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)
Salary loan
  • 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.


Rae said…
Happy to hear that your husband is feeling better!

I find myself in a similar situation last month and I also can't sell stocks, they're in the red. We did it once, we can do it again!

This time, I'm investing on my health, too.
Kaya mo yan Jill! Konti nalang balance ng mortgage mo. while in between jobs I found myself dipping into my emergency fund a few years back too. My EF was fully invested in stocks and I sold at a PhP 6,000.00 loss. It felt like borrowing money from myself
Jillsabs said…
Hi Rae,

Did you take out health insurance? I just took out 2 health insurance policies with critical illness benefits myself and 1 on my husband, since I saw firsthand how much "ubusan ng pera" happens when you or a family member gets sick.

It's the same with HMO too. Right now, I have HMO with my employer but my dependents don't have the same privilege, so I sometimes find myself fantasizing about a job offer I passed on because it had a very generous HMO benefit for its employees and their dependents. Drool worthy talaga.
Jillsabs said…
Hi George!

Gora lang talaga ng gora. Alangan namang I will just curl up in a corner and let my debts overwhelm me. We shall overcome! (cue inspirational song)
Jun said…
Sounds like you have turned a corner, Jill! Congratulations and keep up the positive vibes. Glad your hubby is feeling better too.

Is the swimming pool an investment for your family resort? If so, I think that will pay for itself in the future.

By the way, when I read your blog, I do get inspired and motivated to keep on the path to freedom (although I have strayed a couple of times). I have just posted a long overdue net worth update so appreciate if you drop a comment there (critical feedback is appreciated).
Francis said…
You're amazing not to mention brave for disclosing all your debts. It too shall pass like everything else & you'll be better than ever. God Bless Jill & Im looking forward 2 your future posts!
Jillsabs said…
Hi Francis,

I was leaning more towards foolhardy than amazing and brave, but I'll take it!:p

Thanks so much for the words of encouragement, I really appreciate them :)
Jillsabs said…
Hi Jun,

The swimming pool actually adds value to the resort and with it, we'll be able to accept events like weddings, parties etc. So it is an investment but I'm not sure what the ROI is. But at least it keeps my family happy and busy.

I'll drop by your blog soon!
edelweiza said…
Good to know your hubby is feeling better now. Naku, ang bilis ng 2018, before you know it, bayad na mga non-mortgage loans mo. Kaya yan, Jill, ikaw pa ba! :)
Jillsabs said…
Thanks Edel!
Angel said…
Ms Jill, I wonder kung ano po pinag-gamitan nyo ng loans? gamit po sya sa bahay? Salamat
Jillsabs said…
Hi Angel,

Nagpautang ako sa parents ko at kapatid. Tapos, nagkasakit ang asawa ko kaya naubos na ang emergency fund ko. Meron naman akong pera sa stock market pero hindi pa kasi ako kumikita doon, kaya napagdesisyunan ko na umutang na lang kasi mas malaki ang mawawala sa akin kung ibebenta ko ang stocks ko kesa kung umutang ako sa bangko.
[…] my State of Debt post written almost two months ago, my non-mortgage debt amounted to Php354,621.61. Currently, […]

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