in confession. So for the upcoming year, here are my financial goals ( I have others, but I don't think you want to hear about how I need to clean out my hall closet).

2009 Financial Goals:

Reduce my overall interest rate: I am currently paying a weighted interest rate of 19.64% on my debt. I would really like to bring that down a smidge.
Reduce Credit Card #1 by at least 50%: The balance on this card is currently $19535, which means that I will need to pay off principal of $9767, (I'll just round that up to $10,000). Yes, I know that this is less than $1000 in principal per month, but with payments on all of my other cards, and my current payments of about $500 in principal on this card per month, it is a rather lofty goal.
Start my emergency fund: Yep, one of the biggest financial management sins is not having an emergency fund. I would like to get a an emergency fund in place with a minimum of $500 in it at any given time.
Secure a new job with better pay: I actually have a decent job in my field right now, but I am not truly happy there. It's time for me to spread my wings a bit and move on. Besides, I'm not exactly making what I could be in a different organization. The new job is a personal growth thing, the better pay is just common sense.

So that's the game plan for '09. Not rocket science, but it this would make a huge difference in my world.

Debtserious 1, Boxing Day 0...

2008-12-29T06:26:00.000-08:00

So I did go shopping for boxing day, but guess what- I spent a whopping $50, and I did it in cash!! Trust me, as a seasoned shopper, it was tough since there were some really good deals the likes that I haven't seen in recent years. Woohooo!

However, as an observation I noted was that this "recession" has really gotten to people. The shops were completely dead. I guess it's a sign of the times.

A little willpower...

2008-12-26T09:45:00.000-08:00

So it is now boxing day and I am spending Christmas with family. Unfortunately, spending time with my mom requires that I go boxing day shopping. Don't get me wrong I love...I mean LOVE shopping, but old habits die hard and I am a little skeptical of my willpower to resist the sales. This will definitely be a test of my will to see if I can shop for an entire day without pulling out any plastic. I'll keep you posted on how I did. Cross your fingers for me.

On a happier note, for Christmas I received money that was specifically earmarked for a home renovation project that we have been working on (yeah), and... get this... one of my relatives couldn't think of a gift for me so they actually bought me diapers. Yep, diapers for my son. Sounds a little unorthodoxed, but the thought was that if my kids everything they want (which they do, they are so spoiled by their grandparents) that they should get something they need. Awesome!! From the hefty load of Huggies I will easily sail into spring without having to dish out for these necessities.

We wish you a debt free Christmas...

2008-12-24T07:36:00.000-08:00

So here it is Christmas eve. For all of (if I have any) readers, I wish you a merry debt free Christmas, or at least one that doesn't make your debt worse.

Things for me appear to be shaping up decently this time of year. I have done some of my gift exchanges with family already and without any prompting have received a decent amount of cash as a present. The gifts I purchased were well received (and within budget). Plus, with so many events my grocery budget has had a nice little reprieve since we have been eating out with family for the last several days. And you know what, financially scaling back for Christmas has not affected the holidays at all.

...Now if Santa can slip an $80,000 cheque under the tree, everything would be absolutely perfect.

Merry Christmas everyone!

Deck the malls...

2008-12-22T09:28:00.000-08:00

Christmas shopping is finished!!!!!! And not only do I get the joy of knowing that I am done, I also came within my gift budget!!! That means I did not spend any money more than I had put away for Christmas.

I have been trying to budget for Christmas for years and this is the first time I managed to pull it off. I think it is because I started my gift budget at the begining of the year and accruing the funds every month, which caused me to think ahead for Christmas instead of trying to come up with the ideas (and funds) in October.

I definitely think that the gift budget project will continue for 2009.

Time for some "change"...

2008-12-19T07:19:00.000-08:00

Yeah, whoever said that you let at least $100 worth of change slip through your fingers in a month was definitely lying. Some this experiment has failed miserably. I have been collecting my change for a month now and I have amassed a whopping $32.67.

First off I thought would not go too badly considering that I ransacked my old purses, the cup holder in the car, the laundry room, practically everywhere and I found a ton of change. Problem is, once you've cleaned out those areas, they are no longer a source of money.

Second problem is: debit cards. If you are using your debit card, you don't have change. Technology is a killer.

Third problem: when you are cutting back on your spending, you don't spend as much, which means you don't come across as much change.

Luckily for the person who "challenged" me, I have received some money for Christmas which will cover off the difference in the $100 challenge for the month. But to that person I must say "HA HA" I was right.

I like being right.

Santa's got bank...

2008-12-17T11:06:00.000-08:00

Well it may be a little late for this year, but I have some advice for how to make some quick coin over the holidays...play Santa. I don't mean at the mall, but a hired Santa that goes to special functions (think stripper with more clothes)

Yeah I know this may sound hokey, but I talked to a hired Santa last week at a Christmas party and he makes $70 for a half hour appearance. Plus, he mentioned that on an average Saturday in December he can has had up to 13 appearances - in other words $910 cash in a single day (which I'm sure he claimed on his tax return).

In addition, if you are in debt you can use your new found calling to do charity work as well. Volunteer to play santa for a children's hospital or other charitable function that involves kids. This way you can earn some extra money, and still give back to the community without spending your cash and get paid in warm fuzzies (AHHHHH!!!)

So if you can fork out some cash to buy (or make) a Santa costume, don't despise children, and can generate a little word of mouth (or god forbid advertise) you could be sitting pretty next holiday season.

This unfortunately is not really a viable solution for myself (female), but around the holidays they sometimes look for elves, balloon artists, or face painters. Probably not as much coin in this as the man in red, but a couple regular gigs could help grease the holiday pocket. Something to think about.

Bad Blogger...

2008-12-15T08:16:00.000-08:00

So I know I haven't been around lately, and I have some good excuses but frankly I don't think anyone really cares why I haven't been posting just that I haven't. I've been a bad blogger I know...(slap on hand)...bad.

Well now with that taken care of, last month went a little better than I would have thought. I haven't updated my ticker yet, but the net change from beginning to end of the month was negative. Yep that's right my debt actually went down last month (enter WOOOOHOOOO here).

As we had already discussed I met my $100 goal, and for the first time I get as little hope that things might turn a corner.

It's good to be back!

Stupid Hackers...

2008-11-21T07:45:00.000-08:00

So my ebay account was hacked and someone tried to sell a ridiculous amount of stuff using my account. I am super pissed off right now. I know it's only ebay, but I feel violated nonetheless.

Stupid Hackers!!!!!!

Month 3...

2008-11-20T09:43:00.001-08:00

So it is now the 20th of the the 3rd month of this rollercoaster. Luckily for me I have made my extra $100 (yeah me!) and I don't think I have as much derailment with the credit cards as in the prior month (but the truth will come out next week).

Currently looking forward to maybe, just maybe, having my net debt balance go down.

Fingers crossed!

Taking care of the pennies...

