Debt Payoff Progress for July 2013

turtleIt’s interesting as I write this near the end of August because even though I know July wasn’t a total disaster, I am dreading the August report for two main reasons.  First, we had to evict that tenant, and the cleanup is massive and expensive.  Later I will do some more explaining and post some pictures.  Second, I ended up breaking my arm which means that I am taking a pay cut during the month of August meaning any progress on debt payoff is impossible.  I am pleased that we have been able to keep food on the table and make some headway on the rental house.

Let’s look at the numbers:

February 1, 2013:  $204,682.21

March 1, 2013:  $202,074.40

April 1, 2013:  $200,241.22

May 1, 2013:  $201,650.44

June 1, 2013:  $197,517.24

July 1, 2013:  $194,888.81

August 1, 2013:  $193,577.18

As you can see, there was not a lot of progress on debt repayment during the month of July.  However, I will note that our net worth did increase more than that so we did head in the right direction.

Of course, breaking my arm on July 29th has turned out to be a big problem.  It slowed progress for the month of August on getting the house turned over and having any extra funds to put toward the rehab.  I am hoping to be back to work soon and get on track, but I suspect that it will be a few months to get it all back in gear.

Debt Payoff Progress for June 2013

spinning wheelsWell, we made some more progress during the month of June which is good news.  Of course, there is not as much progress as I would like because I would really like to get this debt problem behind us so that we can use the income for investing and get compound interest to work in our favor.  But, at least we are sticking with the program continue to track the information on a consistent basis even if I can’t always communicate the results publicly in a timely fashion.

Looking back, here are the monthly results:

February 1, 2013:  $204,682.21

March 1, 2013:  $202,074.40

April 1, 2013:  $200,241.22

May 1, 2013:  $201,650.44

June 1, 2013:  $197,517.24

July 1, 2013:  $194,888.81

 

Ideally, we would be able to knock out about $6300 in debt to eliminate this debt in the next 31 months.  Clearly we are off this pace right now, but it may get a little easier as principal gets paid down and less of the payment goes toward interest.  Still, I think we need to pick up the pace, although I am not sure that this will happen for the remainder of this year.  For know it seems like we are spinning our wheels.

Unfortunately, I had to evict a tenant from one of our rental properties and I am expecting quite a bit of repairs.  I am hoping to cash flow this and not add to the debt, but that could easily prevent much progress from happening.  We will just have to see how July goes.

Debt Payoff Progress for May 2013

turtleGood news!!  Even though it seems like things are moving incredibly slowly, we were able to get things back on track and break below the psychological $200,000 mark.  I was a little bit concerned during the month of May that it would be tough to get going again, but clearly there was quite a bit of progress.

 

Here are the monthly results:

February 1, 2013:  $204,682.21

March 1, 2013:  $202,074.40

April 1, 2013:  $200,241.22

May 1, 2013:  $201,650.44

June 1, 2013:  $197,517.24

 

Going forward, my wife and I are still doing some work on the house which may slow progress during the summer months, although it ultimately may have little to no impact.  We are wanting to pay for the work as it occurs, but may need to use a credit card to massage cash flow depending upon when the work happens relative to pay day.

Part of the results from May were reflective of this.  We put a purchase on a credit card to save 5% on the purchase, then I paid it off once the bill was received.  So far this month, we put a deposit down for a fence while simultaneously making an extra payment on another credit card with a higher interest rate spending the cash in the process.

Ultimately, the goal would be to be close to $150,000 by the end of the year.  I don’t know if this will happen since there are a lot of real estate issues with which we are dealing which will divert some of our cash.  But there are also some potential bright spots as well so who knows what will really transpire.  We just want to keep seeing consistent monthly progress and see where it all ends up in 31 more months.

 

Debt Payoff Progress for April 2013

dead endI had every intention of making April better than March in regards to debt payoff, and in reality, it is not as bad as it seems.  But the debt that I report here didn’t even decrease.  I had hoped to drop below the psychological $200,000 mark.

