So – my home equity loan – easy to refinance last November or so – then I noticed rates went down so asked if we could get the new rate? YES! So it’s at 3.99 and that cost us NOTHING.

My 5/1, which arguably was a huge mistake, now has an interest rate of 3.00%. Every year that it has adjusted, it’s gone down. Crazy. It’s certainly working for us right now. For these rates and many other reasons, I love my credit union.  Find one for yourself! http://www.findacreditunion.com/

What else… last November we were at $352,211.05. Now we’re at $319,589.11. That’s $32,621.94 and I guess that’ll have to be good enough. Our car is almost paid off, so that’ll help quite a bit. For now I plan to throw that payment at debt, then I’ll start saving for the next car.

There really is something to using those debt snowball spreadsheets – even if you’re doing an avalanche or whatever. Just seeing that it’s possible for ALL the numbers to go to zero is really empowering.

At our current payment rate, it looks like everything but the mortgage could be completely paid off by March 2015. That’s not so far away. And maybe it could go faster if we work out our snowflakes.

Maybe I’ll do another update soon to see where we are on reducing specific debts (credit cards, car loan, mortgage, student loan).

Is my money perspective all screwed up because of my family? Here’s the basics:

1) My dad made good money but didn’t talk about it and accumulated painful credit card debt and is terrible at managing money and has nothing.

2) My mom never made that much and now they’re apart manages her money much better, but I didn’t grow up with this example.

3) My older sister is a surgeon with a couple of multi-million dollar homes.

4) My younger sister is semi-sane thus far (and better with money, partly I think because her husband is seriously debt-averse other than medical school loans). But next year his salary plus bonus & signing bonus will be more than I’ve made in my life.

We’re not poor, me and my husband. But my goodness, you’d think we were! My older sister had a gift shipped here for her husband for Christmas. It’s a $6,000 Rolex. Yes. That one gift cost more than four times my entire Christmas budget. Crazy!

I hope to have lots of lovely news in the new year though. Happy Holidays!!!

I mentioned my distress last week, but now I have excellent news! The bank is sending us paperwork, fixing the home equity loans (together) at 4.99 (down from 6.5 on the big one and 4 but variable on the low one) for 10 years. This reduces our rate, our interest and our term. It does increase the payment by 54$ a month, but it’s TOTALLY worth it!

I think we’ll save about 5k in interest (without including snowball planning). Also, there is no penalty for pre-payment and there are no closing costs.

I was feeling so frustrated, because I already owe them the money, they should want to help me — and THEY DID! Hurray!

So, anyone out there thinking it’s not worth asking – you’re wrong. Even if you don’t get what you want, at least you know you asked!

Happy Thanksgiving!

And what have I accomplished? Feels like nothing much. I did decide to charge $40/hour for copy writing and editing. My husband said $50, another friend suggested $75. The range out there was huge. At the end of the day, I felt like it was my first free lance job and I don’t know how I’m going to do, and it’s my brother in law. So. There you have it.

I’m really wishing I could consolidate my mortgage and home equity loans, but you know what? I really can’t. I don’t have enough equity to be allowed to do it. And because my loans are through my credit union and have no affiliation with Fannie Mae or Freddie Mac, I can’t do anything like the Making Home Affordable plan. What annoys me even more is that I don’t even want to reduce my payments or increase my terms! I just want to fix the buggers at a low rate so I’m not worried about future adjustments. Seems like I’m totally out of luck on that front. (Can you hear the huge sigh?)

I haven’t yet figured out new 529 plans. I haven’t figured out whether my 401k dollars are going in the right place. I hate trying to figure it out. I’ve read that Index Funds are the way to go but that the ING Retirement Plans have index funds with high associated costs. I also gathered that I shouldn’t look at MorningStar ratings, which is included in my ING account and apparently partly what the people who choose available funds for my account are using. Great.

Anyone want to help me out here?

1164 ING Index Solution 2055 Port Adv:

Operations

Gross Prosp Exp Ratio 1.06% of fund assets

Net Prosp Exp Ratio 1.06% of fund assets

Management Fee 0.10%

12b-1 Fee 0.50%

Other Fee .

Miscellaneous Fee(s) 0.46%

Fund Inception Date 03-08-10

They all seem similar.

Still, with all of this, I’m thankful for my family and my life, and I know we are so fortunate in so many ways.

Happy Thanksgiving, Everyone!

I keep paying the same amount, so now I actually am paying more in principal on the mortgage than in interest (monthly). I *wish* I could fix this rate.

October has been tough again. I think I need to save $100 per month just for birthdays. This seems insane, and I don’t know how it’s possibly true — perhaps I just haven’t really dissected what we spent for my youngest son’s 5th birthday. But if I saved it, it would be there, just in case. I like just in case.

Besides the birthday, we have to pay our town taxes (ouch) and our home owner’s insurance (annual) and for wood. Next month, next month, next month. I feel like that’s all I say. But next month, I think it will all be a lot easier and I will have some money to snowball and we will kick this stupid debt.

Right now, our grand total of debt is $354,485.44. Mortgages, cars, student loans, credit cards. Boom. It’s all there.

Here are my puzzles, chime in with advice, if you please.

