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4 Month Check-in: Debt Payoff Update

April 21st, 2017 at 10:31 pm

Where does the time go? A month has flew by yet again but the good news is we are still chipping away at the mountain of debt.

We decided to take advantage of a great 0% balance transfer offer from one of our cards that had a $0 balance on it. CC#2 & CC#6 are now transferred to CC#9. The promotional rate is good until February 2018 which I plan to have this card paid off by then.

We've managed to pay off CC#5 in April and I had some business expense reimbursements from earlier in the month that I paid off on CC#3.

We started this journey exactly 4 months ago to the date (12/21/16), with 40,714.15 in debt and now we are at $31,006. That's almost 10K paid off in 4 months, whoa! To be fair our annual household income is in the six figures but we have cut down our expenses over the last 18 months and learned to live on less which has helped accelerate the debt pay down. It's not only about changing your habits, but also changing your mindset. Once you change your mindset about finances, the rest is a walk in the park.

DS has been working since December part-time and through what we've learned we have been teaching him about budgeting and managing his money. He has saved 90% of his paychecks and is 66% of the way towards his goal for a car. I could not be more proud.

Well hello there, it's been a while - Debt Payoff Update

March 10th, 2017 at 10:37 am

I haven't posted in almost 2 months. Life gets in the way and work has ramped up exponentially leaving me with little time. Some great news is that I've started a MBA program, making my schedule even more hectic.

Now the even better news is that we've still stayed the course with the aggressive debt payoff. The following credit cards were recently paid off (Last 2 weeks):

CC#5 - Beginning balance $2888, 25.2% now $0
CC#8 - Beginning balance $2373, 25.24% now $0

We will focus next on CC#2 and begin snowballing the minimum payments. We hope to have this CC paid off in September 2017, with CC#4 to follow with a pay off in February 2018.

Payday and Debt Pay Down Update

January 22nd, 2017 at 07:31 pm

Payday was last week but between some holiday travel to San Francisco with DW & DS, work and the Women's March... it's been quite busy.

The SF trip meant that less went towards debt this paycheck but we cash flowed the entire trip, Woot Woot! The trip cost was almost $700 for all three of us.

With that said, we paid:

CC#2 - Paid $129 (Min Payment)

CC#4 -Paid $95 (Min Payment)

CC#1 -Paid $63 (Min Payment)

CC#8 -Paid $400

Next payday we will resume with the aggressive payments. Smile

Anyone living in California, hope you have been staying warm and dry. The rain has been a nice change of climate for us.

Starting the year strong

January 6th, 2017 at 11:16 pm

Last month (December 2016) I started this blog in hopes of keeping ourselves accountable and committing to our goals of paying off our credit card debt and mastering the budget process.

We started with a balance of $40k and are now at $37k, seeing this has motivated DW and myself. We've been using Mint.com to help us understand where our money was going and this helped us cut expenses, which was great but it did lack some features that I am learning are necessary for budgeting. Now that we've cut as much as possible it's time to take it a step further.

One of our 2017 goals is to master the budgeting process and after hours of watching videos and doing research we decided we liked what YNAB (You Need A Budget) has to offer. We are 1 week into using YNAB and we are absolutely loving it! This forces us to manually enter in our transactions and balance our accounts and budget. We know more about our expenses and can be more mindful before we spend. We also love all the reading material available on the YNAB for free. This is my two cents anyway.

So, I'll report back on our new budget mastery skills with an update on more debt payments when we get paid again.

Oh and one last thing, DS got a job! We have decided to let DS in on our budget and debt payment journey in hopes he learns from our mistakes. We recently set him up with a new bank account so a YNAB account is next. We plan to have family budget night every paycheck(All three of us will get paid on the same paycycle) and splurge on a pizza. Big Grin

I have to say, this site has definitely changed our lives for the better and the support on here has been more than I can ever ask for.

Payday and Debt Pay Down Update

December 30th, 2016 at 10:25 pm

Last paycheck for the year and even after rent + other bills we were able to make the following payments:

CC#3 - Paid full balance of $749 /New Balance $0 (My company reimbursements helped pay back the business related expenses)

CC#5 -Paid $500/Old Balance: $1888/New Balance: $1388

CC#7 -Paid $350/Old Balance: $19893.64/ New
Balance: $19543.64

That is a total of $1596 this paycheck where $850 of it was not part of my reimbursed business expenses. Just last month CC#5 had a balance of $2800, it's so motivating to see the balance continue to drop and know that we are one step closer to paying off this high interest credit card.

DW also got paid today but her check takes a few business days to clear. Once it does, TBD on the CC#8 payment amount but most likely will be $600-$700.

Slow and steady wins the race...

Newbie here

December 22nd, 2016 at 12:15 am

Hi, newbie here. I've made some financial mistakes that are and will cost DW and I greatly in the form of credit card debt but let's leave the past behind. Looking ahead, DW and I are committed to tackling this debt and said we will never be in this situation again. We've made great strides in reducing our overall monthly expenses to really only what we need recently, so I am happy with this. DW started working again part-time and it will accelerate the debt payments.

We are taking this one paycheck at a time and are trying to remember it's not a sprint but a marathon.

With that said, the following payments went through this week from our most recent paycheck:

CC #5 - $1000
CC #6 - $68 Min Payment
CC #1 - $64 Min Payment
CC #8 - $400 payment
Total - $1532