2008-11-18T07:43:00.000-08:00

So on my hiatus I engaged in a conversation with some friends regarding my debt journey and my blog. One thing someone mentioned (or mocked) was my $100 a month project. This person said that in my current situation I shouldn't be worried about finding hundreds, but I should be concerned with obtaing thousands. Well my response, of course but how easy is it to come up with a thousand dollars every month when I am struggling with $100. If I found a way to come up with that amount of money in a month, don't you think I would take it? I like to think that I am smart enough for that.

One comment I did pick up on, however, was a flip remark about how "you probably could find more than $100 from pocket change within one month?" I thought this was interesting. Do we actually encounter $100 or more in simple pocket change within one month ?

So for my December $100 plan, I will be accumulating all my pocket change until the 15th of December (30 days) and see what I can come up with. This may seem simplistic, but I feel the need to prove (or disprove) this theory. Have to admit, I am a little curious.

Sorry for the downtime...

2008-11-17T07:39:00.000-08:00

Sorry for being away, but I had some family business to take care of. But I am back and will continue with the posts. To anyone who stumbled across in my absence, I am sorry and hope you will continue to follow my progress.

Thanks, but no thanks...

2008-11-05T14:28:00.000-08:00

So as I promised I looked into the Quicken Online program. It looks great!! There are plenty of great features and appears to be very user friendly. The reports are great and populate a whole lot easier then if you tried to do it manually as all of your transactions are already uploaded and categorized for you.

However, there is one small drawback. To set up the software you need to provide your account nunbers to the program so that transactions can be downloaded. I researched the company's security measures and was impressed, but I decided to call my bank anyway. I was assured by the bank manager that if I were to provide my account number to the program and it was somehow accessed by another party I would have no protection on my bank accounts as I had volunteered the information which explicitly goes against my banking agreement.

I know I don't have much in the bank right now, but I don't think it is worth the risk. The tour of the program, however, has given me some ideas on how to track my finances better myself.

Oh well, at least I learned something!

Paying to get out of bed...

2008-11-04T07:51:00.000-08:00

So after completing that reconciliation of my credit cards, I went a little CRAZY and figured out how much interest I was being charged per day for the past month. The result...$41.

Yep, I am paying credit card companies $41 dollars a day to have the luxury to not own up to the purchases I have made over the past few years. Pretty hefty cost for denial.

I challenge anyone else to do this. Actually look at what your debt is costing you on a daily basis, I sure it will be more shocking then you realize.

Making Sense of My Mess...

2008-11-03T06:22:00.000-08:00

So as I posted on Friday I was blindsighted by the movement (increase) of my debt. So I created a reconciliation that groups all entries into categories and makes more sense of where the money is bleeding. What I found was suprising.

Sure enough there was interest charges and vehicle repairs, but there were two big shocks from the breakdown. First off was gas. I thought we were spending a couple hundred bucks a month, but it turns out we were spending just shy of $900. Can you believe it? $900 in just 30 days!!!! Gas is a necessity in my world as it is an 8km drive to the end of the line for public transit, but I never thought it was that bad.

The second shocker was the $700 that was spent on Miscellaneous stuff. Between 2 credit cards we managed to charge just over $700 on items that were not necessary (ie. going out for lunch) or that I didn't even realize I had charged. How pathetic is that! There were actually a few charges that I swore I had paid cash for. Ouch!

Being more cognizant will hopefully put an end to this one. If the misc. stuff wasn't charged and gas was more in line with what I thought it was we would have actually could out ahead, although meagerly.

Well we can only learn from our mistakes, and hopefully I will not be repeating this post in early December.

Un-Happy Halloween...

2008-10-31T16:54:00.000-07:00

So here it is - Halloween. I received my last credit card statement and went to update my ticker. To my unfortunate suprise, not only did my debt balance go up - but it was $713 dollars more then when I started this whole crusade.

I was completely dumbfounded. From further investigation it appears that the majority of the problem is that my interest charges are eating too much of a chunk into my monthly payments, the aforementioned car repairs, and my husband's continuous spending on his business card.

Something has got to give here as I am really discouraged right now! I know I just have to keep plugging away, but I am not even sure how. I guess I'm just a whole lotta talk!

Maximizing Christmas...

2008-10-30T07:01:00.000-07:00

I know it is barely Halloween, but once the candy has been collected people's minds turn to Christmas. My thought is, with a bit of forethought and proactive discussion, one can truly make Christmas work without blowing your budget or increasing debt by reducing your expenditures and planning what gifts you will receive.

Yes, I am sure this post will be rubbing some people the wrong way, but the fact is many people like help with their Christmas shopping, and just because it is better to give than receive really doesn't mean that you won't be receiving in reality. Taking advantage of this fact could help with your debt issues.

Giving - I love Christmas! My favorite part is shopping (especially for kids), but let's be honest this racks up huge dollars. If you have the guts to be honest with your family and friends, let them know of your position and let them know you will need to scale back this year. If your family is receptive, some scale back options could be; pulling names to reduce the amount of gifts to buy, setting spending limits, agreeing to only homemade gifts (needs some creativity, but can be huge savings while still being thoughtful), or maybe do some volunteering as a family instead of gifts.

Receiving - Here is the touchy part. No one should ever expect gifts, or be able to dictate what people buy them, but sometimes providing some input could help you out instead of getting yet another reindeer sweatshirt. If people ask for your input, give it!! I can guarantee that almost everyone you know and love would rather spend money on something you really want then to find out that you don't really like their gifts. If they haven't asked for input, be up front and make suggestions, just remember they may not necessarily follow your suggestions, and if you have asked to scale back Christmas (as in above) don't expect much in return (if anything).

However, if you have a project you are working on and can't really afford, your kids need items for school or new clothes, or there are things that you need from around the home, why not take advantage of this opportunity to keep your life at an even keel and avoid further debt.

Here are some tips to make it easy on everyone:

Know your audience: I don't know your Grandma, but you do. Make sure you know if they would be receptive to "suggestions." Sometimes you just have to deal with a new pair of footie pyjamas because the tradition is more important to that person. Some people may also be offended by you making suggestions on your own gifts. Determine whether your audience will be more welcoming to more generalized comments (ie. they think they came up with the idea themselves) or more directed conversation.

Know their limit: Granted circumstances change from year to year, but we can generally gauge what people's spending limits are based on the gifts we have received in the past. Obviously, don't ask for a new water heater from Auntie Beatrice if she generally only spends $25. Make suggestions based on the limit, or indicate that contributing towards a bigger project may be the most beneficial for your life right now.

Remember that you may not be the only one in financial crisis: Just because your parents normally drop a mint on you at Christmas time does not mean that they can or are willing to do it every year. The economy is rocky and their retirement may not be as stable as once thought. Bear in mind that they may be pinching those pennnies just as hard as you are, even if it doesn't show.

Remember and Communicate your reasons: Don't forget why you are trying to plan your Christmas- Debt. This is not a kid in the candy store type mission, it is to try and keep your life in order. Be honest with your family and friends and they will be far more likely to be receptive then coming off like a greedy little child.

