August 2012 Debt Update: Balance Transfer Time
This month was great for debt repayment, as the whole summer has been. It will slow down a bit after September so I am working hard to pay as much as I can now.
Smallest Debt (July 2012): $1,683
Smallest Debt (August 2012): $0
The goal was to have the Discover paid in full and I did! So now I need a new “smallest debt” although the name of this category was really a misnomer and it is now my Highest Interest Debt, which is my other credit card, the one that sat at over $18K for most of this year.
Highest Interest Debt (August 2012): $11,108
Looks doable, right? The reason why it’s not at 18K is because I took advantage of the 0% for 18 months balance transfer offer at Discover. I called to complete the transfer which was supposed to have a 3% fee and with a simple question (exact words: “or maybe you have a better deal for me?”) the rep changed it to a 2% fee. I am still saving money so I accepted the 2% fee, because I would have had to apply for a new credit card to find a 0% APR/0% fee deal, and I don’t want to do that. So I still have four debts, but the interest rates are 0% (Discover), 6.25% (student loan) and 3.9% (Mazda). The balance on the Discover is $7K, and I will only pay the minimum while I try to knock out this high-interest credit card balance at 10.24% APR.
I am really grateful to have been able to pay off a lot of debt in the past few months and now I have a lot of other things I am trying to figure out. So my goal for September is to be at $10,000 on the high-interest debt. I also think I might have a DSLR camera by the next update. I’ve only been wanting it for three years so I think I am finally going to do it!
Total Debt Update:
August 2012: $26,795
% Change from July: 7.6% Decrease!
If you are new to my blog and find yourself in over $30,000 worth of debt (or maybe $40K or $50K), I don’t want you to think this is all super easy fa la la la I’m paying off my debt look at me! I was more clueless than anyone else about making a plan, a budget or being committed to paying off debt. You can definitely do it. It will be hard and some months you will have all these crazy expenses you didn’t plan for or something stupid like a parking ticket will happen. It’s OK. Don’t let that sinking feeling of desperation sink in. I used to wake up every morning stressing out about how much debt I had. I would be calculating which bills to pay so that there was still $11 in my bank account. It’s been 14 months (that’s a year and two months for laymen) and I’m finally feeling like the momentum has picked up and I’m able to make progress each month. It might not continue like this but no matter what, I now know I have the ability to be more reasonable and disciplined with money. If you are looking for my most organized thoughts on getting out of debt, check here.
How are you doing with your finances this month?
You’re absolutely right, it is hard, but it’s 100% worth it. It took about a year before I actually felt like I was getting anywhere in my debt repayment, but now that it’s gone I’m so glad I stuck with it. I definitely went a little spend happy, but I’m reigning it back in now. Congratulations on your debt destruction this month, it looks awesome!
Thanks Cassie! I can see myself doing the same when I am debt free
Congrats on the debt payoff! That’s so exciting! I love the idea of the balance transfer too…that’s definitely going to net you at least a thousand bucks when all is said and done.
Our finances have been going fairly well. Our budget was a little tight for awhile but with the blog income and part-time job my wife works (one weekend shift every 3 weeks) things are definitely looking a little better.
That’s awesome! You guys are really dedicated, you definitely keep me motivated.
Way to go!
Thank you! So are we going to do a fun photoshoot at FinCon with our new cameras?!
Good call! If you’ve paid off that much debt you deserve a reward! I look forward to seeing the spectacuar photos in your September posts!
Thanks, Money Bulldog! I am pretty excited about it…just hoping there are not too many auxiliary purchases I need to make because of it
Good job on the forward momentum! For me I’ve but a major halt on money going out the door for expenses, but on the other hand it’s been slow work-wise since July. Hopefully having the part time job can make up for lost time.
I am sure work will pick up! BTW, we need to meet up sometime! You are down the street from me
That zero percent balance transfer with discover, is totally frickin sweet. I transferred virtually all of the rest of our consumer debt to one of those offers a few months ago, and the best part of all is the zero transfer fee.
You guys are so debt free in a few months!!
YAY! You’re doing really well. Ps. a DSLR is totally worth it. I may bring mine to FINCON and we can take fun pics if you have yours by then.
Thanks!! Yes that sounds like a plan, the purchase is imminent!
I know first hand that it isn’t easy, but you, my friend have done an excellent job! You have been very creative in finding ways to make extra money and finding ways to deal with interest rates and you should be very proud of yourself for doing so well this year.
You are doing awesome! I’ve been pursuing new work, so unfortunately we are only getting by right now. I’m hope to start a new job soon, and with that I’ll be able to plan better for paying off my debt. I do have a cool side project but I won’t get my first payment until October. I’m thinking of doing a transfer balance too but I tried that last summer and ended up racking up more debt instead.
I did a balance transfer a few times before and just got into more debt, but these days I focused on one goal, so it’s easier not to accumulate more debt. I just don’t buy stuff and spend more time on projects instead of going out to shop or eat. You can do it!
You are doing a good job at staying focused. Keep up the good work. Feel free to check out my blog passingthroughdebt.blogspot.com. My wife and I just started the debt snowball and sold a car to get it rolling even faster!
[...] August 2012 Debt Update: Balance Transfer Time by American Debt Project. [...]