Monday, September 21, 2015

Getting out of debt. Month 4

So, our month income right now is roughly $6000. Our current total monthly bills are roughly $4000 before gas and groceries. I did mention I paided off our first credit card last month, the final payment was $600 dollars roughly. About $475 more then the payoff plan, but that's kind of the nice thing about getting an influx of cash like a bonus, or later on a tax retur. Instead of spending it all on things you want you put part or most to paying off debt. Hopefully in a few months we will be putting out tax return into a few more payoffs.
    As I also mentioned last month, becuase of the $700 increase in income I also increased our payments by $400. My second bill I will be making 2 payments (this month and next) of $575. This amount is based on the minimum of the first biller $25, the original determine increased payment amount of $100, the minimum payment of the second biller $50 and the additional  $400 increase we agreed too. The second payment will be less then the $575 and therefore my second payoff in 5 months since I started this plan
    I'm excited for what these payoffs will do for our credit. See with researching for the cabinetry I did some loan research also. Our current FICO credit score is right around 680 and given that's not bad it's not good either. See we have a few things against us. Multiple high revolving credit limits (credit cards) and multiple high revolving credit at max limits (maxed out credit cards). We do not have any defaults (un-paid loans) but when we first got married my husband had a few collections as a result of not fully closing out public utilities when moving. Tip, if your getting married, or plan on any type of a joint loan, review both your credit reports. Thier history will affect your credit score and yours will affect thiers. It is a good idea especially if you plan on getting married to know what financial issues need to be dealt with before you try to get loans or perhaps buy a house, becuase believe me last thing you want to hear is that you were denied a home loan becuase the other person has "high outstanding debt."
    We went a bit over budget this month.  My oldest son is a dancer and the dance studio he attends stated a new performing program for the younger kids. He is very excited, but this does add a few extra costume costs as well as class expenses. I'm also trying to start Christmas shopping so I don't have to run around the week before picking up all the gifts. For our oldest I am trying to get him some fun style dance clothes as well as a bag. It's difficult to find things that are fun like the girls clothes but in boy styles and cuts. I'm still not sure what to get the younger 2, and I also have 2 birthdays to plan 3 if you count dad's.
Next week we'll get our second bi-weekly pay and hopefully have a little bit more cash left over. Fortunately I've only had to pull about $500 out of savings to keep up with our costs this month.

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