Wednesday, December 31, 2008

For Auld Lang Syne...

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.

Monday, December 29, 2008

Debtserious 1, Boxing Day 0...

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.

Friday, December 26, 2008

A little willpower...

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.

Wednesday, December 24, 2008

We wish you a debt free Christmas...

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!

Monday, December 22, 2008

Deck the malls...

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.

Friday, December 19, 2008

Time for some "change"...

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.

Wednesday, December 17, 2008

Santa's got bank...

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.

Monday, December 15, 2008

Bad Blogger...

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!

Friday, November 21, 2008

Stupid Hackers...

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!!!!!!

Thursday, November 20, 2008

Month 3...

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!

Tuesday, November 18, 2008

Taking care of the pennies...

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.

Monday, November 17, 2008

Sorry for the downtime...

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.

Wednesday, November 5, 2008

Thanks, but no thanks...

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!

Tuesday, November 4, 2008

Paying to get out of bed...

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.

Monday, November 3, 2008

Making Sense of My Mess...

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.

Friday, October 31, 2008

Un-Happy Halloween...

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!

Thursday, October 30, 2008

Maximizing Christmas...

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.

Wednesday, October 29, 2008

Auction Update...

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.

Friday, October 24, 2008

November off to a great start...

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!!

Thursday, October 23, 2008

Abort mission...

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.

Wednesday, October 22, 2008

I love FREE STUFF...

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.

Tuesday, October 21, 2008

You may have a point...

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.

Monday, October 20, 2008

October 20th Update...

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.

Friday, October 17, 2008

Trying to shed some extra pounds...

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.

Thursday, October 16, 2008

The Perils of Being "Too Good"...

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.

Wednesday, October 15, 2008

Not time for snow...

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.

Thursday, October 9, 2008

To those about to blog...

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!

Wednesday, October 8, 2008

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

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!"

Tuesday, October 7, 2008

You've got a friend...

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…

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!

Monday, October 6, 2008

The Balance Transfer Trade Trick...

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.

Friday, October 3, 2008

I Thought Gas Prices Were Bad...

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!!!

Thursday, October 2, 2008

Debt Gets a New Look...

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!

Wednesday, October 1, 2008

What Have You Done With My Husband...

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.

Tuesday, September 30, 2008

Ticker Time #1...

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!

Monday, September 29, 2008

Gold Star for the Hubby...

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.

Friday, September 26, 2008

Christmas in September...

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!!

Thursday, September 25, 2008

A Few Depressing Thoughts...

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.

Wednesday, September 24, 2008

Beware "miser mode"...

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

Tuesday, September 23, 2008

That one was easy…

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

Monday, September 22, 2008

Taking the Home out of Home Business…

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.

Friday, September 19, 2008

The windfall trifecta...

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.

Thursday, September 18, 2008

Be true to yourself...

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

Wednesday, September 17, 2008

They like me, they really like me...

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.

Tuesday, September 16, 2008

The eBay way...

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

Monday, September 15, 2008

My Husband, My "Client"...

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.

Sunday, September 14, 2008

"Budget Wins"...

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"

Saturday, September 13, 2008

The gift budget...

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

Friday, September 12, 2008

My first mistake....

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.

Thursday, September 11, 2008

Pieces of the "just desserts" pie...

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

Wednesday, September 10, 2008

No man is an island...

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)

Tuesday, September 9, 2008

When in doubt - eBay...

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

Monday, September 8, 2008

The beginning of the end...

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!!