If you've been following this blog, then you know that I started to take money management seriously about 2 months ago. Part of that journey is getting rid of debt and you may have read my DEBT ROUNDUP post about how much of DH's personal credit card debt we paid off and where our current debt was as of February 28th. We set out with an aggressive goal of paying off $62,570.33 over the course of the next 12 months. As promised I'm here to provide you with a monthly update of our debt repayment progress. As of today, our total debt is now down to $38,891.76. That seems like a drastic difference in a period of just 30 days, but it had nothing to do with our income or savings. We receive a sizable windfall from the federal government every year during tax season and we committed every penny and then some to reducing our debt. Here's what we did:
I had school loans that totaled $13,385.42 and I called and paid that OLD HAG Sallie Mae her money in full. That's right....Sallie Mae no longer has a seat at our money table. We put $5,000 on our car note and paid roughly $5,293.42 on our credit card debt. That brings our total payments on our debt to $23,678.84 in just ONE month. A dent this large won't be the norm but we're pretty excited that we were able to give our debt a swift kick in the tail this month. Our journey ahead will be much slower but we're committed to being debt free in 11 months. To help ease this ride along, DH and I made a deal that we wouldn't buy ANYTHING until our debts were paid off. That means we're no longer entitled to treating ourselves to shopping sprees for wardrobe updates as we enter new seasons. The only exception would be our LO (little one) who's a pint sized 20 month old who requires clothing and shoe size upgrades every 3-4 months.
In all money plans, it's important to maintain flexibility since we can't predict the curve balls life will throw us in the next year that could potentially slow down our debt payoff. The one downside in aggressively paying off debt, is not seeing our savings grow. But that's the price you pay when you wander into debt, because it's not so easy to wander out.
Are you currently focused on paying off your debts? Drop me a line below and let me know the biggest challenge you face in paying off your debts.