The Round Up Part 4 – February 2017 Edition

 

I’ve been having a hard time fleshing out a good time to post my round-ups. Should it be monthly? Or whenever I make some big strides? Should I do bi-weekly, so report how much money I put on my debt with each paycheque? I’ve put my foot down now and said monthly; if it’s not consistent and I only report on the wins, that’s a biased report on what I’m actually doing with my money. Bi-weekly may just be too cumbersome. So I’ve decided I’m going to do monthly, on the last weekend of every month. I will be doing February’s catch-up post below.

Before I get into the numbers, I want to note that I put some solid money down on my debt. I feel great about it, but it comes with the big asterisk that this was due to my 2016 sales bonus having come in. Back before I started this blog, I would eagerly seek out other PF blogs that had a debt count-down chart, and every so often, many of these scenarios would have a massive decrease in a short period of time that helped gain momentum. I’ve seen things like my piece of art I made suddenly got sold, or I sold my house, or I moved in with my parents and didn’t need to pay rent anymore. And I’d think great, so now I completely can’t relate as I can barely even draw stick figures, I have no house to sell and I pay my own way and will continue to do so. How will I ever get this awesome windfall to help lower my interst payments and help get some momentum going? It was straight up discouraging. So I’d like to note that although I’ve worked my buns off for my sales bonus, it does act like a “windfall” when it comes to my debt pay-off, and I acknowledge that. I am solemnly aware that the real work still lies ahead – the working with my regular salary to make wise choices and little sacrifices daily that will slowly but surely eat away at my debt.

So with that, I give you my debt round-up:

  • Visa: $6,802 (19.99%)
  • Line of Credit 1: $12,000 (8.8%)
  • Line of Credit 2: $17,670 (3%)
  • Line of Credit 3: $0.00!!!!! (YESSSSSS!!)

Total Commercial Debt: $36,472.00

  • Loan from a family member: $20,000

Debt Grand Total: $56,472.00

 

My debt total is now $5,452.00 down from my last round-up in December 2016!

My bonus coming in was able to help me eliminate one of my lines of credit completely, which came at a perfect time as they just sent me a letter stating they were increasing the interest rate! I was also able to get another line of credit with another bank at only 3%, which allowed me to move over some debt from two different 9% lines of credit.

I know you may be looking at my visa interest and wonder why I wouldn’t move the balance from my visa first, and that would be the a very financially sound question.  It’s because those 9% LOCs has my mom as a co-signer from years and years ago, and although my solvency is not an issue and she has never brought it up, I know my mom is so staunchly debt-averse, that I felt it was the right thing to do to relieve her of being associated with any. As much as numbers and money are factual concepts and it would be wisest to deal with them that way, in reality, the way we handle our money and make decisions about it is often emotional. Working in the finance industry for years and taking a cue from my own spending (and now repayment!), I can sincerely vouch for that. Hmmm….now that’s a line of thought I might explore further in a post!

So off I go back into the regular swing of things where my paycheques go back to normal and bills and expenses (and spending cravings) are to be worked with back on their regular rotation. As I mentioned before, this is where the real work comes in. Now that I won’t be expecting more from my pay, I resume with trying to live my life on much less so that difference goes towards my debt. I look forward to reporting back on the first weekend in March to see how things went!

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2 Comments

  1. Brava FD! Brava!

    You should feel very, very proud of this accomplishment. And bonuses count big time. They are part of your compensation – no matter how small or how big. And provided you don’t rely on them as basic salary/income in your planning (since they are never guaranteed), once they do come in they are yours to spend.

    Putting it towards debt repayment is wonderful. I will be doing the same later in the year 🙂

    1. Thanks, Pru!

      You know, I never, ever budget with my bonus in mind – base salary only. Some of my coworkers have commented that that’s silly, as the bonus is part of the comp, but when it comes down to it, it’s exactly as you aid – it’s never guaranteed. I’d rather them just come in as a ‘cherry on top’ that can be slapped on to debt as an extra perk, as opposed to banking on it then not having it come in. I know you’re going to feel great putting that extra chunk towards paying off your mortgage!

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