back at DR baby step 1, happily by choice
by, 07-21-2013 at 11:03 AM (3731 Views)
here is accountability for my debt situation
I did this knowing what i was doing, with no regrets. it takes money to make money. i had an empty wing of the house that i was paying money to store tons of crap and ventilate with costly air conditioning. so i decided to remodel to make a nice furnished roommate suite that would generate passive income.
i hired some high school kids to come in a haul the crap to the curb where the neighborhood trash pickers could pick away. i had just had surgery and couldn't lift anything. i originally got a home equity loan for all this, but the majority of it ended up on credit card 2. new floor, new walls, new paint, architectural details, nicely professionally done.
in the past year 2012 i racked up a 12,000 credit card bill for antique furniture and stuff for the house. no regrets. also the hvac system in the house died (i knew it was coming) and that was 14,000. ouch. i hire professional help because i am not handy, have no time, and can not do much myself. at this point not much should break in this house because i have already addressed anything that broke or needed replacing. all is in good repair, finally. ( the water heater is the only old thing remaining that might need replacing - will cash flow.)
anyway, here i am.
here is my debt accountability for today 7/21/2013 Sunday. will post progress every Sunday.
I am doing FPU for the first time, learning a lot, wished i had done it sooner.
i sold gold on Saturday to raise BEF to $1000, deposited in EF account.
with the remaining money from selling gold, I paid back my personal debt of 1000 to my property tax sinking fund (borrowed from myself to pay the painters).
i set up automatic minimum payments from the checking account for the two debts that will be later in the snowball.
credit card 1 272.73
home equity loan 3851.55
credit card 2 11875.48 auto payment set up
hvac loan 11714.65 auto payment set up
total 27,714.41 ALL HOUSE RELATED
monday's job is to temporarily stop all retirement contributions.
cancel overdraft protection (not needed anyway - i don't bounce checks)
tuesday sell more gold, pay and cancel credit card 1.
wednesday sell more gold, pay and cancel home equity loan
after that "sane and slow" debt snowball for the remaining two loans. housemate is paying 300 a month. 200 a month from stopped retirement contributions.
to do: to buy 2 ceiling fans (cash) for the newly remodeled suite. it is the last thing that needs to be done. a friend will install them.
a few things are linked to a credit card. need to rearrange that to debit card. EZ tag, amazon prime, etc. then cancel cards as paid off.