Well April certainly didn’t turn out how we expected. The medical bills keep rolling in, we had some minor car repairs, and we finally paid to get our wills created. Adulting really isn’t fun sometimes, but it feels good to know that we are being responsible. It’s frustrating to see our debt payment take a hit, but that’s life! At least we aren’t having to put extra expenses on a credit card!
This post contains affiliate links. For more information, please read my full disclosures.
This month we had to take $815.67 from our debt payments to cover other items! We paid $512.94 in medical bills, $67.44 in car repairs, and $235.29 in legal fees. The legal fees were actually $600, but we managed to cover the rest of it with our normal budget and by redeeming some credit card cash back. We already had another car issue that will reduce our debt payment in May. Sigh.
In the past, that number would have killed us. We absolutely would have used a credit card and worried about how to pay it off later. That’s not an option for us anymore! While I hate paying less to our debt, I am SO grateful that we had the money to pay for what we needed instead of adding to our debt!
Although it feels like we had an awful month, we still reduced our total debt by $1,841.17. Lowering our interest rates really helped because even our minimum payments have an impact now.
|Type of Debt||Expected Payoff||Balance|
|Credit Card (HE Loan)||2018 – August||$6,728.57|
|Credit Card (Student Loan)||2018 – November||$9,600.00|
|Credit Card (Student Loan)||2019 – March||$10,438.73|
|Auto Loan||2019 – August||$15,404.57|
|Student Loan||2020 – April||$30,681.04|
|Student Loan||2021 – January||$35,079.69|
|Mortgage||2022 – January||$46,455.29|
|TOTAL DEBT INCLUDING MORTGAGE||$154,387.89|
|TOTAL DEBT WITHOUT MORTGAGE||$107,932.60|
Not much changed in our percentages this month. We’re just slowing chipping away at things. It would be SO EASY to get discouraged, and that’s why tracking our progress is so important to me. Especially during months that feel extra challenging, I need to step back and see that some progress has been made! As our other debts are paid, the mortgage becomes a bigger percentage of our debt. That’s what we want! We’re working hard to get all that other stuff paid off first!
Our average interest rate went up to 4.1% this month (from 3.9%), but that was expected because we paid off a 0% card last month. The more 0% debt we pay off, the higher our average rate will be.
Method: Modified snowball method using Undebt.it
We moved our progress from 28.4% up to 29.2%. We lowered our debt balance by $1,841.17 this month! We are less than 4 years away from being 100% debt free.
In just 2 years, we will be down to only 1 student loan and our mortgage. We are toying with the idea of stopping the snowball at that time to save for a new house, but we’ll see when the time comes. There are so many things that can affect our decision that it is hard to stick to a concrete plan.
We paid $525.87 in interest for April. I can’t wait to see that number drop when we are able to knock out the auto loan and student loans!
More Wasted Money??
We spent $211.01 on dining out in April. Ugh, not a good month. We just weren’t watching as closely as we should have been, and even had to take money from our groceries category. We didn’t do anything extravagant, but we averaged more than once per week. It just adds up so fast.
We cashed out credit card cash back earnings in the amount of $110.41 in April, most of which went to our legal fees. I was stressed trying to come up with the $600 to have our wills created, so this was a big help.
How’s your financial life looking? What throws off your plans? Share in the comments!