Sunday, June 3, 2012

Debt Beast Rears Ugly Head: Financial Freedom Flees in Terror

Due to the incident with Homer, our budget wasn't a happy bunny this month. To put this into money, this means we spent $5015 this month but only had $4610 budgeted.

It makes me want to scream. Loudly. Then I want to tear things up and curse every part of the world until it shrivels and dies.

Sadly, this does nothing to solve an increasing debt problem that, today, feels out of control.

Let's have a look at the Numbers of  the Beast, keeping in mind our debt total last month was $45,597.80.

Here is where we stand with debt at the beginning of the month:

National Student Loan: $23,966.71
BC Student Loan: $5975.36
Credit Line: $3562.29
AMEX: $7833
Mohela Student Loan: $2673.70
401K Loan: $800
Line of Credit: $805

Our new debt total is $45,616.06

According to the numbers, we paid nothing in the way of debt and actually increased our budget? I kill things now.

Next month we have to do better. Seriously. Thank gods for three paycheque months?

Oh, wait. The extras are to be spent on vacation savings for a Disney World trip end of September. Priorities.

Obviously our budget is a work-in-progress. I am relieved that we are better off this month than we were last with regards to the amount of debt we carry. That's pretty awesome. Not as well off as I'd like to see and as we had planned, but progress nonetheless.

Here are a few budget items we continue to discuss and debate:

1. Use of credit cards
2. Value of the condo vs. out-of-pocket cost now
3. Vacation vs. house fund
4. Rate of debt repayment vs. quality of life now

All very tricky topics, whether for the emotions or money involved. In this dearly damaged economy, for example, how do we know the value of our condo will actually increase enough for us stop drowning in its purchase and eventually come up with the money and downpayment (we estimate we'll need $75,000) to move into a house? By the time that happens, will we be able to afford a house?

Today I will cling to the idea that we made a wee bit of progress on debt repayment and face the rest of those nasty debates another time when I have more influence over the outcome. Sadly, that's not the case with the economy.

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