Single Girl Slays Debt

Paying Off Tsunami-Sized Debt as a Single Woman

Money Moves

The Tsunami Situation – May 2020 Debt Report

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Each month, I record the balances on my debt obligations. The amounts shown in my debt report reflect balances as of the end of the previous month. First you’ll see the Table of Debt Slayed. This displays debts that have been paid off since I began my debt free journey.

Further below you’ll see my active debts in the Debt Report Table.

“How long should you try? Until.”

~ Jim Rohn

A few notes on the Table of Debts Slayed: 

(1) The Debt Journey Balance column reflects the balance on the debt as of the date that I started to get serious about my debt-free journey – July, 2019. 

(2) I’ve included in the Table of Debts Slayed, the balances I paid off for my 2018 Federal ($3,238) and State ($2,819) taxes, even though I paid them off the month after I learned about the obligation and the debts became due. I’m including them the list because they were significant amounts and were, technically, debts; I just paid them off quickly. I previously had not listed them in my Table of Debts slayed but am do so now.

(3) In November, I applied for and obtained a debt consolidation loan, which allowed for the payoff of all of my credit card debt. The credit cards listed, except for the Chase card, were paid off through the debt consolidation. Effectively, the debt was re-classified (which you’ll see in the table below) and not actually paid off. 

See the Debt Report Table below for the figures as of the end of May, 2020. It shows the updated order of debts to be repaid.

May, 2020 debt balances.

The difference between my March and April personal debt balance is $1,386. As I mentioned in my March Debt Report, I made some changes in light of the impact that COVID-19 has had on my business and, therefore, my income. With the downturn in my business and the uncertainty in my income, I decided to hold on to additional funds.

A few notes about the Debt Report Table:

New Debt Being Attacked – 2019 State Taxes

The debt that is highlighted in green is the debt that I’m currently attacking. For the last few months, that debt has been my 2016 IRS bill. Last month, it became this State tax bill. As I mentioned last month, though I have the money to pay this in full, I decided to go on a payment plan because, again, I feel it best to hold on to cash right now.

Estimates

An amount that ends in a “0” or “50” may be an estimate. Often times, the IRS website does not show updated figures. It will say that “information is not available,” so I make a guess, based on the typical monthly reduction amount. 

Three Payments That (Unfortunately) Go Up Every Month

(1) Internal Revenue Service (2017)

This payment goes up every month because the IRS system will not allow me to make payments on both the 2016 balance and the 2017 balance at the same time. I wanted to make small payments on the 2017 balance so that it wouldn’t go up every month. When I spoke with the IRS, they explained that they don’t allow for that. It requires that all payments be applied to the oldest balance due. That is why the 2016 balance goes down, while the 2017 balance goes up by about $64 per month.

(2 & 3) Navient Student Loans (Yes, Both!)

The balances for both Navient loans usually go up every month because I’m on an income-based repayment plan. Since the U.S. Government has given us a break on student loan interest and student loan payments (which began in mid-March), the balances didn’t go up. And since I didn’t make any payments, they didn’t go down, either.

Business Debt

May, 2020 business debt balances.

I’ve included the business credit card balance, even though I don’t pay that bill out of my personal income. Though the money that pays it comes from the business, I am the personal guarantor of it. So, technically, it’s my debt.

The difference between my April and May business debt balance is $583. This is about the amount by which I reduced this debt last month.

COVID and It’s Uncertainty

May was a month of little, but still some, progress. With the impact of the COVID pandemic still being as unprecedented as it has been, I think that my decision to hold on to cash was a good one. I know that things will change in the upcoming months. It’s just that none of us can be sure what those changes will be. I’d rather have some cash on hand instead of putting everything on debt right now. I can always make lump sum payments on my debt later.

The Tsunami Situation – April 2020 Debt Report

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Each month, I record the balances on my debt obligations. The amounts shown in my debt report reflect balances as of the end of the previous month. First you’ll see the Table of Debt Slayed. This displays debts that have been paid off since I began my debt free journey.

Further below you’ll see my active debts in the Debt Report Table.

“How long should you try? Until.”

