OK, I've updated my info with scary, scary new numbers, and made a new payment plan that incorporates the minimum principal we all typically pay in a month, plus $555 to pay down principal in the proposed amount of our spring '08 England trip (figured into our debt as $5,000 estimated future debt).

I'm calling it The Ad Hoc Plan, because hopefully I'll be able to switch to a more aggressive plan once I find out what NT's going to bring home once he finishes the temp-to-perm transition (which feels like it's taking forever!)

The new goal is to pay off $2,185 of principal per month through March 2008. We've paid $1121 so far in August, so we have $1062 to go by 8/31/07.

Well, I'm still getting my new total debt (with NT's now included) figured out, and waiting to hear what NT's salary will be so I can work out a payment schedule. Meanwhile, I'm going to keep to my 1099 + 555 Plan like nothing happened, because it will help me stay sane to have something to keep track of.

My mortgage payment came through and $283 went toward principal. So $683 down and $971 to go for the period of 7/26 to 8/26.

I'm going to update my sidebar without NT's debt for the time being. When I do update it with all I know, I'm going to keep that first successful goal for 7/26 at the top, just to remind myself that I didn't fail, just had to shift my priorities.

Just realized I had enough money to cover another $200 payment that was scheduled for next month. So $400 paid, $1,254 to go for August!

I may not get very far in this challenge before I have to reformulate it--but if so, it will be reformulated to be even more aggressive about debt repayment, so that'll be a good thing! Meanwhile, until I find out what NT's exact salary will be, it's business as usual with the 1099 + 555 Plan.

Well, the next month of my challenge doesn't technically start until July 26, but I realized I have enough money to make a small payment, so I put $200 toward principal debt. My line of credit debt is now less than $1,000!

So, $200 paid, $1,454 to go by Aug. 26.

In other good news: Our best friends' ceremony was this weekend. I had all sorts of chunks of money set aside for all our various obligations for it. Well, it looks like we got in at least $20 under budget, and that's after buying a few extra things. If the grooms remember to pay us back for those, we'll be more like $60 under budget!

Also, NT is almost certainly guaranteed a job at the place where he's temping. It should be quite a bit more money and a lot more fun for him. He's waiting to hear from another place as well, that has its own pluses. Either way, we should be a lot better off soon!

CJ

Debt starting 7/26:
Personal loan: 29,525
Reserve line: 1,101
Credit card: 18,197
Trip to England: 5,000
Mortgage: 183,996
Loan from Dad: 7,000
Student loan 1: 16,129
Student loan 2: 3,388
Student loan 3: 12,848
-------
7/26 total debt: $277,184

Goal for 8/26: $275,530

6/26 total debt: $278,917
Goal for 7/26: $277,263

Actual debt balance on 7/17: $277,184

Ahead of goal by $79!

Yee haw! My final payment for the month came through; I was expecting $398 to go to principal but wasn't sure since this is my brand new loan. Instead, they whacked $475 off the principal balance! This means I met and exceeded my first month's goal for my 1099 + 555 Challenge! Let's hope it bodes well for the rest of the challenge as well.

Results for the first month coming as soon as I tally them...

Today a student loan payment showed up (I paid it over a week ago, but I don't count anything till I see it registered in the online balance), so $50 toward my goal. $1093 paid, $561 to go!

I have a loan payment going out Monday that I estimate will pay $398 toward interest, which would leave only $163. Well, I have enough money in the bank to do that and still cover expenses till NT's payday on Friday, so I went ahead and made an extra payment of $165 to my reserve-line debt. $1258 down, $396 to go. Now I know I'll hit my goal when my loan payment clears next week. Hooray!

Made my regular payment to my reserve line today, plus a little bit extra, so that's $55 more toward principal.

My goal is to pay $1654 by 7/26, so that puts me at $611 left to pay, $1043 paid already. I have 2 more regular debt-bills this month, which should pay $398 and $51 in principal, leaving just $162 to reach my goal. Well, I was trying to save up $200 for an extra payment to my reserve line (small, high-interest debt driving me crazy), but even if I just put together $170 I should be in the black (goalwise). That's encouraging, since this is my first concrete goal and I really want to make it to show I can! :-)

CJ

My regular credit card payment hit: $306 toward principal.

$988 paid to principal so far this month, $666 to go by 7/26! Woo hoo, I'm past the halfway point!

Paid an extra $200 toward debt today; $682 paid to principal so far this month, $972 to go by 7/26!

Well, I haven't made too much progress in my 1099 + 555 Plan, but a little. Most of my bills are coming soon, so I'll see the needle move more then.

On Friday I paid $200 to my smallest, highest-interest debt, the line of credit on my checking account. Not a scheduled payment, just extra to principal. And today my regular mortgage payment hit, so $282 to principal.

$482 down, $1172 to go by July 26!

CJ

Debt starting 6/26:
Personal loan: 30,000
Reserve line: 1,721
Credit card: 18,503
Trip to England: 5,000
Mortgage: 184,278
Loan from Dad: 7,000
Student loan 1: 16,129
Student loan 2: 3,438
Student loan 3: 12,848
-------
6/26 total debt: $278,917

Goal for 7/26: $277,263

OK, so I figured out how I'm going to "save" for my trip to England while putting the money toward debt instead of actually saving: I'm just going to make sure I pay off an equal amount to what I think I might pay (worst-case scenario) for the trip.

I'm saying the trip will cost $5,000, even though hopefully it will cost less. It's in nine months, so I have to pay off extra debt to the tune of $555 per month between now and then.

Right now, I pay off an average of $1099 of debt per month. Thus, for the next nine months, I have to average $1099 + $555 in monthly debt reduction, or $14,886. (I've already added the $5,000 to my total debt, even though it's hypothetical, and will treat it as real debt until the trip, so I'm under no illusions as to what I have to do.)

Next entry: My starting point of debt.

We were talking today about how we really want to go to England next year for NT's sister's wedding (we'll also work a lot of family and friend visits into as short a time as possible). We have no idea how much plane tickets (for 3 people) will be in April, nor what our lodging expenses will be (whether we can swing staying with others the whole time, or if we'll need to get a hotel part of the time), nor whether we'll need a rental car for part or all of it (probably, and gas is ungodly expensive in UK compared to US).

So I decided to presume worst-case scenario and begin to prepare for that. I went on orbitz.com and started planning a 7-day vacation for 3 people with airfare, hotel, rental car and gas, and $500 (250 pounds) spending money for the entire week. It came to about $5000. (Yikes!) So, I'm thinking that's the outside number and we'll be able to get in WAY under that.

At first, I was going to try and save the actual money for the trip, but then I realized it would be a waste to sock that money away while we're still paying interest on debt. So I'm going to add $5000 to our overall debt calculation, pretend it's already there as a 0% interest debt. Then I'm going to pay off debt as aggressively as possible in other places instead of saving that money. When it comes time to pay for the trip, I'll use a low-interest credit card for it. I think this will save us paying some interest in the long run, and seeing that $5000 debt on my list will drive me nuts, causing me to really pinch pennies and pay debt off faster. Plus, the actual trip will probably be much cheaper, and our tax refund should pay for a good chunk of it, so I'll get to wipe off some "debt" after the trip instead of adding some on!