Towards being debt free: September 2014

19. september 2014

More than a year has passed since my last update.

I have been paying off both my part of the bank loan and also my tax debt.

The bank loan is actually two loans on which my ex-wife and I both make equal payments.

The bank recently agreed to split our two mutual loans into two personal loans. For my part this was to be on three conditions.

1: I must make an extra payment on my new loan of USD 8,900 and

2: My tax debt (USD 7,450) had to be paid off within 2014 and finally

3: I must make a monthly payment of USD 1,275 on the new loan.

I was able to meet those three conditions by securing a family loan with no interest and no monthly payments.

The new monthly payment is equal to what I have been paying until now to the bank and to the IRS.

My new debt situation as of October 2014:

Debt Pricipal
May 2009 October 2011 July 2013 September 2014
Mortgage 1 286,667 Payed off Payed off Payed off
Mortgage 2 178,333 Payed off Payed off Payed off
Mortgage 3 159667 159,667 Payed off Payed off
Bank loan 1 101,000 119,500 60,869 Payed off
Bank loan 2 64,333 Payed off Payed off Payed off
Bank loan 3 58,333 Payed off Payed off Payed off
NEW
Bank loan 4
54,545
Private loan 1 1,833 5,000 Payed off Payed off
Private loan 2 64,333 Payed off Payed off Payed off
NEW
Private loan 3
16,364
IRS tax debt 0.00 0.00 11,000 Payed off
Total debt 883,499 286,667 71,869 70,909

My accounts are still the same. Checking account for daily expences like food, clothes and gifts, usually paid with my debit card. Expense account for monthly expenses. This account is also where all income is going. From this account I now transfer a weekly amount to the checking account. Savings account which is my emergency account which currently holds USD 1,180, the goal for this account is USD 3,000.

Plan:

  • Build emergency account to USD 3,000
  • Pay off bankloan in 4 years
  • After that pay off family loan in 1 year
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