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End of Year Financial Housekeeping--Debt Paid Off in 2012

December 31st, 2012 at 09:44 am

Well, it's nowhere near the $57,010.88 of principal debt we paid off in 2011, but that had extenuating circumstances. I still think we did a good job with paying off over $21K of principal in 2012.

$18,544.28 Mortgage Amount as of 12/31/11
-14,948.33 Mortgage Amount as of 12/31/12
-----------------
$__3,595.95 Amount Paid Off in 2012

$20,228.79 Amount of Credit Card Debt as of 12/31/11
$12,514.07 Amount of Credit Card Debt as of 12/31/12
-------------------
$-7,714.72 Amount Paid Off in 2012

$87,000 Amount Owed to Mom as of 12/31/11
-77,000 Amount Owed to Mom as of 12/31/12
--------------------
$10,000 Amount Paid Off in 2012

So I paid off a total of $21,310.67 in principal this year. I have no idea what I paid in interest, but it was a lot. I have $104,462.40 left to go. All but $5200 of the credit card debt will be paid off by the end of January. That will leave me with a 0% loan from Mom, a 0% $5200 credit card debt (well, $5100 since I will pay off $100 of that in January), and the mortgage which is currently just under $15K.

As usual I am not including the car loan. I never have included car loans. Probably because if we had to sell it and not have one it wouldn't affect our bottom line. We barely drive as it is. We have 12,000 miles on our car and it is a 2010 and probably 4000 of that was on driving vacations, which again, could be easily cut without affecting our bottom line. I may put it up there after everything else is paid off, but I consider it more or less a fixed expense. It's at 1.9%.

Mom still wants the steady $1000 a month so she has a steady income stream to go with her social security check and can put a little in the bank for emergencies, so she doesn't want us paying it off early. So that is another 6 years and 4 months worth of payments to go. This will be the first year where we shouldn't have to take a month or two off from paying her back, due to high medical bills.

We also paid a little over $12,500 in medical expenses out of pocket, $6500 (the HSA amount) of which we will get back on our tax refund.

By the end of March or April (depending on whether or not taxes will be refunded promptly) I can pay off the last of the CC debt. And then just deal with the mortgage, the car loan, and Mom. So two secured debts and no unsecured debts. Well, I suppose technically the loan from Mom is unsecured, but she's my mother and there is no way on God's green earth that I will not pay her back. So that loan is very secure, so to speak.

So I will be focusing on the mortgage and the EF after CC's are gone. I'd like to get that finished off by the end of 2013 unless we manage to sell it. We should be able to do that with no credit card debt left. Also will be building the college fund.

4 Responses to “End of Year Financial Housekeeping--Debt Paid Off in 2012”

  1. Momma and the boys living on budget Says:

    Great job of paying off 21k worth of febt

  2. Swimgirl Says:

    I'm surprised. If I were your mom, I'd take the early payoff and put all that money in a high-interest account!

  3. FrugalTexan75 Says:

    @Swimgirl - my grandma is like that too - she'd prefer to have a steady amount of money coming in each month that she can figure into her budget. It doesn't make that much sense to me either... but it does to her.

  4. LuckyRobin Says:

    Yeah, but at $12,000 a year (or a little less) it doesn't trigger the gift tax. Since there is no official loan on record, she doesn't have to claim it as income, but if we give her more than $12,000 a year she'd have to claim what was over for the gift tax. And that will get her to about age 80, but no one in her family has ever lived past 77, so I think she thinks she won't either. I don't know. She comes at money with a different perspective.

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