My credit car bills are too damn high! If you have read my blog articles Credit Cards: Leveraging the Right Way and Bought a Bargain Property: Now What?, then you know I used many credit cards to pay for a remodel on the new property purchased. My wife and I decided to move into the property and lease out our old home. The remodel took a bit of life from me but we pulled through but now we have to pay this darn debt. A month ago it was $70,000 on credit cards! Yikes! This is not helping my Multimillionaire Journey at all.
Fortunately we have until November to pay it off before interest kicks in. Right now, this is what we owe:
Total of $48,837.47 on my credit cards and about $8000 on my wife’s for a grand total of about $56,837.47 owed! At least it’s not $70,000 like a month ago. This definitely puts a dent on two immediate goals of mine. One is to apply for a line of credit to buy a future property. Many banks will disqualify me for having too much debt. Two is to save to purchase more property. Any money that could be saved will be going to pay off this debt. Bummer.
My goal is to pay off all the debt by September. I didn’t want to put any of this debt on credit cards. The initial idea was to place everything on a line of credit but we got rejected about 5 times for that! Putting everything on credit cards was our second option. And here we are!
The majority of our income comes from our rental properties–not by much though. My wife just recently went back as a teacher and I have been a substitute teacher for several years now. Combined our disposable income is about $3800-$4200 a month after taxes. Our disposable income on our rentals after ALL expenses runs between $4000-$5000 a month.
Another help is we are not flashy so our expenditures are low. We have paid off vehicles. We eat out once a week. Most of our outings are free and deal with nature. We keep our thermostats at 80 degrees during the summer and at 67 degrees during the winter and have it completely off during spring and autumn. I joke with my wife that if we are so simple why did we spend so much remodeling this house! My credit card bills are now too damn high!