Good luck! I'm asking for drywall this year.

Auction Update...

2008-10-29T11:28:00.000-07:00

As indicated before my auctions ended this week and I made a whopping $114.00

This amount has since been transferred from my Paypal account and when it finally comes through, off to my debt.

One more month down...33 to go.

November off to a great start...

2008-10-24T07:02:00.000-07:00

Yes, I know there is still one more week in October, but November is already shaping up better already.

I did a little more cleaning and posted a bunch more stuff on eBay. Provided I sell pretty much everything, I will just squeak by the $100 mark for the month.

Auctions all end next week. Wish me luck!!

Abort mission...

2008-10-23T06:50:00.000-07:00

So after a long talk with the hubby last night we have decided to put off our quest for a consol loan for about 6 months or so. Some of you are probably confused as to why we would choose to do this, but there are three very good reasons why.

1.) The economy. Yes, I am sure everyone is sick of hearing about it, but while banks are on the defensive we are likely to get less than we desire, if anything at all. Plus, unless they simply give us a straight up "No," we are looking at a senseless credit check on our credit report (which we don't need if it will not be fruitful), and we might send up some flares about our mortgage (which we are fine with, but hey why call attention to ourselves). In this respect, we have decided to wait until some of the panic has subsided and the bank may be more likely to "play ball," so to speak.

2.) We will have a little less debt to come to the table with. Yeah, I know 6 months is not going to be a huge difference, but if we are already waiting, it is a benefit.

3.) My hubby's new job does not start until the new year, and with no way to substantiate the potential income until he starts making some, it will not be a good bargaining tool. If we can have a track record of his income (even for just the first quarter of the year), it will be a stronger argument as to why we should be granted the loan. Based on projections, this could be a major factor in how much we get.

I love FREE STUFF...

2008-10-22T07:24:00.000-07:00

I happened across some information that may be useful to some. Quicken Online has is now being offered FREE. Pretty cool, huh?

After a personal finance seminar that I attended I had heard many people rave about Mvelopes for their personal finance needs, which I did look into but was turned off a little by the price. I am definitely considering looking into the Quicken Online platform now, as any homebased versions I have seen of Quicken have been more than helpful.

The entire concept is to be able to better amalgamate and track all of your accounts, thus giving you better control and better planning with your money. It also has the capability of being able to check all account balances in one place online, or even to your mobile phone! Could be handy next time you are in the supermarket.

I want to do a little more research, but I'll let you know how it goes if I decided to go for the account.

You may have a point...

2008-10-21T06:27:00.000-07:00

I received a comment the other day in regards to my post on my dismal attempt at getting my credit card interest rates lowered. The comment indicated as to whether the economy may be to blame for my lack of success. My response: probably.

This is one of the reasons I have not completely given up on this idea. As I indicated in my post I will likely try again once I have paid off more debt. Part of this is due to fact that hopefully the economy will turn around and my credit card people will trust me again.

However, one of the reasons I decided to call was because of the economic situation. I thought, just maybe, that the companies might be willing to toss me a few token percentage points as an incentive for me not to default on the entire balance (not that I would, but they don't know that). I guess I was wrong.

Thanks for the comment.

October 20th Update...

2008-10-20T07:18:00.000-07:00

As most of you will already know, the 20th is the end of the month for my "Extra $100" challenge, as my credit cards bills cut off on this date.

I am happy to report - as mentioned in an earlier post. That I have succeeded for the current month. As you would have read in earlier posts I managed to sell my cell phone plan and accumulate my $100 in one go.

2 months down - 34 months to go. Also please remember to provide suggestions for this challenge. It's only going to get harder from here.

Trying to shed some extra pounds...

2008-10-17T08:29:00.000-07:00

I decided that since I didn't receive a balance transfer offer this month that maybe I could try to reduce my credit card interest rates by calling the companies and simply asking.

Although many debt smarties recommend this as an alternative, it did not work for me! First off I asked. No dice.

Then I threatened to move my debt to another provider. I was told to go ahead.

Then I asked to speak to a manager and I was told they could give me a "payment holiday" for a month, or lower my minimum monthly payment, but no reduction in interest! AHHHHHH!

This is frustrating as I have had one of these cards for 10 years with not one late or missed payment.

Oh well. I guess it is back to the drawing board. Can't say I didn't try. Maybe after I pay some of the debt down I can try again.

The Perils of Being "Too Good"...

2008-10-16T06:55:00.000-07:00

I have learned a thing or two over the years about debt repayment, and one of the key lessons, which is sometimes hard to fathom, is the concept of being too aggressive with debt repayment.

Any other time I have been in debt I have thrown every last cent at my debt. Problem becomes, if you put all of your cash on your debt, where do you get cash for other things/emergencies. Granted you should have an emergency fund, but sometimes that just doesn't cut it. Answer: you put the charge on your credit card. Then you aggressively try to pay that off and something else comes up, and then begins the cycle.

So unless you have the priviledge of having a completely uncomplicated, unpenetrable life you end up in the same boat you are trying to get out of. Using the boat analogy, you are bailing out a boat with a hole in it; you may stay afloat, but you will never be completely free of the water.

This time I am trying to take a more balanced approach by budgeting what is going to be spent on debt in a month, and if I can manage extra I will. It may take a little longer, but hopefully I can keep the debt monkey down for good.

Not time for snow...

2008-10-15T06:46:00.000-07:00

So I have received a few questions about why I have not decided to use the tried and true debt repayment scheme of the "The Debt Snowball."

For those of you who do not know this concept, you set aside how much you can put on your debts in a month, pay the minimum on all but one card (either with the highest interest rate, or lowest balance - depending on who you talk to) and you put all of the extra money and any other pennies that you can on that debt until it is paid down. Repeat with next debt in the series until - Voila! no more debt.

Basically, there is one main reason why I have not done the snowball - FEAR! As you can see the balances are quite high, and cards #2 and #3 are close to their limits with reasonably large interest payments. To try and gain control over these cards I want to make sure I am paying more than the minimum for now until I have some wiggle room to decrease the payment and concentrate on card #1. All cards are being paid more than the minimum (as said before, based on a 3 year payoff plan) but I am worried that if I focus all of my energy on one debt too quickly the rest will fall apart because I am not properly prepared for the undertaking.

Don't get me wrong, the snowball is a good system, I just need to be in a more secure place before I go Rambo on card #1.

To those about to blog...

2008-10-09T06:26:00.000-07:00

So if I have inspired anyone (or one of the other hundred personal finance/debt blogs out there), I have a little tidbit of advice. I was checking out a site "Blogging Away Debt" and it appears that not only has she sold their website, she is almost out of debt. Which means...she is passing the torch to another unfortunate soul who has buried themselves alive under credit card statements to pick up where she left off.

If you are interested go to her site at http://www.bloggingawaydebt.com/ and apply. She has a post dated October 7th with the details. I might throw my own hat into the ring, but I haven't quite decided. I kinda like my own little place in the 'net right now.

Good luck!

