75

Since March 2011 I have paid back 75% of the consumer debt I owe!!!  

 75%!!!

In a dollar figure that translates to almost $8600.00.

I'm very happy with my progress.

My Twelve in 2012

1. My goal is to have my consumer debt paid in full by 31 March 2012!

2. My goal is to have my car loan paid in full by 31 December 2012!

3. I haven't made a decision about which race and when yet but I want to run another 1/2 marathon.

4. I would like to have Christmas paid for before I need to worry about it.

5. My plan is to start an extra fund for car maintenance.

6. Giving is fun for the giver and the recipient.  I want to do it more often.

7. I used to devour books as a child.  I would like to start reading more again.

8. There are known expenses during the year that I need to be better about budgeting ahead for. 

9. My wardrobe is pitiful.  Its about time I started dressing a little better.

10. Operation Christmas Child is a GREAT cause.  If you are looking for somewhere to donate some money for next Christmas, I highly recommend them.

11. I don't want to set a specific monetary amount to this but I just want to regularly contribute to building my Emergency Fund.

12. With the elimination of my consumer debt I will have a bit more freedom with my budget.  It's time to have a little bit of responsible fun!  :)

My Twelve in 2012 has been inspired by Niki at Debt Free By 30.  I stole this idea from her was inspired by her creative genius. 

In addition to these goals I have also signed up for Carla's (My 1/2 Dozen Daily) No/Low Spend January.  I haven't figured out exactly how I will work this challenge for me since I run a very tight budget but I am hoping to squeeze out a little extra to put towards my debt.   

Getting Ready for the New Year

Only a few more days and we close out 2011.  It seems (for the most part) it just flew by.

I'll be starting the New Year by earning a little extra to put towards my debt repayment since I found a babysitting job for NYE.  Not my ideal way to spend the night but every little bit helps.  After payday (31 Dec) my debt totals entering the new year should look like this:

LOC - $1910 (less whatever I make babysitting)
SISIP - $1000

Leaving me just under $3000 to pay off in three months to reach my goal.

I received some wonderful gifts for Christmas which included cash, a stocking full of great stuff, gift cards to 2 of my favourite splurge locations (Starbucks and Subway), a piggy bank (maybe I talk about my finances too much, lol), and lots of other goodies.  Oh and lots of chocolate!

 A very dear friend gave birth to a healthy baby boy yesterday.  I'm thrilled for her.  She called me in the morning to let me know there was no baby yet but that she was having contractions.  I returned her call about an hour later as she was preparing to leave for the hospital.  About 4 hours and no drugs later she and her husband welcomed Spencer to their family.  He's beautiful.  I was able to be their for the entire birth of their first son, Stuart, a little less than 2 years ago.  That was the most amazing experience of my life.  They have since moved and I wasn't able to be there this time. 

 

I'm working on my 12 in 2012 list and will post that this week.  

Merry Christmas

Merry Christmas to all my wonderful friends.  I hope your Christmas is filled with lots of love and time with your family.

Giving from the Heart

Since I wrote my post last night I have been mulling a number of things over in my mind.  One thing I was thinking about was choosing gifts that could be a blessing to more than just the recipient.  This morning when my alarm went off (I wake up to the radio) I heard a story that really spoke to my heart.  I will try to retell it to you.

This is told from the view point of a bystander

I was in the store picking up a Christmas gift when I spotted a young girl picking out a doll.  She picked up one doll and asked her dad, "Dad, do I have enough money to buy this doll?"  "Yes", her dad replied.  She placed the doll back on the shelf and picked up another doll.  She asked her dad the same question, "Dad, do I have enough money to buy this one?".  Again, her dad replied, "Yes, dear, you do."  She again placed the doll back on the shelf.  She continued this for a few dolls.  She really had my attention as I was curious why she kept putting each doll back.


In the same aisle, a little boy and his dad were looking at video games.  The little boy found the exact game he want.  "Dad, do I have enough for this?"  "No, son, you don't".  He picked up a few more games and to each the response from his dad was no.  He instead found a sticker book that he could afford.


