Hello! Happy Labor Day!
The morning, it is quiet. My kid is out playing golf and I decided to do a post with some actual numbers. I don’t think I’ve ever shared what I’m actually getting discharged.
Pulling out the paperwork and looking at these numbers is not something I take pleasure in doing. I kind of filled them out, signed them and gave all the info to the attorneys that they needed. Once all was said and done, I put them in a cabinet and play by the rules each month to hopefully get to a successful completion.
I need to take a look at these numbers because I think it’s a boost for me, give me a positive perspective and also share a bit more with you what my financial landscape looked like back in October 2012 when I filed.
This is the debt that I filed Chapter 13 on almost two years ago, next month.
Condo Second: 53,465
Condo Heloc 8,318
$89,328 almost $90,000!
I don’t make that in a year!!!!! Not even close!
$89.328! I look at that number now it looks crazy insane to me. I know how it happened. You can read about it on my about page.
I’ve learned so much in the last two years. Once this is over, I know for a FACT that I will NEVER let that happen again. I can use the word NEVER here with certainty. This is a huge learning experience for me and now that I see what I was up against I know that I made the right decision.
I will get into trouble if I don’t get an emergency fund in place. I have got to get busy! That is more certain now that ever.
I broke it down ever further. I take the total and divide it into 5 years, I am paying off $17,865 a year.
If you consider the loan of $53,465 at interest of 8%, that would never have gotten paid back. Every month I kept paying and the amount never went down. I was so upside down in my condo it wasn’t funny.
Finally I made the decision to file. What is very sad is that back in 2009 I came so close to filing and then decided to keep trying to fix it myself. By 2012 I realized I could not fix it myself. Had I filed back in 2009 I would be done by now and my life would be set. It would have been perfect timing for which I kick myself in the butt!
OMG, I remember the nights I would try to figure out snowballs and debt repayment on my own. I was addicted to all of the financial gurus and I tried it all only to fail and realize that there is no way on my own could I dig myself out. It was horrible stress. Actually more horrible stress than being in a Chapter 13. There was no end in sight.
This is a solution, there is an end. It might not be soon, but there is an end.
I look at it this way. I’m paying back approx $17,865 per year, so far that is $35,731 and there is no way I could ever have done that on my own. That would have been $1488 per month if I tried to pay it back on my own. More actually because there would have been interest. I know my numbers are really rough! ;-) I am not paying nearly that much. I can’t because there would be nothing left!
I need to keep that in mind.
Oh and as far as the Chase and Heloc? I would never have been able to pay those off and now, at the end of this BK, they will be stripped. GONE! More about lien stripping here and this condo (for what its worth) will be mine without any liens on it. That would never have happened. That is the main reason I chose a BK 13 over a 7.
13s are so much harder than 7s. You have to pay back some of the debt. In a 7 you can just wipe it out and move on. Heaven! But you cannot strip liens in a 7 and to me, that was the biggest debt I had.
Its been tuff, but I have to keep my eye on the prize. By the time I’m done, I will be 57 years old and my financial landscape will be where it should be.
I have a renewed ambition to get back on track. I can’t wait for Cabo now. That purchase was a huge mistake but that Vacation will be the last BIG one for us for the duration. I will use it as a rejuvenation time to come back with a renewed strength to get through the next 3 years to a successful discharge.
So there are my numbers. I remember the lawyers told me that if you can’t come up with a plan to get yourself out of debt in 5 years (Sixty Payments) then you need to really consider a BK. That is why it is there, for people to get back to good!
What a way to start the Labor Day huh? A labor of love, to you and to me.
DebtGirl (for three more years)!