It's not just Halloween that's scary...

2008-10-08T06:28:00.000-07:00

So barely into October and it's looking pretty dark and scary. Have spent time so far trying my hardest to only spend cash. Little thing I noticed - cash runs out!! It's true. For some reason ends are not meeting as well as in the past. I think I need to revamp the budget.

Significant speed bumps on my road to sanity:

- the car repairs (still seething!)
- hubby has already overspent on his business travel this month (naughty boy)
- daycare fundraisers (seriously, just send me an invoice so I don't have to buy anything else!)
- general lack of money! Hubby's paycheque was lower than expected and the rest of it just seemed to float through my fingers. Tracked some of our spending, but can't seem to wrap my head around it.

But it will be okay. Say it with me now "November will be better...November will be better...November will be better!"

You've got a friend...

2008-10-07T14:25:00.000-07:00

I would like to take this opportunity to thank anyone who reads this blog. I noticed last week that I had both my first AND (get this) second comment. I really appreciate people's advice and like to hear what people have to say.

Thanks for your support so far. I might just have to keep this up.

Big Wedding, small budget…

2008-10-07T06:26:00.000-07:00

So I went to a wedding this weekend, and it was beautiful. Every detail was perfect. First thing I thought, “How much did that cost!!!”

Inspired by this I thought I would impart some words of wisdom I have done and collected regarding wedding money savers:

a.) DIY – One of the biggest money savers is doing things yourself. Can you shave off some cash by making your own favors, programs, etc. This can save you a ton over paying for the service. However, as I personally learned the hard way, make sure you evaluate ALL costs and know what the market would charge to do the same work. I decided to make my own invitations, very pretty, and very simple. After hours (and hours) or work, many botched invitations and wasted supplies, plus tools that I never originally budgeted for, I spent at least 50% more for my invitations then if I would have just paid for them to be done. Make sure you are actually saving money by doing it yourself.

b.) What Matters Most – Figure out what you care/or your guests may care about. If the cake is not a big deal to you, get Auntie Annie to make you one. It might not be perfection, but as long as it is more than presentable you can save a mint! Spend on things that are important to you (ie. Photos).

c.) Costuming – I bought my dress at a beautiful bridal shop, but instead of the $200 shoes and $150 tiara that did look fabulous, I went to the mall, bought $26 strappy white sandals at an end of season sale (which I have won numerous times since) and a $12.95 tiara that I bought at a costume jewelry store in the prom section. No one knew the difference, and they both looked just as lovely as the boutique items. Plus, I didn’t have to worry about losing anything expensive.

d.) Alterations – You might not want to risk the wedding dress, but find out what alterations to a bridesmaid’s dress would be if you paid someone else (other than the bridal store). I have seen people pay hundreds of dollars to have a hem sewn and the top taken in that would have cost half the price at a decent tailor elsewhere.

e.) Package Deals – If you are booking a venue that offers catering/dj services/etc. as part of the package, ask if you can bring in your own and how it will affect the price. In many cases the venue is actually overcharging you for these services, when you could book the same companies personally for a lower price. On a side note (mind you I have never tried this), don’t mention that you are booking services for a wedding until absolutely necessary or after you have received a confirmed price. Some companies will jack up their prices, just because people will pay anything for the wedding of their dreams.

f.) Music – Have your heart set on a string quartet? Call a local music school or university and many students will be willing to work for peanuts to get some playing time. Besides if you are going with traditional standards, most musicians can pull these items off.

g.) Liquor – A few tips here:
1.) Close your bar during dinner and speeches. Wine is generally cheaper and it will keep people from having a glass of wine and three vodka tonics at the table, and drinking none.
2.) Offer only wine, and non-alcoholic punch for cocktail hour. People drink wine slower so they will not be consuming as quickly (or as much). Besides slowing down your guests may keep your 3rd cousin from re-enacting Tom Cruise’s “Risky Business” slide later on in the evening.

h.) Photos – Try to get a photographer who will allow you develop your own photos. This can save a ton of money as you can get the pictures developed by a high end developer, and all of those other photos for family and friends you can go to a lower cost place to have them developed on mass. Besides a photo card developed at Walmart is often significantly cheaper than a traditional stationary thank you card, plus your guests get a professional shot of their very own.

i.) Flowers – This category can be ridiculously expensive for something that may or may not even last until last call. Here are a few cost-effective options:
1.) Remember a few bigger blooms can be just as (if not more) dramatic than a cluster of flowers. In many cases the individual stems may be more expensive, but you will need far less to get the same effect, thus saving money.
2.) Remember your vision and see what you can do yourself. A girlfriend of mine wanted a large cluster of roses for her bouquet, so instead of paying a fortune she went to a discount wholesaler (Costco), bought two dozen roses, pulled them together as tight as possible, wrapped the stems in elastic bands, and then covered the bands in thick craft store ribbon that matched her theme. Bridesmaid bouquets were done the same with only one dozen. She paid about $15 a dozen, much cheaper than a floral shop bouquet, and they were beautiful. (Pre-order your dozens if you are worried about availability)
3.) Is your church/venue having another wedding that day? Talk to the other couple and see if they would like to split on the decoration and/or alter flowers. You can either make this a great savings or get far more flower for your buck by being able to upgrade by staying within your budget. Be ready to compromise though.
4.) Keep your flower choices in season. Tulips in December – a little pricey.

Good luck and happy wedding!

The Balance Transfer Trade Trick...

2008-10-06T10:29:00.001-07:00

Okay, so we have all heard that one of the keys to reducing your debt is transferring the balance to a low rate or promotional rate credit card to reduce your monthly interest. Pretty good plan, but sometimes we don't have any credit room, or we can't/don't want to open another credit card to acheive this. Here's a little trick to bring your rate down (after exhausting other options, like just calling the company).

When your credit card company offers a balance transfer (even if your card is maxed) do the following:

a.) Take every spare penny that you have (credit line, upcoming mortgage payment, anything!) and make sure you can part with it for about a week.

b.) Put all of this money on the credit card with the low transfer rate.

c.) Wait until the money has been applied. If it is a bank credit card, you can sometimes speed up the process by physically making the payment at a branch.

d.) Write one of the handy dandy cheques that come with the transfer offer to yourself and put in the bank.

e.) Put the money you spent back to where it belongs.

Voila! Whatever money you managed to put on your card is now traded from your high interest rate to a low promotional rate. This may only be short lived (due to length of promotion, or low amount of money that you managed to scrounge up in step a) but even any reprieve in interest costs will help to pay down the amount faster and reduce your interest charges.

After the amount is paid off (or the promotion runs out), try the traditional standbys to reduce your rate, and if all else fails, repeat the above process ensuring that you maximize the amount of money that you put on your card.

I Thought Gas Prices Were Bad...

2008-10-03T07:46:00.000-07:00

So everyone is complaining about gas prices - what about car repairs!!!! I got hit today with a ridiculous amount for car repairs. After wiping out my emergency fund, I still have a bill over $1000!! Most of that is labor.