The young girl, meanwhile, had found a beautiful doll.  A doll that every girl would love to have.  She asked her dad, "Do I have enough for this one?".  Again the response was yes.  Again she placed the doll back on the shelf.  She turned around to the video games and pick up the one that was on top, "Do I have enough for this" she asked again looking up at her dad.  "Yes, sweetheart".  "Ok, I want to buy this", she said excitedly.  


She went to the cash and I was in line behind her.  The little boy came up behind us.  She paid for her purchase, handed it to the cashier and whispered something in her ear.  Then she walked away.  I paid for my items and took my time leaving.  The little boy placed his sticker book on the counter and the cashier rang it in.  "Oh, you've won", she exclaimed to the little boy and handed him the game.  "Oh dad, this is exactly the one I wanted!".  


The dad and young girl had stayed in the doorway.  "Why did you want to do that?" the dad asked his daughter.  "Well, grandma and grandpa told me to buy something that would make me happy and this made me very happy."

This story really touched my heart because of the kindness and pureness of the simple act.  Little did I know that later today I would be touched by a kind and pure gift myself.

I was in line at the drive through at Tim Horton's and when my turn came to pay the lady told me that the car behind me wanted to pay for my drink.  I was surprised.  The car behind me?  Do I know who that is?  It turned out it was a friend of mine that I don't see often.  Nice blessing but not the one I was referring to above.  I tell you this one just to show you how God works on our hearts through out the day. 

This afternoon I received an email from Kiva.  I have heard of Kiva from other bloggers and have been wanting to get involved but had not taken any active steps to do so.  Kiva is a great organization that gives loans to people who are low-income or who don't have access to typical banking systems so they can start or maintain business to better their lives and the lives of their family.  For example one lady I looked at earned $2.00 a day to care for herself and family.  She wanted a loan so she could rent farmland to help supplement her income and get education for her children.

So why did I get this email?  Carla at My 1/2 Dozen Daily gave me a Kiva Card!  This Kiva card allows me to be able to make a loan to someone in need!!!  What an awesome gift!  This is a gift that blesses the giver, the recipient and someone else (and potentially more people!)  How perfect is this?!  And exactly what I was looking for. I just didn't expect to be the one receiving it.

If you know Carla you already know how generous she is.  If you don't know Carla, she is amazing and can make a budget go further than should be possible.  I think a big part of that reason is because she always adds giving in there.  She is a huge inspiration to me to be a better person in many areas of my life.  I can't believe what she does for her family of 6 on one income (with some extra earnings) and how generous she is. **I just noticed I was part of Carla's Operation Give Back.  I'm so honoured!

Thank you Carla for reminding me the true spirit of Christmas and teaching me about being generous.  I will be passing on a Kiva card to someone who will love it because it's a great gift.

Pass along the kindness...

I'm not the Grinch but I am feeling quite Bah,humbug

Christmas this year is unlike any I think I have been through before.  I'm having a tough time.  I'm really missing Gideon.  But it's more than that too.  I'm so tired of the commercialization of Christmas.  It doesn't feel special anymore.

I admit I have not one decoration out besides hanging the few cards I have received.  I'm not sure that halfheartedly putting up a Christmas tree would change my feelings anyway. 

I have decided that 2012 will be the year I give gifts at random times throughout the year because I love people and want to give.  I don't want to give into the commercial hoopla that has been made of Christmas.  Don't get me wrong, despite what I've said, I love Christmas but it's not what I remember anymore.  Every year gets worse and worse. 

Is it just me?

Credit Score - Does it Matter to You?

Jerry just left a comment on my previous post.  My post talked about canceling one of my credit cards and lower the available credit on the other.  This is Jerry's comment:

"I thought lowering your available credit leads to lowering your credit score? Maybe that's changed since the last information I've heard. I always kept my available high because I thought it was insurance for a strong FICO score."

