Friday, May 9, 2008

My Debt Summary

Well, the truth can be depressing. I sat down today and jotted down all of the debt that I could find (minus my wife’s student loans which will probably have a post all to themselves). Here is the current state of my debt:

Mortgage - $107,000 – 5.5% - $853
(This house will become a rent house as we are planning to move soon.)

My Student Loans - $9,325 – 3.125% - $30

Auto Loan 1 - $1,750 – 3.59% - $196
Auto Loan 2 – $17,150 – 6.49% - $336

Personal Loan - $1100 – 18% - $96

Credit Card 1 - $6,850 – 11.15% - $120
Credit Card 2 - $8,550 – 14.99% - $150
Credit Card 3 - $1,725 – 5.9% - $25
Credit Card 4 - $425 – 3.99% - $10
Credit Card 5 - $650 – 12.16% - $19
Credit Card 6 - $2850 – 0% (until Sept) - $117
Credit Card 7 - $3800 – 10% - $142
Total Credit Debt - $24,850

Total MINIMUM Monthly Payment: $2,094

Total “Bad Debt” - $44,850

Total debt as of this post: $161,175

So this is where I am starting from. (NOTE: When I say “I”, I mean “we” as in my wife and I. It’s just easier to use “I”.)

As I am writing this, I realize that our situation is about to (or “fixin’ to” as they say in the South) get worse:

1)We will probably have to use our credit cards to finish the house we live in now to make it rent-ready.

2) We are going to be buying a house in the next few months. This means a new mortgage, and any loans that we may have to take out to make the down payment. (NOTE: Interesting story. I am a veteran and so I am eligible for a VA loan which would mean no down payment. However, my bank told me that they wouldn’t approve me because the jobs that I have had are not related to each other. Kind of frustrating.) Add to this the cost of moving, with all of the new things you have to buy for a new house, and it sure does get to be a pricy ordeal.

3) My wife’s student loans will begin repayment around the fall. As it is, we are going to have to pay $150 to Sallie Mae for a 6-month forbearance on her private loans. Like I said, I’ll get into them later.

Coming up in future posts:
My wife's student loans
Strategies for paying this stuff off

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