Crystal Groves

I’m keeping track of my payments towards the remainder of our interest accruing debt (besides the house) to kinda see the progress as we reach my goal of having this gone by or in February 2010. So expect these posts monthly! Each month, seeing the progress should hopefully motivate me to stay on track with this.

• Starting Balance of Debt in December 2009: $2937.26
• Total Payments in December 2009: $1757.17
• Total Payments YTD: $6458.68
• Total Card Charges in December 2009: $1013.36
• Total Finance Charges For December 2009: $28
• Total Finance Charges YTD: $136.66
• Starting Balance for January 2010: $2221.45
• $0 Goal: February 2010

Notes for this month:
At this point I think I’m hoping for a big tax return to still reach my goal for a $0 balance in February. Even after I hit that balance I’m going to have to make regular payments on this card just because it’s the one my dad uses to supplement how little money he has left over from his social security. I just have to really keep watch on how much he spends because sometimes I don’t think he realizes it.

See also:
November 2009, October 2009, September 2009

and My series of paying off dad’s loan in 8 months

I’m keeping track of my payments towards the remainder of our interest accruing debt (besides the house) to kinda see the progress as we reach my goal of having this gone by or in February 2010. So expect these posts monthly! Each month, seeing the progress should hopefully motivate me to stay on track with this.

• Starting Balance of Debt in December 2009: $2937.26
• Total Payments in December 2009: $1757.17
• Total Payments YTD: $6458.68
• Total Card Charges in December 2009: $1013.36
• Total Finance Charges For December 2009: $28
• Total Finance Charges YTD: $136.66
• Starting Balance for January 2010: $2221.45
• $0 Goal: February 2010

Notes for this month:
At this point I think I’m hoping for a big tax return to still reach my goal for a $0 balance in February. Even after I hit that balance I’m going to have to make regular payments on this card just because it’s the one my dad uses to supplement how little money he has left over from his social security. I just have to really keep watch on how much he spends because sometimes I don’t think he realizes it.

See also:
November 2009, October 2009, September 2009

and My series of paying off dad’s loan in 8 months

Amount of Debt paid off in 2009:

Debt Amounts Broken Down:
1. Dad’s Loan: $5516.41
2. Interest Accruing Debt: $6458.68
3. Friends Down Payment Loans: $775
4. Car Loan: $6204.30

5. Amount paid off on house (principal only): $2,220 (with interest and taxes: $12693.53)

Total: $18954.39

(including house principle: $21174.39)

Amount of Money saved in 2009:
1. Car Loan: $1900 due to paying off the car loan 2 years early
2. Cable/Phone/Internet: Saved $40/month by threatening to cancel. Will save me $480/year.
3. Bank interest: $51.87
4. New Back Deck: $2525 from insurance claim
5. $19.80 in MUD related Zazzle sales
6. $292.64 in MUD donations
7. $5.37 in personal Zazzle sales
8. Saved $391/year by paying 6 month car insurance premium all at once.
9. Hosting for the Grove Website: paid 2 years in advance at $118 every 2 years giving me a savings of $264.
10. Profit sharing from insurance company rebate: $47.22
11. Cash rewards from my USAA card: $63.35

Total: $6,018.38

Amount of tax refund in February: $9696 (which most went to paying off the car)

Amount of money made through freelance in 2009: $3842.50

Amount donated to charity: $515.22

Income increase from 2008: $7400/year at main job only.

I included house separately in the debt paid off total, because house payments somewhat skew the “extra work” that goes into debt repayment with the general populous. Since most people either pay rent or pay mortgage, it doesn’t really count as a debt repayment in this sense.

I wasn’t as gun-ho this year about finding ways to save money, because 2008 was such a stellar year for that, there really isn’t -that- much left I could reduce. Still I am always on the lookout for changes I can make to save money.

The interest accruing debt is a little skewed too, simply because it includes the amount of money my dad spends on my card right now, not necessarily debt. I just happen to pay it off every month and include that in the total.

I’m keeping track of my payments towards the remainder of our interest accruing debt (besides the house) to kinda see the progress as we reach my goal of having this gone by or in February 2010. So expect these posts monthly! Each month, seeing the progress should hopefully motivate me to stay on track with this.