#1 — We have 529 plans for the kids but my sense is they’re not the right ones. Help me pick! I’m in Massachusetts, if that makes any difference. The financial advisor appears to be useless and only recommends those related to MFS, without analyzing fees and such. (So maddening, what is she FOR?) Also, for those thinking we’re batty for contributing to college when we should be paying off debt, we’re not. That’s where money goes that people give us for the kids. For right now, for the rest, kids will need scholarships.

#2 My brother-in-law called this weekend to say he wants to hire me to do copy editing and copy writing (free lance). What do I charge?

If anyone has suggestions, I truly hope you will provide them in the comments.

Well, looks to me like so far this year we’ve made about $40k in payments to loans of one kind or another. About $26,680 was principal, leaving $13,277 in interest. What a waste of money. Honestly, it’s hard to even believe that we paid that much money out in any way at all. I guess the mortgage is at least $12k of the total.

Currently we owe $356,519.60. $271,1146 is house related (mortgage and home equity loan).  $19,757 is student loans. A shocking $17,140 in car loans (that’s two cars, and we just had to replace the tires on one of them– OUCH!). And finally, and truly worst of all, $48,508 in credit cards.

On the other hand (and I need to think positive, because I have to stay motivated and these numbers just depress me), according to my handy-dandy debttracker, we’ve paid off $22,842 in credit cards, $13,583 in mortgage loans, $20,830 in car loans, $8,243 in student loans and $12,302 in home equity. That’s $77,800 from my estimate of high balance…

So officially, down $2,207.98 from last month and $46,918.54 since I started this project in April 2009. Progress feels extremely slow. However, I did pay off preschool for the year, avoiding interest on those payments for this year (annual savings, $400!) and that is our LAST year of preschool. Next year will be kindergarten (pay for full day) and summer camp. That really is a lot less money. When we get to just paying for camp, we might even have to change the FSA deductions. That’s hard to imagine.

We also aren’t in any more debt, nothing is going up. We bought new tires for a car and got discounts because Sears was sloooow and for having some free Sears member card, plus a $70 rebate I’ll mail today. Total savings? $129.80. Not bad.

Now I just have to somehow pay for four more birthday presents this month and October… I’m hoping October we’ll actually have a good snowball going again. Then we’ll kick this debt out! We will!

I keep thinking it’s going to get easier and it doesn’t.  I don’t know if that’s because of impulse spending or bad budgeting or what. We haven’t spent a lot on impulse, but a little here and a little there and it adds up.

I’ve been reading a bit of Frugal Babe here and there… she appears to exceed my ability to be frugal. Scraps of fabric for reusable toilet paper… um, can’t quite envision. And although the reusable pads do seem like a good idea, I really do like tampons. I tried one of those cups and perhaps I didn’t give it enough time but I found the whole thing rather … messy.

Our summer has been way too busy, that’s for sure, and no end in sight. If only we can hang on a bit longer, I think it will all even out.

Meanwhile, I’m tired, I’m stressed, and I have a lot to do. Off to it!

The new number for this month is 360,968.68. That means we’ll get under 360k next month, which is a good thing. I know people who owe more than that on their houses! In August we also have to pay for all of preschool for next year, $4,000. I’ve mentioned before, this will be a weight off my mind once it’s been paid. I still have to do the paying.

Meanwhile, my budget doesn’t seem to be great. I’ve definitely underestimated the real costs of vacation. I’m having trouble balancing a realistic budget we can stick to and an aggressive enough payment plan.

I did successfully hold down costs for my oldest son’s 7th birthday party. Instead of having a pinata with candy no parent wants, or a goody bag full of stuff the kids will break or throw away immediately. Instead, we had a low-key party in the yard with tents and a campfire, and we all tie dyed shirts that the kids got to take home. I thought it was a lovely party!

Next week we’re on vacation. I keep asking friends how they plan a budget for vacation. You know, they all look at me like I’m nuts. A budget for vacation? They think it’s crazy. But I don’t know how to relax about the money I’m spending on vacation unless I planned for it.

Am I crazy?

Current total debt is $365, 251.86.

That’s $2,412.82 in principle. I guess it’s better than nothing, but it’s all got me down. I felt like we were making so much progress.

We’ve sold a couple of things on Craigslist (randomly had a sink top; I have no idea why, it was new and we didn’t order or pay for it). That was $50, and we’ve mostly sold a double stroller. (How do you mostly sell something? Well, she PAID for it via PayPal, but doesn’t have it yet. Weird, huh?)

We’re still sorting through to see what else we don’t need. I do have two bags of clothes and stuffed animals ready to donate.

So, we paid our deposit for school next year, we paid for two weeks of preschool camp, we paid our town taxes.

Then I charged the balance of summer camp. Happily I paid that back within a few days of charging it, so now camp is PAID for! I only have to save another $4,000 for August to pay for next year’s preschool and then I think we’re on a regular budget for all this.

I’m looking forward to this but I don’t like the lack of momentum. There are always things that come up. My husband says we need a new lawn mower. My wedding band needs repair.  We need a booster seat, as my oldest has outgrown his car seat and isn’t big or heavy enough to sit on his own.

Ah, life, it’s pricy!