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back at DR baby step 1, happily by choice

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by , 07-21-2013 at 12:03 PM (3794 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.

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Updated 07-21-2013 at 12:20 PM by ladykemma2



  1. ladykemma2's Avatar
    aargh, setback diamond values are low today. will try again next week. not enough gold on those pieces to make any gold values.

    try again tomorrow with a different pawn shop guy. this guy is a known jerk to me. always lowballs offers.
  2. ladykemma2's Avatar
    the HR people and the retirement people aren't returning calls. frustrated.
  3. ladykemma2's Avatar
    ok, the HR people won't be back from summer until aug 15. stopping retirement contributions has to wait for a couple of weeks.

    here is my awareness of the weekend. very cool.

    i "needed" two new chairs for my gazebo. i "needed" a planter for the front door. i prayed about it yesterday and just "went for a look". not going to buy today, left the purse at home. i went for a stroll around big lots, home depot, lowes.

    my daily prayer has been changed to "pay the people I owe". (i changed it from "get out of debt" too vague and wasn't working) so as i walked around and got gardening ideas, ideas kept popping into my head as to "no spend" alternatives.

    "i have old empty pots in the garage and can take trailing lantana cuttings from a neighbor..." just need potting soil.

    "i have four steel folding chairs in the garage, all it would need is to be painted a different color..."

    very cool. god is good.
    Updated 07-28-2013 at 11:19 AM by ladykemma2
  4. ladykemma2's Avatar
    just for today i will incur no more new debt, have a "no spend" day, go to an AA meeting, clean and enjoy my beautifully repaired and remodeled home, pray for the people I owe and pray to create prosperity, abundance, and peace in my life.

    it is not "today's worry" to pay bills, or fret, or feel guilt, or take action steps. action steps are for another day.
    Updated 07-28-2013 at 11:48 AM by ladykemma2
  5. ladykemma2's Avatar
    god bless 12 step meetings.

    i was in a AA meeting room before the meeting, i was discussing being in debt, fear and i disclosed the actual amount to a friend. another 12 stepper in the room, known to be a real hardliner, was listening. he interjected, after a while, "stop being a g..D..m victim, you are a perpetrator, taking things without paying for them is stealing, you are not a victim, you are a perpetrator. PAY THE PEOPLE YOU OWE, pray for the people you owe, and make it right. "

    all the way home i was ruminating over the part about pay the people you owe, pray for the people you owe, and didn't quite digest the rest. I digested the rest today and got what he was trying to say. yeah, he's right. that's how how his sponsor got him to deal with his similar mess. very good.

    god is good. i got the same message two different ways in the same week. pay the people I owe.
  6. ladykemma2's Avatar
    in a way, it is perpetrator behavior to see the inside of a restaurant or to buy stuff not necessary for life or safety when in debt. what an interesting spin on debt.

    How will i refrain from perpetrator behavior today?
  7. ladykemma2's Avatar
    update: all is well.
  8. ladykemma2's Avatar
    It is wrong to spend money i do not have.
    I do not take something without paying for it.
    I do not overspend my income.
    I have sufficient for my needs.
    the universe supplies everything i need in abundance.
    heavenly father knows what i need and want
    I ask heavenly father for what i need and want.
    I create beauty in my life.
    I can find a way to have the desires of my heart.
  9. ladykemma2's Avatar
    update: still haven't stopped retirement contributions. been "crazy busy" with first week of school.
    did a good job of following my spending plan this month.

    unexpected costs were the principal setting out a new dress code, which had me running to buy new slacks - $100 at Walmart. that reduced my debt payment by 100.
  10. ladykemma2's Avatar
    All is well. Should be able toclear the tin y first debt this month.