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.
Saturday, June 13, 2009
Monday, June 1, 2009
Update June 1...
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?
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...
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!
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!
Thursday, May 28, 2009
Unrequited Love Letter...
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.
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.
Tuesday, May 26, 2009
Bringing My Banter to the World...
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:
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!!
Monday, May 25, 2009
Spending to Save Money...
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.
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.
Saturday, May 23, 2009
The Stars are Aligning...
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.
"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.
Friday, May 22, 2009
Trying to Brighten the Future...
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.
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.
Tuesday, May 19, 2009
The Fabulousness of Found Money...
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!!
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!!
Sunday, May 17, 2009
Starting Over Yet Again...
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.
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.
Friday, May 15, 2009
Never Leave Home Without It...
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.
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.
Wednesday, May 13, 2009
Getting Down to Business...
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.
It's a good day.
Friday, May 8, 2009
Things To Do In Bed...
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.
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.
Wednesday, May 6, 2009
Ding Dong the Debt is Dead (Sort of)...
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.
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.
Friday, May 1, 2009
$4 slap in the face...
$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).
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).
Thursday, April 30, 2009
"Suck it Up" and other lessons...
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.
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.
Monday, April 27, 2009
Diet Tips That Save You Money...
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.
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.
Saturday, April 25, 2009
On a roll...
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!!!
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!!!
Friday, April 24, 2009
Back...but a little disgruntled
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.
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.
Wednesday, February 25, 2009
Making Some Extra Room...
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.
Friday, February 20, 2009
A Date with Our Debt...
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!!
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!!
Wednesday, February 18, 2009
At Least My Kitchen Was Clean...
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.
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.
Monday, February 16, 2009
Save Money Through Your Mail...
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!!
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!!
Friday, February 13, 2009
Inadvertant Credit Card Payment...
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!
Wednesday, February 11, 2009
The Cheque is in the Mail...
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.
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.
Wednesday, February 4, 2009
Coming Up a Little Short...
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.
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.
Monday, February 2, 2009
New Month - New Start (again)...
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.
Back to the drawing board (again). Hopefully this month will be better.
Wednesday, January 28, 2009
"Tick"ed Off and Other Changes...
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.
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.
Monday, January 26, 2009
The Kids are Alright...
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?)
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?)
Friday, January 23, 2009
$100 Update...
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 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)
Wednesday, January 21, 2009
I Had a Dream Last Night...
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!
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!
Tuesday, January 20, 2009
What Was I Thinking...
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!
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!
Friday, January 16, 2009
Smart vs. Stupid with a Purpose...
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?
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?
Wednesday, January 14, 2009
A Decreasing Interest in Credit...
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!!
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!!
Monday, January 12, 2009
Use the points, Luke...
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'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!!
Friday, January 9, 2009
I plan, therefore I save...
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.
Tuesday, January 6, 2009
Post holiday debt hangover...
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.
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.
Sunday, January 4, 2009
Present Maximizer Tip...
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)
- 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)
Friday, January 2, 2009
Drought in the cash flow...
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.
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.
Subscribe to:
Posts (Atom)
