It's already been almost a year since my last update. I have been tracking my debt levels and spending since, but I think I felt like I had failed somehow when I tacked on a car loan on top of all my original debt after college. The good news is that my current level of debt is fast approaching what it was before the car loan I took out 1 year ago.
My current debt stands at 42,705.
I started at 38,480 in October of 2011. I am 4,225 more in debt than I started, but my car loan was for 14,000 and I plan on getting my debt level to less than I started soon. This means I have paid off almost 10,000 in debt since October 2011, not including money going towards interest.
My annual budget says with one month left of the year, I have contributed:
47% to spending
23% to savings
30% to debt payments
In July I paid off my small private Citibank student loan. This only leaves me with three sources of debt:
1. federal student loans
2. auto loan
3. personal debt.
I hope to knock out the auto loan within the first quarter of 2013. This will free up almost 300 dollars a month which should help me be able to move out on my own.
Saturday, December 1, 2012
Sunday, December 11, 2011
Possible car, On track with debt
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.
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.
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% |
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