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Author: debtfreein3years Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308881  
Subject: debtfreein3year's Quaterly Update (4/08) Date: 4/3/2008 11:00 PM
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I posted here for the first time right after the new year. I received lots of help and advice from the good people here and continue to learn everyday by reading all the posts.

Here's an update on my progress. Back in January was when I started to write and track everything in great details. Recently I wrote down all the balances all the way back to August 2007, which is when I stopped the bleeding, came to my senses and started to pay down debt.


Cousin CC#1 CC#2 CC#3 CC#4 CC#5 CC#6 CC#7 Car Total Debt
========================================================================================================
0% 29.99% 10.00% 22.94% 21.99% 20.24% 18.60% 5.75% 5.80%
========================================================================================================
Aug 07 $6,000 $6,977 $6,647 $1,652 $2,768 $7,869 $3,134 $18,484 $10,497 $64,028
Sep 07 $6,000 $6,906 $6,351 $1,500 $2,470 $7,735 $2,857 $18,406 $10,223 $62,448
Oct 07 $6,000 $6,835 $5,719 $1,488 $2,446 $7,487 $2,960 $18,162 $9,757 $60,854
Nov 07 $6,000 $6,563 $5,452 $1,470 $2,421 $7,424 $2,750 $17,900 $9,291 $59,271
Dec 07 $5,000 $6,182 $5,263 $1,457 $2,402 $7,372 $2,715 $16,588 $8,951 $55,930
Jan 08 $4,500 $6,227 $5,607 $1,444 $2,377 $7,311 $2,660 $16,315 $8,659 $55,099
Feb 08 $4,000 $6,157 $5,300 $1,427 $2,352 $7,233 $2,627 $16,044 $8,370 $53,509
Mar 08 $3,500 $6,099 $4,524 $1,413 $2,330 $7,168 $2,649 $15,768 $8,111 $51,562
Apr 08 $3,000 $5,885 $4,488 $1,371 $2,264 $6,974 $2,631 $15,419 $7,815 $49,847
========================================================================================================
Reduction $3,000 $1,092 $2,159 $281 $504 $895 $503 $3,065 $2,682 $14,181
========================================================================================================


All the numbers before April 08 are the balances on the monthly statements for each card.

The April 08 figures are current balances after I made the March payments, they will be a little more when add the interests before I get the statements this month.

I have been applying snowball to CC#2 because the interest was 32%. They recently lowered it to 10% so now I'm going to start tackling CC#1. I'm still calling CC#1 every month to try to get them to lower the rate.
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Author: HornedToad10 Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 270934 of 308881
Subject: Re: debtfreein3year's Quaterly Update (4/08) Date: 4/3/2008 11:43 PM
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Congrats, you've made great progress.

You have made consistent payments the last ~8-9 mos. so I'd keep trying to get all of your other high interest rate CC's to lower their rate, not just CC#1. Alternatively/also, be on the lookout for any good balance transfer offers as I would think pretty soon you would get some.

Keep it up.

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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 270942 of 308881
Subject: Re: debtfreein3year's Quaterly Update (4/08) Date: 4/4/2008 7:05 AM
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Good job on getting your rate reduced. I hope you are calling cards 3 - 6, in addition to card 1 and asking for reductions from them, too.

I realize that with family loans, there's lots of 'baggage' and you may have made some agreements with your cousin on your payback schedule, but that's your 3rd highest reduction, and it's 0%. If your cousin doesn't need the money, it would help to pay off your debt faster if you cut back a bit on the payments there, and paid more toward your snowball.

AJ

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Author: raetsu Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 270987 of 308881
Subject: Re: debtfreein3year's Quaterly Update (4/08) Date: 4/4/2008 12:25 PM
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Congrats:)

You have inspired me to continue on my debt free journey.

Thanks

Raetsu

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Author: debtfreein3years Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 271040 of 308881
Subject: Re: debtfreein3year's Quaterly Update (4/08) Date: 4/4/2008 3:31 PM
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Thanks for responses.

