<< Back to all Blogs
Login or Create your own free blog
Layout:
Home > Debt reduction...reversing the trend
 

Debt reduction...reversing the trend

January 25th, 2015 at 03:48 pm

The past five years were financially a struggle, as I was either under- or un-employed, and I lost my mother and three pets during that time. I went from a position of having no debt except the mortgage to having nearly (gulp!) $30,000 of non-mortgage debt (most of it on 0% or very low interest loans, but STILL...

Finally with my new job, I can whittle away at this. Or, actually, carve this year and whittle over the next few. This year, for the last time (I also did this last year), I took the RMD (required minimum distribution) from my inherited IRA and used it to pay off some of that debt. Plus about half of my January pay is going to debt reduction. I won't be able to keep that pace up all year, but by month's end, the non-mortgage debt will be under $24K, and I aim to halve that by year end, while also contributing 10% of pay to my retirement. At year end, I'll re-consider my plan for paying off the rest of that while also increasing savings.

Meanwhile, I did re-finance my house during that time to a shorter term and lower interest, so I feel confident that I'll have the house paid off before I retire.

6 Responses to “Debt reduction...reversing the trend”

  1. LittleMissSplendid Says:

    Boy oh boy do I know the unemployment/underemployment cycle well. Too well. Glad you've finally gotten off that wheel and are on your way to financial freedom.

  2. Dido Says:

    Thanks!!

  3. veronak Says:

    I too understand the employment/unemployment cycle, I'm happy for you and the progress you're making

  4. Dido Says:

    Thank you!

  5. rob62521 Says:

    I get the struggle with employment/unemployment cycle. Glad things are working out for you.

  6. wowitsawonderfullife Says:

    Yup, I get the unemployed and under employed issue. Bin there dun that. I'm glad you landed on two feet.

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 9.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]