Outstanding Debt as of January 2009

How quickly a month goes, especially when it is the month of December. Both my family and my wife’s family live in the same town we do… and we’ve got the ONLY grandkids on both sides of the family… so you can imagine how busy we are.

Plus, right after Christmas, we have three birthdays in the first week of January. They fall on January 1, 4, and 6. So we really don’t get a break from the holiday chaos until the second week of January, at least.

Anyhow, I’ve just updated my debt numbers and I’ve yet again made progress, modest though it is. Here are the raw numbers:

As you can see, I’ve paid off $845.85 during the last 30 days.

Of course, I just had to pay taxes, so that really put the squeeze on my ability to pay down my debt. I just sent the government $15,978… and I owe them an additional $5K that has to be paid when I file my personal return closer to spring.

Talk about sickening.

If you look at my outstanding debt, I could have used that money to completely pay off my two smaller loans — and I would only have the van loan left!

But Uncle Sam, he must be paid. And he’s rather indifferent to my debt, not to mention his own debt. (Wink, wink.)

On the bright side, I’ve made considerable progress since January one year ago.

In January 2008 I owed $71,607.55, and now I owe only $37,970.82. So in one year’s time (from Jan 2008 to Jan 2009), I’ve reduced my debt by $33,636.73, which is a 47% reduction in 12 months.

I owed the most debt ever in November 2007. At that time, I owed $75,286. Since then, I’ve paid off $37,315, which is a 49.5% reduction in 14 months (almost half!).

So here’s the short-term plan:

1. Ramp up income in the first quarter of 2009.

2. Use that income to pay off my debt as rapidly as possible.

3. Trim a few business expenses that are no longer necessary.

It’s a simple plan. But I think it will work. I’ll definitely keep you posted.

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9 thoughts on “Outstanding Debt as of January 2009”

  1. I am so happy I discovered your story.I too have been looking for the ultimate make money at home.So I learn from you what not to invest in. And let me add Avon to the list.
    I have wanted to join a group of people who want to get rid of debt. I am currently waging my war on bringing my mortgage payment back down to reasonable amount. It’s 1522.00 but I miss a payment. So now it’s $1650.00 and get my finances under control. It was only $900. when we built it 2001. But I was a refi fool for home improvements ie tile floors, paided for car and my last item a pool.I have constant pain fibromyalgia and when I am in my pool it the only time I’m not in pain.So we went from 125,000. to 200,000
    I love my home and we are not moving.
    we are both retired and were making our extra money working part time has Substitue Teachers.But that can’t be depended on.
    I just ask Bank to modify loan and they said it will be about 45 days before they have someone talk to me about it. and to “save some money to bring to the table” LOL If I had money I wouldn’t need modification. So I’ve called my Refi friend and he’ll come up with away out. This the first blog I’ve joined so I’m learning how to do it.
    Thanks for reading this and I look forward to keep you posted as to how I get out of this so others can use the info I learn. BB

  2. Hi Barbara – That is quite a story! So many business opportunities can generate income, but it’s usually harder than it’s made to sound in the marketing material.

    And, yes, a lot of people did the refi thing and now they’re hurting because of it.

    I hope you’re able to gain some useful knowledge here at this blog and get into a better financial situation. :-)

    Ryan

  3. Pingback: No Debt Plan
  4. This will be my last post for a while because I forgot what I learnred on the DVD The Secret.
    it teaches you not to dwell on your debt or anthing else that you don’t or that becomes your reality. If you haven’t seen it go to the secretv,com and see the trailer.It bis a number one World wide seller. I won’t spoil it for you but it is the best invest you can make if you want to change your cicumstances. So the next time you here from me I’ll be on my way to control my cicumstances. Seei t and you’ll understand.

  5. Hi BB – Thanks for recommending The Secret. I have watched it, and it doesn’t align with my values. It is humanism dressed up as some kind of magic formula for success. And I am not a humanist. :-)

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