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September net worth update – Up 3.36%

September ended up being a great month for our net worth. It increased 3.36% and it now stands at a negative $39,625.

As always, you can visit my Net Worth IQ Profile to see all of our debts since I only track credit card debt on here. I also keep track of our savings account balance under the “Other” asset category.

I am very pleased with this increase, although I know a bit of it is short-lived. A big reason our cash is so high is because of a health insurance payment of over $800 (it’s due every two months) + loan at, but even if that money wasn’t included, we’d still have an increase in our net worth for the month.

I often think a month is going to be a tough month, but then somehow things work out. Sure, we’ve had a few months where our net worth decreased, but overall it’s been moving up…up…up. It feels wonderful.

In fact, it feels so good that I want to show the debt monster a thing or two. There’s still that goal of getting our credit card debt under $20,000. Time to review our cash flow to see what I can do 😉

An Extra Bonus

We had an extra bonus yesterday. Wouldn’t you know it… it turns out that we had impeccable timing when it came to clearing out our third bedroom (my home office) and combining it with our bedroom (which left a spare bedroom).

We received a very unexpected call that a friend of ours that lives near the West coast. He was going to be in town and wondered if we could pick him up from the airport. Right away, my husband offered him a place to stay because we now had a spare room!

All I can do is chuckle at the timing. It worked out beautifully. Of course, the airlines were not so cooperative and our friend now won’t be here until later today since one leg of his flight was very late. But, we still can offer him a place to stay while he’s in town.

Life sure works out in funny ways, doesn’t it?…

Moneyfacts comments on rising LTV levels

Small loanFinancial advice site Moneyfacts has issued a statement regarding the trend among some mortgage lender to increase the loan-to-value (LTV) rates on their mortgage offers, in response to the rising levels of debt in the USA.

The site notes that total secured lending in the USA now tops $1 trillion, with average household debt at $8,577, or $50,091 with mortgages included.

Rising house prices and lower affordability are leading to borrowers needing to take on larger loans, which some lenders have responded to by increasing their maximum LTVs, Moneyfacts claims.

“Income multiples have reached an all time high, increasing numbers of borrowers are opting for interest only mortgages and repayment terms in excess of 30 years are now commonplace,” said Scott Hanton, mortgage analyst at Moneyfacts.

“But most recently we have witnessed an increase in LTV limits, meaning that more mortgage products requiring a smaller deposit from the customer are now available.”…