Tuesday, December 17, 2019

Whittling Down the Debt on Transfer Tuesday

In between baking cookies, wrapping presents and last minute errands I have been working on
sending money to pay down debt.  Every December I receive a payout (RMD) from my deceased mom's IRA.

With this year's payout, I was able to pay off our Visa Credit Card. Here is a current tally of our debt:

 CC and HELOC

9/19/19     $95,853.00     combined credit card and heloc

11/1/19     $97,680.00     combined credit card and heloc

11/14/19   $92,785.00      combined credit card and heloc

12/14/19   $84,628.41       heloc

The HELOC is for home improvements aka a vinyl privacy fence AND a screened-in pool. We originally took out the HELOC for emergencies that pertained to the houses we owned.   We sold one of the houses about 3 years ago and currently own ours and I still have my parents home with is being rented.

Anyway, we decided to add the above items to our home and now we owe over $80,000.  Eventually, we will sell my parent's home and use those profits to pay off whatever is left on the HELOC and put the rest away for our retirement.

Did I know how a HELOC worked when we took it out?  Did we know that the minimum payments we are making now only cover the interest? Uh.. No.  And when the draw period is over THEN payments will reduce principal and interest.   I know... good grief, I should have researched it at least a little.  Would the research have stopped us from getting the HELOC?  No.  But, we would have made better buying decisions when it came to using the HELOC?  More than likely.

What's done is done.  Now, my goal is to whittle down the principal NOW.  Hence, Transfer Tuesday!  I saw it on a YouTube video, Pennies Not Perfection.  Every Tuesday(hence Transfer Tuesday) she applies big and little amounts to her debt and it is making a difference.

Here is my first payment of $66  in rolled change to the HELOC.

New Balance: $84,562.41






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