Tuesday, July 1, 2014

2nd Quarter 2014

Starting point:

Student Loan 1 (My fed loan): $38,339
Student Loan 2 (S' state loan): $21,719
Student Loan 3 (S' fed loan): $5,454
Car Loan: $11,684
Credit Card 1: $10,577
Credit Card 2: $3,635
Credit Card 3: $0
Misc. small debts (S' small debts in collections): $5,443
Medical expenses: $3,672
Parents: $600

Total: $101,123

And here's were we are today:

Student Loan 1: $35,251
Student Loan 2: $19,511
Student Loan 3: $295
Car Loan: $0
Credit Card 1: $0
Credit Card 2: $122
Credit Card 3: $6,212
Misc. small debts: $4,284
Medical expenses: $300
Parents: $0
Consolidation Loan: $9,865

Total: $75,840

Paid off to date: $24,402 paid off + $5 in savings

This past quarter was by far the worst we've had since we started the debt reduction journey. Not only did we increase our debt by $1,695 over the last three months but we also drained what was left of our emergency fund.  As bad as it looks to see it all laid out like this there are some positives coming out of the past quarter.  First and biggest, is S' student loan (#2 in the list) has officially been rehabilitated and is no longer in default.  The number shown was from his last statement but we don't know for sure what the current balance is because we are waiting to hear from the lender that bought his loan from the collections company.

Secondly, we consolidated the credit card debt we accumulated during the move on the 15.99% card with S' student loan #3 with a private 8.39% loan from Lending Club.  With a $300 loan fee, it cost more up front (and contributed to the increase in debt) but it will cost us less in the long run by not paying 15.99% interest on that credit card debt.  Unfortunately, I forgot to factor in that fee when requesting the amount of the loan so we still have a couple more payments on the student loan and credit card before we will be done.

It was a rough 3 months financially but as I posted recently, we've finally gotten our act together and should be back on track to continue our debt reduction journey.  Our first step is to build our emergency fund back up, which is targeted to be back to $1000 by the end of the next quarter.


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