Fabulous Financials

Archive for the 'Debt Reduction' Category

Calling For Debt Payoff Incentive Updates

November 13th, 2007 Comments(1)

The year is winding down and the Debt Payoff Incentive will soon come to an end. Back in March, I promised that I’d offer a few incentives as motivation to pay off as much debt as you possibly could by the end of this year. Well, there are only 2 months left!!! Just to refresh your memory, here are the incentives:

1 – Expense paid consultation to see a financial planner in your area.

2 – Free one year subscription to any financial magazine of your choice.

3 – Free personal finance book of your choice.

4 – Three month commitment from Single Ma to be your personal “coach” as you strive for financial freedom.

This means at least FOUR people will receive something, but it’s based on HOW MUCH you’ve paid off since April 1st. Maybe someone is on track to join me in the debt freedom club. Who knows? So if you’re a DPI Crew Member and we’ve communicated about debt via email throughout the year, please, get me your updates!!

K’thanks! :-)

~*~*~*~*~*~
Work to achieve, not to acquire.
And as always, BE FABULOUS!

Email Update From Sallie Mae

November 12th, 2007 Comments(1)

In response to the 21 cents…

Dear [insert my FULL gub'ment name],

Thank you for your inquiry and for your business with Sallie Mae.

Our records show that you have completely paid off your education loans. There is no need to send the $0.21 balance. We will send you official notification and notify the credit bureaus approximately 30 days after the final payment was received. Your credit report should be updated within four weeks of the notification.

Congratulations!

If we may be of further assistance, please visit our Web site at www.SallieMae.com.

Sincerely,

Customer Service

Yes, you can be of further assistance. Since you already told me that on the phone, I didn’t need it in an email too. *thinking* I wonder if they read this comment. Ha!

Now cut the crap and send me a payoff letter already! You know I want it like a fat kid want cake. LOL I already know it will come via email in a .pdf, password protected with my social security number, format. *dreaming of big fat zeros* So stop playing b’for I go postal on ya!

K’thanks! :-)

~*~*~*~*~*~
Work to achieve, not to acquire.
And as always, BE FABULOUS!

Special Announcement

November 10th, 2007 Comments(44)

I’M YELLING FROM THE MOUNTAIN TOP!!

It is official!!!

As of 9 November 2007, Single Ma is now:

No more student loans.

Twenty-one cents of interest compounded before the online payment posted. The website will not allow a payment of less than $1 and I refuse to buy a $0.41 stamp to mail a check for $0.21. According to Sallie Mae, it will be adjusted next week but I’ll keep my eye on it though.

When I receive the official payoff letter in the mail, I’m going to buy my first bottle of Clos du Bois Merlot. LOL!

No car loan.

No personal loans.

No revolving credit card balances.

No consumer debt AT ALL!!

FULL DISCLOSURE:
I have mortgage debt on rental property that generates passive income.

Over $25,000 of debt paid off in 1 year and 5 months. A long road, but I’M FINALLY FREE! And it feels so damn good!! :-)

Special shout out to Ms Jayy for leaving one of the most interesting comments in the history of my blog:

Ladies & Gentleman,

Please keep your hands inside the vehicle as we round the curve of “Hot-dayumn-no-mo-debt” and head up the hill to “Fabulously Financially Free”. Please make sure your trays have been put away and your seats are in the upright position. And as always, thank you for traveling “Single Ma ain’t no joke” Debt Express…

Management

HA HA HA y’all better watch out there now!! LOL

~*~*~*~*~*~
Work to achieve, not to acquire.
And as always, BE FABULOUS!

Debt Got You Down? Take Your Life Back…TODAY!

October 17th, 2007 Comments(12)

Regular readers of SMFF already know, but back in June 2006, I was $25,000 in debt. Today, I owe less than $2,000 and on schedule for a 1.5 year debt payoff plan. I’m not finished yet, so I’m not ready to explain ‘how’ did I do it. But I can tell you how to get started.

If you’re overwhelmed and debt seems to be taking over your life, here are a few steps that may turn your finances around:

STEP 1:

Stop incurring new debt. Stop balance transferring. Stop consolidating loans. Stop refinancing your house. Stop using debt to pay off other debt. Stop using credit cards. Even if you think you can pay the bill in full, don’t tempt yourself. Stop using debt instruments as a means of payment.

