March wasn’t the best, but it certainly wasn’t the worst. We had extra expenses and a death in the family, but we also had a nice celebration for our wedding anniversary. Somehow we managed to lower our debt balance by over $2,000!
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The medical bills from December and January finally came in March. We had to pay $763 towards medical expenses, so that meant $763 less towards our debt! I’m grateful that we have the money to cover the bills, but it’s just frustrating how something always seems to come up. It seems like we can only go a couple months before something else interferes with our plans!
|Type of Debt||Expected Payoff||Balance|
|Credit Card (HE Loan)||2018 – August||$7,644.03|
|Credit Card (Student Loan)||2018 – October||$9,700.00|
|Credit Card (Student Loan)||2019 – March||$10,548.73|
|Auto Loan||2019 – August||$15,796.92|
|Student Loan||2020 – April||$30,889.84|
|Student Loan||2021 – January||$35,092.70|
|Mortgage||2021 – December||$46,556.84|
|TOTAL DEBT INCLUDING MORTGAGE||$156,229.06|
|TOTAL DEBT WITHOUT MORTGAGE||$109,672.22|
We did it! In March we officially paid off the last of our true credit card debt! As you can see in the summary above, we do have 3 credit cards with balances, but those are only 0% balance transfers. We are using the credit cards only to save on interest that we were paying on other loans! We are no longer using credit cards to live beyond our means.
Our average interest rate is still 3.9%. I keep debating a refinance on our mortgage to save on interest. It wouldn’t make sense if we move in a few years, but if we end up waiting 5 or 6 years to move it might benefit us. If we keep going on our payment plan the mortgage will be paid off in less than 4 years which I’m certain would be better than a refinance too! Decisions, decisions!
Method: Modified snowball method using Undebt.it
We moved our progress from 27.5% up to 28.4%. We lowered our debt balance by $2,032.54 this month! We are now less than 4 years away from being 100% debt free. In less than 3 years, we will have everything paid off other than our mortgage. That’s pretty exciting!
Of course we still owe over $100,000, but I can see the light at the end of the tunnel. I don’t feel suffocated by our debt like I used to. Now I feel hopeful because I have a solid plan of attack! We will have 2 big debts gone in 2018 and 2 more gone in 2019!
We paid $513.47 in interest for March. We’re down a few more dollars since last month. This number will keep going down as we make progress on our auto loan and mortgage, but it’s still more than I’d like to be paying!
More Wasted Money??
We spent $143.90 on dining out in March (not counting our anniversary night out). We reigned it in from February but still went over budget in March. Jim is making great progress recovering from the broken leg, so life is getting CLOSER to what it was before the fall.
We cashed out credit card cash back earnings in the amount of $86.82 in March. I LOVE getting paid for shopping we were doing anyway, and we used some of this money to cover our trip to the movies on our anniversary.
How’s your financial life looking? What throws off your plans? Share in the comments!