~ Jim Rohn

A few notes on the Table of Debts Slayed: 

(1) The Debt Journey Balance column reflects the balance on the debt as of the date that I started to get serious about my debt-free journey – July, 2019. 

(2) I’ve included in the Table of Debts Slayed, the balances I paid off for my 2018 Federal ($3,238) and State ($2,819) taxes, even though I paid them off the month after I learned about the obligation and the debts became due. I’m including them the list because they were significant amounts and were, technically, debts; I just paid them off quickly. I previously had not listed them in my Table of Debts slayed but am do so now.

(3) In November, I applied for and obtained a debt consolidation loan, which allowed for the payoff of all of my credit card debt. The credit cards listed, except for the Chase card, were paid off through the debt consolidation. Effectively, the debt was re-classified (which you’ll see in the table below) and not actually paid off. 

See the Debt Report Table below for the figures as of the end of April, 2020. It shows the updated order of debts to be repaid.

April, 2020 debt balances.

The difference between my March and April personal debt balance is an increase of $169. The increase is due to a new debt I have (see below). As I mentioned in my March Debt Report, I made some changes in light of the impact that COVID-19 has had on my business and, therefore, my income. With the downturn in my business and the uncertainty in my income, I decided to hold on to additional funds. That many of my creditors – Navient, Credit Union, 1st Mortgage and LendingClub – agreed to postpone or forebear payments made it possible for me to not stress too heavily about my significantly reduced income. Under normal circumstances, I would have paid all of my monthly payments and made an additional debt snowball payment that would have resulted in, at least, some kind of additional decrease of my debt. That did not happen this month.

A few notes about the Debt Report Table:

New Debt Being Attacked – 2019 State Taxes

The debt that is highlighted in green is the debt that I’m currently attacking. For the last few months, that debt has been my 2016 IRS bill. This month, it became a tax debt I now owe to the State for my 2019 taxes due.

I have the money to pay the bill in full. I decided to go on a payment plan because, again, I feel it best to hold on to cash right now. There’s a lot of uncertainty involved with this pandemic. I feel more comfortable having access to money.

Estimates

An amount that ends in a “0” or “50” may be an estimate. Often times, the IRS website does not show updated figures. It will say that “information is not available,” so I make a guess, based on the typical monthly reduction amount. 

Three Payments That (Unfortunately) Go Up Every Month

(1) Internal Revenue Service (2017)

This payment goes up every month because the IRS system will not allow me to make payments on both the 2016 balance and the 2017 balance at the same time. I wanted to make small payments on the 2017 balance so that it wouldn’t go up every month. When I spoke with the IRS, they explained that they don’t allow for that. It requires that all payments be applied to the oldest balance due. That is why the 2016 balance goes down, while the 2017 balance goes up by about $64 per month.

(2 & 3) Navient Student Loans (Yes, Both!)

The balances for both Navient loans usually go up every month because I’m on an income-based repayment plan. Since the U.S. Government has given us a break on student loan interest and student loan payments (which began in mid-March), the balances didn’t go up. And since I didn’t make any payments, they didn’t go down, either.

Business Debt

April, 2020 business debt balances.

I’ve included the business credit card balance, even though I don’t pay that bill out of my personal income. Though the money that pays it comes from the business, I am the personal guarantor of it. So, technically, it’s my debt.

The difference between my March and April business debt balance is $560.

Up until a couple of months ago, I had a business credit card that had an APR of 22.74%. In January, I thought that I had succeeded in obtaining 2 low interest business credit cards so that I could transfer the balance from my high interest business card (see Money Move – A Balance Transfer). What I did, instead, was get 1 card that would allow for a 0% interest balance transfer and another card that was 0% interest, but not on balance transfers.

What I decided to do was get a separate business loan with a low interest rate (well, lower than the 22.74% of the other card). I wrote about that here. Now, I’ve got one credit card and one business loan.

COVID, COVID, COVID

Last month, I wrote about needing to take the month of April to think for a second. I wanted to see how my income looked and also wanted to focus on getting used to living under lock-down. While I’ve now adjusted fairly well to lock-down, the money situation is still shaky.

The Tsunami Situation – March 2020 Debt Report

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Each month, I record the balances on my debt obligations. The amounts shown in my debt report reflect balances as of the end of the previous month. First you’ll see the Table of Debt Slayed. This displays debts that have been paid off since I began my debt free journey.

