Friday, December 14, 2007

My Mid-December Financials

The current balance is the balance after my payment for December was made. As you can see by the chart below, I am making some real headway on the debts that have been my biggest problems. Thanks in part to the $150 received from advertisers and PayPerPost revenue that I am expecting later this month, I anticipate paying off the last $180 for the Black Gold Insulation installation.

Each of the December payments listed is to leave my bank today. So some of the current balance figures are estimated. That means I have my two huge utilities to pay with each of my next 2 checks this month.

AccountOutstanding BalanceMonthly Minimum PaymentPayments This Month
Providian Credit Card$395$25$200
Amerifirst Mortgage
$990$75$35
FingerHut$1,000$50$10
Car Loan
$10,745$400$405
IRS$3,796$0$0








6 comments:

  1. I am quite concerned about the money you owe the IRS. They charge ridiculous interest rates and can really make your life miserable. Remember: Don't Mess with the IRS!

    I'd get rid of that one as soon as possible.

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  2. Thanks anonymous -

    I am working with the IRS, and they are aware that I am not able to pay at the moment. I will get them paid, in fact, I am hopeful that I will be able to "wake them up," this next year.


    I may be even to talk to my Credit Union once I get my FICO raised up to help consolidate some of the smaller debts after the first of the year.

    I just need to get Black Gold eliminated this month and I should be able to do it. I just hope that the payments will fit in my budget, so that it will work for both of us.

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  3. kevin doesn't believe in rates! he's rather work longer to pay off debts, just so he can owe on numerically fewer lines. for example, if kevin owes $1,000 at zero percent interest, and $10,000 at fifty percent interest, Kevin will pay off the $1,000 line first, while the ten thousand dollar debt accrues additional costs. This means Kevin will work more days to become debt-free, but he says this is still motivational, because he'll have one debt rather than two. the question is: how many more days will kevin work so he can feel enthusiastic about having numerically fewer credit lines? and how will he feel on those days?

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  4. John -
    even if I didn't have an agreement worked out with the IRS, and we only looked at interest rates their (the IRS)interest aren't as high as the interest on the car or home improvement loan. Still we are going to see a number of suckers paid off this year. Still though I would like to get them paid off (and plan to do so - hopefully this year).

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  5. actually, yeah, the IRS rates aren't so terrible. even when we disagree, you are an inspiration, kevin.

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  6. I am glad Kevin has something worked out with the KGB (IRS). I've only seen them rake people over the coals....but, I do agree that it is wise to pay off the smallest debts first as Dave Ramsey says. Yes, you do pay a LITTLE more money in the end, but getting out of debt is 20% math and 80% BEHAVIOR! It's the 80% part that is the most important.

    I paid my debts off smallest to largest. My brother paid his debt off largest to smallest (better math that way he says!). I have a 6 month emergency fund. My brother has none and he's been debt free longer than I have - we both make good money. He spends every dime he makes on his going out to eat, buying his Harley, etc. Instead, I used my debt snowball to pay off my debts, kept eating beans and rice, and got my 6 month emergency fund in place. I wonder who is smarter? The person who did the math (like my brother), or me (who changed my behavior)?

    I wish Kevin had a larger emergency fund that is used for only emergencies, in order to keep Murphy and his cousins at bay. Otherwise, I fear he is inviting Murphy into his house.

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