It doesn't help that my dad is a huge conspiracy theorist and doomsday believer. Every time I have coffee with him he goes off about how I need to be prepared for the worst and make sure I have at least 6 months of food stored and hundreds of mini bottle of alcohol to barter with when the world economy collapses.... so sharing that I live pay check to paycheck I think might give him a heart attack. But I could write a book about how crazy my dad is (love him to pieces though) but I digress.
So I have listed all the debt numbers. I researched some of these before my last payment so they might be a tad off.
- Pay Day Loan: $350.00
- West Loan: $500.00
- MIL: $1,300.00
- Attorney: $1,500.00
- Capital One: $2,496.30
- Discover Loan: $16,847.70
- Discover Card: $8,074.38
- Car Loan: $5,144.0.00
- Other: $3,000.00
TOTAL: $39,277.59
Now to Explain:
Pay Day Loan: This is a shameful debt because we took it out the beginning of January after we started our debt pay-off journey. I didn't realize the pay off schedule for our West Loan was every two weeks and not monthly and there were a lot of errors in our first month budget. Since we were just starting and had no emergency buffer, we ended up with about $300.00 in the bank with a $530.00 check about to clear and a week till payday. I have this scheduled to payoff in the February budget.
West Loan: I took this debt out the beginning of December to cover our butt when I overspent for Christmas. This was the wake-up call debt that made me realize we needed to make some changes. This debt is scheduled to be paid off in the February budget.
MIL/Attorney: These debts are a perfect example of bad financial habits we use to have, spending money before we have it. We were going to pay the attorney out of our tax return and he was agreeable to this. We were given an estimate of when the money would be deposited and we started spending it before it cleared the account. Imagine our surprise when our tax refund was $3,000 less than expected. So since we already spent the other part of our refund we couldn't pay the attorney and the money from my MIL is to cover our ass for the remaining funds we didn't get but already spent. Luckily, we are still owed the money and our accountant assured us that the paperwork is all correct. So once we get those funds within the next 6-8 weeks these debts will be wiped out.
Discover Loan: This was my attempt at debt consolidation. We did consolidate all our debts but it didn't stop us from running up those credit card again. This also is our biggest debt payment at $558.20 a month.
Discover Card/Capital One/ Car Payment: Pretty basic debts. Nothing special to say about these other than I wish they were gone!!
Other: This is catch all for debts I haven't had a chance to investigate. Off the top of my head this include a parking ticket, old cell phone bill, old cable bill, and pet insurance we stopped paying on.
So it's a lot of debt. And I don't have school loans or a mortgage to blame for it.
COMING NEXT: BUDGET
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