Tuesday, March 15, 2016

February Progress

February was a little hectic with getting back into the swing of things.  We were still busy unpacking boxes and getting used to our new schedules with work.  I had to revamp our budget and I decided to add a few more things to our debt pay off and realized we had way more debt than I originally thought.  I thought we were going to owe money on taxes this year but we just found out that we are actually getting a large amount back.  I'll be using that to pay for my husband's tuition for grad school this semester, pay off one credit card and purchase a lawn mower for our house.  We've never had to own a lawn mower in all 10 almost 11 years of marriage because we've either lived in an apartment or in a community that paid for lawn services with the home owners association fee.  Now that we have a big yard to mow it's actually cheaper for us to buy a lawn mower and do it ourselves rather than pay for a service. I originally had budgeted for a lawn mower so now I can reallocate that money for debt repayment. Here's the new payoff plan

According to undebt.it we owed over $80,000 in consumer debt. That number makes me cringe! And this definitely motivated me to work on paying off our debt. I was successful in pay of Card #1 already and can't wait to continue to make payments and pay off some more debt. Our new projected pay off date is October 2018.  Here is what I see on my undebt.it account whenever I log in.

As our budget stands right now I don't have a lot of wiggle room so it will be a slow process at first.

Card #6 was a balance transfer with 0% interest that I will pay off in the balance transfer interest free period. I keep getting offers for 0% interest on balance transfers on this card and keep paying it off before the balance transfer interest free period ends. I pay a set amount on this card every month to make sure that I pay this card off in time. If they offer another balance transfer after this one is up I will most likely take them up on the offer, especially if the fee is less than I would pay in interest.

Loan #2 was for a pellet stove that we had installed in January before our big snow storm and it is the main source of heat for our house, otherwise we have an inefficient heat pump that would cost us hundreds of dollars every month. We took out a line of credit that has 0% interest for 12 months and as such this one will be paid off in the interest free period as well.

I fully expect us to be able to pay off Card #2 before the end of the year. My husband travels for work and the plan is to pay a big chunk of that card with the extra money he gets from traveling.

I'm even more motivated to get this debt paid off and look forward to a year from now when we'll have at least 3 of those debts paid off ($12,000 of debt + whatever we pay on the remainder).

Hopefully next month will show even more progress as we get our tax refunds back.