Further below you’ll see my active debts in the Debt Report Table.

“How long should you try? Until.”

~ Jim Rohn

A few notes on the Table of Debts Slayed: 

(1) The Debt Journey Balance column reflects the balance on the debt as of the date that I started to get serious about my debt-free journey – July, 2019. 

(2) I’ve included in the Table of Debts Slayed, the balances I paid off for my 2018 Federal ($3,238) and State ($2,819) taxes, even though I paid them off the month after I learned about the obligation and the debts became due. I’m including them the list because they were significant amounts and were, technically, debts; I just paid them off quickly. I previously had not listed them in my Table of Debts slayed but am do so now.

(3) In November, I applied for and obtained a debt consolidation loan, which allowed for the payoff of all of my credit card debt. The credit cards listed, except for the Chase card, were paid off through the debt consolidation. Effectively, the debt was re-classified (which you’ll see in the table below) and not actually paid off. 

See the Debt Report Table below for the figures as of the end of March, 2020. It shows the updated order of debts to be repaid.

March, 2020 debt balances.

The difference between my February and March personal debt balance is $1,504. Typically, the month-to-month difference has been at least $2,000. This month, that wasn’t the case because of the COVID-19 pandemic. With the downturn in my business and the uncertainty in my income, I decided to hold on to additional funds. Under normal circumstances, I would have made an additional debt snowball payment that would increased my paydown amount by several hundred dollars.

A few notes about the Debt Report Table:

The Debt Being Attacked

The debt that is highlighted in green is the debt that I’m currently attacking. Additional funds I have available for debt repayment go toward extra payments on this highlighted debt. The additional amounts appear as my “Debt Snowball” number in my budget every month.

Estimates

An amount that ends in a “0” or “50” may be an estimate. Often times, the IRS website does not show updated figures. It will say that “information is not available,” so I make a guess, based on the typical monthly reduction amount. 

Three Payments That (Unfortunately) Go Up Every Month

(1) Internal Revenue Service (2017)

This payment goes up every month because the IRS system will not allow me to make payments on both the 2016 balance and the 2017 balance at the same time. I wanted to make small payments on the 2017 balance so that it wouldn’t go up every month. When I spoke with the IRS, they explained that they don’t allow for that. It requires that all payments be applied to the oldest balance due. That is why the 2016 balance goes down, while the 2017 balance goes up by about $64 per month.

(2 & 3) Navient Student Loans (Yes, Both!)

The balances for both Navient loans go up every month because I’m on an income-based repayment plan. The minimum payments under the program aren’t enough to reduce the monthly balance. Once I take down the two IRS debts, I’ll start making payments on the student loans big enough to, at least, cover the interest.

Business Debt

March, 2020 business debt balances.

I’ve included the business credit card balance, even though I don’t pay that bill out of my personal income. Though the money that pays it comes from the business, I am the personal guarantor of it. So, technically, it’s my debt.

The difference between my February and March business debt balance is $500.

Up until recently, I had a business credit card that had an APR of 22.74%. In January, I thought that I had succeeded in obtaining 2 low interest business credit cards so that I could transfer the balance from my high interest business card (see Money Move – A Balance Transfer). What I did, instead, was get 1 card that would allow for a 0% interest balance transfer and another card that was 0% interest, but not on balance transfers.

What I decided to do was get a separate business loan with a low interest rate (well, lower than the 22.74% of the other card). I wrote about that here. Now, I’ve got one credit card and one business loan.

COVID-19 Brings Uncertainty

The COVID-19 pandemic has shaken things up in unimaginable ways. Right now, staying healthy and sane are my primary concerns. I’ve utilized the grace offered by some of my creditors, relieving me of having to make payments in the upcoming months. I did that as a precautionary measure, while I evaluate my income. I need a second to think. I don’t expect my debt balance to go down significantly next month.

Is a $1,000 Baby Emergency Fund Enough?

