Update 1: financial confession and debt reduction plan…

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On July 4th I wrote a post pledging to, within this year, finally reduce our largest debt by tackling it head on. I had to confess the hideous debt number first of all which I did. Now,  some weeks have passed and I am giving my first update.

In total, we were able to bring this debt down by over $3,000 in a month.

In total, we were able to bring this debt down by over $3,000 in a month.

In the last while, the first thing we did with our paycheques was to make all necessary payments first (such as car payments, insurance, and phone bills etc), leave some money for regular expenses that would come up like gas and food, and then pay the rest to debt. Any change and small bills left over from day to day spending went to our “coin jar” which is set aside and consolidated every few months for a bonus payment. In this past month, we had already saved a big chunk in the coin jar from the last few months to pay down debt so this month will be a bit atypical in how much we were able to reduce our debt.

We also were very busy this month since my sister and her family had been visiting. There were many dinners and events etc at home so we did not spend that much on food and outings which was great since we did not leave ourselves much for that kind of thing in the first place!

So, as the chart illustrates, we were able to bring our debt down by over $3000 in about a month! This month is not a typical month due to the bonus coin jar payment and very little spending on groceries etc but is very promising. In the July 4th post I said our first milestone would be to get to $20,000 by the end of summer (Sept 21 I believe!). It looks like that will be possible some time in August! My hope is that we now get down to $17,500 by the end of September. Let us know if you have any tips or tricks! So far, a few bloggers have send me some great links to their sites and I have been seeing a lot of interesting ideas and methods. Very inspirational and reassuring that other people have made it out of such messes!

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One response »

  1. Pingback: Update 2: financial confession and debt reduction plan… | I am 34 now

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