by Hope
It has been an uneventful month. And that is truly a rarity around here. No crisis, no big decisions to make.
We’ve spent the bulk of the month getting used to Gymnast being back in the house, managing to get the two girls to their jobs and to the 3 youngest being back in school. It was also a no spend month for us. And that went great! I have paid off $3,927.15 in debt this month. Woot, woot!
I’ve cooked one big meal a day (Mon thru Fri) and then people ate when they were home. And we are continuing to eat through our pantry. So while I do plan to restock some things this next week, we are all eating things we don’t normally eat as we continue to eat through our freezer and pantry.
Our garden is now producing a plethora of bell peppers, tomatoes, okra and jalapenos, so we have those with just about every meal. The carrots are still baby, but edible.
And on top of all that, I have stayed on track with my debt payments…what is this month 4 in a row that I’ve made great strides in tackling my student loans?!? I am really proud of myself. Without further ado, here’s what the numbers look like going into September.
| Student Loan #1 | $17,000.00 | $7,460.01 | $5,982.28 | 2.88% | $0 |
| Student Loan #2 | $21,750.03 | $19,433.43 | $19,384.56 | 2.88% | $0 |
| Honda HRV | $21,200.00 | $17,128.61 | $16,571.43 | 3% | $600 |
| Total | $59,950.03 | $45,865.42 | $41,938.27 | $250 |
You will notice that I have increased my monthly minimum payment on the car. (Instead of $250 per month, I am now paying $300 of every 2 weeks, set up as autopay.) This came after a discussion with my uncle who holds the loan. And was completely my call.
But I am still maintaining my original goal of focusing on paying off Student Loan #1 and keeping Student Loan #2 from growing by paying just enough to cover interest.
2020 Year End Goals
While I originally set my sights on paying off Student Loan #1 by May, 2021, that goal has changed. (And to think that was a stretch goal back then.) Assuming I can maintain what I am doing right now, I will have Student Loan #1 paid off by December, 2020. Just a few short months away!!!
Why in the world has it taken me so long to do this? To buckle down? I know the answer to that question. But man, hindsight is definitely 20/20.
What’s Next?
With that goal seeming pretty achievable, I took some time to look at my forecast and see where I would be come January, 2021 debt wise.
My debt numbers would be approx:
Student Loan #2: $19,200 (give or take)
Car Loan: $14,027
Here’s what I’m thinking:
- Beginning January, 2021, I will double what I’m paying toward my car now ($600 per month) beginning making it at least $1200 per month. I would pay off my car by January, 2022 if not earlier.
- I am assuming I will need to begin making minimum payments on my student loans again come January, 2021 (they are in COVID/government ordered forbearance right now.. That would be $306 per month toward Student Loan #2.
This would mean I would end 2021 with just Student Loan #2. And it would be at the point that if I maintained what I’m doing now with Student Loan #1 and then with the Car Loan in 2021…and then with Student Loan #2 in 2022…I would be debt free by the end of 2022 if not sooner!
That means I could be debt free in just over two years. I could be debt free before Gymnast graduates from high school. I could be debt free before Princess graduates from college. You have no idea how overwhelming that idea is to me! How absolutely unbelievable that I really can do this! For the very first time, it seems like it may be a reality and not just a pipe dream.
I CAN BE DEBT FREE!
Hope is a creative, solutions-focused business manager helping clients grow their business and work more efficiently by leveraging expertise in project management, digital marketing, & tech solutions. She’s recently become an empty nester as her 5 foster/adoptive kids have spread their wings. She lives with her 5 dogs in a small town in NE Georgia and prefers the mountains to the beaches any day. She struggles with the travel bug and is doing her best to help each of her kids as their finish schooling and become independent (but it’s hard!) She has run her own consulting company for almost twenty years! Hope began sharing her journey with the BAD community in the Spring of 2015 and feels like she has finally in a place to really focus on making wise financial decisions.
Awesome numbers Hope! LOVE to see those balances coming down – great work!
That’s an enormous debt payment! Nice job, Hope! I’m glad everyone in your household is getting into a groove of normalcy and you’re getting set up for smooth sailing ahead.
Me too! When I look back at the last several years, I see just how far we have come in so many ways.
It’s really nice to see be able to take some big steps on the debt front.
Nice work, Hope.
I’d be curious to see your retirement plans/savings as you plan for your debt free phase of life.
That is a good question. And one I need to put some thought into…
WOW! Way to go, Hope!! That’s a huge chunk of debt gone. Keep it up 🙂
Hi Elizabeth,
Any update on your progress?
That is terrific!! Glad to see you’ve accelerated the car payoff. Borrowing money from relative can easily destroy relationships. Better to break that bond.
That’s a very nice chunk of change there. Looks like you have a good plan going. Good job Hope!
The numbers d’ont add up. Maybe you paid more to loan 1?
I found the error. On your last update, the debt was 44000 and now you paid 2000, not 3900.
Great work Hope! It will be exciting to see student loan #1 fall below 5K with your next payment!
Nice work on the student loan! Keep up the progress!