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Home > Back to a Debt Low since buying my house

Back to a Debt Low since buying my house

August 16th, 2020 at 09:45 pm

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.

5 Responses to “Back to a Debt Low since buying my house”

  1. rob62521 Says:
    1597611854

    Hope your new neighbor is a good one.

    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.

  2. Dido Says:
    1597615582

    Thanks, Rob. I hope so too! Change of ownership of the house next door is always nerve-wracking! This is the second sale in the time I've owned it. I've gotten along decently with the current owners, but they are a generation younger, married, with a small child, so we've never socialized. But getting along is always the most important thing, and I've never had a problem with them, and the husband helped me a couple of times with minor things like taking the window A/C out or changing a light bulb that was out of my reach even with a ladder. (Maybe I should have him change that one again before he moves out! It's been a few years! But I also have a younger co-worker's husband who also will help me with that.)

    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.

  3. East Coast Saver (Wink) Says:
    1597620948

    When I bought my condo I was a little worried about neighbors, noise, getting along etc. I really lucked out. We are all helpful, considerate and cordial without too much interaction. As somewhat of an introvert I like a certain amount of neighborly social interaction, but not all the time if that makes sense. Good luck with your new neighbor!

  4. Dido Says:
    1597632674

    Wink, I totally get that. Getting the balance of interaction right for your desires is important!

  5. LuckyRobin Says:
    1597786973

    Glad to hear you are getting that debt down and I hope your new neighbor is a great neighbor.

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