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Photo by Fusion Medical Animation on Unsplash

It’s crazy out in these streets right now. The President has declared a national emergency and has restricted air travel to and from 26 countries. The Dow Jones Industrial Average posted the largest single-day drop since the 2008 economic downturn. Major events like the SXSW (South by Southwest) concert and Coachella have either been cancelled or postponed several months. The rest of the NBA (National Basketball Association) season has been suspended. Schools are closed. Disneyland, for God’s sakes, is closed! Worst of all, toilet paper on a store shelf is nowhere to be found. You can’t even get it from Amazon.

Though I’m not panicked, I’m now in a state of being reactive. I feel the need to obtain a bunch of household supplies because I’m concerned that they won’t be available in a few days or next week when I need them. I hadn’t planned on doing this, but am doing it now. Why? Well, because everyone else is taking all the stuff.

This comes amid concerns about the spread of the coronavirus in countries around the world, including the United States. It has now, officially, been declared a pandemic. What concerns me about this situation is not the virus itself (except to the extent that it could impact my parents and other elderly loved ones), but how people are responding to it. The level of fear and the corresponding actions that are being taken in response to it are concerning.  

Though I’m not panicked, I’m now in a state of being reactive.

~ single girl

Seeing how people are responding and the corresponding changes that are being made in business, and general life in the United States, is making me ask myself, “Is $1,000 enough?” Considering the fact that I work for myself, will I be okay if things continue as they have been? 

Anyone familiar with Dave Ramsey’s Total Money Makeover program knows that he advocates a baby emergency fund of $1,000 as the first among several baby steps to financial freedom. The idea is to use the small emergency fund to “cover those unexpected life events you can’t plan for.” In other words, this is supposed to cover those things that you cannot see coming . . . or that surprise you.

Among the exceptions to the $1,000 fund amount are situations in which an emergency is clear and eminent – an emergency for which $1,000 simply would not be sufficient.  I’ve heard Dave identify such an emergency situation as one where, for example, someone has a baby coming and doesn’t have insurance coverage or when one knows that they will be losing their job. 

(1) Given what is happening now, I’m asking myself some questions.  

(2) Is the corona virus and the mayhem it is causing a sufficient emergency to justify saving more? 

(3) For those who are self-employed, should one have a higher amount? 

(4) Is a $1,000 emergency fund sufficient for someone in extreme debt (over $300,000) like me? 

How will this impact my business? Can I turn it into a positive situation? If things continue as they are, will I have enough money? I do not want to borrow. I’ve turned over a new leaf. I. Will. Not. Borrow.

But I only have $1,000 in my savings account. I have a few sinking funds – for car maintenance, home maintenance, personal care and gifts, but those aren’t savings accounts. Those are accounts with funds for expenditures that I know I’ll need to make eventually, even though I don’t know exactly when or how much I’ll be spending. The sinking funds are accounts that allow me to protect my monthly cash flow by having funds already set aside for the handling of certain life things. While I like seeing funds in these accounts, having the money there is a proactive measure, not a safety net. 

Since I started my debt free journey last year, I’ve had only the $1,000 baby emergency fund. Though some months have been better than others from an income perspective, I haven’t strongly considered increasing my emergency fund amount until now. 

 And nnnnoooooowwwwwww . . . I’m thinking that this is a certified emergency situation – one that would warrant me saving a bit more money and putting it to the side. What these circumstances will yield is very uncertain. I’d like to be in a better cash position, even though I hope I won’t need it.

What financial moves are you making in response to this pandemic? How much do you have in savings and are you comfortable with that under the circumstances? 

The Tsunami Situation – February 2020 Debt Report

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Each month, I record the balances on my debt obligations. The amounts shown in my debt report reflect balances as of the end of the previous month. First you’ll see the Table of Debt Slayed. This displays debts that have been paid off since I began my debt free journey.

Further below you’ll see my active debts in the Debt Report Table.

“How long should you try? Until.”

~ Jim Rohn

A few notes on the Table of Debts Slayed: 

(1) The Debt Journey Balance column reflects the balance on the debt as of the date that I started to get serious about my debt-free journey – July, 2019. 

(2) I’ve included in the Table of Debts Slayed, the balances I paid off for my 2018 Federal ($3,238) and State ($2,819) taxes, even though I paid them off the month after I learned about the obligation and the debts became due. I’m including them the list because they were significant amounts and were, technically, debts; I just paid them off quickly. I previously had not listed them in my Table of Debts slayed but am do so now.

