The Happiest Time of the Year is Almost Here! (A Debt Update Post)
That's right boys and girls, end of year bonuses will soon be upon us! Wheeeee!
You can feel the magic in the air and see the twinkle in everyone's eyes because when you're a working stiff like most of us are, receiving a month (or two!) of your salary as a bonus is the thing dreams are made of.
While the impulse would be to spend a huge chunk or all of your bonus to celebrate Christmas, I personally see my upcoming windfalls as the best way to make 2018 easier by allocating majority of it towards debt payment. This year has been financially taxing, but with the careful allocation of this year's bonuses, I can make sure that 2018 will not be as financially difficult and will be the year I shift my efforts from mostly Debt Payment to Security/Safety.
And on that note, here's where I currently stand when it comes to non-mortgage debts:
RCBC credit card loans
- Loan 1: Php2,736.98 (fully paid by November)
- Loan 2: Php9,759.42 (fully paid by January 2018)
- Loan 3: Php36,493 (fully paid by August 2018)
BPI credit card loans
- Loan 1: Php1,999.58 (fully paid by end of May) FULLY PAID!
- Loan 2: Php13,984.83 (fully paid by January 2018)
- Loan 3: Php18,646.46 (fully paid by December)
- Loan 4: Php26,105.04 (fully paid by February 2018)
- Loan 5: Php23,760 (fully paid by October 2018)
- Loan 1: Php17,770.40 (fully paid by February 2018)
- Loan 2: Php26,655.66 (fully paid by April 2018)
Personal loan: Php30,000
Some eagle-eyed, long-time readers might notice that I added some credit card loans and they would be right (please see RCBC Loan 3 and BPI Loan 5). I really thought long and hard about taking out more credit card loans, but the alternatives were selling stocks at a loss; cashing out some of my VUL profits from my insurance policy; and taking out a personal loan from relatives. The first two weren't attractive because I've sold enough stocks as it is and my VUL profits aren't that high yet. The third option embarrassed me a bit because I try to keep my family out of my finances. I'm the one they turn to for financial help and not the other way around. So yeah, it was mostly pride.
The credit card loans were fast and easy to obtain but BPI's interest rate was higher this time around, at 15% compared to the previous 12% rate when I took out the other credit card loans. Apparently, BPI's rates fluctuate.
It's nice to see that most of my non-mortgage debts will be paid off by the first quarter of next year. Talk about getting a load off my back.
I will always remember 2017 as the year I give birth to my second son and the year I cleaned up after 2016. I pray that 2018 will be less about cleaning up and more about building up.