STEP 2:

List all of your bills in an Excel spreadsheet – excluding debt (for now). List all of your household bills and your regular living expenses. Study that list and decide what is a need vs. a want. Think about what you can live without (i.e. cable tv, cell phone bells and whistles, extra home phone features, extra grocery snacks/goodies, etc.). The takeaway should be a list of expenses for things you absolutely NEED. I mean a NEED as in – if you didn’t have them, you could not function.

Single Ma tip: This project will take some soul searching and may require you to get financially naked. You have to be honest with yourself in order to dig out of this hole. Here’s an excellent article on needs vs. wants.

STEP 3:

Anything that is not an absolute NEED, get rid of it. I know this will be hard, but it’s necessary if you’re desperate. Later on, you can slowly add them back into your life.

STEP 4:

List ALL sources of income.

Edit to add, courtesy of a comment from Boston Gal:

Can you think of ways to increase your income to pay off your debt faster?

Moonlighting and dedicating extra income to paying off debt does a couple of things for you – it speeds the debt repayment and keeps you too busy to spend money.

STEP 5:

Subtract your NEEDS from your TOTAL income.

How much do you have left?

If this amount is zero or negative, you are living beyond your means. As long as this continues, there is no way out of debt because you will continue to dig yourself deeper into debt. If this is the case, you need to go back to step 1, review your needs vs. wants again, and cut out some more.

Single Ma tip: If you have reached the bare bone minimum and it is impossible to reduce your living expenses anymore (remember: this excludes debt payments), then you will need to focus on increasing your income. Obtain a better paying job, look for part time work, create passive income, etc.

STEP 6:

Once you’ve trimmed the fat and your spreadsheet shows positive cash flow, then you should create a budget to make sure you stay on track from month to month.

STEP 7:

After all of the above is complete, then and only then can you afford to pay off debt without creating new debt. Once you’ve identified cash flow, put the smack down on that debt like it stole something from yo’ mama! LOL And if you get distracted by the retail dope fiend, umm…don’t call me. You on your own cuz Single Ma gets weak too! HA HA

Seriously, if you get discouraged, don’t beat yourself up. In the grand scheme of things, it’s only money. Don’t let it make you sick. Create a plan, follow through, and don’t give up.

~*~*~*~*~*~
Work to achieve, not to acquire.
And as always, BE FABULOUS!

Hey Debt, You’re Going DOWN Baby!!

October 16th, 2007 Comments(20)

[click to enlarge]
Current balance $1,900. Recently paid another $500. And guess what? I figured out how to become debt free before the New Year!

Did you know there were 3 pay periods in November? Oh, you didn’t? Me either…until Tired of Being Broke mentioned it the other day in email. Don’t worry, you can thank us later. LOL But yes dear, November has 3 pay periods and that means I’ll have an entire paycheck to apply solely to debt. Wait, it gets better!

I know you’re probably thinking ‘dis chic is crazy!’ but I’m really not this time. For real. Check it. I get paid bi-wkly, technically on Monday, but I can access my money on Friday. So that means in October, I will get paid on the 5th and 19th. Then in November, I will get paid on the 2nd, 16th, and 30th. Since the two heavy hitters (mortgage and rent) were done, I used the Oct 5th paycheck to schedule online bill payments for the rest of the month.

Now here’s the fun challenge: if I can live on the remaining balance (approx. $960, which has whittled down to $481) for the next 3 weeks, I can hustle that extra November paycheck right now! How? Well I thought you’d never ask. :-)

The mortgage and rent have a 5 day grace period, so technically, I have until the 5th of the month to pay without penalty. Instead of paying on the 1st, I can schedule the mortgage/rent online billpay for the 5th, which will intercept the November 2nd paycheck. And this, my friends, will free up the entire October 16th paycheck for debt! Woo-hoo!

After all payroll deductions and post-tax saving/investment contributions, my net income is approximately $1,900. I can either send the entire paycheck to Ms. Sallie and tell her GOOD RIDDANCE! Or send a large portion and split the balance between November and December.

Aww shucks now! Go Single Ma!!

*dancing* Don’t stop, get it, get it!

Now why would I want to do this? Well, for several reasons:

1 – This will free up two months when my expenses are at their highest.

2 – Making the sacrifice NOW will allow room for guilt-free holiday shopping in November and December. Mapgirl and I already have our first excursion planned for the 3rd.

3 – It will give me an incentive to control spending for the rest of October. Hmm…

4 – The plan is simple and achievable.

5 – Becoming debt free is a fabulous way to close out another fabulous year!

*passing the mic for audience opinion*

~*~*~*~*~*~
Work to achieve, not to acquire.
And as always, BE FABULOUS!

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Archive for the 'Debt Reduction' Category