As I begin the process of getting out of debt, once and for all, I need to lay out all the balances, and terms. Deciding which to tackle first has been difficult. The bulk of the debt is the mortgage, the rest is consumer credit card debt.
This mortgage is on our rental property. We hope to sell this year. Assuming that works out, we could be debt free whenever that happens. We owe just over $60,000 on a home worth around $130,000. Since the plan is to sell this property, we’re just paying the minimum per month: $664.91.
Unfortunately, we’ll need to put some work into the home before it is ready to hit the market. I’m estimating $5,000 in repairs, but hoping to spend half that. Just depends how bad things are when the renters move out.
|DEBT||INT. RATE||MIN. PAYMENT||2017 START BAL.||ACT. PAYMENT|
*Act. Payment = Actual Monthly Payment I Make
Credit cards A, B, and C are cards we’ve had for years. The bulk of the debt on these cards comes from medical bills and home repairs over the last two years. We do not actively use these cards anymore.
Credit card D is a store card. There was a promotional period of 0%, but we had to purchase additional items (home renovations), and unfortunately we didn’t get a 0% promo like last time. I have a lot of items to return to said store that were never used, hopefully that credits around $200.
Credit card E is my new and only rewards credit card. The interest rate is outrageous, but I pay this card off in full every month. Right now the high balance is from holiday stuff. I usually only pay bills with this card, and any online purchases. I earn anywhere from 1% to 15% cash back on purchases. In the four months I’ve had the card, I’ve never once had to pay interest. No annual fees.
I’m just going with the snowball method, which I’ll discuss in another post soon. I haven’t stuck to any specific order, but I am tossing extra payments at the debts. Typing every thing out I realize it’s not as bad as I thought and I’m confident we’ll get this knocked out this year. Despite the recent upheaval in DHs employment status, which is currently up in the air, but we’ll know something this week.
Looking forward to the end of the month and seeing some numbers drop.