I completed a balance transfer to my new CU card. I got 2% cash back and after the transfer I paid off the remaining credit card debt on the large card. Now, I'm only 1,198.15 dollars in credit card debt. This means I could possibly really be cc debt free by the end of this year. However, I am probably going to post pone it just a month or so to help transition myself into a used Corolla from Hertz used rental cars. I have a test rental starting on Thursday. I would be getting a loan for 14,000 at 5.99% for 5 years. My goal is to pay it back in 2.5 years or less. The car is 13,000 plus tax and fees. I know taking on a huge loan on top of my other debt seems unreasonable, but I really don't want to buy a cheaper car that won't last at long. I imagine a 2010 Corolla would last me at least a GOOD 10 years. Ten comfortable years with working windows and no pieces falling off.
I changed my payment plan for my student loans to graduated. My payments start at 160.44 in March and stay at that rate for 24 payments. I will pay the minimum until my citibank loan is finished and then I will step it up while reserving a 200 dollar payment towards my personal debt. I'm allocating 20% total of my income to debt repayment in 2012. 35% will go towards my car- including payments, insurance, and gasoline costs.
Sunday, December 11, 2011
Wednesday, November 30, 2011
Credit cards
My credit score is 675 from Experian. That is the credit collecting company that my credit union uses. I also found out an old account left me in debt repayment mode which almost disqualified me from opening a new credit card. They were able to over look it but I immediately called that card which was paid in 2009 and got them to fix the debt repayment note. I got a 2,000 credit limit visa at 13.55% with a four month intro rate of 10.55% and 2% back on balance transfers. Which means I need to complete a balance transfer from my large card ASAP.
Saturday, November 26, 2011
CC Debt Free by 2012
I've changed my mind yet again with respect to my budget. From now until the end of the year I will clear my meager savings to put towards debt and pay down debt at a rate of 60% of my take home income. This puts me on track to be credit card debt free by the end of 2011. Here is my new budget:
Personal finance goals for November:
Stick to weekly budget
Pay off at least 1,000 dollars on the large credit card
In the month of November I put 1,677 dollars towards credit card debt. As such I realized my true goal of being credit card debt free by the close of the year was possible and have thus re-adjusted my budget and December goals.
PF goals for December 2011:
Pay off all credit card debt
I'm keeping it simple. Despite a few medical costs this month I am determined to eradicate my credit card debt completely and keep it off all of 2012!
| Debt | 60.00% |
| Food | 12.00% |
| Wants | 10.00% |
| Auto | 9.00% |
| Medical | 9.00% |
Personal finance goals for November:
In the month of November I put 1,677 dollars towards credit card debt. As such I realized my true goal of being credit card debt free by the close of the year was possible and have thus re-adjusted my budget and December goals.
PF goals for December 2011:
Pay off all credit card debt
I'm keeping it simple. Despite a few medical costs this month I am determined to eradicate my credit card debt completely and keep it off all of 2012!
Wednesday, November 23, 2011
Financial Bucket List
Financial Bucket List:
1. Pay off just over 2,000 dollars of credit card debt in 6 weeks to start 2012 credit debt free!
2. Pay down at least 10,000 dollars of debt in 2012.
3. Be student loan free by age 30.
4. Own a car within 3 years.
5. Build a 5,000 emergency fund within 3 years.
6. Fund Roth IRA at least 2,000 a year starting in 2013 (or earlier).
This post is in response to:
“the $500 Give Me Back My Five Bucks competition, sponsored by Life Insurance Finder, the life insurance experts” Please go and check it out!
1. Pay off just over 2,000 dollars of credit card debt in 6 weeks to start 2012 credit debt free!
2. Pay down at least 10,000 dollars of debt in 2012.
3. Be student loan free by age 30.
4. Own a car within 3 years.
5. Build a 5,000 emergency fund within 3 years.
6. Fund Roth IRA at least 2,000 a year starting in 2013 (or earlier).
This post is in response to:
“the $500 Give Me Back My Five Bucks competition, sponsored by Life Insurance Finder, the life insurance experts” Please go and check it out!
Saturday, November 19, 2011
2012 Budget Revamp
See the below chart.
On the left is my current budget, on the right my goal budget I hope to be following by the end of 2012. This means siphoning money towards debt to savings and transportation costs. I will use 10% of my savings for long term and 10% for short term (travel and events). My transportation costs will go up in 2012 as I hope to get a used Corolla for around 13,000 and would be paying the loan back (which I would classify under transportation rather than debt). A modest increase in food allowance and medical expenses budgets.
