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Wednesday, July 31, 2013

My debt payment new goal

I am enjoying my vacations. We have a bit of rain, but its been worst in the South West of the province. While having a good time, my non-registered portfolio is performing well, $118 466.99. I have left $12 294.14. Now the once cent is gone, I wonder how I can get that .99. It seem like the one cent still exist on the Canadian stock market, but is gone from the real world.

For August, my BMO credit card is at $708, and my dividend income for July had been of $660.75. I only have a left over of $47.25. And I really need that left over! I also win $50 at my local Casino... I guess I had been lucky, but I was looking for much much more.

For my vacations, I withdraw $500 from a line of credit. I also had used the same line of credit to pay my taxes. So I am now at $2 951.20 on that same line of credit. Also, my margin is at $53 873.42; I would like to pay off $3 873.42 on it. that way, I would be at 50k.

Remember that American Express gave me a 0% interest for 6 months a little way back? Well, the amount deposit was $2 312.54. The monthly payment is $70. I am not looking to pay off that debt for now.

Debt repayment plan for the debt I want to pay off:

1- $2 951.20 of my credit line
2- $3 873.42 from my margin

Total: $6 824.62 + $700 extra balance on my credit card (total balance being $1 400).

My monthly need is of $1 194. For this, I need to live on a $70 per week.

My monthly income from work is about $2 240 after deductions
My dividend income is about $550 per month
My total monthly income is: $2 790

$2 790 - $1 194 = $1 596

$7 524.62 \ $1 596 = less than 5 months

If I get my hand on an extra 1k per month, the debt would be paid off in less than 3 months.

Isn't weird to have a look at my debt while being on vacation? Its a must do once in a while and I had reached the point where I need to pay off some debt - but only if I don't change my mind. I am a money moron, for reallll.

I hope you all enjoy your summer.


Christine said...

Ha! You are hardly a money moron ;) Look at how much you have saved. Plus don't you get good deals on your debt too? Like the 0% interest? However you should be enjoying your vacation!! Can't believe the cent is gone... now we Canadians count funny.

Anonymous said...

You are so drowning in debt! The only debt I have is my house and that's only $100,000. And I'm presently taking a one month vacation. And I pay my 1 credit card off every month, AND do not buy stock on margin. I am not a millionaire, but plan to be. I just know how to manage my money and leave the debt collectors to smucks like you.

Anonymous said...

buy pot (potash Saskatchewan) this is a real bargain!!!

Anonymous said...

agriculture stocks are on sale, this is the time to get in. also telecom is good time to get in! this is how to invest, don't chase after stocks that are NOT on sale.

Anonymous said...

Good for you Sunny on paying off some of your debt.

Liquid said...

Sounds like a good plan D girl ^_^ I have over $300K of total debt with almost $50K of it is margin, and I don't feel our debt is too high. Good thing the stock market has done really well this year so far, at least south of the border. Some of my US stocks have reached record highs recently. Enjoy your vacation :)

TheStockJock said...

Have you considered debt consolidation to reduce your overall rate of interest being paid?

For example you said you have access to a line of credit, is this a secured line of credit against a home or other property? If not do you have a home or other property that you could register a line of credit against? A secured line of credit is likely going to carry a better interest rate than what you are paying for interest on your margin account.

You also said that you are carrying a balance on your credit card, if you were to pay off your card with your line of credit there is surely some savings to be had there unless it's a low fee card.

Just something to consider if you haven't already looked into it but saving a few percent on a few thousand bucks will add up quickly.

Anonymous said...

@Anonymous 1 August 2013 17:44:

According to Garth Turner, Sunny's $60,000 debt is a lot more safe than your $100,000 of mortgage debt!


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