Debt

October 2013 Update

Posted on by Double Debt Single Woman

debt-picture

Debt repayment is going slowly.

Good News:
I have paid off one more debt. I had a $1500 student loan that was not in forbearance that I have been paying $40 towards each month.  With my previous paycheck, I paid off the remaining $690 balance. I know that it wasn’t the best move from an interest rate payoff perspective given the loan only had a 5% interest rate, but it was an annoying debt to deal with month after month. I’m glad it is gone. This will free up $40/mo to go towards my credit card payoff.

Other News:
I’m on the verge of shutting down my gym membership. Despite living only 1.5 blocks away, I have been there only once since signing up, and that was for an equipment orientation. There is no excuse for this, except for one thing  — exhaustion.

gym

I don’t know how people do it. My main job is very stressful for me because it is a lot more responsibility than I am used to. I still feel as though I’m thrashing around in the deep end of the pool so to speak. When I come home after a cramped 1 hour rush-hour public transit commute, I’m exhausted. All I want to do is drop my heavy laptop bag and fall face first into bed, but I can’t. I have more work to do. Between my two jobs, there is always more work to do.

I am very grateful for my two jobs, however I have been having a few warning signs of impending health problems.  One such sign is constant fatigue. Exercise would help relieve the stress, but how do I get the energy to exercise?  I know this sounds like a whine-fest.  I’m going to have to make an effort to at least work out at home and see how that goes. I’m going to make a good faith effort to use the gym before shutting down my membership…

Work:

Despite the stress, it is going relatively well. I admit that for the first couple of months, every time my manager asked to speak with me, I became terrified that I was going get fired.

fired suddenly

I have since learned that this is fairly typical among those who were fired from their previous job.  Now, I just get a little nervous, but not panicky like I used to. Ugh. Debt and fear are the worst.

Social/Dating Life:
Zilch. Nada. This is another source of stress, but it is another post (or 10!) entirely…

For now I need to focus on one thing at a time.

#1 Health

fitspiration-and-custard-oats-L-H7hTab.

“Debtor’s prison is real, and opportunity cost is a bitch.” (DDSW)

Another One Bites the Dust – Die Credit Cards Die!

Posted on by Double Debt Single Woman

credit card cut-up

Not long ago I mentioned that I was in the process of transferring my credit card debt onto two new credit cards. The two new cards have 0% interest for 15 months. The old credit card had a 19.99% interest rate that I had been dealing with for years. Back in the bad old days, every time I applied for a lower interest rate balance transfer, I was rejected. My debt to income ratio was too high. I had no options and the credit card companies knew it. I was stuck paying $350 – 400 per month in INTEREST, for years. Ahhrrghh, the stupidity!! When I think about all the ways I could have invested that money, I just get so angry at myself, at credit card companies, and the massive materialistic brainwashing that we are all victims of.

credit card bind

Well, no more. The balance transfers finally went through.  The 19.99% Citibank credit card is dead and gone! About a week after the balance transfer went through that took my balance to zero, they charged me $329 for accrued interest. Thanks a lot guys. That was their final parting shot. No ‘congrats for paying your debt to us, thanks’. No.  They treat you like crap when you owe them money, and they aren’t particularly nice to you when you don’t owe them anything either. But then, what did I expect?  I paid that last interest bill on the spot and am now done with them – for good. No more paying interest!

My two new cards are split between New Card A: $2,600 and New Card B: 25,750.    Today, I just paid off Card A with two rapid-fire payments. The balance is now zero before the first official installment was due. They’ll probably try to increase my limit now. No thanks!  I am now down to one last card. I will start paying that one down with my next check.

Old Card:   $29,920 –> $0.00

New Card A:   $2,600 –> $0.00

New Card B:   $25,750  @ 0%

My student loan payments also start next month. I am on the Graduated Repayment Plan to give myself time to clear out my credit card debt before my 0% introductory rate expires.  You hear that New Card B!  Your days are numbered! You’re goin’ down!!

ILLUSTRATION: Credit-card guillotine

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“Debtor’s prison is real, and opportunity cost is a bitch.” (DDSW)

My ‘Working Again’ Debt Payoff Budget September 2013

Posted on by Double Debt Single Woman

I-hate-student-debt1

Photo credit: LabMinions.com

Now that I am working again and no longer unemployed, I’m revisiting my old unemployment budget and making updates.

NET Income Per Month (after taxes & required deductions)

Job #1:  $4,935    Omg, taxes are a BEAST!  Grrr.

Job #2:  $540

I am not pursuing any additional side hustles at this time. Between these two jobs, I’m maxed out on hours and stress (60-75 hours per week). Any more than that and my health suffers noticeably.

Total Income:  $5, 475

sad-woman

The Outgo per month

Rent+Utilities:  $1465   (Unfortunately, I’m back in an expensive apartment, this time WITH a roommate.  How this happened.)

Phone:  $70    (Yes, I still have my iPhone. Sigh.)

Student Loan 1: $40    (This one is not bundled with my others, so I pay on it every month.)

Food: $500    (Yes, this is too high. I am not cooking and still eating out a lot.)

Public Transportation: $200  (Yikes! Public transit is waaay more expensive here than I thought it would be. )

Health Insurance: $100  (Yikes again! This is the cheapest High Deductible plan offered.)

Credit Card Debt:  $2,000  (Ouch!  Did I mention how much I HATE debt!? The credit card debt will die first.)

Student Loan 2: $850    (These payments begin next month. This is interest only. Aggghhh! This should be retirement money!)

Gym Membership: $65

Netflix: $15

Fun/Misc/Clothing: $100

Emergency Savings: $70

Outgo Total:  $5,475

 

What Does This Mean?

rough-road-ahead

This will roughly be my budget for the next year. I will not be having fun. This assumes that all goes well with my new job and that I don’t get fired again. This assumes that I don’t have any major health problems. Items in red are targets for cutting. This apartment complex makes it virtually impossible to get out of your lease, so I may be stuck here for a while, but I will consider my options. As soon as I am able to look for cheaper housing I will do so. That will save me hundreds of dollars each month that I can put towards retirement and emergency savings.

What Does This Really Mean?

“Debtor’s prison is real, and opportunity cost is a bitch.” (DDSW)