I will admit I haven't done any research into this but I do believe what Jerry said is correct. I'm not really concerned about my credit score at this particular moment in time though.  I hope the only reason I am ever really concerned about it again is for a mortgage.

Part of my journey to become debt free involves changing the way I think about and use credit.  Yes I will keep a credit card.  In Canada this is still a requirement in order to rent a car, book a hotel room and a number of other reasons.  I tend to follow a lot of what Dave Ramsey says and part of that is that he doesn't believe in having a credit card and he has no credit score.  Well the banking system in the USA is different from ours in Canada.  Although we are just coming out with the Visa debit cards they are not widely available.  To my understanding the Visa debit card can be used in the same way as a credit card but instead the money actually comes directly from your bank account.  Also Dave Ramsey doesn't need to worry about having a credit score because he has lots of money and doesn't need to borrow for a home.

My financial future will involve as little credit as possible.  Once I know more about the Visa debit card I may make a switch to that.  I will require a nice size emergency fund, maybe around $10 000.00.  I will also have a separate emergency fund for my pets.  (I highly recommend this for any pet owner)  I will also be incorporating planned spending into my budget.  Plan spending to me means "saving" for future expenses such as car repairs, clothing, Christmas and regular vet bills, etc.  I will also start a savings fund for a future car once my current one is paid off.  I never want a car loan again.  Eventually I will save for a down payment on a house but I am in no rush and would like to have all the other things I have mentioned in place before that ever happens. 

So does your credit score (FICO score) matter to you?  Why or why not?  What does your financial future involve?

Thanks to the new readers who have stopped by and left comments :)

Debt Update

I got a congratulations from the lady at the credit card company!  :)  Tonight I called to stop any use on my credit card account.  Not because I don't trust myself but just to ensure that the card can no longer be used because I sent in the payment yesterday!  We got chatting and I told her about my debt free plan and she was quite excited for me.  I also lowered the available credit on my other account since I don't need it to be as high as it was.  It feels good to be in control of my credit.  I remember a few years ago calling to ask if they could up my credit limit because I was out of money and in a bit of a bind.  That is a scary, stressful feeling.

I made my first payment on my line of credit today and my current balance on that is now $2345.  In my side bar I changed the credit card bar to LOC but left the starting amount the same so I can properly track how much has been paid off.  My current outstanding consumer debt is now $3595.00.  :)

The balance on my car loan is $8372.17 and under the current terms I have 24 months left to pay.  It will be gone before that though.  The interest rate is now 6.9%.  My question to you is should I pay out my car loan with my LOC which is at 6.5% interest?  I am guaranteed the 6.9% interest rate on the loan but on my LOC my rate is prime 3% (which can change at anytime but hasn't moved since Sept 2010) + 3.5%.  I was planning to just pay it out but Jane and Finding My Way brought up the point of the interest rate possibly changing.  My goal is to pay if off by Dec 2012 or sooner.  Do you think it's too risky a move or fairly safe?

And if you haven't already stopped by Jane's blog, Life Doesn't Begin at Reitrement - Life Begins Today! may I recommend you go have a peak.  She is biking her way to many cities across the world visiting with different bloggers as she goes.  In this post she had a visit to my town. 

Jam Packed Post!

First I got a package in the mail today!  It was from  the Nation's Capitol.  Maybe Stephen Harper is feeling generous this year?!  (Stephen Harper is the Prime Minister of Canada)

Nope it was from Jenn of Running Jennie and it was my Bloggy Secret Santa gift!  Want to see what I got?

Oh so exciting...

I wonder what's inside...

It's awesome running accessories!

Thanks so much Jenn!  She sent me a Lulu Lemon headband.  Which is great and comfortable, I wore it running tonight.  The pink tube is Nuun tablets.  You add them to your water for an electrolyte.  It's like drinking Gatorade or other sports drink but without the sugar and a healthy coconut cream energy bar. :) I love coconut!  I guess this is some motivation for me to pick my next race.  Jenn is current training to run the Disney Princess 1/2 Marathon in February.  Thanks again Jenn and all the best with your very first half!