(3) In November, I applied for and obtained a debt consolidation loan, which allowed for the payoff of all of my credit card debt. The credit cards listed, except for the Chase card, were paid off through the debt consolidation. Effectively, the debt was re-classified (which you’ll see in the table below) and not actually paid off. 

See the Debt Report Table below for the figures as of the end of February, 2020. It shows the updated order of debts to be repaid.

The difference between my January and February personal debt balance is $2,166.

A few notes about the Debt Report Table:

The Debt Being Attacked

The debt that is highlighted in green is the debt that I’m currently attacking. Additional funds I have available for debt repayment go toward extra payments on this highlighted debt. The additional amounts appear as my “Debt Snowball” number in my budget every month.

Estimates

An amount that ends in a “0” or “50” may be an estimate. Often times, the IRS website does not show updated figures. It will say that “information is not available,” so I make a guess, based on the typical monthly reduction amount. 

Three Payments That (Unfortunately) Go Up Every Month

(1) Internal Revenue Service (2017)

This payment goes up every month because the IRS system will not allow me to make payments on both the 2016 balance and the 2017 balance at the same time. I wanted to make small payments on the 2017 balance so that it wouldn’t go up every month. When I spoke with the IRS, they explained that they don’t allow for that. It requires that all payments be applied to the oldest balance due. That is why the 2016 balance goes down, while the 2017 balance goes up by about $64 per month.

(2 & 3) Navient Student Loans (Yes, Both!)

The balances for both Navient loans go up every month because I’m on an income-based repayment plan. The minimum payments under the program aren’t enough to reduce the monthly balance. Once I take down the two IRS debts, I’ll start making payments on the student loans big enough to, at least, cover the interest.

Business Debt

I’ve included the business credit card balance, even though I don’t pay that bill out of my personal income. Though the money that pays it comes from the business, I am the personal guarantor of it. So, technically, it’s my debt.

The difference between my January and February business debt balance is $621. I made a $1,500 payment toward the business credit card balance in February (which is why the AmEx card shows a a $8,800 balance), but the total balance across the loan and the card didn’t go down as much as I would have liked because of the fees associated with getting the balance transfer done and the new business loan. This I view as a short-term set back because of all of the money that I will be saving in the upcoming months by having the significantly lower interest rates.

Up until recently, I had a business credit card that had an APR of 22.74%. In January, I thought that I had succeeded in obtaining 2 low interest business credit cards so that I could transfer the balance from my high interest business card (see Money Move – A Balance Transfer). What I did, instead, was get 1 card that would allow for a 0% interest balance transfer and another card that was 0% interest, but not on balance transfers.

What I decided to do was get a separate business loan with a low interest rate (well, lower than the 22.74% of the other card). I wrote about that here. Now, I’ve got one credit card and one business loan.

Bigger Numbers Next Month

Yesterday, I paid the second installment of the $8,680 HOA Assessment I needed to pay for repair work that our building requires. I have been saving between $1,000 and $1,500 per month toward the payment of this assessment. With that being paid in full now, I can direct those funds to my debt snowball. That will make for a much larger snowball than I’ve had over the last several months. Next month’s debt reduction amount should be much higher. So excited about that!

How did your debt payoff go for the month of February?

Money Move – Balance Transfer Remix

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Photo by Ryan Born on Unsplash

Last month, I applied for 2 credit cards for my business. My aim was to use the cards to transfer the balance on the business credit card that I’ve had for years. The balance on the business credit card was around $22,000 and the interest rate was ridiculous (over 22%). My monthly payments of $1,000 weren’t going very far. Out of the $1,00) payment, $493 of it was going toward the finance charge.

I thought that both of the cards I applied for had a 0% interest rate. I was wrong. Both had a 0% interest rate, but I later found out that with one of the cards the introductory rate didn’t apply to balance transfers. The balance transfer was my sole purpose for applying for the card! So I needed another solution. 

I thought that both of the cards I applied for had a 0% interest rate. I was wrong.

