Update 5: Financial Confession and Debt Reduction Plan..


debtfreesignLast time I gave an update on my debt reduction plan was back on November 15th, 2016. I am definitely overdue for an update! So, the original debt I was carrying was $25,000 on one credit card. Since then, my husband and I have worked together to get rid of as much as we could in 2016. We did pretty well. In that time, I also got a new line of credit onto which I moved off some of the debt so I could pay less interest. So, now the debt we had on one card is in two places but with much less interest.

Also, at the end of 2016, we spent money on Christmas and gifts, a wonderful but bit pricey NYE excursion, and I bought my husband a special expensive gift for his citizenship ceremony in January (but I did get it on sale on Boxing Day, at least). So, although I did not stop paying down debt, these costs made it so I did not see much of a decline either. But, it was all worth it and I am ready to get frugal again for 2017 and be done with this debt once and for all. My financial goals are as follows for the next while in this order:

  1. Pay off credit card debt-hopefully by end of February 2017.
  2. Pay off line of credit debt.
  3. Increase student loan payments.
  4. Grow savings account.

Step one is the credit card debt repayment. Since it is a fresh year, I need to make a fresh confession. My debt number is $3100 on the credit card and $4400 on the line of credit. These numbers are much better than the $25 k confession I made back in July 2016! Will be working on decreasing these two numbers for the next while- but it may be a bit slower this time since my husband needs to return his attention to his own accounts. I am looking forward to charging full speed ahead for 2017, though. It feels great to see that these numbers are manageable and that soon I can really grow my savings without worrying if I should be paying down debt first!

Looking forward to writing update # 6!


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