However, the reality is that we did make some progress on the commercial building as well as in other areas.  Our total liabilities decreased by just over $1200 and I didn’t include the payments that we made on the building or other real estate.  And with the stock market on a tear, the mutual funds in my retirement accounts really added to our assets improving net worth even further.  I am close to my net worth goal for the year, but I realize that the market can easily go down which is why I want to focus on paying off debt to improve our net worth.

 

Here are the monthly results:

February 1, 2013:  $204,682.21

March 1, 2013:  $202,074.40

April 1, 2013:  $200,241.22

May 1, 2013:  $201,650.44

 

Now part of that number is represented by “new debt”.  I say that because my wife and I are doing some much needed work on the house.  The intention is to cash flow the work, but since there was a sale going on at Lowe’s, we decided to put the purchase on a credit card since it was something that needed to be done anyway.  I had some bonus money coming at the end of April so the purchase was recorded as of May 1st while the cash was just getting into the bank.

We have a set budget for the work that we want to be done and the cash is sitting in an account and available to pay the bills as they come due.  That’s why I think that ultimately, we will see a little bit more progress as we head through the summer.

Unfortunately, this seems like such a long process to me, but I have 32 more months to go.

Debt Payoff Progress for March 2013

Fan of billsWell, I didn’t get as much personal and credit card debt paid off during March as I would have hoped.  This was not due to the fact that I have been watching too much hockey on Hulu (which is one of the reasons I haven’t been blogging as much), but because my wife and I had to take over responsibility for a commercial building in which we were partners.  Now my wife and I are the sole owners of the building as the result of a deal that we worked out.  We are hoping that it doesn’t turn around to bite us.

We managed to catch up one of the loans on the building during March, so we really did pay off more debt than is outlined here.  That can be seen by the positive effect on our net worth, especially when it comes to the overall decrease in liabilities.  Nevertheless, here are the results for the first 2 months:

February 1, 2013:  $204,682.21

March 1, 2013:  $202,074.40

April 1, 2013:  $200,241.22

Again, certainly not enough progress to get this done in 36 months.  There are 34 months left so we will need to knock just under $5900 off the balance each month.  In April, I will still have some work to do on the building, but will also plan on putting some extra on the consumer debt.

I sent in for some medical reimbursement funds which can help with this and may even send in for some more from the health savings account later on this year all of which would be applied to the debt.  I would at least like to be at a balance of $195,000 or less by the May progress report.

I should be able to get it done, but I thought that about this month too.  At least it didn’t increase, but I will be more intense in April.

Debt Payoff Progress for February 2013

Broken BankOn the first of each month, it is my plan to track my progress on the consumer debt that I want to have paid off by February 2016 which is now only 35 months away.  I would like to get it paid off sooner, but that is the absolute latest that I would like to have it done.  After that I will reassess the next debts to be eliminated.

As I mentioned, the month of February didn’t turn out too well since I had to slow down consumer debt payoff to handle some other business issues.  I am still going to be paying off debt when dealing with this commercial building opportunity but facing a $17,000 surprise (and not the pleasant kind) does hurt the consumer debt progress.

Nevertheless, here are the results from February with the total consumer and credit card debt that I was targeting:

February 1, 2013:  $204,682.21

March 1, 2013:  $202,074.40

So as you can see I did manage to pay off $2607.81 in debt during the month.  Unfortunately, that is not a quick enough pace to get the job done.  If I want to get the balance eliminated in the next 35 months, I need to pay off just under $5800 each and every month.

Now, had it not been for the commercial building issue, I would have been on target since I wired $4000 to begin catching up the late payments on the SBA loan.  I have spoken with the bankers and they certainly seem glad to have me on board and will be willing to work with me somewhat so I might be able to stretch out the amount of time to catch up and limit damage from any late payments.

Still, it is going to take out of the budget most of the money that would have been devoted to paying off some higher interest rate debt.  I will be talking to the bankers and seeing if a lower cost alternative that will help monthly cash flow can be arranged.  Will just have to see what happens.

I think I should easily be below that psychological $200,000 mark by the end of March so that will be good news.  I am trusting that March won’t bring any nasty surprises.