Don't get me wrong, we take good care of our vehicle, but this will definitely be a setback as you can probably guess where the $1000 went. (Credit Card #2)

Feeling pretty bitter right now. This just wiped out a third of my monthly payments!!!

Debt Gets a New Look...

2008-10-02T06:04:00.000-07:00

So I decided to update the look of my blog. Loved the dark, but found it a little hard to read (especially the tickers - which is essentially the blog's raison d'etre).

Hope you like it!

What Have You Done With My Husband...

2008-10-01T07:45:00.000-07:00

I mentioned yesterday that the hubby has added a new income stream to our little home, but today I thought I was going to pass out.

In an effort to keep him "in the loop" on our finances I was in our home office preparing the monthly report as I had described in an earlier post. After finding out what I was working on he actually decided he wanted to talk about the issue. And I mean actually listen to what I had to say!

The final verdict:

a.) He agreed there was a problem that we needed to fix and agreed to cut out all unnecessary purchases until we had things under control.

b.) We talked about the consolidation loan concept and why I don't really want one right now, and especially why I DO NOT want to add it to our home equity. And he listened!!! However, he did remind me that compared to ourselves a year or so ago, we have actually been getting better with the frivolous spending. A large portion of our debt would likely be gone if we were not paying for landscaping and the final additions (ie. driveway) to our newer home. Considering that he does have a point, we compromised to get a consolidation loan, but only for the amount of the home renovation/completion costs. This will not cover all of our debt, but we can bring our receipts and records to the bank to back up the amount (as opposed to just consumer spending), it will be a more reasonable amount so we are more likely to get approved, and all the good stuff like a lower interest rate. He agreed that everything else was our own misdoings and we will need to deal with that on our own, but the loan should make the whole project just a little more manageable. Besides, if they say no we are in no worse position than we are now. Oh yeah and he agreed - NO HOME EQUITY LOAN!!!

c.) To top it all off, he is going to go to the bank to handle the loan for us! I know we are in this together, but this is a huge step for him. He will singlehandedly need to sit with our banker and own up to our debts and make a plan. Of course, I get final veto, but it means that he is being responsible for our debt and not just putting the problem on me to fix. I am really impressed about this. My little man is growing up!!!!!! Besides, if I don't have to take time off work to do this, my boss will surely be pleased.

d.) We got to talking about our goals A.D. (after debt). We had always chirped about what we want before, but never in a "I would like to put a coupld hundred away every month to do X."

I am really not sure what has gotten into him, and I know it may fade as quickly as it came, but I will take what I can get as long as I can. If he has finally decided to work with me on this, instead of just letting things happen, we may have a shot at our end of August 2011 goal afterall.

Ticker Time #1...

2008-09-30T06:48:00.000-07:00

As you can see above, I have received my credit card statements, assessed the damage, and updated my Ticker.

I have also added 3 new tickers to demonstrate where I am actually making progress considering I almost threw up at the sight of only $56 being paid on my debt principal this month.

As you can see the trouble lies with Credit Card #2, which actually went up. I forgot about this, but I had a major bill ($1430) that I had to pay for work. This will be reimbursed, but has not been done as of this point. Phew!!! I thought I rambled on for a month for nothing!!!

As you can see, however, this is going to be a large number of baby steps before I get anywhere. Interest will kill you!

Gold Star for the Hubby...

2008-09-29T07:36:00.000-07:00

So it has been a good weekend. My husband has now managed to get a new job. However, when I say new, I mean additional. Yep that's right, another income stream into our household! Unfortunately, he doesn't start until the new year, but the good news is the job should pay for his business credit card debt (which if we remember is over half of the total debt) based on the three year pay 0ff plan. This means a little lighter on the cash flow, and if I can still allocate all or least the majority of the existing payments, it will be paid off even sooner. I know, I know, it should all be going to debt, but considering we will still be on track for "the plan" I don't see any reason why I can't take a couple hundred every month to pad the emergency fund and ease the strict grocery budget.

I am so excited for him. Plus, if we can dig ourselves out of this hole a little sooner, I will be ecstatic.

Christmas in September...

2008-09-26T07:42:00.000-07:00

My budget got a nice little reprieve this week My husband's family has decided to draw names for the kids for Christmas, which now means that instead of the regular eight children (not including my own) that I have to buy for, I now only have to shop for two! Plus, they decided to put a cap on the present cost to make it "fair." WooooooHooooo!

Don't get me wrong I LOVE Christmas! And this is actually a little bit upsetting, as Christmas shopping, especially for children, is probably the best part. Every year my husband and I go to Toys R Us and spend hours trying out all the toys and deciding what to buy. It really makes you never want to grow up (if you ever really do).

However, this is a nice break on my tight budget. Plus, the money I save can go on my debt, or to the unexpected Christmas expenses that always seem to creep up, no matter how prepared you think you are!!

Beware - Month 1 credit card bills are coming!!

A Few Depressing Thoughts...

2008-09-25T10:38:00.000-07:00

So I had a bit of a sobering experience yesterday. I actually sat down and thought about what I can't have because of my debts. It was really aggravating!! Due to the debt we have accumulated we have essentially locked up over $3000 a month (that is $36000 per year) that we are not allowed to touch for our past indiscretions. Talk about not moving forward!!

My husband and I want to a get a newer, more fuel efficient car. Without our debts this would be a piece of cake. But no dice.

I would like to cut back my working hours in exchange for more mommy hours. Not going to happen at this rate.

Trips? Nope. Basement renovations? Nada. New bedroom furniture? Not a chance. New pair of shoes? No - but maybe if I do a good job with this debt it could be worked out ;)

I know that it is always said to look at the positive side of things to motivate you to action, but apparently looking at the downside can also give you the swift kick that you need.

Beware "miser mode"...

2008-09-24T06:23:00.000-07:00

So sometimes after you have scaled back as far as you can go, you can get used to not spending money, and actually "forget" how to spend money wisely. My friend refers to this phenomenon as "miser mode."

Let's use an example:

You need a pair of dress pants for work. You think to yourself "I don't want to be spending my money on pants I have debt to pay!!" But you know you need them. You go to the store, and buy the cheapest pair you can find, and you think that you've done a pretty good job because you have spent as little as possible. Problem is, they don't wash well, they don't wear well, and the hems fall about 5 seconds after you put them on. So in about 2 months you not only look unprofessional, but you need another pair of pants. So you start the cycle over again. In retrospect, however, you should have bit the bullet the first time, spent a little extra and bought a good quality pair. After all of the replacement pairs you would need to buy (not including any tailoring you did along the way), you likely spent more in the long run going the "cheap" route.

Moral of the story: Being money saavy is not always about spending the least, it's about making wise decisions with your money. For items that you expect to need for an extended period of time, or use on a fairly regular basis (staple clothing items, everyday electronics, appliances, etc.) remember that cheaper is not always better. Take the timet o research your purchases, buy good quality items and you will likely be happier (and in some cases spend less) in the long run.

