Yes, I checked out for a while. I relaxed, spent time with my kiddos and husband and did nothing, but cook from time to time.
It was a great Christmas - peaceful, happy. The best in a very long time.
Down to the numbers.
There is a big change. Due to an inheritance that came in a couple of days before Christmas, we were able to pay down a large chunk of the debt. It is all pulling up the bootstraps from here on out!
Debts:
401(k) loan for land
October 2017 Start - $42,627
Current - $0
CC#1
October 2017 Start - $30,400.81
Current - $0
CC#2
October 2017 Start - $13,943.95
Current - $0
CC#3
October 2017 Start - $17,279.17
Current -$16,790.73
CC#4
October 2017 Start - $32,855.22
Current - $35,294.16
Truck
October 2017 Start - $21,753.52
Current -$21,277.58
Car
October 2017 Start - $7,013.68
Current -$6,896.78
Mortgage
October 2017 Start - $332,480.00
Current - $332,480.00
Total Non-Mortgage
October 2017 Start - $165, 874.09
Current - $80,259.25
Total Debt
October 2017 Start - $498,354.09
Current - $412,739.25
No more 401(k) loan debt! That feels so amazing! I hated the stress that it put on us for staying at this job (not that we were planning on leaving), and stupidity of it! Done, Done, Done and so help me, we will NEVER take out a 401(k) loan again.
We paid off 2 credit cards as well. Whew! Unlike Dave Ramsey, we are going to tackle Credit Card #4 next. For a couple of reasons. 1) it has the highest interest rate 2) it affects our monthly cash flow the most and 3) we are wanting to pay it off so we can refinance and get away from the bank that gave us the loan - they are a hot mess! They still have not closed our construction loan - threatening us, even though we have converted to a permanent loan. We paid our 1st mortgage payment, but it is on hold - just a mess and it has been like that with them from the beginning. Plus, we feel our rate is slightly too high - 4%. But that is what is standard for a construction loan I hear.
We can get a lower rate and a 10 to 15 year mortgage instead of the 30 year mortgage. We just need to get the debt down a little first. Probably by the end of 2018.
Christmas was done without adding to debt. I am excited about 2018. We are getting back on track! Are you looking forward to 2018?
one husband......four kids......debt......sewing...... saving......cooking......yoga......sweet......chaos......life......
Wow! That is an amazing amount of debt knocked out! Good for you! I don't blame you for wanting to switch banks. They do sound like a mess!
ReplyDeleteI know - it is a bittersweet thing for me because of my grandmother's death, but it was their legacy for me. I think they would have been proud of how we used it.
DeleteGood for you. It might have been tempting to not put so much to debt but peace of mind is priceless.
ReplyDeletePeace of mind is, for sure, priceless! I think we both slept better after the 401(k) was paid off.
DeleteWow, well done! That's a huge amount of weight lifted. I hope you can get the mess with the bank sorted out. What a way to add stress to your new year. :( So excited to see you knocking that next debt out of the way in 2018 xx
ReplyDeleteYeah, they have been this bad from the beginning, but when you are so deep in the process - it is very difficult to start over with underwriting. This debt is going! I have been meaning to ask you - are you a coffee or tea drinker?
DeleteThat is great you got the inheritance and were smart with the money! Your Grandma would be proud, for sure.
ReplyDeleteYes, the inheritance was a surprise. We were never told. Both my grandfather and grandmother set up this trust in the mid 80s and it was for their children and grandchildren. My grandmother gifted me a little from her personal account after my grandfather died. Only a few people got anything from her. The family dynamics were stressful a bit, but it was good to know that she thought of me that way. Even with her seemingly cold ways, I loved her dearly.
DeleteGood use of the inheritance $, bravo. That's a ton of c/c debt left though so don't let up there. Avg. current mortgage interest rate is 3.5% so you aren't too high at 4%. Weigh the pros/cons of moving the mortgage(does getting away from the current bank outweigh the fees to move it?).
ReplyDeleteHere's to us all having a great financial life in 2018!
Not a chance we are letting up. It is killing me. It will go slower because we don't have any more large chunks coming in, but the credit cards are the priority.
DeleteYeah, we are thinking hard about this mortgage company. If things level off, we will consider staying, but right now, they are a nightmare - every single payment has been an issue and they cannot keep track of paperwork, etc. Our fear is we will be constantly wondering if they have processed our payments correctly and god forbid if we need to file a claim against our home owner's insurance. We will definitely run the number's before we do anything though - no doubt.
That is fantastic progress. I'm so glad you made great use of the money. Your grandmother would be exceeding proud! Is there any chance your mortgage will be sold? I used a local (regional) bank and my mortgage was sold within a month. Wells Fargo is now my servicer and they are fine. I haven't has any problems with my payments.
ReplyDelete