The 25% decrease in debt repayment should be achieved by paying down my high interest, low flexibility debt in the first half of 2012 leaving only my government student loans and some personal debt which I can pay back at a slower rate. I plan on ridding myself of credit card debt and my private student loan by July.
On the left is my current budget, on the right my goal budget I hope to be following by the end of 2012. This means siphoning money towards debt to savings and transportation costs. I will use 10% of my savings for long term and 10% for short term (travel and events). My transportation costs will go up in 2012 as I hope to get a used Corolla for around 13,000 and would be paying the loan back (which I would classify under transportation rather than debt). A modest increase in food allowance and medical expenses budgets.
The 25% decrease in debt repayment should be achieved by paying down my high interest, low flexibility debt in the first half of 2012 leaving only my government student loans and some personal debt which I can pay back at a slower rate. I plan on ridding myself of credit card debt and my private student loan by July.
I've been thinking a lot about budgets
| Housing | ||
| Utilities | ||
| Transport | 9.00% | 20.00% |
| Savings | 10.00% | 20.00% |
| Debt Repay | 45.00% | 20.00% |
| Healthcare | 8.00% | 10.00% |
| Food | 14.50% | 15.00% |
| Wants | 13.50% | 15.00% |
| 100.00% | 100.00% |
Tuesday, November 1, 2011
October/November PF Goals
Personal finance goals for October:
Pay off balance of small credit card ACCOMPLISHED
Cancel small credit card to avoid annual fee ACCOMPLISHED
Okay, I actually only canceled the credit card today, but I had to make a return on it so I waited a bit longer. I still consider myself having accomplished my goals for October.
On to November!
Personal finance goals for November:
Stick to weekly budget
Pay off at least 1,000 dollars on the large credit card
I really want to try to get the card paid off before January and start 2012 off debt free, but the balance is 3623 currently so I think giving myself 3.5 months is more reasonable.
Okay, I actually only canceled the credit card today, but I had to make a return on it so I waited a bit longer. I still consider myself having accomplished my goals for October.
On to November!
Personal finance goals for November:
Stick to weekly budget
Pay off at least 1,000 dollars on the large credit card
I really want to try to get the card paid off before January and start 2012 off debt free, but the balance is 3623 currently so I think giving myself 3.5 months is more reasonable.
First Weekly Budget
Here is my budget for this week. Yes, this WEEK. I am going to budget on a weekly basis right now because I get paid weekly and don't have many monthly expenses.
As you can see, certain categories have no percentage allocated to them for now. This is because I am in heavy debt repayment mode. I'm trying to get my last credit card to zero (in 3 months!). Any time I have left over money from the week it goes to debt (except hygiene which rolls over). In case you are wondering about the large percentages to gas in food, keep in mind I'm not making much hourly, but fortunately I am getting off temp status and going to full and it comes with a nice increase in my hourly pay. Expect to see these percentages change!
| Debt | 45.0% |
| Savings | 10.0% |
| Food | 20.0% |
| Gas | 13.0% |
| Medical | 0.0% |
| Category: Fun | 10.0% |
| Entertainment | |
| Dining Out | |
| Treats | |
| Wants | |
| Books | |
| Clothing | 0.0% |
| Auto | 0.0% |
| Bank Charges | 0.0% |
| Hygiene | 2.0% |
| 100.0% |
As you can see, certain categories have no percentage allocated to them for now. This is because I am in heavy debt repayment mode. I'm trying to get my last credit card to zero (in 3 months!). Any time I have left over money from the week it goes to debt (except hygiene which rolls over). In case you are wondering about the large percentages to gas in food, keep in mind I'm not making much hourly, but fortunately I am getting off temp status and going to full and it comes with a nice increase in my hourly pay. Expect to see these percentages change!
Saturday, October 29, 2011
Spending Week Summary
Debt
Paid 101.00 in advance towards November and December private student loan minimum payments.
Paid 300.00 towards large credit card.
Paid 300.00 towards large credit card.
