December 2007 Debt Report
Debts Paid in Full Report
- Debts paid in full: 5
- Amount paid in full: $2,659
Status Report:
- December 2007 payments: $999.99 (no joke, that’s what I really paid)
- Total amount of payments made to date: $5932
- Debts left to pay off: 12
- Next debt in line: at&t advertising and publishing: $770.66
Balance Report:
- Current Debt Balance: $163,924
- Balance change since last month: -$1,467 (increase)
- Balance change since starting the plan (April 2007 plus the principal on new debts that have come up since): -$4,378 (increase)
Peering At Possibilities
I’m facing an income crisis if I want to pay off my debts in a reasonable number of years.
If I wanted to pay all this off in 5 years from today, it would cost $32,784/year or $2,732/month.
If I wanted to pay all this off in 3 years it would cost $51,641/year or $4553/month. I can forget that for right now. Maybe I’ll be here later.
Those figures don’t include the interest charges and fees, the first and second mortgages on my house or the SBA loan.
Our minimum (bare bones) expenses are $3,700/month. I’m working on reducing this some more. I think the grocery budget can be decreased, but we don’t spend anywhere near $2,732/month on groceries.
That looks like trying to use a squirt gun to put out a house fire. Damn. I’m the poster child for doing stupid with zeros on the end.
Making Possibilities Probable
So, with $3,700 in living expenses and $2,732 in debt payments, I need to bring in $6,432 after taxes. That means about $8,362 gross income per month.
Wow. I’ve never made that much before, but I’m going to learn how to do it and more. Dave (Ramsey) says it’s easier to make your second million dollars than your first million because you’ve done it so you know how to do it again. You never forget how to ride that bicycle.
I really, really think there will have to be some settlements for pennies on the dollar if I’m going to make this go away in a reasonable amount of time. I can clearly see I’m not ready to make any debt pay-off goals yet.
I’m looking around my office right now and mentally taking inventory of more stuff I can sell. I can see three medium-sized boxes of stuff just at a glance. I wonder what I’ll find when I dig around?
Anybody out there need a math or science tutor? I’m available!
Back to looking at the front of the snowball
Okay, that’s depressing.
I’m going to keep looking at the front end of the snowball and work to increase my income as much as possible as fast as possible.
I’m going to keep taking one bite at a time and forget I’m eating an elephant.
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Hey Sherri,
Nice blog. If you want to make some extra income, try ebay (if you haven’t). Or you can go extremely frugal and pay off all the debt quickly, but whatever. Life is life, don’t let debt make you stay awake at night.
Comment by Ken Nubo | December 26, 2007