I bought my house 15 years ago this October. Before that, I had had no long-term debt for well over a decade, only credit cards that were paid off monthly. The initial mortgage was $92,800, and, until this year, I had never gotten my debt total below $90k for more than a couple of months. A career change involving periods of unemployment, and the illnesses/deaths of several pets as well as my mother, meant that the debt would creep up and came to include some non-mortgage debt--a couple of low-interest loans (about 4%) and credit cards, typically with 0% balance transfer offers. This year I decided to get serious about paying down the debt.
I was able to get my debt below 80k for a brief period in February, when I got my 2019 bonus--but then the pandemic hit and I did some purchasing of some food and household stores, and it crept back over. I've been working it back down again, and it finally looks like it's below 80k for good, barring any major pet health, car, or home repair emergencies (knock on wood and prayers!). I'm aiming to get it to 70k by year's end and I think I'll be able to do it. I'm aiming to lop off 10k a year, more if possible (which basically means when I get a bonus at work). The mortgage is down to 47.5k now, close to half its starting balance (should be more than 50% paid off by October 1).
The mortgage payoff is steady, $400 a month (I round up the payment each month to make it that even number). In any case it will be paid off by the end of 2027 (22 years after purchase) and if I get a couple of bonuses between now and then, I should be able to make my goal of paying it off by the end of 2025. But first the non-mortgage debt! I am finally making progress there. Again, we'll see what the year has in store, as the best-laid plans go oft awry. In any case, it is satisfying that never this year has my total debt balance gone over 90k and now it looks to be firmly below 80k. After nearly 15 years of having debt over 90k, this feels like progress.
Net Worth is progressing too; up 6.75% despite the pandemic since the retirement accounts are now net positive for the year.
The house next door to me (other half of my twin) is in the process of being sold and the price was good, which only helps my home value. Another single woman is the purchaser, and I hope that we get along well. I'll be curious to meet her, probably next month. The closing date hasn't been set yet but I know they are aiming for the end of August.
Back to a Debt Low since buying my house
August 16th, 2020 at 08:45 pm
August 16th, 2020 at 09:04 pm 1597611854
We spent more when the pandemic hit. I fear that we will soon have inflation. I know grocery prices sure went up when there was a shortage (supply and demand), but I haven't seen them go back down.
August 16th, 2020 at 10:06 pm 1597615582
Last year, two doors down, another professional woman in her 50s moved in. We've had some good conversations and I think we could become good friends if we had more time and social distancing wasn't quite so much in play. That's the ideal neighbor for me, but whatever generation, as long as we get along and she's relatively quiet, I'll be happy!
I suspect you're right about more inflation later this year; I read something about that being one of the Fed's targets.
August 16th, 2020 at 11:35 pm 1597620948
August 17th, 2020 at 02:51 am 1597632674
August 18th, 2020 at 09:42 pm 1597786973