Stats-
Credit cards to pay - 3
"Extra" earned -$100

That one was easy…

2008-09-23T06:47:00.000-07:00

So, I have already accumulated my $100 for October (Yeah me!!). Turns out I was not maximizing my usage on my cell phone plan (which provides me with unlimited minutes anytime, anywhere in the city). So, I scaled down and managed to transfer/sell my plan to a friend whose family owns a business for $300. Plus, since I was also changing providers I received a $25 credit on my bill, a new phone, car charger, and activation fee for FREE! On top of all that my phone bill should be about $30 less per month. $360 in annual savings!

Yes, I know the value was $300, but as I indicated in other posts, I would consider this a windfall as it was not really planned. I took $100 for my debts, $100 for my meager emergency fund, and the final $100 is currently in limbo until my final bill with provider #1 and my first bill with provider #2 is settled. Everyone knows they always try to get you until the very end, so I have money sitting there to cover those expenses. If I don't use the $100 I'll reassess again.

At least it gives me a headstart to be thinking about November's scheme.

Stats -
Credit Cards to pay - 3
Money earned this month - $100

Taking the Home out of Home Business…

2008-09-22T10:32:00.000-07:00

So I received a comment relating to the “My Husband, My “Client”” concept. One of my good friends was indicating that one of the biggest debt problems was my husband disconnection between his expenses and income. My hubby works from home earning commission income and has a great deal of associated expenses (and over half of our combined debt on his “business” credit card, I might add). He does his job how he sees fit, and I handle all of the bills and finances.

My friend then indicated that I need to segregate his business from our household finances. She suggested doing this by providing a “salary” to the household from his commission income and the residual income would go to pay his operating expenses. His salary would be dependent on how much of his income is actually required to cover these expenses (ie. 45%) Based on this method she said it would help with the following:

a.) Determining if we are overspending on our household expenses. By removing his business debt and related operating payments to a separate accounting system (read: budget) I can determine if our household is actually balanced and operating properly. If not, cuts will need to be made here.

b.) Determining if the business is overspending by determining if the allotted % is actually covering his expenses and whether we have an overage or shortfall here. Budget may also need to be made.

c.) Requiring my husband to take more responsibility for the expenditures in his business. For this system to work he will need to know if he can make purchases, instead of just doing it and having me deal with the consequences by shuffling around his income and our household spending.

A huge lightbulb went on at this point. Why didn’t I think of this before!! It’s really a simple concept, but for some reason I just never got it.

Considering both the household and business are starting out in a negative position, I think it will logically take 6 months to a year to have each completely self-sustaining, but I am going to give it a go. Unfortunately, I will not be able to implement until October as I have already missed September.

I asked my friend how she got so smart. She responded, “It’s what Gail would have told you to do!” She’s probably right.

Stats -
Credit Cards to Pay off - 3
"Extra" this month (October) - $0 - I will think of something though.

The windfall trifecta...

2008-09-19T07:10:00.000-07:00

So have you ever been fortunate enough to go to your mailbox and have an unannounced cheque show up! Cha-ching - you may be thinking, but what do you do with money that you were not expecting? It could be a rebate from your insurance company, a gift from Auntie Erna, or whatever, but sometimes luck changes and you get a little break (or a big break). How to deal with the money is what I call "The Windfall Trifecta." This is a way to keep you happy without just blowing the money. Basically allocate all windfalls (no matter the size) into 3 components.

a.) Debt - If you have debt you should put some money on there. Unless you are in dire straits putting the whole windfall is likely unsatisfying as you will feel like it never really happened. Especially for gift money. However, we must remember to give our debt monkey a little extra and loosen up our debt load a bit.

b.) Savings - Debt or no debt, save some of that money. Even if only $5 put that little gold nugget into a high interest savings account for a rainy day. It may not seem like much, but a few $5 allocations with a decent interest rate could amount to an emergency car repair very quickly. Plus, think how nice it will feel not to charge something unexpected.

If you have no debt, you can either double up the savings component or split between savings accounts (ie. emergency fund and your vacation fund)

c.) Spend it!! - Yeah, you heard me. Even a cup of Starbucks can really make your day if you have been diligent with your debt repayment plan. Besides, you only live once and if you put every cent away you'll never enjoy yourself. Grant yourself a little pleasure and it will take you much further and recharge your batteries for the uphill debt fight.

Note: Just because there are three categories does not mean that you need to split the money 3 ways. If you are drowning in your debt, it may be worth it put 75% or more on your debt, with a much lower amount allocated to savings and spending. A good key concept for windfall success - the spending amount should never be higher than any of the other two categories.

If your windfall is particularly big, remember to take the time to assess what you really need/want in the spending category. When you are dealing with bigger bucks, making wiser decisions will relieve some future cash strain while still feeling satisfying.

Cards to pay off - 3
Extra earned this month - $100 - Yep I did it, and with hardly a day to spare!!! The remaining $31 dollars came from a combination of my change jar, money in purses/wallets I hadn't used for a while (a whopping $17.43), and I returned an item that I had charged on my credit card (item was actually $21, but I figured that one was a stretch so I will only take credit for the remaining amount needed for September).

Note: Getting my mitts on $100 was really hard. I will definitely have to get creative in the next few months.

Be true to yourself...

2008-09-18T09:10:00.001-07:00

So as you can see I have added a "Debt Destruction Chart" above my posts. This chart will detail how well, (or how pathetically), I am paying off my debt. It's one thing to see it as a number, it is another to see how ridiculously far you are from reaching your goals. I kinda like it. I might actually diversify it into all my different credit cards.

I love widgets!

I plan to update at the end of every month after statements are in, unless of course of a windfall.
On that note, see "The Windfall Trifecta" post tomorrow.

Stats-
Total Debt - Look at the chart!
Credit cards to pay off - 3
Earned this month - same as before

They like me, they really like me...

2008-09-17T06:41:00.000-07:00

You heard it here first folks, I have actually been "crawled" by Google. WOOOOOHOOOOOO!! Do you know what this means?

a.) I will not actually be talking to myself anymore. Don't get me wrong this is very therapeutic and helps keep my "eye on the ball" so to speak, but it is nice to know someone may actually be listening. Plus, if I manage to help out one person, even just to make them feel better about themselves in comparison to me, life is good.

b.) Comments!!! I can handle brutal truth, but no meanies please. Besides if I have to earn/find $3,500 more dollars over the next 35 months I am going to need all of the creative genius I can find. I am pretty good at thinking on my feet, but 35 months will be excruciating.

Stats - same as yesterday - but I am really cutting it close to my $100 goal. Guess I will be checking the couch cushions tonight.

The eBay way...

2008-09-16T07:02:00.000-07:00

So it’s judgment day for eBay and I’ve earned a whopping $59.47. Not exactly as much as I had planned.

