Paying off debt isn’t fun but it is fun to see the balances decrease, especially when the balance FINALLY reaches ZERO.
With this post, I am playing catch up and then going forward these posts will be current and come on the first of the Month to show the prior month’s debt payoff progress. The goal is to be as transparent as possible but I won’t disclose our income. After all, it’s not how much money you make but how you spend what you make.
When 2018 started, I had one credit card that had an expiring special interest rate so I paid it off in January. Then starting in February and going forward, the only debt (*besides mortgage) that I have are student loans. I have 6 student loan groups to be exact.
The strategy that I am using to pay off my student loans is the snowball method where I pay the minimum required payment on all group groups and then throw all remaining money on the student loan with the lowest balance. I plan to continue with the snowball method except for the last two loan groups when I will have one loan with a 2.125% percentage rate and one with a 6.3% percentage rate. In that case, I will pay off the 6.3% interest rate loan first and then the 2.125% interest rate loan, eventhough the balance will be lower on the 2.125% loan. Therefore, the last two loans will be paid off using the avalanche method. The avalanche method is where you pay off the debt with the highest interest rate first.
2018 Numbers and Progress YTD:
January – $2450.00 – Credit Card Payoff!
February – $900 .00– Paid off Student Loan Group G. YAY!
March -$126.00 – Cash flowed a beach house rental for April, purchased spring/summer items and cash flowed some other expenses that came up. Honestly, just did a lot of spending this month.
April -$899.00- I actually planned to pay $1000 but I didn’t fully submit the payment so it was added to May’s payoff amount.
Which brings us to this Month. May, where I paid off $2000.00, this was a stretch but was able to be done since I received 3 paychecks this month and really watched my discretionary spending in the areas of eating out and shopping. I’m pretty happy that I was able to make additional payments totaling $2000.00 and can’t wait for the balance to be updated on Nelnet’s website.
The numbers reflected show payments made above the minimum payment required to show actual debt reduction.
Sugar and Money for the Month of May
Sugar for the Month- a beach trip for Memorial Day Weekend which we only had to cover our roundtrip gas and $80 in food. Thankfully, a family member invited us so we had a free place to stay and most meals covered. Defintely sweet living in my book.
Money for the Month- Paid off a total of $2000 on Group D Student Loan. Also met Dennis Kimbro at the Black Expo In Columbia, SC where I was able to hear him speak, snap a picture and get my book signed. Lastly, I finished reading, “Richest Man in Babylon”.
Now Let’s Imagine… What could I have done with $2000 if it didn’t go toward debt…
Sugar – I can purchase a single “The Runway VIP Experience” ticket to Beyonce’s concert in Columbia, SC for $1995.00 (not including taxes and fees) Which would include:
One premium reserved ticket in sections along the Runway,* access to an intimate backstage tour-go behind the scenes and ask select members of the JAY-Z AND BEYONCÉ OTR II crew what it takes to put this elaborate production together (tour led by your VIP Concierge), one VIP parking space per order, exclusive access to the pre-show VIP Lounge, limited edition JAY-Z AND BEYONCÉ OTR II VIP gift item, & more!*
Money – Start funding a Roth IRA with a deposit of $2000 toward the 2018 contribution limit of $5500.00.
Next Steps with Debt Payoff:
Currently targeting Group D with a balance of $2,700.00 and my current overall balance on my student loans is now under $50,000. So, Bye Bye $50’s, Hello $40’s!
Let me know of any questions or comments about my first debt payoff report! Thank you so much for reading and all of your support!