2007 - Debt Reduction Challenge

[trelawney8]

I'm just getting reorganized after some really big changes in my life/work situation. I'm finally working after three years in school, but my bf and I just bought our apartment, so I have my loans and my mortgage and the cc debt I've accrued along the way. I'm focusing now on really tracking the spending and snowballing on my card with the nastiest APR. Luckily, in the past few months, two of my cards dropped their rates, so that eases things up and I can really focus on the worst one. But I'm committed and working on it!

[LexTysMommy]

[QUOTE=LexTysMommy;752318]Joining way late in the year but there is 141 days left for me to pay off what I still intended to from the get go.

Credit card ($669)Pay 9/6
Central Air ($2395)Pay 9/1
Empire ($2000)Pay 9/19
Pay off Car ($5495)Pay $1800 a month after Sept

For a total of: $10559


[QUOTE]

Ok so credit cards paid off, central air paid off, empire paid off, and I have not worked too much on car. Down to $4650. Will work on this more now that I have no other bills to focus on. I have been paying cash for Xmas and holiday things, its weird not to pull out credit card and just "pay later". So new mindset for me.

How is everyone else doing?!

[pammy]

*Revised 2007 Goals*

So I've set up some new goals to accomplish in 2007. Goes right along with Debt Reduction:

~Finish our emergency fund of a full 3 months expenses: $6,000. Hoping to accomplish this by the end of May.
~Also by the end of May we need to get a driveway poured to the hubbies shop, save $1,000.
~Save up and pay cash our daughter's first semester of tuition, she's starting this fall, amount of $3,500. Hoping to have this done by the end of June.
~Set up a sinking fund account and make it a regular payments to my electric orange account with ING.
~Vacation somewhere in June, save up and pay cash only. Less than $3,000.
~Our roof needs some major overhauling, complete tear off of two layers and new shingles, should run about $5,000, will save up in August and September to get this accomplished.
~And finally by the end of September we should be hitting the mortgage. By that time we should be sending $2,500-3,000 a month extra to principal. (that is if I keep part-time hours, am hoping to go full time and should really hit these numbers hard)

In my mind all of these are debt reduction, because we're saving and paying cash instead of going into debt to accomplish these things. So a lot of months of saving up ahead, and then will doing the true reduction of debt on the house later in the year. Am glad to have this out here so I can keep myself accountable.

Everyone, let's keep up the great work!!!

End of November check in:

~Finished the EF, that $6,000 is more than 6 months of expenses, but we'll keep it.
~Driveway poured right before the sale of house, paid in cash.
~Saving currently to cash flow part of DD's tuition, saving $260 per month.
~Have sinking funds set up and it's being autodrafted weekly to cover dd's tuition, property taxes, home owner's insurance, vehicle insurance and our ROTH's.
~Vacation done, came under budget, paid in cash.
~Roof completed before sale of home, paid in cash.
~Done with mortgage.

Will have to think of new 2008 Goals, it's right around the corner.

Everyone is doing so great!!!

[kcsmom76]

Wow. You guys have done great!!

KUP the great work.

[KJayEsq]

I'm just getting started too. Seems a bit late for 2007, but I have started as of a few days ago and will continue through December. Bring on 2008!!

[trelawney8]

I got myself set up with tracking my debt and facing up to reality! I'm working on ways to save and putting everything I can towards my worst APR debt. Payday tomorrow, so I'll be able to apportion appropriately.

[SheKat]

This year I have worked and set myself up for some serious debt reduction in 2008. I have worked out a budget that is actually realistic, not one of those this is what it should be - as I have often done before! Cancelled things that are not necessary, minismised my spending, reflected on what and why I was boying things. Decluttered our house - sent heaps of stuff to trash and donated heaps and heaps to charity (I know i could have sold and probably made money, but I believe in karma and giving to those not as fortunate as me), bought some clothes for myself and children second hand, no point in buying heaps of new expensive clothes for playing and getting dirty in, nor for the massively growing baby. Got modern cloth nappies for the baby, yes more expensive but i feel a better thing that I and DH can happily work with, so in the long run save money. Oranigsed bank accounts, direct debits and other banking stuff.

All in all - bring on 2008 because I AM READY!!!!!!!

[jade73]

In 2007 paid our truck off no more car loan and no cc debt.In 2008 We will be paying off our home 2 years early and then no debt yeah.Can't wait

[tlenad]

Since I've skipped the past couple of months for checks ends and it is the end of the year, I thought I'd grab my first post and see how much I actually accomplished this year.

This is the first actual year of really focusing on paying down the credit card debt. I went into last year thinking the same thing but I wound up moving in the middle of the year to cut down on expenses and that cost me quite a bit more than I expected.

At any rate for this year, I expect to accomplish the following.

Have both my Household Bank and Chase Credit Cards paid off. - Done

Plus have my Discover Card paid down under $4,000.00 and my Visa Card paid down under $9,500.00. That will set me up nicely to have the rest of the cards paid off by the end of next year. - I believe I'm still on plan to have the credit cards paid off by the end of 2008. I've transfered some of this debt to other cards to get lower interest rates so it's restructured at this point.

I will also pay of my car loan in August of this year which is a wonderful relief. - Done

I will have my EF back up to $1,000 by August as well. - Done although not by the end of August.

Once the car is paid off and the Emergency Fund is funded to $1,000. I will then go through and cut up all my credit cards and cancel the ones that I have paid off so far and pull down my credit report. Last time I pulled it was this time last year, and the score was horrible but it wasn't great either. I'd like to see that number raise over the next few years to put me in a good place to buy a house. - Still haven't pulled my credit report. Nor have I canceled the credit cards, I have cut them up though.

I will also be funding a $500 vacation and a $600-$700 car repair with cash. - Cash flowed this car repair and two others.

I have my work cut out for me. And the scariest thing I hope to accomplish this year is to not use the credit cards at all. I do think I have some annual payments set up to charge to them that once they come through I will either cancel or change to come out of my bank account. My goal is that plus interest and payments will be the only activity on the cards this year.

Other personal accomplishments. -

1. Started Master's Degree - I'm taking out loans for this but I believe it will be worth it in the long run.

2. I finally found a new job. I've been playing with the idea for a couple of years now so I'm pretty happy about it. I've been working there for 2 weeks now and haven't really gotten an idea of how the budget is truly going to be effected by the pay/benefits situation.

Now I've got to start thinking about what my goals are for 2008.

[ScrappyKat]

Well I am new to all this but I"m hoping to start living more frugally and reduce our debt! I wrote it all down and hopefully we can agressively start paying it off soon. DH is at a job interview as we speak which I'm hoping he will get!!! (he has a job but he'd like something a little more steady