In January of this year I decided to really focus in on the elimination of debt. Since all debt is not equal I created tiers for my debt:
- Tier 1 – Consumer debt – the shittiest of all debts. Some of this is rolled in debt at a low interest rate, but it is for purchased, mostly consumer, items.
- Tier 2 – Includes 3 long term debt items that aren’t dire but should be taken care of eventually. They include the debt on my solar panels, debt associated with my boat and debt on my permanent life insurance policies.
- Tier 3 – Not on my radar just yet but these are mortgage obligations.
This past month was a rough month in terms of spending! We finished up the home renovation project which cost a pretty penny then we throw in our anniversary, The Wife’s birthday, and getting the boat back int he water bill, and the Credit Card has smoke coming out of it! Probably the reason my subconscious “forgot” to put together a net worth update a few weeks back.
I almost delayed on this post too, but forced my way through it, and yes it was painful. Last update I was at 83% of my debt from 1/1. This month it ticked back up to 85%. Going the wrong way is frustrating, and unacceptable.
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