Next up is an update on my LOC.  Thanks for all your input.  I went ahead and signed up.  I think they just need to actually link it to my account and I can pay off and CANCEL that credit card!!!  OH YAY!  It is a variable rate but I since it is only over about 3.5 months I'm not too concerned.  I'm not moving my other loan over since the interest rate on that is much lower.  And I won't move the car over until after the credit card is paid off since I would max it out.  Feel good about my decision especially since I was able to have all of you give me your feelings on it too.

Thirdly and lastly, Louise at My Journey to Eliminate Debt awarded me with the Libester Award.  Thank you very much Lousie!!!  Your blog is such a great encouragement and your story inspiring.  You are a great friend.  I love having this blog and more than that I love all of the great friends I have met on my journey.  I know I wouldn't be where I am with out all the great support and encouragement that all of you so generously hand out.  I am so appreciative.

"Liebster" is a German word meaning dear, sweet, kind, nice, good, beloved, lovely, kindly, pleasant, valued, cute, endearing, and welcome. What a gift to be awarded with such kindness!   As for the details...The Liebster is a way to show a little Blog Love to bloggers who currently have less than 200 followers.

 

The rules:
1. Thank the giver and link back to the blogger who gave it to you.
2. Reveal your top 5 picks and let them know by leaving a comment on their blog.
3. Copy and paste the award on your blog.
4. Have faith that your followers will spread the love to other bloggers.
5. And most of all - have fun!

 

I know this award has been passed on to many of you so I will try to pick some who haven't received it yet.  I love each and everyone of you so picking favourites is hard.   But I would like to pass the award on to:

 

The Misery of Money  Krystin and her hubby flew through paying off their credit card debt and made it look easy.  J is serving in Afghanistan for a second tour so they can rid themselves of more debt.

 

Digging out of Debt, One spoonful at a time  Sarah and her family have faced many challenges.  They are incredible and I would love to be able to sit down and have a coffee with her.  Despite what they have been through recently they have still paid off over $11000 in debt.

 

Common Cents Another Sarah who has had a number of challenges of her own.  She still manages to pay down her debt with astounding speed and shows maturity beyond her years. 

Ok I realize I have only picked three but I'm not sure who else hasn't received the award.  I'd love to add a few more of you on here so if you haven't been awarded please let me know.  

I also want to send out a big thanks to another blogger that I would love to give the award to but for personal reasons I can't link to her blog.  Makky's Mom from Milestones has been with me since day 1 of my journey and has been a constant cheerleader and giver of wise and encouraging words and I appreciate her very much.  Hugs to you!

Thanks everyone for sharing your journey and allowing me to be a  part of it.

 

 

Line of Credit for me?

Today when I was at the bank they told me that I was an pre-approved for a LOC and a credit card.  I was surprised since I do very minimal banking with this institution.  In fact, I only use it so I can give money to my parents or so they can give to me.  My home town only has two banks to choose from. 

After sitting down with one the banking reps and asking a number of questions I have decided to take the LOC and use it to pay off my credit card.  The interest rate is prime + 3.5 (6.5% in total) which she tells me is a really good rate.  I'm not sure about that but it is better than the interest on my credit card so it means a little extra to pay it off sooner. 

My plan doesn't change.  I'm still going to pay it off ASAP and my goal is still the end of March 2012. The other thing is that once the credit card is paid off I will probably pay out my car loan with the LOC and continue to do the same thing as planned in terms of pay off.  The interest rate doesn't change much (only 0.5%) but it seems like it would just be easier. 

Does this sound like a wise plan or is there something I'm not thinking of?

Thoughts

This has been a tough week.  I miss Gideon so much.  I want to say a big, heart-felt thank you to those of you who offered support and condolences.  It really means a lot to me.