~ Single girl

I found a company that offers unsecured business loans through Lending Club. Though the rate isn’t 0%, it is still less than half of what the rate on the business card previously was. And, though there’s a loan fee, when I consider how much I was paying in finance charges every month, I’m still saving money. Even when accounting for the loan fee, I should be saving about $100 a month on this portion of the balance of the credit card (approximately $11,800). I’ve already transferred $10,000 of the business card balance to the 0% interest card, so I’ll be saving about $250 per month on that portion of the balance. In total, I’m coming out ahead at roughly $350 per month.  

Here are the terms of the business loan:

  • Loan Amount: $12,000
  • Loan Fee: $718.80
  • Interest Rate: $9.9%
  • Term: 24 payments of $554

The plan is to be really aggressive in paying off both the 0% card balance as well as the business loan. Though I’ve been paying $1,000 per month on the card, I’d like to increase that amount to $2,000 per month. After all, the purpose of making these money moves is so that my payments can make a bigger dent in the balances, not so that I can prolong the payoff period. If I can get both of them paid off by the end of this year, I’d be DELIGHTED! 

My goal is to be financially responsible and fiscally savvy when it comes to both the business and my personal finances. An aggressive plan to pay off the business’ debt is a good step in that direction.

The Tsunami Situation – January 2020 Debt Report

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Each month, I record the balances on my debt obligations. The amounts shown in my debt report reflect balances as of the end of the previous month. First you’ll see the Table of Debt Slayed. This displays debts that have been paid off since I began my debt free journey.

Further below you’ll see my active debts in the Debt Report Table.

“How long should you try? Until.”

~ Jim Rohn

A few notes on the Table of Debts Slayed: 

(1) The Debt Journey Balance column reflects the balance on the debt as of the date that I started to get serious about my debt-free journey – July, 2019. 

(2) I’ve included in the Table of Debts Slayed, the balances I paid off for my 2018 Federal ($3,238) and State ($2,819) taxes, even though I paid them off the month after I learned about the obligation and the debts became due. I’m including them the list because they were significant amounts and were, technically, debts; I just paid them off quickly. I previously had not listed them in my Table of Debts slayed but am do so now.

 
(3) In November, I applied for and obtained a debt consolidation loan, which allowed for the payoff of all of my credit card debt. The credit cards listed, except for the Chase card, were paid off through the debt consolidation. Effectively, the debt was re-classified (which you’ll see in the table below) and not actually paid off. 

See the Debt Report Table below for the figures as of the end of January, 2020. It shows the updated order of debts to be repaid.

The difference between my December and January personal debt balance is $4,210.

The difference between my December and January business credit card debt balance is $574.

A few notes about the Debt Report Table:

The Debt Being Attacked

The debt that is highlighted in green is the debt that I’m currently attacking. Additional funds I have available for debt repayment go toward extra payments on this highlighted debt. The additional appear as my “Debt Snowball” number in my budget every month.

Estimates

Sometimes, an amount that ends in a “0” or “50” is an estimate. Often times, the IRS website does not show updated figures. It will say that “information is not available,” so I make a guess, based on the typical monthly reduction amount. 

Three Payments That (Unfortunately) Go Up Every Month

(1) Internal Revenue Service (2017)

This payment goes up every month because the IRS system will not allow me to make payments on both the 2016 balance and the 2017 balance at the same time. I wanted to make small payments on the 2017 balance so that it wouldn’t go up every month. When I spoke with the IRS, they explained that they don’t allow for that. It requires that all payments be applied to the oldest balance due. That is why the 2016 balance goes down, while the 2017 balance goes up by about $64 per month.

(2 & 3) Navient Student Loans (Yes, Both!)

The balances for both Navient loans go up every month because I’m on an income-based repayment plan. The minimum payments under the program aren’t enough to reduce the monthly balance. Once I take down the two IRS debts, I’ll start making payments on the student loans big enough to, at least, cover the interest.

Business Credit Card

I’ve included the business credit card balance, even though I don’t pay that bill out of my personal income. Though the money that pays it comes from the business, I am the personal guarantor of it. So, technically, it’s my debt. Despite the fact that I make a $1,000 payment on it every month, you see that the balance only goes down by just under $400. The APR on it is 22.74%.

