My Debt Quest

Here is my situation as of 4/3/2009. The (% change) is relative to the update from 3/20/2009, two weeks ago.

Savings - $1,562.90 (+34% change)
ING Direct - $1,016.39
USAA Savings - $512.13
SEFCU Savings - $34.38

In addition to my regular $100 savings contribution to the ING Direct account, I was able to restock the USAA "short-term emergency fund" to $500.00 with this last paycheck.

Revolving Debt - (-)$18,200.00 (+3.3% change)
USAA Mastercard - $0.00
Universal Card - (-)$18,200.00

As mentioned in my 3/20 update, the revolving debt is my primary target. At the very least, I need to pay down the $12,000 balance transfer offer by 3/10/2010, or a minimum of $1,000 each month. My goal, though, is to take out the entire balance of revolving debt by this December. In order to do this, I need to pay off $2,000 each month for the next 9 months. This is not possible with my current situation, so I need to come up with a combination of (1) lower expenses and (2) higher income. More on this later.

Loans - (-)$27,998.50 (+1.0% change)
Direct (Education) - (-)$3,800.21
SEFCU (Education) - (-)$2,723.50
Toyota - (-)$12,068.37
Volkswagen - (-)$9,396.42

Investments - $7,610.86 (+2.4% change)
Retirement - $5,269.42
Non-Retirement - $2,341.44

As I mentioned before, I'm continuing my meager contributions to both my retirement and non-retirement accounts as I try to target the revolving debt.

Net Worth As of 4/3/2009 - (-)$37,024.74 (+4.3% change)
Net Worth As of 3/20/2009 - (-)$38,624.79

Again, this value does not include the value of any assets or property - only the value of my savings and investments minus the value of any debt. It gives me a number to monitor and nothing more.

(% change)
I consider it a success that over the last two weeks every category shows a positive change. Although the value of the debt and my goal of paying off the revolving debt by December 2009 remain daunting, every small success is motivation to continue pushing forward.

As I've mentioned before, the primary purpose of this blog is to help me track my own progess towards being debt free. To accomplish that, I'll be monitoring my progress with debts and savings and periodically posting updates.

As of 3/20/2009:

Savings - $1027.11
ING Direct - $915.27
USAA - $111.84

The USAA account is my "Short Term Emergency Fund," which I usually keep funded to around $500 to help in case of unexpected expenses. I just had to pull $500 last week to cover some car repairs, and I should be able to refund that on Tuesday when my paycheck posts. The ING Direct account is my Emergency Fund that I hope to fund with 1 month of living expenses by the end of this year.

Revolving Debt - (-)$18,800.00
USAA - $0.00
Universal - (-)$18,800.00

This is my primary target right now. Over the last 3 years I've knocked my revolving debt from $25,000 down to $18,800, and I want to use this next year to eliminate it. I've restructured my work schedule a little and hope to start a part-time job in the very near future so I can start increasing my payments.

Of the $18,800 on the Universal Card, about $6,700 is locked at 1.9% until paid off, $12,000 is at 0% until 3/10/2010, and the remaining $100 is at 14.99%. Since they apply payments to the lowest interest rate first, all of my payments will go directly to the $12,000 at 0%, and my target is to pay down $1,500 per month once I get the alternate income stream working.

Loans - (-)28,276.81
Direct (Education) - (-)$3,844.95
SEFCU (Education) - (-)$2,723.50
Toyota - (-)$12,068.37
Volkswagen - (-)$9,639.99

I am focusing on the revolving debt at the moment so I can make sure the $12,000 is paid off before the balance transfer offer expires.

Investments - $7424.91
Retirement - $5,191.67
Non-Retirement - $2,233.24

I am continuing my meager contributions to both my retirement and non-retirement accounts, but any returns now are falling far short of the interest I would accrue on my debts, so my priority is still in eliminating those balances first. I anticipate that the markets will remain somewhat dismal at least through the end of this year, so I hope that by the time I divert my efforts from debt repayment to investments it will be time to start seeing some better returns.

Net Worth - (-)$38,624.79

This number really does not mean much. It is the sum of all of my investments and savings minus the balance of any debts. It does not include the approximate value of any vehicle or property. I just like having a number that I can use to track my progress and make sure I'm moving in the right direction.