I know most of us know the importance of an emergency fund but I am truly thankful that I had that in place.  It made an extremely difficult time a little less stressful.  Because my heart hurts too much I don't want to go into any details.  My emergency fund is now a bit less than it was but I am still comfortable with the amount in there and I am not planning on topping it back up until after the consumer debt is gone.  Once I am done paying those payments I will top it back up.  This most likely means that any income tax refund I get will now be used to finish paying any debt and then the remainder will be put into the EF.

In an attempt to keep my mind busy I started working on my after consumer debt budget and wanted to put it out to you all for critique and thoughts.  Please let me know what you think.

God's Money $260.00 Income $2,600.00 Car Payment $372.57 Expense -$2,598.34 Union Gas(heating) $71.00 Balance $1.66 Hydro $80.00 Rogers (cell phone) $73.90 Bell Satellite $43.58 Cogeco (internet) $46.26 Rental Insurance $11.42 Car Insurance $110.66 Bank Fee $3.95 Animals $200.00 Gas for Car $160.00 Groceries $240.00 Entertainment $100.00 Extra Car Payment $525.00 Savings $300.00 Total Expenses $2,598.34

I have increased my gas, grocery, and entertainment budgets.  I also added in an addition $525.00 payment on my car loan and $300.00 to be put into savings.  With the extra car payments I figure it will be paid out in December 2012.  The savings will be for extra things that come up in the year. **Rent comes off of my pay so I didn't budget it in or account for it in my income.  I pay $650.00 a month for this. Kim - I tried to find your email address but I can't.  Can you email me at canadianbunny at gmail dot com

Broken Hearted

Yesterday my sweet bunny Gideon went to be with Jesus. I am devastated. My bunnies and dog are my kids. I would do anything for them. Gideon absolutely was the sweetest little man you could ever imagine. Such a wonderful personality and I was so blessed to have gotten to share his life.

This is the hardest thing. I miss him so much. He certainly left a big hole in my heart. To love much is to hurt much.

Christmas Shopping Complete!

Phew!  What a relief.  The shopping and dealing with the madness out there is done!  I still need to mail 2 items off on Monday but other than that I don't need to go out and do Christmas errands anymore.  *big smile

I still have a little bit more money going out because I am giving my nieces and nephew cash but I don't need that until next payday.  I am so happy to have it done already.  This is the first year I have ever been done this early.  The funny thing is that I've read that on a few blogs now.  For me, I think that now that I have a grip on my money and budget then the spending is falling right in line.  I did overspend but probably not nearly as much as I have in previous years.  It feels really good.

The credit card numbers are still going down.  The overall numbers are going down.  I think I am still doing well on my last four months of consumer debt repayment. 

I have created a page (tab at the top) for the Debt Free Dash.  I will post any updates there and also continue to let you know about them in my posts.  Some of you have asked about doing a different activity other than running or walking.  Absolutely!  Whatever you feel comfortable with.  :)  I am SO excited that so many of you want to participate!  Thanks!

Hope you are all having a great weekend!

Debt Free Dash

I've decided how I want to celebrate becoming consumer debt free and I am VERY excited about it.  I am going to have a run!  It will be open to my community AND all of you!  As the title states "Debt Free Dash" will be the name of my run.

All of the details are yet to be ironed out but basically it will be a 5km or 8km run/walk.  You are invited to participate and help me celebrate.  How do you do this?  Well you just run or walk the 5 or 8 km in your community (or on a treadmill if you prefer) and let me know that you did it.  Maybe I will be able to have a give away and your participation and comment on my post at that time will be your entry and extra entries if you post a blog with pictures of you participating (faces don't need to be seen for anonymous bloggers).  Sound good?

This won't happen until the end of March or early April 2012.  So you have 4 months to prepare and to get running or keep it up if you already do!  :)  

I also have a new verse that I will be keeping close to my heart and I think this is the perfect season for it.

"Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law."  Romans 8:13 NIV