Okay, so this is my second update since I decided to attack my big debt head on. My first update felt great as my husband and I reduced our debt by over $3,000 in a month or so and were sitting about a balance of $21,600-ish. It felt good we made so much progress and, if we kept it up at that rate, we would see the debt gone in about 7-8 more months. Feels great to know where we are at and what we could do but also not great since 7-8 months is a long time! I sure had some good times spending all that cash but it is hard and a bit miserable to pay it back. Next time, I will save in advance and then spend on those good things!
Since the last update, we have continued to take our paycheques and immediately pay all the things that need paying first. Then we set aside a small amount for expenses yet to come such as gas and groceries. After that, all the rest went to debt. That has been the easy part. The hard part is getting by on what we left for ourselves to live off until the next paycheque. It has felt tight at times but it meant having discipline and not doing things that cost money. Luckily, it is summer and there is plenty to do that is cheap or free.
I have been spending a lot of time working in my garden, we have enjoyed being outdoors, there is hiking and lakes, and sometimes, since it is so hot, we just want to sit at home and watch movies or Netflix or read novels. Thank goodness for the internet which can provide so much entertainment (and ideas for entertainment). I have been packing lunches to enjoy at work and we have been eating dinner at home instead of going out (although for some reason, summer makes me want to eat out on some restaurant patio but I have staunchly resisted!).
It will be wonderful when this debt is gone. After it is gone, I plan to build an emergency fund, keep all other debts paid off, and my husband and I will probably save for one our big goals (of which we have many!). So without further ado, here is our update at this time: $18,258!!!
As of Aug 15th we hit our $20,000 milestone and had more available credit on our card than balance! The graph to the right represents progress within this update. So far, total debt has been reduced by $6,747 ($3,367 this time and $3,380 in last period). In September we are expecting quite a few expenses so may not see as much progress so our goal to hit by the end of October is $13,000.
We should be able to be free of this debt by January or February. As we keep on making our payments, however, our interest is also reducing which will help speed things along much faster. I will do a whole other post on how evil interest is and how much money I have been wasting by carrying this debt. But, for now, we will just focus on the positive and celebrate this success. Next milestone is $12,500 (half of original debt paid off!).