Hello and welcome to our November 2017 Net Worth Update. This is an exciting update because this is the month that reflects the changes I decided to make in October. I signed up to be a personal shopper through Shipt, and decided that any money I made over the amount to pay for gas and save money for taxes would go toward my student loans!
This is also the last month with my tiny $90.61 minimum payment so I really think that this should be the last month that any of my liabilities grow instead of gradually coming down and dropping off.
Our home is the asset that dropped the most this month, but that’s nothing compared with November 2016 when it dropped over $1,000!
Our Christmas Club account matured November 1st and was added to our regular savings account. We are going to use the funds at the end of November for Black Friday shopping, after paying off a debt of course. More about that below.
Our Savings – Car Insurance fund also dropped because my hubby borrowed money from it for a table top arcade system he’s been wanting. The game system is pretty cool, and it’s this consideration for each other’s wishes that makes our debt free journey possible. It can’t be all work and no play so I’m okay with this every once in a while. We will be replacing the lost funds at the end of this month and paying our car insurance December 1st. The charge will actually hit our credit card November 11th and earn us 1.5% cash back and we will pay the credit card December 1st.
Only one account grew this month: Navient, and by a whole lot less than usual! That’s because every week I paid an extra $25-$50 with the money I earned from Shipt. As of December 1st my minimum monthly payment increases from $90.61/mo to $217.47/mo. So I really don’t think we should see this one growing anymore.
Speaking of which, I have been really reviewing my statements lately for my Navient Posts and I have student loans that have grown SO MUCH. Ones that started out at $6,000 and are $8,000 now. I think I’m going to make a post about each one and how it’s grown.
In happier news, check out the Equinox account! We had money left over after paying all the November bills and we paid an additional $554 on the Equinox! Once this bill is gone we will save $475/mo until we have to get a replacement car in March. We haven’t been saving up for a replacement car because we’ve been focusing on debt pay off instead. Even though the Equinox doesn’t charge us interest I chose to pay this one off because it frees up so much money per month.
At the end of this month, we are planning on paying off the Equinox and then using the rest of the money for Black Friday shopping. This is when we will get a start on our Christmas shopping and really treat ourselves to whatever we want this one day a year. Last year I got 2 boxes of Tupperware, a crock pot set for keeping our Thanksgiving and Christmas Eve dinners warm, leggings, boots, a basket set with fabric liners, and a couple of chenille knit throws which I adore.
I haven’t for sure decided the next debt I want to attack, but I think it will be the CP Personal Loan. Both it and the CP Visa are my highest interest loans with 9.5% each. I really looked forward to doing a balance transfer through Capital One but I haven’t gotten an offer in so long I’ve kind of given up on that option.
If I were to get the balance transfer option, I would probably then start working on my debts in the typical debt snowball fashion: from smallest to largest. As of right now my smallest 3 debts are:
- Equinox – $800 (0% interest/ $475 per month)
- Navient Account #9 – $1,165 (6.5% interest)
- Home Depot – $2,625 (0% interest/ $175 per month)
As of right now, my motivation isn’t particularly high to work on Navient any more than I already am with my side hustle. For one, I already give it extra money and for two, this debt doesn’t “hurt” as much. It should! While paying it off doesn’t make my payments any less, intrinsically I know it betters my future so hopefully my feelings on that will change in the future.
As for the next couple of months I’m not sure if there will be a lot going on in the debt pay off department what with our annual Black Friday splurge and Christmas spending and recovery coming up, but we will see.
I’ve also been thinking about adding a line item to our debt snowball to get rid of the PMI on our home loan. Right now our mortgage payment includes $54.54 going in to escrow to pay our private mortgage insurance. This will stay on our loan until our balance is at 78% of the original value of our home according to the appraisal done when we purchased it. Our home appraised for $72,000 then and our balance is now just under $62,000. We would have to have a mortgage balance of $56,160 in order for the PMI to fall off on its own and without us beeding to pay for a second appraisal. We are currently $5,621 short of that. Do you guys have any thoughts about accelerating our mortgage principal payment to get rid of PMI? We would of course continue paying the same mortgage amount we have been all along so that $54.54 a month saved would go right on the principal. So the $5,621 would save us a ton of interest over the life of the loan, and then the $54.54 extra every month thereafter would also save us a ton. I’m seriously thinking about it!
At the end of October we were able to reduce our debts almost $2,000 and increased our net worth $1,580 for a total net worth of $(46,408)!
Thank you for reading and please check back for more information on my progress paying my student loans down!