There are, however, a few things I have learned from my eBay experiment:

Shipping Charges – Make sure you get your shipping charges right. Nothing cuts into your profits more than charging $5 for shipping and actually having to pay $15 for an item you sold for $2. GRRRRRRRR!!!!
Wait for a Sale – eBay offers sales from time to time so if you are not in a hurry, get your photos ready and write out your descriptions in word, then when 5 cent listing day arrives you can go nuts for a whole lot cheaper.
Second Chance Offers – If you happen to have duplicate items to sell, take advantage of the second chance offer. You might be able to sell two for the effort it took to sell one. This enables a lower bidder to buy the item from you for the price they bid, even if they didn’t win the original auction.
Beware the Lowball – If you lowball your prices to start a bidding frenzy, BEWARE. Too many times I have put a lowball price on an item that wasn’t being bid on, then BOOM!!! seconds before the auction closes someone swoops in and makes the minimum bid, which is less than I really wanted for the item. Now I’m stuck for the low price. I don’t like reserve bids as it makes bidders upset, but make sure you are willing to take what you have listed.
Not Everything is Saleable – Whoever said one person’s junk is another person’s treasure forgot to mention that sometimes one person’s junk is just junk. I put a lot of time and effort this month (not to mention insertion fees) into items that just will not sell.

Overall, I thought the eBay experiment went alright. I made some money and I learned some lessons, but all in all it was relatively easy to do once I got the hang of it. I think I will keep my eye out for other items to unload, but I don’t think this will be a significant source of income for the rest of this project. However, a dollar is a dollar – especially when that dollar has a 19.5% interest rate attached to it.

Debt balance – same as last time
Credit cards to pay off – 3
“Extra Money” this month - $69.47

My Husband, My "Client"...

2008-09-15T06:41:00.000-07:00

After doing some research on debt and relationships I have come the conclusion that I need to treat my husband like a “client.” As I mentioned in a previous post, the reality of our debt never quite sank in for my darling hubby until he saw the results on paper (not unlike many others out there). However, I know if I want this to pay off to work, he needs to be working with me and be fully disclosed as to the entire extent of the damage. So here is the plan:

At the end of every month I will provide my husband with a package. Kinda like a Board of Director’s treasury report. It will detail the following:

a.) What our debt picture looks like. This includes interest rates and balances.
b.) What our debt is costing us. This is the details on the interest we have been charged in the month, and the payments we have made.
c.) A variance analysis on our budget. Where we were over and under for the month.

I think the action of actually putting these things on paper will be very useful. It will help me get a better handle on our debt. Plus, it will let him know that this is serious business, with the details on paper to back it up.

Furthermore, I know that it is partially my fault that I probably do not communicate as effectively as I could about our debt issues. This could be a step in the right direction.

Stats – same as before, but my auctions close tonight.

"Budget Wins"...

2008-09-14T07:51:00.000-07:00

As I mentioned yesterday there are a few ways I know to increase your "Budget Wins" in your gift budget:

Shop off season: Since you will have an influx of "gift money" year round you can start buying before your events and holidays come up. For instance a great end of season sale in March could have some great discounts on sweaters, outerwear, sports equipment (hockey, snowboarding), or other fun gifts such as sleds. These items will likely cost you more in November/December, but your dollar will go much further when they are on sale earlier in the year. Note: Watch out for buying items that are too "trendy." They may be out of style by the time they are given thus making them undesirable.

Buy in bulk: Many stores (especially for children's clothing) offer discounts if you buy 2 or more of the same/similar items. When buying a gift, think ahead to who else you may need to shop for in the future. Could you pick up a great hoodie for a discount now, instead of overspending later on in the year and receive a discount.

Be creative: If you know events are coming up you can use your own talents to reduce the cost of gifts and increase your "wins." Knowing that a friend would be having a baby in 6 months I used some of the yarn I had lying around (from other discarded projects) and made a beautiful baby blanket. Coupled with a $7 plush toy, the gift was well received and I was $23 underbudget. Use whatever talents you have to come up with great gifts (services are always welcome) and save money.

Get to the point(s): Remember all of those points cards/frequent shopper cards you have filling up your wallet, check those balances. Many point programs can be used to buy merchandise or gift certificates that you can use to buy your gifts, without costing you a dime!! Don't worry if you don't have enough for the full amount, many programs will let you pay the difference in cash which can reduce what you would pay for an item, or get a much better gift for a much cheaper price.

These ideas should help to reduce your expenses on gifts within the year and avoid untimely events from ruining your cash flow. Take the extra money and put it on your debts or buy something you need. Plus, actively keeping tabs on your gift spending will make it easier to be more organized. Afterall, I am 75% done my Christmas shopping already.

Stats - no change - but my eBay auctions are up tomorrow -wish me luck!!!

Coming up tomorrow: My Husband, My "Client"

The gift budget...

2008-09-13T07:27:00.000-07:00

I love to give presents, thus no surprise I LOVE Christmas!!! My big problem with Christmas is that I spend far too much money, charge it because I don't have the cash, and am always in a huge rush to get my shopping done so sometimes gifts are not as thoughtful as they could be.

To combat my Christmas issue (and other gift giving times of year) I implemented the "gift budget" this year. To make the gift budget, I used Excel but you could take any sheet of paper (old napkin, whatever). Write down who you need to buy for this year including birthdays, christmas gifts etc. Don't forget your own kids, spouse or parents. Put an amount that you think is reasonable to spend for each person. Add a buffer for weddings, housewarmings, babies, and bridal showers that just spring up (I budget 3 of each) or ones you already know about in the year. Add up the amount you intend to spend in the year, divide by 12 and include this amount in your household budget for the year. If it doesn't fit in your budget you need to pare down on your gift buying intentions.

How the system works:

Having the money when you need it: You will actually be saving for the holidays and other events before they happen. No charging.

Being cognizant of your spending and on what: Having the budget has helped with not only decreasing what I spend on gifts, but I have actually had more thoughtful gifts because I know I have the money to buy them whenever I see something I like (and I think about it every month), as opposed to rushing out the day of and buying the first thing I can find (regardless of cost).

"Budget Wins": In some cases (more and more frequently as you get into the idea), you will be able to come in under budget for items on your gift list. I call them "Budget Wins." You have a few choices in this matter. a.) Do nothing and keep the extra money in the account for overages (see below); b.) reduce your payment next month by the amount of the win freeing up some cash flow; c.) reduce your payment in December. This one is really nice, since if you keep "winning" in your little budget game you may not have to make a payment at all in December making the holidays much easier. See tomorrows post for easy ways to make "wins" in your gift budget.

Overages: Sometimes $20 is just not enough to get that china cat you know that Grandma will love, this is where your decision making comes in. You can either a.) use up your existing "budget wins" if you have decided to not adjust your payments or pay the difference from your own spending money. This may make you think twice about the gift.

Getting Better: Make sure you note on your budget what you actually spent on a gift to identify wins and overages. In the following year you can tweak your gift budget to be more accurate.

Miscellaneous Items: I mentioned slotting in money for random (or planned) weddings, babies, etc. If some of these events don't seem to be occurring, (ie. it's mid October with no pending babies on the horizon, reduce your payments in upcoming months (or December) to offset the lack of need.