• Starting Balance of Debt in November 2009: $2681.67
• Total Payments in November 2009: $877.17
• Total Payments YTD: $4701.51
• Total Card Charges in October 2009: $1099.64
• Total Finance Charges For October 2009: $33.12
• Total Finance Charges YTD: $108.86
• Starting Balance for December 2009: $2937.26
• $0 Goal: February 2010

Notes for this month:
Not a good month for me. But I have $950 in freelance working coming in, so that’ll help. My February goal isn’t looking so good. Hopefully a decent tax return and some more freelance will give some relief. May need to talk to dad about reducing small trips to the grocery store and sticking with two big trips a month.

See also:
October 2009, September 2009

and My series of paying off dad’s loan in 8 months

According to the Associated Press, on July 1st the government will require that banks allow customers to opt out of overdraft protection for debit/credit transactions. This is something I’ve wanted for my dad for ages now, and I think it will help him out greatly. Basically any transaction he attempts to put through with his card that would normally make him overdraft, will instead be denied.

“Under the Fed’s new rule, which will take effect July 1, banks will be required to notify new and existing customers of their overdraft services and give customers the option of being covered. If customers don’t “opt in,” any debit or ATM transactions that overdraw their accounts will be denied, Fed officials said.”

However checks and regular bill payments are not covered by this rule, simply because the majority of people would rather overdraft than bounce a check or a bill (like rent) not get paid. Which makes sense to me, and is probably for the best.

“Many consumers do want checks and regular electronic bill payments to be covered in the event of an overdraft, Fed officials said. As a result, those transactions aren’t covered by the rule.”

Why this has taken so long to come into effect is boggling, but at least it’s finally happening.

This is a mini-rant that only applies to SOME people. I’m only mentioning it because I know people in this situation.

The problem with certain people in debt is that they pay their unnecessary bills first before taking care of their necessities.

Perfect example: Someone goes out to buy a new xbox controller with the last $100 they had in their account, and 2 days later they need food or to pay the electricity. They deem that an “emergency” so they use credit to pay it off. This is called ass backwards thinking. The problem is you can make anything an “emergency”, and the food and electricity should have been forseen and taken care of with your own money. Obviously the xbox controller isn’t an emergency, so you do without. What a pity.

Another example is going out to buy a new video game or new jewelry before paying rent. I don’t know why some people think this way, it’s completely backwards.

Who cares about the credit cards anyway, seriously. Buy your diapers, food, pay your utilities and rent, THEN worry about the damn credit cards. So what if you get bad credit. I had bad credit. I had 525 credit score in 2005. You can FIX that. I have a 700 credit score right now. You don’t need to be going out and buying anything that looks at your credit score anytime soon anyway if you’re buried in debt and can barely get by.

Necessities first, credit cards last. It’s a process that requires dedication and time. And of course not using your credit cards anymore as your emergency fund and learning what real emergencies are.

I’m keeping track of my payments towards the remainder of our interest accruing debt (besides the house) to kinda see the progress as we reach my goal of having this gone by or in February 2010. So expect these posts monthly! Each month, seeing the progress should hopefully motivate me to stay on track with this.

• Starting Balance of Debt in October 2009: $4147
• Total Payments in October 2009: $2797.17
• Total Payments YTD: $3824.34
• Total Card Charges in October 2009: $1331.84
• Total Finance Charges For October 2009: $40.42
• Total Finance Charges YTD: $75.74
• Starting Balance for November 2009: $2681.67
• $0 Goal: February 2010

Notes for this month:
Most charges on this account were my dads (in fact I think all were), but I did use the card to buy my new tires and alignment, and then just paid that off the next day. Charges/payments shown here do include the tire amount.

See also:
September 2009

and My series of paying off dad’s loan in 8 months

I’m keeping track of my payments towards the remainder of our interest accruing debt (besides the house) to kinda see the progress as we reach my goal of having this gone by or in February 2010. So expect these posts monthly! Each month, seeing the progress should hopefully motivate me to stay on track with this.

• Starting Balance of Debt in September 2009: $3469.49
• Total Payments in September 2009: $1027.17
• Total Payments YTD: $1027.17
• Total Card Charges in September 2009: $1666.77
• Total Finance Charges For September 2009: $35.32
• Total Finance Charges YTD: $35.32
• Starting Balance for October 2009: $4144.29
• $0 Goal: February 2010

Notes for this month:
Obviously this month moved backwards, but I am not too worried. With the freelance money I have coming in, it will certainly help the extra money that was displaced due to the new well pump, new water tank, new well parts, etc. Part of the large balance was also due to the crab feast dad and I hosted, which I had the money saved up for, but for convenience dad used the card I gave him, and I just transferred the money saved over to the card that same day (hence the larger payment this month too).