In January, I did what out I set to do, which was find a low interest business loan or credit card so that I could transfer the balance (see Money Move – A Balance Transfer). It’s actually 2 cards because I couldn’t get a credit line on one to cover the full balance. Because of the balance transfer process for each of the credit cards, the balance transfers won’t be completed until next month.

Why Am I Not Discouraged?

I asked myself this question as I was putting together this post. Why am I not discouraged by the fact that the balances of some of my obligations – the 2017 taxes and the student loans – continue to go up every month? After all, the aim here is to consistently reduce my debt. Ideally, every single one of my balances should be going down, not up.

The reason I’m not discouraged is because, despite the fact that some balances are still increasing, others are coming down. And, most importantly, I’m developing and practicing the habits that are going to position me to get out of this Tsunami Situation in which I find myself.

I’m budgeting. I’m reconciling my expenses in connection with said budget.

I’m changing my mindset and paying attention to the money I have and where it is going. Remember, during the period between January, 2019 and June, 2019, I paid almost $1,000 in overdraft fees! I was out of control and not managing my money properly at all. It was ridiculous!

What a difference a year makes. Now, in January of 2020, I feel much more in control. I’m operating intentionally. I’m planning strategically. I’m developing consistency. I’m taking baby steps – literally. I’ve still got a long way to go, but I feel like I’m laying a solid foundation. If I just stay committed to moving forward, the results will come. The results WILL come. That’s what keeps me encouraged.

How are you feeling about your debt free journey? We’re a month into 2020 and . . . how did things go the first month? If you’re feeling discouraged, my hope is that you’ll give yourself credit for all that you have accomplished and the progress that you’ve made thus far.  We have to remember that it’s a process and that it takes time and consistency to get to the other side of this. The thing that matters most is that we will get to the other side.

Money Move – A Balance Transfer

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Photo by Bernard Hermant on Unsplash

In addition to all of the personal debt I have, my business has a credit card as well. I finally stopped using it when I came to terms with the fact that I was treating it as a crutch. I had ceased my use of personal credit cards, but continued to use the business card. You can find more background on this here, and below you’ll find a small excerpt from what I initially wrote about the card. 

 So, the problem here is obvious, right? Though I almost eliminated my use of credit cards on the personal side, I continued to maintain my same old bad habits. I simply narrowed the playing field of stupidity. Instead of being stupid with the credit cards in both my personal and business lives, I just limited the credit card use to the business side.  

 Ah . . . but when you work for yourself and you are the key producer in the business, the business is integrally linked to the person. I make all of the decisions about what money will be spent, when and on what things. I control the credit card.  Though I knew I couldn’t use a personal credit card to get certain things, I could find a way to make it a business expense. I could justify going to Capital Grill for a meeting on the business side. I could justify traveling to another state, staying in a nice hotel, and eating fine food for a business conference. Could the business afford it? No! Could the business pay for it? Absolutely. I had the business credit card. 

Though I stopped using the card 5 months ago, and have made over $5,500 in payments since then, the balance is still about $22,000, which means it has only gone down by about $3,000. When I started this journey, the balance was a few hundred dollars short of the $25,000 credit limit. Each month, the minimum payment required is $635. I’ve been paying at least $1,000. 

I’ll be able to pay off the high interest balance card and not pay any interest for 12 months. 

~ Single Girl

I’m tired of not seeing the balance go down more. This week I applied for a couple of 0% business credit cards for the business so that the $1,000 per month payment can go farther. I ended up getting two cards – 1 from Capital One and another from American Express. I needed to get 2 cards because neither company would give me the full $22,000 that I needed to cover the full balance. Between the two of them, I’ll be able to pay off the high interest balance card and not pay any interest for 12 months. 

The American Express card has a balance transfer fee of $300. The Capital One card has no fee. The $300 transfer fee makes great money sense to me because my finance fee for just 1 month with the current card is $493. Over the next 12 months, I should save several thousands of dollars in finance fees. 


I’d love to be able to pay off the entire balance within the next 12 months. With my 2020 goal of increasing annual gross revenues in the business by over double, I believe it to be doable. I’m excited about getting this done so I can make more traction in getting that credit card paid off.