Sunday
186.19 for 2 pairs of 7 for all mankind jeans39.55 on Amazon for cat fur hood6.00 for Amazon book
14.73 for groceries including a4.99 pumpkin pie I should have left in the freezer section 27.95 on eBay for a Coach wallet
53.09 for mother's 50th birthday present
102.26 for medical charges
70.32 for groceries at Trader Joe's
31.74 on gas
31.74 on gas
Monday
No spending
Tuesday
Wednesday
No spending
Thursday
14.73 for groceries including a
Friday
20.00 co-payment for physical therapy appointment
53.09 for mother's 50th birthday present
102.26 for medical charges
Saturday
No spend day
No spend day
Total: 952.83
The strike outs are where I could have NOT spent money. I'm going to keep my mother's present out of this.
Total strikeouts: 264.68
Which means my weekly spending could have been 688.15 which is still far too high.
I don't bring home nearly that much per week!
The strike outs are where I could have NOT spent money. I'm going to keep my mother's present out of this.
Total strikeouts: 264.68
Which means my weekly spending could have been 688.15 which is still far too high.
I don't bring home nearly that much per week!
Tuesday, October 18, 2011
Facing reality
Here are my painful stats:
+1,493.67 in my checking account
No savings.
I make 400 a week take home if I don't miss any hours. I am moving home with the parents, rent free for now. My big dream is to move to San Francisco (well, the area) by the time I turn 26. I turn 26 July of 2013.
Personal finance goals for October:
Pay off balance of small credit card
Cancel small credit card to avoid annual fee
I opened a credit card with a small limit on impulse last month and they sent it to me in the mail. I didn't realize it was a card with an annual fee until I got it. I should never have used it and called the bank immediately. Unfortunately I did use it, and I'm hoping they will waive the fee or reduce it if I cancel the card this month. It's 39$ a month. It's a cash rewards card and I would have to charge 1,300 of gas or 3,900 of regular purchases just to cover the annual fee, which though obtainable is probably best closed.
I doubt closing the card will affect my credit much since it's a very new account (less than 3 months old), but for curiosities sake, my credit score appears to be 628 today. I obtained this information for free at www.creditkarma.com. I will check it again a couple months after the closure.
I understand I should be paying off the credit cards with the largest interest first, but it's easier for me to focus on the smaller card and just be rid of it (and it's horrible annual fee) quickly so I can close the account. After this card I will focus on paying off at least 480.68 of the large card to get the cash advance APR gone. I believe as part of credit card reform under President Obama, the credit issuers now have to take any payments towards the largest APR first so I won't have to pay off the whole card to reduce my cash advance balance. I've already paid over 400 dollars in interest on this large card alone this year. I am determined to make it disappear.
| $20,030.76 | Federal Student Loan 2 | 6.80% |
| $3,349.08 | Federal Student Loan 1 | 4.75% |
| $2,791.21 | Private Student Loans | 7.25% |
| $8,000.00 | Personal Debt | 0.0% |
| $3,965.69 | Large Credit Card | 23.24% |
| $343.74 | Small Credit Card | 20.24% |
| $38,480.48 |
+1,493.67 in my checking account
No savings.
I make 400 a week take home if I don't miss any hours. I am moving home with the parents, rent free for now. My big dream is to move to San Francisco (well, the area) by the time I turn 26. I turn 26 July of 2013.
Personal finance goals for October:
Pay off balance of small credit card
Cancel small credit card to avoid annual fee
I opened a credit card with a small limit on impulse last month and they sent it to me in the mail. I didn't realize it was a card with an annual fee until I got it. I should never have used it and called the bank immediately. Unfortunately I did use it, and I'm hoping they will waive the fee or reduce it if I cancel the card this month. It's 39$ a month. It's a cash rewards card and I would have to charge 1,300 of gas or 3,900 of regular purchases just to cover the annual fee, which though obtainable is probably best closed.
I doubt closing the card will affect my credit much since it's a very new account (less than 3 months old), but for curiosities sake, my credit score appears to be 628 today. I obtained this information for free at www.creditkarma.com. I will check it again a couple months after the closure.
I understand I should be paying off the credit cards with the largest interest first, but it's easier for me to focus on the smaller card and just be rid of it (and it's horrible annual fee) quickly so I can close the account. After this card I will focus on paying off at least 480.68 of the large card to get the cash advance APR gone. I believe as part of credit card reform under President Obama, the credit issuers now have to take any payments towards the largest APR first so I won't have to pay off the whole card to reduce my cash advance balance. I've already paid over 400 dollars in interest on this large card alone this year. I am determined to make it disappear.
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