Yes, I do call all the credit cards every month to ask for lower interest rates. CC#1 was closed by the bank when I missed 2 payments last year after not missing a payment ever since 1998. So now they really have no incentive to lower the rates to keep me as a customer, but I'll keep trying.

AJ, there's really no repayment agreement with my cousin. Paying him back as soon as possible is something I want to do for myself.

Back when I was in big trouble around May 2007, I was late on payments on all my credit cards. I've always been very very independent, I never bothered people for help unless I really needed to. My situation got so bad that I had to borrow money. I believe I've always been a very trustworthy person. I called a couple of "friends", people that have told me that I'm like a brother to them in the past, people I have helped in many ways. I asked one of them (who had told me he had $100k in the bank) for a $2000 loan, and he gave me all kinds of excuses. Same with the other friend. It's easy to be a good friend when you are out there having fun, but it is in hard times when you realize who are your true friends.

I called my cousin and he said "yes" in less than a second. He never gave me any conditions, didn't ask me how I dug into such a deep hole, never told me when to pay him back, etc. He just trusted me and wanted to help me. He then lent me $4000 more to give me some more time to look for the best job I could find. That extra 2 months I got to interview for more jobs was key. Had I taken the 1st offer I got (and I would have done it because I had no choice), I would be making $15k/year less than I am now. I now have a good income doing something I enjoy.

I will never forget what he did for me and that's why I want to pay him back as soon as possible, even if it's costing me quite a bit in interest paid to the cards each month.

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Author: dianakalt Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 271049 of 308881
Subject: Re: debtfreein3year's Quaterly Update (4/08) Date: 4/4/2008 4:06 PM
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AJ, there's really no repayment agreement with my cousin. Paying him back as soon as possible is something I want to do for myself.

This is commendable, debtfreein3years. Putting your cousin at the top of the list may be one of the finest decisions you can make, because it demonstrates to your cousin the value of your word and your relationship.

I have a 0% interest loan to my father on which I currently owe $1500. DH and I are paying this off quite aggressively - it is our current snowball target and since we have some money set aside we expect to be able to clear this debt within the next 2 months or so. DH at first questions whether we should do this, but when I explained how my brother borrowed money from my dad and then put him LAST on the payoff list since there was no interest, and told him how that upset my dad, he understand my desire to pay this off first.

Good Luck!
d

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Author: Minxie Big gold star, 5000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 271051 of 308881
Subject: Re: debtfreein3year's Quaterly Update (4/08) Date: 4/4/2008 4:11 PM
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...when I explained how my brother borrowed money from my dad and then put him LAST on the payoff list since there was no interest, and told him how that upset my dad, he understand my desire to pay this off first.

I'm in that boat now, having loaned $1k to my sister well over a year ago with no payments on it at all. I finally just let go of it when she told me she planned to take her husband to Vegas for his fortieth birthday because "you only turn forty once!"

Minxie

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Author: bowled818 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 271070 of 308881
Subject: Re: debtfreein3year's Quaterly Update (4/08) Date: 4/4/2008 5:32 PM
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...when I explained how my brother borrowed money from my dad and then put him LAST on the payoff list since there was no interest, and told him how that upset my dad, he understand my desire to pay this off first.

I'm in that boat now, having loaned $1k to my sister well over a year ago with no payments on it at all. I finally just let go of it when she told me she planned to take her husband to Vegas for his fortieth birthday because "you only turn forty once!"


I feel the pain! In the last 2 years I've written off $300 from a friend, $500 from a cousin, and I'm currently paying $800 per month for the house my brother and I own (but I don't live in). When we eventually sell the house (I hope soon), what little profit I may see will go to my credit card for the $5000 I spent to get the house out of forclosure last year. :(

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Author: bowled818 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 271071 of 308881
Subject: Re: debtfreein3year's Quaterly Update (4/08) Date: 4/4/2008 5:34 PM
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Debtfree - You've made some very good progress over the months. Keep it up!

