State of Debt
I used to make regular net worth updates and then post them here on my blog. I still regularly track my net worth, although I just don't post them here anymore because, honestly, I'm disappointed with myself and my failure to dramatically increase my net worth.
But since this is a personal finance blog after all and I would like to be held accountable for my actions, instead of my net worth, I am going to publish how much debt I'm in and then track that. I have a feeling I'm going to regret this airing of dirty laundry, but what the heck, I never claimed to be a personal finance rockstar. So here we go:
Mortgage 1: Php648,349.92
Mortgage 2: Php448,622.78
RCBC credit card loans
- Loan 1: Php16,421.88 (fully paid by November)
- Loan 2: Php25,545.12 (fully paid by January 2018)
BPI credit card loans
- Loan 1: Php1,999.58 (fully paid by end of May)
- Loan 2: Php41,954.49 (fully paid by January 2018)
- Loan 3: Php74,585.84 (fully paid by December)
- Loan 4: Php65,262.60 (fully paid by February 2018)
- Loan 1: Php39,983.40 (fully paid by February 2018)
- Loan 2: Php48,868.71 (fully paid by April 2018)
Personal loan: Php40,000.00
Total indebtedness: Php1,451,594.31 (mortgage loans= Php1,096,972.70; non-mortgage loans = Php354,621.61)
A huge percent of my debt can be chalked up to the two mortgages, with only Php354,621.61 due to credit card debt and personal loans. And most of these non-mortgage related loans will be fully paid off by the first quarter of next year, God willing. So konting tiis na lang mga bes.
The non-mortgage loans started to pile up by the last quarter of last year. I changed jobs which meant a 2-3 month salary delay, hence, I had to rely on my savings.
When the money did start coming in, my parents asked for help with their pool construction (I know, a goddamn swimming pool). My brother also started asking for help around this time. So instead of replenishing my savings with the monetized leaves and other benefits I received from my past employer, those went to my family.
Then my husband got sick and was hospitalized twice. Philhealth and his HMO took care of some of the expenses but we still took quite a hit because of that. Thankfully, his sister pitched in with some of the expenses and my cousin also lent me money. But by this time, my savings had been depleted and I didn't want to sell my stocks, which weren't doing that well to be honest. Hence the resort to credit card and salary loans.
In fairness though, I was surprised at the relatively low rates offered by RCBC and BPI credit card loans. I'm used to credit cards charging 3.5% monthly interest or 42% annually, but the credit card loans I took out were only between 11%-12% annually. It's not the friendliest rate, but it's definitely a discount when compared to 42%.
I'll be receiving some windfalls from work this month and the next, so those will go towards debt payment for this month and the next few months, because July-September will be devoid of any big bonuses, hence, the need to watch our expenses carefully.
I'm hoping that my parents and brother will be able to repay what they owe me soon, but I'm not counting on it. At least I still have the option of selling my stocks if money gets tight again or I could take out another loan. It's not ideal, but you have to do what you have to do.
Also, my husband is feeling much better so he's been aggressively looking for web development and writing projects and has picked up little projects every now and then. Admittedly, the money isn't a lot but I'm optimistic that he'll land a big project soon and we can be a double income household again.
God never give us more than we can handle, so let's do this guys and gals. No more traveling. A lot less eating out. No more treating myself and my family to whathaveyous and the thousand and one other useless things I tend to fritter my money on.
So help me God.