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dancerjodiJetgrrl sent me a great spreadsheet for looking at debt payments, interest, etc.
If I paid things at the rate I've been doing (which *is* over the minimum payment each month) I'd be done paying off my 2 credit cards in 2008. Over that time I would have paid $35,000 in just interest alone.
This doesn't include my student loans and car loans (student loan should be paid off in 3 more years if I stick to schedule, car loan in 2 more if I stick to schedule).
Whee fun.
We need to figure out something smarter than what we've been doing to get this debt down. We can afford the payments, but we're throwing so much money away. This doesn't also include the credit cards that Brian has, or his car loan (or our mortgage). Me thinks we need to do less toy buying (ahem, Brian) and less spending over the weekends).
If I paid things at the rate I've been doing (which *is* over the minimum payment each month) I'd be done paying off my 2 credit cards in 2008. Over that time I would have paid $35,000 in just interest alone.
This doesn't include my student loans and car loans (student loan should be paid off in 3 more years if I stick to schedule, car loan in 2 more if I stick to schedule).
Whee fun.
We need to figure out something smarter than what we've been doing to get this debt down. We can afford the payments, but we're throwing so much money away. This doesn't also include the credit cards that Brian has, or his car loan (or our mortgage). Me thinks we need to do less toy buying (ahem, Brian) and less spending over the weekends).
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Re: Amortization
Date: 2004-09-28 07:34 am (UTC)I wouldn't want to take that risk . . . you never know when you'll need it (say, for something like a new roof) :)
"I'm surprised you have that kind of debt - didn't you tell me you guys don't like to use cards?"
We haven't for the most part for years . . . some of this is hanging on from undergrad years. Some is from our kitchen remodel in Framingham (just didn't have the cash on hand for those appliances).
"I'd say review a typical monthly budget and look for leaks. You might want to reduce your "fun" budget, but the fact that you HAVE one is a step forward."
Most of the leakage is for B's toys (honestly). I don't have a lot of money to throw at increases, since its rare I spend anything on me that's not for bills or our $100 per weekend weekend budget ($50 each). Some weekends we do go over . . . we need to get better about following things more strictly.
"Sounds like you're doing the right thing, and I agree with calling your cards to get them to reduce your interest rate."
Its Sears that kills me (almost 22%!) I've tried to get them to reduce before to no avail. That balance is lower, so I'm hoping to pay that down first.
"I don't know if this has been said, but when I pay my cards, I pay all the interest plus a principle amount."
I always do that (can't speak for B since he pays his).
"*hugs* I know this stresses you out."
Nah, it doesn't stress me out, its just annoying and very wasteful.
Re: Amortization
Date: 2004-09-28 07:52 am (UTC)You know, I was thinking "Gee I wonder if some of that was from the kitchen remodel?" Hee hee hee!
Most of the leakage is for B's toys (honestly). I don't have a lot of money to throw at increases, since its rare I spend anything on me that's not for bills or our $100 per weekend weekend budget ($50 each). Some weekends we do go over . . . we need to get better about following things more strictly
B needs a toy budget. It's not exactly fair to cut them out, he works pretty hard. I'm trying to set myself a DVD budget. Like $20 a week. (That's what I'm trying to do for me, no more than one a week. Mostly, it's so I can save up for the expensive things, like box sets) I can either spend it on something I want, or save up for something like that InuYasha box set I bought. That might work for B as well.
Its Sears that kills me (almost 22%!) I've tried to get them to reduce before to no avail. That balance is lower, so I'm hoping to pay that down first.
OUCH! Yeah, that sucks, but you want to keep that active, even if you pay it off. Sears has a high profile with other cards, if you successfully have a Sears card, you're a low risk. I'd pay that puppy down damn fast, even to taking a new lower rate card to pay it ALL off. That is also a possiblility, getting a low intro rate card, but I know you don't want to consider that. Perhaps one of your other cards would allow you to transfer a balance, and give you 0% for a while. Yes it means a bigger balance on that card, but at the lower rate it can't help but save you money.
Interest is evil, and i hate living with it myself right now. I had it all down, and stuff over the past few months I'm maxed again. Thankfully, "maxed" is low since I keep my limits low.
Gah - fie on Sears! I had no idea it was that high!
Re: Amortization
Date: 2004-09-28 08:04 am (UTC)We also had a "personal stuff" budget of $50 a week (on top of the weekend budget). Its rare that B sticks to it. I admit I go over sometimes too . . . most times though I can't afford the $50 for myself since I'm spending it on other things that aren't budgeted for (like say, the wedding gift I have to buy for this weekend, or the $150 "graduation fee" that Umass Boston wants in addition to the almost $4k I just sent them for tuition).
In some ways it was easier when I was poor, since I didn't have to choose where to send the extra money :) I don't want to go back there, but my options were definitely simpler :)