Articles by Kate
Emergency Fund Funding and Extra Payments
I’ve finally been able to start paying extra again on my single credit card debt (the Amex). I’m working on saving up enough to have a sufficient emergency fund. As soon as it’s fully funded, I’ll begin paying even more on the Amex. I’ll go from my current $200 (on the $106 minimum payment) to $400. Once I hit that, the approximately $5,600 that’s left will go quick.
There are a couple of things that could derail my plan, the first being unexpected expenses that will require me to re-fund my emergency fund any time money is used for emergencies. And I know they happen. Just a few months ago, we had to cough up an auto insurance deductible. I expect appliance repairs will come around at some point also. Our truck needed a new $100 plus sales tax battery unexpectedly just this month.
We’re at a point where we still don’t have the funds to fully fund any repair and maintenance categories in our budget. Frankly I’d rather not anyway. I’d rather just have a larger emergency fund for those kinds of things, but that’s just me.
I’ve been reading a book that I’m find quite eye-opening when it comes to organization and planning, and I’ve decided there’s definitely a point where we reach diminishing returns on our investment in pre-planning and over-organizing everything, including finances. A Perfect Mess
The road to being in debt is paved with fun
This fun and games t-shirt says pretty much everything that needs to be said about debt.
Debt Payoff Plans Need to be Livable
It’s like a diet. You have to change the way you think and live, not just cut out everything that might keep you from losing weight. Our debt payoff plan is livable and ongoing…Is yours?
Really Learning to Live Within Our Means
Living within our means is about more than just spending less than we earn. It’s also about having enough left over to save.
Drastic measures to cut debt
Some recent adjustments to my budget have given me more money to pay toward my debt obligations–but I admit, these cuts are a little drastic.
Health Insurance Madness Leads to My Own Political Crisis
Personal thoughts on the healthcare law and personal responsibility.
If things don’t improve, I could be out of a job…
My employment status isn’t looking so secure right now.
An Update on My debts
| Debt | Interest Rate | Amount Owed |
|---|---|---|
| American Express | 3.99% – until paid | ~ $5,800 |
| Home | 5.75% – until balloon February 2011 | ~ $135,000 |
| Truck | 4.49% | ~ $5,100 |
| Car | 3.99% | ~ $9,400 |
| Camper/RV | 8% | ~ $17,000 |
| Student Loan | 3.5% | ~ $12,000 |
I said the following at one point here on the site, and it turned out to be so true. Although my rates haven’t changed, more than one of my friend’s credit cards had favorable rates that were supposedly "locked in" and which subsequently jumped nearly 20%. Therefore, despite the lower interest rate, American Express remains the focus of my debt payoff plan. Once it is gone, I will start work on another debt. (Which will either be my RV or my home.)
The thing is, I would like to pay off the camper before the American Express bill because the interest rate is so much more favorable. However, with the current state of the economy and the ever-changing nature of credit card agreements, I worry that my American Express credit card terms will change drastically and unexpectedly and I’ll lose that lovely 3.99% interest rate until the balance is paid off….
I have friends who are dealing with unscrupulous credit card companies right now and I have little faith in them myself these days. My biggest fear is that before the new credit card agreement rules go into effect later in the year, many credit card companies might try to take advantage of as many loopholes in the credit card agreements as possible to keep from having customers locked in with very favorable terms long-term.
New Year, New Resolutions
Life changes have meant short-term goal changes but getting out of debt entirely is still my main target.
Is legislation really the right answer when you don’t want to read your contract?
Personal responsibility means we have to know what we’re signing. So why should the government be responsible for picking up the slack where lenders are concerned?