Stats - no change

My first mistake....

2008-09-12T07:07:00.000-07:00

So this whole debt repayment plan was not just come up with in August, I've actually been trying to make positive changes since the beginning of the year. August was really just my day of reckoning with the full extent of the damage.

Although I have been in and out debt over the years, I finally figured out one of main reasons for this- I'm working TOO HARD to pay off my debt. That's right, I've been too diligent! My major issue is that I have been putting every penny onto my debt, but forgetting that by paying off my debt with all of my extra funds I didn't have any left over for those extras and suprises.

So therefore I have now started a planned payment plan. I make sure that I put enough away for the major expenses every month so that by the time the actual payment comes around I will have the cash to pay for it. I think I might actually be able to pay for my house and car insurance without charging it.

Therefore, my new plan is to increase my debt (to be paid off in 3 years as indicated before) and try to make extra money instead of diverting the every dollar into debt payment. It may take a little longer, but hopefully it'll break the cycle once and for all.

Stats - No changes from last time.

Pieces of the "just desserts" pie...

2008-09-11T07:34:00.000-07:00

I thought a good exercise would be to determine what exactly I have spent my money on the past while, and what exactly is still outstanding on my debts. So I took each of my credit cards and downloaded all the transactions posted to my accounts since the balance was last at zero (for 2 out of 3 cards – one didn’t go back that far L)

Next I put all of interest charges at the top of the list (cause you aren’t really paying for items unless you have already paid for the convenience of buying them. I then worked my way down the list marking off any charges that have already been “paid” based on my payment history on the account.

Good News: In all cases I had “paid off” all of the interest on my accounts. This means I am actually making a dent in the principal of my purchases.

Bad News: I am still paying off purchases from last year on one card, two years ago on another and 3.5 years ago on the third!!! Ouch.

This is a pretty good slap in the face. I recommend it to anyone, but make sure you are alone when you do this (might not want your co-workers to see you cry!)

If anyone else wants to own up to their spending history demons, please leave a comment below. Afterall, misery loves company.

Debt balance – same as last time
Credit cards to pay off – 3
“Extra Money” this month - $10 – eBay sales will be up shortly – looking “okay” right now

No man is an island...

2008-09-10T07:31:00.000-07:00

So apparently I will have one more obstacle on the way to Debt Freedom. Task #4 – Educate the Husband

I was greeted the other day with a bellowed “What the HELL is this?” coming from our home office. Apparently, my beloved hubby had found the “Own Up to Your Debt” worksheet and was even more oblivious than I concerning our current situation. I had thought I had been communicating our situation to him, but things have gotten a little lost in the translation.

His first suggestion – Consolidation Loan. No way! I know this will likely bring down our interest rate, but this will bring the lifetime total to 3 loans. We have always paid the loans off, but we always end up back in the same situation as before. We need to learn our lesson this time. Plus combined with being too chicken to confront our banker with yet another pile of debts, I’ve ruled it out (until the pile is a little more manageable at least!)

The hubby is always about the quick fix. My new goal is therefore to keep him apprised of our current position and making sure that he is working in the same direction to getting these debt monkeys gone. First, I have to fight his compulsion to sell everything we own and live in a box to pay off the balances. Moderation – my young grasshopper – moderation!

By the way, he has helped me by giving me all of the old beer bottles and cans in the garage to return. Only got $10.40 (0.40 in the change jar for another month), but hey I’ll take it.

Debt balance – same as last time
Credit cards to pay off – 3
“Extra Money” this month - $10 – still waiting on that eBay money ship (some of my auctions are looking good – some not so good)

When in doubt - eBay...

2008-09-09T06:47:00.001-07:00

So I figured that for the first month of my EARN $100 plan I would try the tried and true method of eBay. Apparently the average household has $1,200 worth of merchandise just sitting there waiting to be sold. So I listed everything I could find. After the fees, I listed a value of $71.17 that could go towards my debt (provided everything sells at my minimum price!) A little short of the goal so I will go back to the closet and see if I can rake up another $28.83 of saleable goods. Who knew this would be so difficult!!! Obviously, this does not have any sustainable potential so while I am digging through my closet I will be trying to find a new idea for next month.

Debt balance – same as last time
Credit cards to pay off – 3
“Extra Money” this month - $0 – but I have my fingers crossed

The beginning of the end...

2008-09-08T07:21:00.000-07:00

Okay, so I guess this all came about on August 20, 2008 when I decided to face up to my debt issues by using a handy dandy template on the www.gailvazoxlade.com website called "Own up to your debt." If you don't know who Gail is, she is a godsend for anyone with any financial issues. Practical, and super nice (I met her once)

Anyhow, I digress... So I punch in my numbers into the spreadsheet and my jaw almost hit the floor. I always had a good idea of where my debt was, in pieces, but never as a whole pie. In this case my "just desserts" for an obsessive shoe buying fetish.

So are you ready for this my credit card debt totalled a whopping $81,110.01. This is not including my mortage! On top of that one of my cards had changed their interest rate to 2.5% points higher then when I signed up and I never noticed. I felt sick. So I decided it's crackdown time.

As I indicated above they always say, if you are going to commit to something tell someone. I've decided to tell everyone.

So based on the worksheet I indicated above, there are calculations based on principal and interest rate to figure out what the monthly payment would be to pay off each and total debt within 12, 24 and 36 months. I am opting for the 36 month route as the 12 month route is a little steep. This still results in $3062.61 per month. I've slashed bills in my budget to make up this monthly amount, but this is not quite fast enough for me so I have instituting the following plan:

1. MAKE PAYMENTS: Make my monthly payments as per a 36 month payoff period. This will be a challenge as my hubby is a commission based earner so income is not always steady, and the payoff amount is about 2.5 times what I was already paying per month.

2. LEARN TO COOK: Pathetic as it is I know at least a 1/4 (probably more of this amount) is from my obsession with convenience food. After a hard day of work, you just don't want to make anything. Apparently this needs to stop.

3. EARN/FIND $100 MORE PER MONTH: This is the tough one. As I said 36 months is too long for me. Ideally I would like to pass a financial fitness test before my kid is in kindergarten (which only leaves me with about 2.5 years). So what other option is there. Earn more money. Unfortunately, my job is not exactly 9-5 and finding some extra scratch will be a little more difficult when a traditional part time job is out of the question. So I look at it this way, here is my chance to try out a few new things and see what I can make work for me. 36 months of opportunities to see what it takes to make just that little bit extra. I have a few tricks up my sleeve right now, but feel free to provide some insight. $100 may not seem like much, but if you have to do it every month for the next 3 years I am sure I will need some creative assistance. Payments must be in the hot little hands of VISA by the 20th of each month, as statements (and that unforgettable interest will be calculated on the 22nd. Here goes nothing...

Opening Tally:
Debt - $81,100.01
Credit Cards with Balances - 3
"Extra Money" earned this month - $
Days till next statement - 15

Wish me luck!!