Ok, so I have this issue with keeping money in savings. Whenever I get a few extra bucks I'm always throwing it at one debt or another. Just yesterday I threw another $500 at T's student loan, so it's down to 3300 owed. My savings is always around 1500. I never allow myself to get any further with savings because I always have this need to pay an oustanding loan off. Luckily I have a very stable job (government) and my husband's is a fairly stable job as well, but every once and a while I wish I would make it easier on myself and build up the EF. I know, I know, stop talking and just do it!
Archive for December, 2009
$1,000 went on T's student loan today. Approximately 3,800 left and then it's on to the next debt!
We did receive some bad news regarding our tenants. Turns out they won't be receiving government assistance and will need to pay us out of pocket. I hate to make assumptions, but I doubt they will be making the payments. My mother has already called and their phone number is disconnected. In the next few weeks we'lll have to see if eviction will be necessary. This means we have to come up with our total mortgage payment of $665. We were already kicking in few hundred since the government assistance wasn't enough, but this was not in our plans. It'll slow down our debt payoff plan, but I guess that's how it has to be for now. It's a shame the place has lost so much value since we bought our half from my parents. Selling isn't an option since the value is so low (and my parents depend on their half they receive in rent). I'm just so grateful that my husband and I got our finances out of the hole 1.5 years ago and can afford these nuisances. Once my student loan is out of the way we can focus on paying off the rental property.
The past few months I've been so wrapped up in getting the house refinanced that T and I haven't really focused on anything else. Now that we've locked in our rate for 15 years, I can look forward to the next debt payoff: T's LAST student loan!
It's hovering around 4900 last I checked, but I think we'll be able to have it paid off by February 5th. (I'm posting that date here so I'll have to be accountable!) I think we should be getting a few thousand back on taxes. Our payroll deductions have since been changed so that won't happen next year, but this year I'll use that money to put on the loan (and fix the volvo-grrr).
Once his last student loan is paid off, next to focus on is my student loan. But with that at around 20,000 it's not going to be as easy. I'll have to figure a plan of attack once I cross the 4900 off the list. Slowly but surely we're getting there!! I can't wait to only have 3 debts to our name!!
4.5% Interest, 15-year loan, no pre-payment penalty! Including taxes, our monthly payment is 1650. We plan on paying an additional $355 a month to pay off this place in 10 years! If all goes well, I'll be 35 and T will be 37 when we own our own home! We then plan on saving a down payment for a second home and then rent out this house while we buy another. T wants to put even more on the house each month and I keep trying to tell him that as we continue to make more money we need to pay off the rest of our student loans, increase retirement contributions and SAVE. Luckily he gives me control over the finances so we don't have to argue too much.
Well that was a waste of time! Of course I didn't know it at the time, but that 12,000 dollars I thought I would need to refinance won't be necessary! Turns out this appraisal came in 15,000 higher than I expected (the house is supposedly worth 175k) and I won't need to bring any money with me to closing!
I plan on paying back all 12,000 that I took the loan out for at the end of the month (or whenever I get my first bill).
Now we can focus on saving for nonexistent baby money and paying down the LAST of T's student loans! HOORAY!