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Author: llamalluv Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 271127 of 308881
Subject: Re: debtfreein3year's Quaterly Update (4/08) Date: 4/5/2008 5:35 PM
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Great work! So, do you still think you are going to make your target of debt free in three years? :)

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Author: debtfreein3years Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 271164 of 308881
Subject: Re: debtfreein3year's Quaterly Update (4/08) Date: 4/6/2008 2:16 PM
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Great work! So, do you still think you are going to make your target of debt free in three years? :)

Yup, I'm right on track to be debt free on August 2010. If I get any BT offers it might be earlier than that. My credit score was destroyed last year when I missed a few consecutive payments on most cards, so it might be a while before they send me an offer.

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Author: greenvillewolf Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 271176 of 308881
Subject: Re: debtfreein3year's Quaterly Update (4/08) Date: 4/7/2008 10:48 AM
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Way to go, I think its great you're making sure to pay back your cousin. Your coussin must be a helluva guy or gal. :)

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Author: llamalluv Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 271183 of 308881
Subject: Re: debtfreein3year's Quaterly Update (4/08) Date: 4/7/2008 11:32 AM
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It probably won't be as long as you think. I put a mortgage into foreclosure (on purpose, long story), and even while my FICO was still low (500's) I was getting some really stupid offers (2.9% BT for 12 months, etc) from my existing credit cards.

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Author: ezragreen One star, 50 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 271329 of 308881
Subject: Re: debtfreein3year's Quaterly Update (4/08) Date: 4/9/2008 9:00 AM
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Debtfree,
I think your making great progress but I never knew cc rates can get into the 30s(learned something new today). I thought they were all capped in the 20s or something but apparently 29 states do not have interest rate caps. http://www.bankrate.com/brm/news/cc/20020320b.asp

LLamalluv,
I would love to hear your story of intentionally running a mortgage into foreclosure if you've go the time. I must admit, I honestly would like to hear your rationale.

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Author: llamalluv Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 271338 of 308881
Subject: Re: debtfreein3year's Quaterly Update (4/08) Date: 4/9/2008 11:43 AM
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LLamalluv,
I would love to hear your story of intentionally running a mortgage into foreclosure if you've go the time. I must admit, I honestly would like to hear your rationale.


Readers Digest version:

My grandmother the evil (rhymes with Witch) was joint owner of the house, there was a big "get rich quick" scheme to fraud the government via Section 8. I was coerced to sign on the mortgage. About 7 years later, the scheme wasn't working, I was forced to assume the mortgage, without getting full ownership of the house. After about a year of using credit cards to keep up with a mortgage payment that was half my take home pay (plus all the repairs that needed to be done after 7 years of neglect), I just couldn't keep up, and Grandma wouldn't sell, so I quit making the house payment (telling her that I wasn't making it) and just concentrated on my own life. 2 months later, she changed her tune, and I walked out of the deal with trashed credit and $12,000 cash (from the $48,000 in equity) AND the pleasure of having ruined my grandmother's credit, probably permanently. This was the best part, since she's always been so PROUD of herself for her "perfect" credit history. It seemed rather ironic* to me that the woman who stood by and let her husband rape her little girls got screwed over by her granddaughter.

The nice thing about the Phoenix rental market was that even with my credit in the crapper, I was able to rent an apartment for $99 first month's rent.

*Is it irony, or fitting?

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Author: ShortyShortpants Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 271741 of 308881
Subject: Re: debtfreein3year's Quaterly Update (4/08) Date: 4/17/2008 3:33 AM
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I will never forget what he did for me and that's why I want to pay him back as soon as possible, even if it's costing me quite a bit in interest paid to the cards each month.

----

Feel free to give my deadbeat ex-BIL a call whenever it's convenient.

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Author: debtfreeby2011 Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 272367 of 308881
Subject: Re: debtfreein3year's Quaterly Update (4/08) Date: 5/2/2008 6:43 PM
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Good luck- I am on the same quest and will be debt free by April 2011- no more debt and no more children at home! Last one graduates in 2011 What a year it willl be. I have changed HABITS so this will never happen again- all my credit cards are in the safetey deposit box. I could buy a house with all the open credit I have!

All you need to do is the snowball effect-it works. I pay $1500 a month everymonth but most of mine are low interest 1.99% to 7.99% and I have excellent credit.

Just decided one day I would be free to do the job/career I wanted if I was debt free.

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