Outstanding Debt as of February 2008
By Ryan Healy | February 22, 2008
I have good news and bad news.
The good news is this: our debt went down over the last month, even if it was only a little bit. The bad news is that some debt was shifted from lower interest rates to higher interest rates.
How did this happen? Simple. We have to make our car payment and motorcycle payment, both of which have relatively low interest rates. So the principal reduces faster than it does on other balances. But because of a cash flow shortage, we had to tap into a line of credit to pay our rent in late January. The LOC has a higher interest rate.
Other good news: we were able to pay our medical bills. I’ve got two bills left, which don’t add up to much. The big ones have been paid (praise God!). So, in reality, we have been reducing some of our out-of-the-ordinary expenses, namely our taxes and medical bills.
Here is the latest on our outstanding debt as of the middle of this month.
As you can see, we reduced our debt by $174.04. Not bad given our circumstances. I expect next month will be one of the first months we’ll be able to make significant progress since summer 2007.
Stay tuned.
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Topics: Case Studies, Debt |
February 24th, 2008 at 2:06 pm
Mr. Healy,
Looks like your headed in the right direction. Would like to see you get rid of that MBNA card though. Keep us updated!
February 25th, 2008 at 12:03 pm
“Would like to see you get rid of that MBNA card.”
You and me, both, Rick!
Thanks for dropping in.
Ryan