Update on DR Paydown - Some Snowballs!

**HoustonDave** · 07-06-2011, 12:56 PM

We have been working on our debt for about 5 years, discovered DR back around March. My signature line reflects current status.

As you can see, our maximum credit card debt load was over $80,000 at one point (!!!!!) Can you say stupid? And of course, once the CC companies started consolidating and realizing that debt load, they started raising our interest rates. At one point we were paying 29.99% interest rates because they considered our debt load a risk. How fun is that?

We have had several good snowballs lately. First is that the wife took a second job and is bringing in about $2600 per month and second is I received a bonus of $5000 last month. Both go on the CC debt!

Based on my estimates, we will pay off the last of the credit card debt in July.

I suppose I should also add to this some significant estimated taxes that will be due for this tax year. Those will take up a sizeable chunk of our extra income the rest of this year, but should not have that problem next year.

After we get the tax payments nailed down, the next step is to pay off one of the car notes. One loan only has $2900 left on it, so that one is first and we should be able to knock it out this year too!

**frugalfriend** · 07-06-2011, 01:01 PM

You're doing awesome, keep up the great work!!

Be sure to update us again as you continue your journey to debt FREEDOM!!

**l8eebugg** · 07-06-2011, 03:05 PM

HoustonDave
That is incredible! You are doing so great. Keep us posted.

**OOwl** · 07-06-2011, 03:40 PM

Wow, you have a fantastic income! Those debts should be gone in no time! Great work!

**khaski** · 07-06-2011, 06:43 PM

Congrats on your big turn-around! I am dying to know where you found that snazzy graph...as a visually motivated person, I'm nearly green with envy over here. It shows everything! By percentage! Yowza!!!!

**HoustonDave** · 07-07-2011, 04:09 PM

Originally Posted by khaski

Congrats on your big turn-around! I am dying to know where you found that snazzy graph...as a visually motivated person, I'm nearly green with envy over here. It shows everything! By percentage! Yowza!!!!

Hey Khaski!

Well it's a bit of a cheat. I used an Excel spreadsheet for the base graph. Basically it is a Five Column table in Excel:

Column 1: Name of Step
Column 2: Amount Paid so Far (Calculated as Column 4-Column 3)
Column 3: Remaining to be Paid (From most recent statement)
Column 4: Total Debt (at its maximum)
Column 5: % Paid (Calculated as Column 2 / Column 4)

I selected a stacked horizontal bar graph that graphs Paid and Remaining.

Then I copied that and pasted it into a graphics program and typed in the percentages from Column 5 (or anything else I wanted to say).

There is probably a better way, but I really like the visual I get this way. It really helps keep me focused.

**HoustonDave** · 07-07-2011, 04:12 PM

Originally Posted by OOwl

Wow, you have a fantastic income! Those debts should be gone in no time! Great work!

I certainly don't get bonuses like that often! LOL.

You raise one key point there...how much money you make does not determine your financial security. It's more about how you spend it and save it. I know people who make much less than me that were in much better financial shape. And I know people who make much more than me who are completely upside down on everything.

**mateosbaby** · 07-08-2011, 05:00 PM

Originally Posted by HoustonDave

You raise one key point there...how much money you make does not determine your financial security. It's more about how you spend it and save it. I know people who make much less than me that were in much better financial shape. And I know people who make much more than me who are completely upside down on everything.

Yep! I know both of those types, as well!

**a.nonymous** · 07-09-2011, 06:42 AM

Wow. Just wow.
Awesome job turning that ship around!

**Debbie-cat** · 07-09-2011, 10:36 PM

Fantastic job!! Congratulations!!

**frugalfranny** · 07-12-2011, 01:16 AM

Way to go..........and keep going, you will get there!

Some great progress made!

**dinah** · 07-12-2011, 09:58 AM

you are doing great! i'm another fan of the graph.

**HoustonDave** · 07-16-2011, 10:07 PM

I have to update the graph! We are now at 93% paid on the credit card debt, but I don't know if we will be able to pay it all in July, might be August. We are waiting on an amended 2010 tax return refund, and there is no telling when we will get that or whether they will hold it against 2011 taxes. (sigh)

**HoustonDave** · 07-19-2011, 10:26 PM

Another snowball!!!

My wife started working for her friend earlier in the year, and thought the paychecks were delayed 2 weeks from when she worked. (My previous job was like this. You worked 1st through 15th and got paid a week later.)

Turns out she was supposed to get paid at the end of the pay period but the check got misplaced in the office and they found it today!

Woot woot! An extra paycheck this month! Another hit on the debt!

But on the other hand...they say the tax refund might not come until September or even October. Better late than never though.