Monday, October 8, 2007
Title:GAAAAA! I JUST WROTE THIS POST AND THEN DELETED IT!!!
"NOW I HAVE TO RE-WRITE IT!
Not that anyone cares. I don't think anyone is reading this anyway...sometimes I wonder why I bother.
**Edited...because I'm a weenie and it bothered me to have the whole amount of debt on here. It's heavy enough in my mind, let alone online! Suffice to say...it's more than the average!!**
(Note: that was edited when I wrote it last October, not right now!)
That's the amount of our debt...not including our house. Howeve, this does include our credit cards, our student loan, our car, some random debt to the dentist because we failed to find out if our dental insurance covered crowns before Troy went and got one, and a home equity loan (HEL!) that we "had" to get to pay a second contractor to come and finish some remodelling work that the first LYING, CHEATING, NO-GOOD, THIEVING, CRIMINAL contractor didn't finish before he took our money and disappeared. (Note to anyone who is reading this: the cheating contractors name is Richard Wallace and his company name was RAW Creations, Inc., so if you've hired someone by that name to work on anything remotely related to your house, RUN LIKE THE WIND!)
So, that's the skinny on how much we're in debt. Doesn't that make you feel better about your debt now?
The first thing you do in FPU (Financial Peace University, the 13-week course we're taking) is get together a $1000 emergency fund, and we have $495 in that already, which feels really good. The idea behind doing that before you begin paying down your debt is so that when your car or your plumbing needs to be fixed, you don't have to use a credit card to fix it! (That has been our favored mode of fixing things, 'til now.) Once our "baby" emergency fund is fully in place, we'll begin the Debt Snowball, which involves paying on the smallest debt first until it's paid off. Then, the payment that was applied to that debt is applied to the payment on the next biggest debt, as well as any extra money...and so on, and so on. Oh, it's called a "baby" emergency fund because, once the debt is paid off, it will be expanded to a full emergency fund which consists of 3-6 months of expenses. But I think it'll be at least a little while before we get there.
OH, and another thing...I think we're going to be selling our 2006 Saturn Vue (because, for us, the payment is too much right now). It's bee-yoo-ti-ful bright red and a fantastic car, so if you know anyone who is interested...send them my way!"
It's funny to me that when I wrote that originally, I was too ashamed to admit exactly how much in debt we were because the number seemed so huge. That's yet another thing that has changed over the last year: I have no problem whatsoever talking freely about the amount of debt that we started with.
That magic number?
Somewhere in the neighborhood of $68,415.00. Give or take a few cents.
Not counting our house.
Yeah, it was a deep pit.
Would you like to know how much we've paid off in the past year? Well, I'm going to save that for a later post!