by Hope
At the end of October, I revealed my initial plan to pay off debt after being so focused on saving since I started my new job this past March. It had been a long time since I could focus on that goal with so much of my energy focused on keeping us housed and fed during the time I was unemployed or at least under employed. This plan had three goals:
- Pay off my Amazon line of credit
- Pay off my computer line of credit
- Settle one of my collections accounts (the largest one at the time)
Dec 1 Status Update
Amazon – As of Nov 1, I paid off the Amazon account and have not used it since. Doing a happy dance for debt pay off and celebrating self control!
Computers – I have continued to pay the minimum due on most of my bills and we have focused on not spending unless it is a need (with the exception of our Thanksgiving trip to Orlando) and as a result, I believe I will be able to pay off this debt in whole the week after Christmas. I will make my end of the year goal by the skin of my teeth, barring any emergencies. I will pay off this debt! I will keep you posted.
Collections – I made the call to this account to discuss a settlement or pay to remove situation and they were not willing to negotiate much. I got angry and hung up. And to be honest, with the goal of paying off the computers, I am not sure I could have done this too. BUT…the other collection account (several smaller bills held by one company) is willing to negotiate and remove the items from my credit report once paid.
Making Money
I mentioned recently about my W2 employer’s “notice of firing” for lack of a better description. I could write a really long rant on that situation, but I am controlling myself. Anyways, I have been applying for jobs like a mad person and spending a lot of time looking for freelance work as well. I am happy to update that I have had several nibbles at freelance work, good work. I am in the middle of the interview process with several companies and am doing some introductory work for a couple as well. I feel good, at least better, about the situation.
With that being said, if I can bring in some extra money in December my goal is to tackle goal #3 with the collection account, just not the one I originally planned. With that being the goal and I’m hopeful I will be able to make it happen. I guess it’s time for me to come up with my next steps in my paying off debt plan!
I’ll get a debt update posted in the next week or so. In the meantime, I’d love to hear your suggestions on what my next goals should be. I won’t be able to focus on anything else until the new year and will have to temper that with what my job situation is looking like, but right now, today, I’m hopeful and proud of the steps I am taking.
P.s. If you’re a ton of debt, some people have had good results with balance transfers. One company that you might consider checking out is Credit Soup. They have a wide rage of options for folks every credit score and financial situation.
Hope is a resourceful, solutions-driven online business manager with over two decades of experience helping clients streamline operations, manage projects, and grow their businesses through digital marketing and technology.
But life has a way of rewriting your plans.
A year ago, Hope made the decision to move in with her aging parents full time – a season she wouldn’t trade, even as it came with its own financial and emotional weight. Earlier this year, she lost her mother, and is now walking the tender, disorienting path of grief while learning what “forward” looks like from here.
Hope came to the Blogging Away Debt community in 2015 as a single mom raising five foster and adoptive children. She’s written through job changes, financial setbacks, and the bittersweet transition to an empty nest. Her kids are finding their footing in the world now – and so is she.
Rooted in faith and fueled by the same perseverance she’s brought to every hard season, Hope is ready to face her finances with fresh eyes and an honest pen. She believes that clarity, courage, and community can change the trajectory of anyone’s story including her own.
She lives in Austin, TX with her dad, loves adventures with her dog Addie, and is figuring out, one step at a time, what this next chapter is meant to be.
I say credit card next. Pay as much as you can until it is paid off. The interest is high but the balance is relatively low.
Good to see some progress!
i like the accountability of coming back and giving an update. Nice job!
Great progress, Hope! It’ll feel good to clear up a couple of payments.
It’s good to hear that you will finish with that computer cost. If I remember correctly that will almost close the $200 gap you had in your budget with a work reduction. Have you run the numbers with your anticipated loss of income instead of reduction? You are doing good with debt reduction. How about the savings fund? Has it hit the magical $10,000 mark? I think at this point some of what you need to do is create categories and start filling them. You have mentioned things like a potential move. You’ve mentioned competitive volleyball. You’ve mentioned private schooling. Those items should have budget categories and they should be funded based on their urgency to you. For example, you might have $60 extra dollars. You might prioritize volleyball as most important fund and give it $30. You might then prioritize funding schooling for Princess and give that category $20. The move might be a low priority but you could potentially fund it at $10 and cap the amount at $2000 in that particular fund. This would eliminate the need to move money from the emergency fund while making sure categories of upcoming expenses you consider important have money in them instead of worrying about where the money will come from or robbing your emergency fund for things like competitions.
Good job on making progress! You’ll be so glad for every minimum payment you eliminate if/when your income goes down. Re: the comment above, we use SmartyPig for this. It lets you divide your savings into as many goals as you want which really helps me given how my mind works… so we have a christmas account, one for taxes, one for emergencies etc.
Keep up the good work Hope.
Hopefully the applying pays off soon 🙂
Great job paying off Amazon! I like cwaltz’s suggestion above for tracking your savings, and I’d knock out that computer debt too when you can… one less payment to worry about!
Hey Hope, I messaged the website m about a job opportunity for you a few days ago. Did you get it? If not please email me! Thanks! -Anna