May 2016 Debt Free Progress

2015 was our second year as home owners, and our first year we got serious about trying to get out of debt. When we got serious about our debt payments in 2014, we had a total of 4 credit cards, 2 store cards {only one with a balance}, a car loan, a mortgage, and 4 different student loan payments. This was on top of our regular bills and a monthly orthodontist payment.

We set a goal in 2015 to pay off $23,000 in debt, which was more than we had paid in a year up to that point. Throughout the year, we eliminated three credit card balances, consolidated student loans, finished paying the balance on the orthodontist bill, and reduced some of our monthly bills. We wound up putting $27,035.16 towards our debts last year, which was more than half of our take home income.

This year, we want to pay $24,000 in debt, but what we really want is to get rid of the rest of our smaller debts. This means: 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. These are our last debts we have before we get to what I call our “Big 3”: Hubs’ consolidated student loan, my consolidated student loan, and the mortgage.

So how did we do on our debt free progress for May?

Mortgage: $500

Student Loans: $160
Our student loan payments will be smaller while we finish up the rest of our consumer debt. I am up for my annual income based repayment reverification, and I’m currently waiting to see what the verdict is. Since Hubs’ income increase slightly last year from the previous year, my payments may increase. Hubs is up for reverification in August.

Credit Card 2: $400
Because of due dates {the credit card is due before the car}, and because interest varies up until a certain day, I wasn’t able to get an accurate payoff amount on the car until the due date on this had come and gone. So I compromised. I paid more than the minimum due, and made sure to give enough of a buffer just in case the car payment was way out of my estimated range.

Car Payment: $472.67
This is our final car payment on this loan, and our last car payment since we took out our first car loan in August 2010. It’s very satisfying to be done with it, and we’ve freed up $264.80 to go towards our debt snowball.