There were no major financial events in July, which is good but also boring. We’re just chipping away at the debt right now. We have been busy with birthdays and enjoying the summer weather. Landon even got to see fireworks for the first time this year!
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We had to take a little money from our debt payment for medical bills and a little overspending, but it was nothing significant. I also took the time to really plan out ALL of our extra expenses like birthdays, car registrations, annual memberships, etc., and I found that we haven’t been setting enough aside each month. That explains why we still felt like we were scrambling to make ends meet some months.
Going forward we are lowering our snowball payment a little to allow us to set more aside each month. We will also use my three pay months as a way to set money aside for those extra things. Although I hate to lower our snowball, being more realistic and setting the money aside will dramatically reduce my stress and make life easier in the long run.
|Type of Debt||Expected Payoff||Balance|
|Credit Card (HE Loan)||2018 – September||$2,423.73|
|Credit Card (Student Loan)||2018 – November||$9,300.00|
|Credit Card (Student Loan)||2019 – May||$10,108.73|
|Auto Loan||2019 – September||$14,216.80|
|Student Loan||2020 – June||$30,254.57|
|Student Loan||2021 – March||$34,549.29|
|Mortgage||2022 – March||$46,147.60|
|TOTAL DEBT INCLUDING MORTGAGE||$147,000.72|
|TOTAL DEBT WITHOUT MORTGAGE||$100,853.12|
I can’t wait until we can eliminate one of these categories completely! In just a few months, the unsecured debt number will be practically cut in half!
Our average interest rate stayed the same this month which is no big surprise since we didn’t really change anything.
I talked last month about considering balance transfers for our auto loan. I decided that wasn’t worth it, but I’m still toying with the idea of moving another student loan to 0% credit cards. It’s working really well for our other one, and it could save us close to $1000. The main thing that worries me is loss of flexibility. If we do that, we really CAN’T take money from our snowball if we expect to have the balance paid off during the 0% timeframe.
My interest rate is currently 4.9% but it’s variable. The rate was only 3.87% less than a year ago when I did the refinance. My rate has increased every single quarter. I understand that interest rates across the board have increased, but that’s the problem with a variable rate loan. My prior loan was 5.66% variable, so I figured at least lowering the starting point would be a good thing. I just hate that it keeps going up. That alone makes me want to do some creative financing to get rid of the loan. I have paid so much interest over the years that it’s sickening.
Method: Modified snowball method using Undebt.it
Our progress moved from 33.8% up to 34.9%, and we lowered our debt balance by $2,495.81 in July! We didn’t pay anything off this month, but we’re getting close. The next debt to be paid off is just two months away!!
Our overall payoff date got pushed back a couple months since we are lowering our snowball amount, but it’s more realistic. It’s frustrating because I want it gone as soon as possible, but I also don’t want to be stressed trying to make ends meet each month.
We paid $519.61 in interest for July, so it’s pretty much the same as June. Unfortunately I think it will be at this level for a while unless I end up doing some balance transfers. I know it won’t be forever, but it’s SO hard to know we are paying so much money for nothing!
More Wasted Money??
I said numerous times that our dining out would be better in July. It WAS better, but still not totally on budget. We spent $150.09, so we were $50.09 over budget. At least I know that $62 of our spending was due to group outings, rather than just going out to avoid cooking. Overspending is overspending, but at least we made progress in our behaviors.
We only cashed out credit card cash back earnings in the amount of $26.30 in July. This is way less than we normally redeem in a month, but we have over $100 earned that I haven’t (or couldn’t) cash out yet. Several of our cards will only allow you to redeem cash back when you have a total of $25 or more. August should be a big redemption number!