Home > Another Payday, More Debt Paid Off

Another Payday, More Debt Paid Off

August 2nd, 2013 at 05:07 pm

I am really starting to make some headway. I got paid again. I am starting to replace the savings that I took out to pay for a different car. I paid off the rest of dh's hospital bill #3 today. I have paid the credit card #2 to $600.00. That's really remarkable because I can remember when it was $2000.00. I don't have the numbers on the savings accounts yet, so I will update those later.

6 Responses to “Another Payday, More Debt Paid Off”

  1. creditcardfree Says:

    Congrats on getting another debt to the graveyard!!

  2. Petunia 100 Says:

    Good job!

    I see on your sidebar that your mortgage has recently broken 70k! I am so jealous. Smile

  3. crazyliblady Says:

    Thanks for the congrats.

    Yes, our mortgage did dip below $70K this month due to a lot of hard work and paying a little extra every month. Also, we got great news with our annual statement showing all the payments we made and funds paid to insurance and taxes. It was either our insurance or taxes that went DOWN by $8, which makes our regular payment go down. But we are going to continue to pay the amount we normally pay (and evenutally increase it) so we can get the house paid off faster.

  4. snafu Says:

    Good on you! you've knocked another debt dragon to oblivion with hospital bill #3 balance now ZERO. What interest rate on CC #1, #2? Which is next on the list? You're doing awesome in spite of unanticipated car costs.

  5. crazyliblady Says:

    @snafu. Thank you. I feel pretty resilient. I have experienced lots of financial ups and downs and found that it does not help matters to get emotionally down. I try to detach myself emotionally from the money and just pay the bills, save money as much as I can, and hopefully avert disasters when they do happen.

    As for what's next on the chopping block, here is my plan of focus:
    1) dh hospital bill #4 has a required payment of $30.00 per month. That amount is totally doable. I will continue to pay that amount each month. I expect a "catch-up" paycheck some time in the next couple of months due to a raise. When it arrives, I will put 1/2 into the car savings account and the rest towards this debt. I am not sure how much the catchup check will be.

    2) mortgage payments - My minimum required payment is now $8 per month lower than before. We will maintain our prior minimum payment plus a little extra. It is not enough to break the bank, but will help to shorten the loan payoff time.

    3) credit card #2 - This card has an APR of 17.9%. Ugh. I am paying at least $56 per month towards the payoff of this card. Most paydays I can manage about $40 more. When my raise starts hitting my paycheck, I plan to figure out the difference between my previous paychecks and the new one and devote 1/2 to credit card #2 and 1/2 to objective #4 below. I plan to have it paid off by 12/31/2013.

    4) build up savings - At this same time we do the above 3 things, we will also be building up savings to what it was before. It will take several months to do this, but I am committed. See #3 above.

  6. snafu Says:

    Yikes, 17.9% is extraordinarily punitive. Does the hospital have an even higher interest rate? While you're free to do as you wish, most SA participants prefer to pay off higher interest debt as fast as possible throwing everything extra to reducing interest paid.

    Have you called to ask the interest rate be reduced to a more realistic rate? It seems outrageous to be charged nearly 18% on a CC when saving earn less than 1% interest.

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
Will not be published.

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]