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Consolidated some debt...new effective budget...

Posted 06-16-2022 at 12:46 PM by TNSLPPTSO13


I finally decided to do something regarding my debt. Since I will most likely never be debt-freel;all I can do is make it less anxiety-causing...so I took out a personal loan with Upstart,at 11% for 60 months. This was the best offer I got after trying 3 other companies. It was a smooth and pleasant transaction.

Had a “ pre-approved” code from a mailing;went into the website,and the application process took less than 15 minutes from beginning til the point where the amount and terms of the loan was stated. Then it was another 5 minutes or so when you showed as approved(That’s when they supposedly make the hard inquiry into your credit report. I’m pretty sure it was my excellent payment record that got me approved so quickly and smoothly. My Fico is 657 and my usage rate was 80%...not too good.

I asked for $40,000.There were no “origin fees”,which can be as much as 6% with other companies;so I asked for $40K and $40K was credited to my bank account in less than 24 hours.

I was paying as much as 25.75% on some of my cards,but my main goal was reducing my cash outgo so I can have breathing room with
a possible rent increase. I tried different combinations of individual debts,and came up with the most beneficial cash flow-wise pay-offs,no matter what the balances or interest were.

I have now reduced my minimum monthly payments by $921!!!(Of course considering the new loan payment) This leaves me room for the 30-40% increase in rent I’m expecting(Based on what I hear in the local news regarding this issue) and some room to avoid the small monthly deficits that I was having every month.

I know that all I did was spread it around..the debt total is the same;but now I won’t be agonizing as much when I can’t pay something on time.

This is how it came out:

Previous:
Card 1........$11,394(17.24%) .....Minimum Payment ...$228
Card 2........$ 4,477(24.24%) .......Minimum Paymen t...$128
Card 3........$ 9,770(10.74%)......... Minimum Payment ...$188
Card 4....... $2,779((26.24%)......... Minimum Paymen.t...$ 77
Personal Loan$9,358(20%)............. Regular Payment......$ 890
Car Lease....$2,229.........................Regular Payment... $ 279

TOTAL PREVIOUS MONTHLY................$1,791
TOTAL NEW PAYMENT....................... $ 870
DIFFERENCE......... $ 921

I still have $32,348 in credit card debt,spread on 6 cards,interest ranging from
13.24% to 23.74% plus the payoff balance of this loan $40,000 and $2,408 owed to my employer...Total Debt as of right now....$74,756.


I know all I did was "spread it around...but it helped.
The accounts that I paid off were chosen just based on how much less cash I would have to dish out every month to make the required payments...a huge relief to my peace of mind as I await for my rent to increase at least 20-30%.

I won't have a car payment until February 2023;then I would have to consider buying the car or getting another lease.

So I went from monthly payments of $2,531(Including the car lease) to $1610...
Improving my cash flow by $921/month.

I'm still in deep doo doo..but the stink is more tolerable.
So,after the consolidation action,this is my monthly budget:

TAKE HOME PAY……………………………………… ………………………….$5,831
RENT……………………………………… ………………$ 1200
FOOD,PETS,HOUSE STUFF,PERSONAL……….$ 617
GASOLINE…………………………………… ……………$ 55
AUTO INSURANCE………………………………… .$ 94
INTERNET/PHONE LINE…………………………….$ 108
MEDICARE PAYMENTS/CO-PAYMENTS…….$ 400
ELECTRICITY………………………………… …………..$ 60
YOUTUBE TV………………………………………… ….$ 74
MINIMUM DEBT PMTS. AS OF 6/16/22…….$ 1610
---------------
TOTAL... $ 4218
$5881 - $4218 = $1613 leftover.
___________________________________________
This is the barebones,minimal amount I can actually live on as of now.($4218/MONTH)

There are a lot of other things that have to be considered:
1)I don’t have a car payment now,but by Feb. 2023 I will
Have one……..…estimate……………………… ………………… $300
2)I play the lottery,based on 2021……………..$175
3)Based on 2021..vitamins/supplements……$ 75
4)For hand-outs to homeless,etc……………….$ 20
5)Other subscriptions:Shudder,Fangoria,
Record clubs,Amz Prime………………………..$ 66
6)I very rarely buy clothes………………………….$25
7)Miscellaneous stuff…AAA…haircuts…
Gifts…Whatever unplanned(2021)……….$40
Total…………………..$701

$1613 - $701: $912 leftover every month before
Buying records,blurays,cd’s etc… or the casino.

But this will likely be considerably reduced by my inevitable rent increase...I'm expecting the worst 40% or $480
so $912 - $480: $432 left over for media,gambling,etc. Still feeling pressed...need an effing windfall dammit!

_____________________________
The consolidation definitely helped my monthly cash flow...I Can even apply more money to the debts...I wish I could be so disciplined..
All I can do is try my best.


t
Posted in Uncategorized
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Total Comments 2

Comments

  1. Old Comment
    The last thing you need to be doing is buying lottery tickets or paying for subscriptions.
    permalink
    Posted 06-17-2022 at 09:20 PM by MoNative34 MoNative34 is offline
  2. Old Comment
    Quote:
    Originally Posted by MoNative34 View Comment
    The last thing you need to be doing is buying lottery tickets or paying for subscriptions.
    Well...I'm just not willing to be a self-flagellating martyr to punish myself for my stupidity..the damage is done...too late to put the toothpaste back on the tube.
    I think I did the right thing without making it hurt more than needed...The lottery is kind of stupid,but is the only way I can ever possibly make a windfall from to get me out of this mess...you gotta be in it if you think of winning it.
    And my subscriptions keep me sane..I haven't been to a movie or concert in at least 12 years...
    I NEVER eat out...I don't drink,smoke,f**k..own jewelry,guns...I rarely leave the house;though I've had some relapses to one of the activities that got me in trouble 15-20 years ago.
    So all I can do is do the best that I can do...I'll try.
    permalink
    Posted 06-22-2022 at 01:00 PM by TNSLPPTSO13 TNSLPPTSO13 is offline
 

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