Last year, I had set a goal to pay off $23,000 in debt. To some, it may not seem like a lot, but that all depends on where you are in your journey to financial freedom. At the time, it was our second year as home owners, and the first year we were taking debt repayment beyond the minimum payments. It was also the most we would have paid off in a single year, and nearly half of Hubs’ take home income. I’m happy to report that last year we paid off $27,035.16 in debt!
So this year, I upped the ante a bit. I want to aim for $24,000 in debt. It’s a little less than what we paid last year, but the even bigger goal that’s attached to it is to: 1} terminate our lease on Bookworm’s trumpet, I tackled this at the end of January, 2} own our car outright, 3} pay off my small student loan, and 4} pay off my credit card.
So how far did we come in our debt free progress for February?
Student Loans: $978.99
Credit Card: $210.00
Car Payment: $264.80
This month I hacked a huge chunk out of my smaller private student loan. This loan was taken out in while I was in grad school to pay for required classes for my teaching certifications. Given my timeline at the university and their course offering schedule, it was not offered again while I was there. I’ve been paying on this loan since June 2012, and next month will be our last payment, about $160, on this loan, and then we’ll start chipping away at the car loan. Small accomplishments like this make me quite excited to continue our journey to becoming debt free.