This is a monumental day in the Beatle house as we just paid off our first credit card! Thanks to Mr. Beatles side gig, we had a little extra cash at the beginning of February.
If you look at our debt chart, the paid off debt is CC1 and we paid the entire balance of $856 in one fell swoop. No checks, no mess, paid conveniently online. (Note: the original debt chart shows our finances when we first started, the updated chart is below)
Paying this credit card now frees up $194 per month in minimum payments, bringing our total monthly nut down to $4,904. We are still deciding how we are going to allocate the extra $194 (meaning, which debt we are going to put it towards next).
Some other big news
We have one other piece of big news. We have decided to sell the rental house. For real this time, no taksey backsies.
We meet with the realtors on the 15th of this month to take a walk through of the house and formulate a plan.
I think we are very lucky in that our realtor is also a well-known landlord in our city and has a lot of contacts with cash buyers.
We are hoping to list it for $89,900 and sell for no less than $82,000.
There is no mortgage but it does have a $25k HELOC and it needs a roof, which two contractors both quoted at $4k.
There is $11k owed on taxes, but we are paying $500 per month on the back property taxes, so every month it doesn’t sell is another $500 reduction of that debt.
Then there is the realtor fee of $4,290 and closing costs of probably $2,500.
If all goes to plan, we are looking at around $32,000 to $35,000 when we walk away at closing.
That would be a huge deal for us and would enable us to pay off every single credit card and loan we have, except for a few thousand owed to my parents. Which, unfortunately, they likely will refuse repayment of anyway.
Paying off our debt with the rental proceeds would reduce our monthly nut to $3,321. That’s nearly half of our original monthly expenses of $6,567 when we first started. A savings of $3,246.
Updated Debt Chart
And finally, here is our updated debt chart (not including the sold rental, because duh, it’s not sold yet).