Friday, July 23, 2010

Debt Reduction Update

I thought it was about time I gave a debt reduction update. It is coming down, slowly! I only have a mortgage and a personal loan. (Ok, the loan is not in my name, but it was for the car I use). I can’t believe the personal loan has been there for nearly 3 months! Mind you, I/we now owe just over 1/3 of the original loan.

I also managed to crack a milestone (to me) on the mortgage. It gave me such a thrill to transfer $40 to crack it! How sad. Lol. It makes such a difference to see it at the number it is now rather than what it was. Even though it was only a $40 difference (actually $34, but I rounded up) it is a HUGE achievement to be in the next step of the mortgage.

Since it looks like the house is not going to sell, the personal loan won’t be wiped out by it, so I have had to create a new action plan. Whilst it may seem dumb to some, I do not want to use any of what I have saved to wipe the debt. Part of it the money I have is tied up in shares, some of it I have sat aside as an emergency fund I will not spend and some I have plans for very soon. I DO want to try and clear this debt within 2 months though.

There is $5,900 owing, which is almost only 1/3 of what we borrowed. Here’s what I plan on doing in the next 2 months to reach this goal

1.) Get rid of the car we got a few months ago. Things changed and it is no longer needed.
2.) List a few gift vouchers I have on eBay. They go for pretty much their value and are at shops I don’t really shop at. They were bonus offers with something I was paying for anyway, so a freebie to me.
3.) Get my tax return done. (And my husbands, as the debt is his also and his needs to be done for me to get my proper amount). I am hoping to do it next week, then it takes about 2 weeks to get it back. I don’t get any tax back as I didn’t pay any, but I get a child benefit, the family tax benefit, which is cool.
4.) Write in more tips/ideas for That’s Life and Take 5.
5.) We increased the rent on the house, which started this week (the letter was sent a while ago, so proper notice was given) and that extra will go straight on the debt.
6.) Cash in all the money from various survey sites and things. In the next month I should have a few I can cash out. (I cashed 3 this week)
7.) Sign up for samples and freebies on various sites (it’s a s good as cash when it is something I do not have to buy)
8.) The usual cut back on everything and throw everything at it.

It’s not a huge debt and we are doing supremely well on it, considering how much has been paid off in such a short time. I HATE having any sort of debt.

4 comments :

  1. I'm so impressed. I despise debt- we don't even have a credit card. keep on powering on- you rock!!

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  2. Hi, after reading this I found lots of free samples to register for on the net. Thanks for the idea.

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  3. lol, thanks Lori.

    That's great Kaye! It's amazing how much free stuff you can get!

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  4. Thank you so much for stopping by my blog. Reading you goals and maps of how you are planning to reach your goals is very inspiring. I look forward to read your posts.

    Have a fabulous day!

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