I’m going to post a monthly update of our current debt status, along with the changes for the month and any thoughts on our progress (or lack of!)
Current Non-Mortgage Debt:
| Debt | Balance | Interest Rate | Payment | Due Date |
| Appliance Loan | 0.00 | 0% | 0.00 | 2012-06-01 |
| RRSP Loan | 4,444.00 | 30.0% | 0.00 | 2013-03-01 |
| Mastercard | 3,089.40 | 24.99% | 1,848.59 | 2012-07-01 |
| Visa | 4,684.24 | 1.99% | 100.00 | 2012-08-15 |
| MBA Debt | 9,685.54 | 0.0% | 0.00 | 2013-10-01 |
| 2nd Mortgage | 21,663.49 | 3.99% | 57.50 | Bi-weekly |
| SUV Loan | 32,016.10 | 0.0% | 432.65 | Monthly |
| Line of credit | 39,897.05 | 6.25% | ~225.00 | Monthly |
Original Amount as of February 1, 2012:
| Debt | Balance | Interest Rate | Payment | Due Date |
| Appliance Loan | 4,000.00 | 0% | 0.00 | 2012-06-01 |
| RRSP Loan | 0.00 | 30.0% | 0.00 | 2013-03-01 |
| Mastercard | 4,000.33 | 24.99% | 4,000.33 | 2012-07-01 |
| Visa | 0.00 | 1.99% | 0.00 | 2012-08-15 |
| MBA Debt | 12,106.90 | 0.0% | 0.00 | 2013-10-01 |
| 2nd Mortgage | 21,883.63 | 3.99% | 57.50 | Bi-weekly |
| SUV Loan | 33,746.70 | 0.0% | 432.65 | Monthly |
| Line of credit | 38,973.82 | 6.25% | ~225.00 | Monthly |
Changes: Net Increase +$2,089.57
Current total: $115,479.82
Previous total: $113,390.25
Original total: $114,711.38
Appliances: Paid in FULL. No extra interest here!
RRSP: Yes, this is a new loan. This is now priority #1. While no interest is actually being paid, we will owe 30% in taxes if we do not pay it back by March 1, 2013.
Mastercard: Increase of $751.28. This is mostly due to home improvements and presents that will be paid in full when due on July 1.
Visa: I made one $100 payment, plus a little interest was added.
MBA Debt: Every month I stay with my current employer reduces the balance by another $600.
2nd Mortgage: We pay $57.50 bi-weekly, and the balance reduced by $73.71 this month.
SUV Loan: Down by $432.65 this month.
Line of Credit: Up by $100.47 after I paid the $100 Visa payment, and a little extra interest was charged this month.
We took a loan against our retirement accounts this month to ensure the appliances got paid off (saving us over $1,800 in retroactive interest), and to pay for our last hurrah – our Vegas vacation. We have a plan to tackle our debts, and the ball is rolling already.
We have rearranged our furniture to create a room for a tenant; we are reviewing our monthly budget and have found two or three line items that we can cut or cancel to allow us to accelerate our debt payments. That, plus we’re both looking to pick up some side income which will allow us to kill our debt even faster.
I was SHOCKED at the 30% but then saw what you meant — that’ll definitely get paid off by next March! Good luck finding a good tenant!
Yes, it looks worse than it is – considering the way the market is declining, we’re not even losing money in interest right now, LOL! But that 30% tax penalty is to be avoided at all costs – too painful.