I started to actively log my family's debt progress last Novemebr in the SA forums. I thought it was time to check progress made over the past 12 months.
Mortgage debt on for sale house decreased by $2,600.
CC debt decreased by $8,684.
Automobile debt increased by $6,362.
Mortgage debt on house we currently live in unchanged (this is family borrowing, and we plan to start moving on it during the next 12 months).
Total debt decreased by $4,954.
Average interest rate (all debts) Nov. 2010: 7.02%
Average interest rate (all debts) current: 6.19%
Average interest rate (CC) Nov. 2010: 10.66%
Average interest rate (CC + auto) current: 5.88%
So, it's an improvement, a step in the right direction, blah blah blah. Obviously, we would be in much better shape without the auto loan. But, I still stand by our decision. It made sense at the time.
What I'm happiest with is the decrease in average interest rate over the past 12 months. A function of attacking high interest debt, and of course the credit card company with the big balance dropped the rate by 4 points in June.
Progress in the past 12 months
December 7th, 2011 at 01:50 pm
December 7th, 2011 at 02:07 pm 1323266857
December 7th, 2011 at 03:23 pm 1323271415
I don't know the details on your auto loan, but I know way too many people in your shoes who thought a $20,000 car loan was their only option. (Nothing less could ever possibly be safe and reliable!!). So whatever the details, I can certainly respect that you only chose to add $6300 in auto debt this year.
December 8th, 2011 at 02:28 am 1323311280