May the fourth be with you! (heh, get it – May 4th? okay enough of that.) : )
It’s another month and another opportunity to put a little bit of debt behind us.
Here we are and I feel a bit at a crossroads. I haven’t included the IRS in our debt spreadsheet because – honestly – I’m still so embarrassed that we owe so much!!! I’ve worked out a payment plan and we will be paying a hefty sum – $1,000/month – until the debt is fully resolved. It will be a large household expense over the next several months (year+). Maybe I’ll eventually add it to the spreadsheet just so it can be properly acknowledged but, honestly, I just can’t add it yet. It would push us back up over the 1/2 way milestone and just causes so much emotional distress by increasing our debt numbers that I just can’t fully face it yet. I mean – it’s been “faced” as far as the IRS goes (in terms of admitting the debt, establishing payment plan, etc.), but for some reason I can’t “face” it here with you guys. Not yet, anyway.
So that’s my one disclaimer. My debt spreadsheet remains with all our old/pre-IRS debt numbers and our monthly payments are going to be negatively impacted because the monthly payment indicated in the debt tables will NOT include our IRS payment.
With that caveat, check out April’s debt progress:
|Place||Current Balance||APR||Last Payment Made||Last Payment Date||Original debt, March 2014|
|Navient - Federal 2 (unsubsidized)||$11,056||5.80||83||April||$82,433 (all school loans, combined)|
|Navient - Federal 3 (subsidized)||$8622||5.80||25||April|
|Navient - 2 (subsidized)||$8502||6.55||33||April|
|Navient - 7 (subsidized)||$7202||6.55||28||April|
|Navient - 8 (subsidized)||$6376||6.55||25||April|
|Navient - 9 (subsidized)||$8502||6.55||33||April|
|Navient - 10 (unsubsidized)||$9768||6.55||71||April|
|Balance Transfer Student Loan #2||$600||0% (through Sept 2017)||$400||April||$7650|
|Balance Transfer Student Loan #3||$4369||0% (through October 2018)||$75||April||$4594|
|Medical Bills||$0||0%||$1215||Paid off in April 2017||$9000|
|Balance Transfer student loan #1||$0||0%||-||Paid off in March 2016||$5937|
|PenFed Car Loan||$0||2.49%||-||Paid off in January 2016||$24040|
|License Fees||$0||2.5%||-||Paid off in April 2015||$5808|
|BoA CC||$0||7.24%||-||Paid off in June 2014||$2220|
|Mattress Firm||$0||0%||-||Paid off in May 2014||$1381|
|Wells Fargo CC||$0||13.65%||-||Paid off in May 2014||$7697|
|Capital One CC||$0||17.9%||-||Paid off in March 2014||$413|
|Totals||$64,997 (March balance = 68,714)||$1,988||Starting Debt = $145,472|
So as you can see, we “only” paid $1,988 in debt in April. I say “only” in quotations because obviously that’s a huge sum of money. But we’ve been trying to pay closer to $3,000ish/month, so it’s a big decrease from our goal number. Though, again, this does not take into consideration the $1,000 payment to the IRS. I’ll do a goal update post soon just to check-in with numbers and take a pulse of how we’ve been doing so far this year in our financial goals. With the IRS hit, some of our goals are going to have to be re-thought. But I’m optimistic overall. Our biggest/most central goal is to pay $30,000/year toward debt and I think there’s still a good chance we can hit that number. We’re aiming for it!
I’ve also been re-working our budget to account for the changes in salary and expenses that are coming up. My part-time job officially ends this month. I have about another week worth of work, but my last paycheck was received last month (womp, womp!) My new rate of pay (from my big raise) doesn’t go into effect until July. So May and June will be TIGHT!
This is probably the first time in my debt-repayment journey (of 3+ years now!!!) that I’m a little bit nervous about the possibility of moving backward. I mean….these two months are going to be really rough. I’ll be writing a post soon to talk about different savings strategies and ways we’re going to try to reduce spending to only absolute necessities, etc. Be thinking about it because I could certainly use all the tips I can get!!!
I’ll be back soon! In the meantime, have a great week!