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Next semester I have class only 2 nights a week from 4-9pm. Therefore, my goal is to take my lunch at least twice a week and cook dinner 3-4 times per week.
My 401k did well in December and I am still paying down my credit card balance. I had a reader gasp (I don’t blame them, I would too.) at my almost 19k in credit card debt but I failed to keep a disclosure stating that my credit card balance is the result of a home equity refinance. My HELOC interest rate is 10.75% so I transferred the balance to my credit card at 1.99%. Instead of paying $250 in interest, I paid $250 and at least $200 went towards principal reduction. It made sense to me at the time because I was still paying the same amount but the principal was reducing. The HELOC balance is the result of an 80/20 mortgage on my condo. The original balance was $25k.
Overall, it wasn’t a bad month. January will be drastic. My tuition for my final semester is due, I have bar exam fees to pay, and I have to pay off my Christmas damage. Then, it should be smooth sailing from then on out.
*** Credit card balance is the result of a HELOC refinance. Original HELOC balance was $25k and resulted from an 80/20 mortgage. HELOC interest rate is 10.75% but cc interest rate is currently at 1.99%.
5 comments:
I didn't know you could pay off a HELOC with a credit card. But that sounds like a good move because that's unsecured debt anyway. You don't pay the card, they can't take your house!
And as for gasping at $19G in credit card debt -- it's terrible, it shouldn't be done, but it happens, so no one should get judgmental.
Hi Debt Hater!!! The balance transfer was actually pretty easy because my credit card company deposited the money directly into my checking account. All I had to do was pay off my mortgage company. Pretty cool!!!
You are totally right about the unsecured debt aspect. Now, no matter what, my mortgage payment is more reasonable and I should be able to pay it even if I can't pay other bills. I am just happy to see the balance going down.
Yep, one of the reasons I didn't start a blog at first was because I knew I wouldn't be able to make any improvements in my net worth until I finished school. I was worried about what other people would think. All in all, the blog still keeps me focused so I don't lose sight of the goal.
Thanks for reading!!!
Dont worry about what other people think! It takes alot to publish you life in a blog for the world to read! I commend you! Good Luck!
Hey there, it looks like your networth went into the hole about another $1,000+. What was that from? Is it stock fluctuations or spending? Great update! :)
Hi Tim!
I would say that the decline in net worth is a combination of poor spending and accumulation of interest on my student loans.
Each month, approximately $800 in interest accumulates on my student loans which is a bummer. I make a decent salary but after all bills are paid, I am left with roughly $700. I tend to spend that money unwisely and a little more. Therefore, it doesn't make up for the increase in interest and I continue to have a decline in net income.
Once part of my loans enter repayment in July, my net worth will begin to improve. But, I have to do better with my spending and this blog has helped me with this problem tremendously.
Thanks for reading!!!
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