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 Post subject: Re: SuzWantsToBeFree - 2011 Where do I start?????
PostPosted: Tue Feb 01, 2011 7:51 am 

Joined: Tue Jan 25, 2011 3:43 pm
Posts: 94
Fantasma,

As for the HELOC, please give my your thoughts on this. The HELOC is on my rental property and it is a 2.5% interest rate loan. It will always be deductible because it is a rental expense. Whereas my primary home loan is 4.25% interest and I am getting close to being a standard (non-itemized) filer anyway. Do you still feel that the HELOC is the thing I should be working on? Additionally, I hope to sell the rental in a 5 year time period once I have the ability to sell it without taking a huge loss.

As for the furniture, it is a zero percent loan and by making the minimum payments it will be paid off long before 3/13 when the interest rates will reset. I have been thinking about just paying this off but with such a low EF and no interest on this loan, I have just decided to let it be.

What do you think - I am always looking for a different perspective :)


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 Post subject: Re: SuzWantsToBeFree - 2011 Where do I start?????
PostPosted: Tue Feb 01, 2011 8:42 am 

Joined: Wed Oct 07, 2009 4:16 pm
Posts: 961
Ok I see why your doing what your doing.

Personally I don't like the idea of a heloc, I am not too savvy on itemizing etc. Its just a portion of your debt portfolio to me.

Since your going to keep your primary home in the long run and your going to get rid of the rental ;it would make sense to me to get rid of the heloc and you can pocket more from the sale later on perhaps? I am guessing perhaps my assumption is totally wrong?

Why sell the rental? It's making money for you.

Another consideration is to pay whatever that's due on your bills, beef up your e-fund to your desirede amount and put the maximum in your 401k/IRA.

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 Post subject: Re: SuzWantsToBeFree - 2011 Where do I start?????
PostPosted: Tue Feb 01, 2011 11:23 am 

Joined: Mon Jan 11, 2010 9:06 am
Posts: 160
Location: Texas
I don't think there's anything wrong with handling it either way. It's a bit like the snowball by amount or interest rate debates.

I personally run a little more towards fantasma's view of getting rid of required payments as soon as possible. But I think your reasoning is pretty solid.


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 Post subject: Re: SuzWantsToBeFree - 2011 Where do I start?????
PostPosted: Tue Feb 01, 2011 11:57 am 

Joined: Wed Oct 07, 2009 4:16 pm
Posts: 961
Also research "backdoor Roth IRA" due to the income restriction....you still have a ways to go before retirement. You can do that once you've put in all that you can in your 401k.


:arrow: Make sure you understand everything clearly before you decide if its the right path for you. :!:

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 Post subject: Re: SuzWantsToBeFree - 2011 Where do I start?????
PostPosted: Tue Feb 01, 2011 1:10 pm 

Joined: Tue Jan 25, 2011 3:43 pm
Posts: 94
I actually talked to my CPA about retirement planning and he thinks there are a few more things I can do. With his advice, I may be able to put some money into the ROTH but we are going to work on that after the tax season as I don't think I will have the money to put aside $5000 for the 2010 tax year anyway. Maybe for 2011 :) That would be better for me in the long run if the choice is between paying down debt or saving more for retirement. Even if I just make the minimum payments on my mortgage it should be done by the time I retire.


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 Post subject: Re: SuzWantsToBeFree - 2011 Where do I start?????
PostPosted: Sat Feb 05, 2011 7:16 am 

Joined: Tue Jan 25, 2011 3:43 pm
Posts: 94
I have had a pretty good week this week. I have really been trying to control spending in every way - primarily by sticking to my budget. If I continue watching what I spend, I think I can pay for the legal expenses and not have to dip into my savings. That would be a really big accomplishment and my goal for this month. I should be able to do it!!!

Nothing yet on the ex - husbands end. The mortgage was due on the 1st and he didn't pay again. I am trying not to worry and let the attorney handle it, but it is hard not to worry as I see my credit rating drop when I have worked so hard to maintain it. :(


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 Post subject: Re: SuzWantsToBeFree - 2011 Where do I start?????
PostPosted: Sun Feb 06, 2011 6:59 am 

Joined: Tue Jan 25, 2011 3:43 pm
Posts: 94
I very much believe in God and the great things that He can do. This month I am taking on a big additional expense due to the lawyers fees.

