Debts in Detail

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.

Mortgage

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.

Credit cards

DEBT INT. RATE MIN. PAYMENT 2017 START BAL. ACT. PAYMENT
CC.A 15.9% $66.00 $2,784.55 $100.00
CC.B 14.9% $116.00 $4,758.90 $200.00
CC.C 19.8% $25.00 $1,134.11 $50.00
CC.D 26.99% $46.00 $828.41 $100.00
CC.E 27.99% $50.00 $1,680.47 Full Bal.
*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.

My Plan

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.

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7 Responses to Debts in Detail

  1. Pingback: January Debt Update | Intrepid Debt Blog

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  4. Any chance rolling the cc debt into a 0% promo card? Or a consolidation loan with a lower % apr? I am really good at paying off my credit card and have not paid interest. but have come to the realization it really just delays my debt being paid down. Debit card it is for me. And it took me a while to get out from floating my monthly expenses on the card.

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    • We’ve tried to roll into a 0% promo, but it was the same company as our existing card, and they denied the transfer. We’ve not had any other promos pop up that we qualify for, but I’m definitely keeping my eyes peeled for one!

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  5. Pingback: April Debt Update | Intrepid Debt Blog

  6. Pingback: May & June Debt Update | Intrepid Debt Blog

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