Edit: See all my entries regarding this debt reduction.
March 2010, February 2010, January 2010, December 2009, November 2009, October 2009, September 2009

See also: My series of paying off dad’s loan in 8 months

My lovely friend Shawnya asked me to give my thoughts on an article that discusses which is more important, paying debt or tithing?

This is kind of a double-edged sword as I have several small opinions regarding tithing in general. I think tithing is a good thing, but I don’t think people should have a set amount they are expected to give.

So should you tithe while paying down debt? Yes and no.

I agree with the article in that you should want to tithe. If you don’t go to church or are an atheist or something, then tithe to a charity organization for a topic you feel strongly about (diabetes, cancer, animal shelters, etc). The point is to give freely, not feel required to give. The more you allow yourself to share and help others, the more positive things will happen to you (I firmly believe that).

However I don’t think you should tithe while aggressively paying down debt. I haven’t been tithing to my church as much this year (I do still give what I can -when- I can), but I do supplement that with volunteer activities instead. That way I am still giving to my church, even if I can’t give much financially. If you still want to help out your church or organization of choice, then volunteer while paying down debt.

My biggest reason for not tithing while aggressively paying debt is the stress. Money is a huge issue for a lot of people, heck it’s like the #1 cause for divorce. It really brings people down, forces them to make desperate decisions, etc. If someone (like me) is really focused on paying down their debt with every extra cent they have, then I think they should only focus on the debt.

I also think it is a job of spiritual leaders/clergy in general to support their members with encouragement and/or education to become debt free. Not only that, but we need to lead by example. I’m not going to preach to my church about fiscal responsibility if I have none of my own.

The more you can get your congregation to work towards being debt free, the more donations you’ll be able to receive in the future. I posted about teaching the folk financial responsibility, and they will give money back in January. I followed that by teaching a workshop on basic personal finance as my birthday gift to the Grove back in April.

However, if you are casually paying down debt then you should tithe if tithing is your thing. By casual I mean the people who are either just paying off small balances now and then, or more specifically those who claim hardship yet don’t do anything about it.

I’ve been in the hardship category, but I took an honest look at where I was and I made the necessary changes. Even now I know people who are struggling with bills and then still going out to eat, or still going to festivals, or buying toys and goodies for themselves at places like Ren Faires. Sure it’s okay to buy yourself a treat now and then, but these are the same people that use that excuse once a week. It’s no longer a treat if it’s affecting your financial status.

People who don’t do anything about their debt problems are most likely not ever going to, at least not for a long while if ever. Thus if they don’t tithe now because of debt, then they most certainly never will because they will always be in debt.

And naturally if you are blessed to be debt free, sure I think people should donate. I mean it’s not like you can take it with you (Well, the karma maybe).

I’m keeping track of my payments towards my father’s debt reduction to kinda see the progress as we reach my goal of having his loan paid off by September 2009. So expect these posts monthly! Each month, seeing the progress should hopefully motivate me to stay on track with this.

• Starting Balance of Loan in January: $5388.14
• Starting Balance in August 2009: $493.62
• Total Payments in August: $527.17
• Total Payments YTD: $5516.41
• Total Finance Charges For August 2009: $2.35
• Total Finance Charges YTD: $97.07
• Starting Balance for September: -$31.20 (which will be applied to the next round of debt)
• $0 Goal: September 2009 PWNED

Notes for this month:
Well that did it, it took 8 months (actually longer than I anticipated because February was such a bad month), but my original goal was to have it paid off by September 2009 and I did it on August 14th. You can view all of the payments and notations throughout the last 8 months. My dad has had this balance for years and I conquered it in 8 months.

Now I will continue doing monthly posts like this as I meet two more big goals. 1. To pay off all remaining interest-accruing debt (about $2600 worth from me taking over dads tractor supply bill and getting his truck fixed etc). And 2. Paying back the last person who loaned us money for the down payment on our home ($5,000). The goal is to complete both of those by December 2010. It will take slightly longer only because after the interest-accruing debt is gone, I plan to start putting a little more away into savings again, so my payments will be smaller.

I will keep charts on my blog of my progress as well.

See also: July, June, May, April, March, February, January