I gave my Mom $300 last year to help her move back to Raliegh, North Carolina from the southern part of the state. I didn't expect to get it back but yesterday she mailed me a check for $330 for the money I previously gave her. I am trying really hard to not going into debt due to this added expense and this will help me pay some of this legal bill. Thank God for every bit of help I get when it is really needed. :clap:

Last night I had a "frugal" dinner out with my DBF. My company bought a table at a gala last night for the counties "person of the year". It was a really nice dress up event, a really good meal, and good speakers. We thoroughly enjoyed it and it didn't cost anything. (Well, I did get a manicure and pedicure, but that was it - gotta treat yourself a little bit :) )

Hoping for a calmer work week this week. Last week was a bear and I felt like I was living at work :) I got a lot accomplished, but I worked a lot too.


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 Post subject: Re: SuzWantsToBeFree - 2011 Where do I start?????
PostPosted: Mon Feb 07, 2011 6:01 pm 

Joined: Tue Jan 25, 2011 3:43 pm
Posts: 94
Some more good news today!!! I got a $2000 bonus at work.


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 Post subject: Re: SuzWantsToBeFree - 2011 Where do I start?????
PostPosted: Mon Feb 07, 2011 6:34 pm 
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Joined: Wed Sep 23, 2009 9:01 am
Posts: 5402
suzwantstobefree wrote:
Some more good news today!!! I got a $2000 bonus at work.


Wow. How many cars did you sell? JK, that's great...but why?


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 Post subject: Re: SuzWantsToBeFree - 2011 Where do I start?????
PostPosted: Mon Feb 07, 2011 6:46 pm 

Joined: Wed Oct 07, 2009 4:16 pm
Posts: 961
Say it with me "lawyers' fees"!

That's awesome news :inlove:

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 Post subject: Re: SuzWantsToBeFree - 2011 Where do I start?????
PostPosted: Tue Feb 08, 2011 4:24 am 

Joined: Tue Jan 25, 2011 3:43 pm
Posts: 94
I have taken on a lot of extra responsibility because of a second dealership that we just opened. In the past 4 months, it has required me to work a lot of extra hours, giving up the time of my employees (which results in me having to pick up some of their work), and basically training the staff at that store. My boss recognized my extra work and gave me a bonus. Honestly though, I would rather have the time back but since I cannot get that, the money is nice. Especially great is the timing. It seems like when I need the money it keeps falling from the sky :)

And yes, it is going to the lawyers fees! Today I have to go by the attorneys office and sign the papers so that we can proceed with this :(


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 Post subject: Re: SuzWantsToBeFree - 2011 Where do I start?????
PostPosted: Tue Feb 08, 2011 7:40 am 

Joined: Mon Feb 04, 2008 7:35 am
Posts: 1148
Location: Maryland
Congratulations on your windfall. That's awesome.

I agree with you that most of the time, time is better than money. I try to have a nice balance of both. :)


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 Post subject: Re: SuzWantsToBeFree - 2011 Where do I start?????
PostPosted: Tue Feb 08, 2011 4:12 pm 

Joined: Tue Jan 25, 2011 3:43 pm
Posts: 94
Right now I guess I should be grateful for the money!!! I signed all my papers today at the attorney's office and we found an address for serving him (evil ex :devil: ).


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 Post subject: Re: SuzWantsToBeFree - 2011 Where do I start?????
PostPosted: Sat Feb 12, 2011 3:32 am 

Joined: Fri May 09, 2008 12:00 am
Posts: 132
Yay for the money and yay for finding the ex's address! We're rooting for you!


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 Post subject: Re: SuzWantsToBeFree - 2011 Where do I start?????
PostPosted: Sun Feb 13, 2011 6:53 am 

Joined: Tue Jan 25, 2011 3:43 pm
Posts: 94
Thanks Saro!

On another note - because of the rent check, the bonus, the check from my mom and a little frugal spending I will be able to pay off the lawyers fees and all my bills. Hopefully I wil be able to save/pay down my mortgage with my end of month paycheck. Life is good - there is just a minor bump in the road right now.


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