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Home > 6 Month Check-in: Debt Payoff Update

6 Month Check-in: Debt Payoff Update

June 17th, 2017 at 05:39 am

We are still chipping away at the debt. I look back over the previous 6 months and I'm glad that we started and we stayed committed.

We are paid biweekly which means June is a 3 paycheck month. There is still one paycheck left in the month but so far CC#4 has gone from $3599 down to $640, with the interest charge added in there. We've paid down this card by $3000 since last month's update. We are on track to have this card completely paid off by end of the month and I cannot wait to make that last payment. CC#7 paid down by $350, the min payment.

After this we will only have two cards left, which both have 0% interest rate, but we will focus on CC#9 because we want to take advantage of the introductory period for the balance transfers that we made. At our pace, I am hoping to have CC#9 paid off somewhere between September and October.

Lastly, I've mentioned before that DS has been saving his income from part-time employment. He purchased his first vehicle, a used one. All Cash, $3600! We had cash flowed his graduation present which was some of the cost of the used vehicle but most was his savings. He graduated from high school yesterday and we are so proud of him. His AP exam scores will arrive early July, we are hoping he passed one or some of them to get college credit. This will help him with reducing college expenses.

All in all, we are half way through the month and lots of changes and progress!

4 Responses to “6 Month Check-in: Debt Payoff Update”

  1. Carol Says:
    1497697754

    Terrific work by all of you! Happy graduation to DS.

  2. snafu Says:
    1497702891

    Please pass along graduation congratulations to DS. I've no idea of his plan going forward but know from experience it's cost efficient to to to a 2 year Community College for 'General Studies' having first confirmed the courses are transferable to a nearby university to complete a 4 years program of choice. It's often a more enjoyable transition for students and lowers student lan nightmares.

    Kudos to you for the remarkable job you've done to cash flow new events and the gigantic pay down of credit cards.. Do you think YNAB has changed your spending priorities?

    I wonder of you've read 'The Life-Changing Magic of Tidying Up,' which offers a new take on stuff. We found it to be a huge motivator for riding ourselves of clutter when DSs made their move to college. As each month ends and I run our simplistic Net Worth statement I'm astounded by the improvements we've made by being mindful.

  3. rob62521 Says:
    1497813136

    Congratulations to DS for graduation. As for what Snafu said, indeed, that is the route to go if possible on the college. I wish I had done that and could have saved a lot of money. Unfortunately, I wasn't aware of this possibility at the time some 30+ years ago. I know that sounds incredibly ignorant, but neither of my parents finished high school (they grew up during the Great Depression of the 1930s) and my guidance counselor was worthless. His opinion of all girls was we were all too stupid to go to college. He was the football coach and had a winning team...need I say more.

    Great job on paying down your debt! That has to be a wonderful feeling. I hope you will, as part of your budgeting, start putting money away for emergency as well as saving for things so you don't wind up with more credit card debt. Not everyone does like we do, but we have different accounts for different things that we save up for. We have our regular checking and a Money Market Account for saving, but we also have other accounts. Each month, when we get our director deposits, I deposit a set amount into a home improvement account, a vacation account, and a Christmas account, as well as our regular Money Market Account. The Money Market is for emergencies. When we get a set amount in there that we feel comfortable (cash is king, after all) if we go above it, we then take the excess and invest it in CDs. We try to ladder the CD's so they don't all come due at the same time. We are retired so we don't pay into retirement accounts anymore, but that might be something you want to look into as well.

    I keep a spreadsheet of our accounts and have for the past few years. It is pretty exciting to see where we started and we we are now.

  4. Out of the Dark Says:
    1498870561

    Congratulations DS. Also, congratulations for the debt reduction. I am so pleased to see your focus and diligence month over month. Great job!

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