Ditch the Debt: February Recap

Month Two in the books – a lot less eventful than January and less progress, but we’re turning a corner! Hank is in the hiring process for a new job – so while there was no outside income for him this month, we’re taking steps in the right direction. We’re excited about what that means for our finances going forward.

One funky thing happening right now is our Student Loans are in the process of being sold to another company. Because it’s mid-process, in the next month, we’re focusing the Snowball funds on Credit Card 2 until the Student Loans are settled in their new home.

If you missed out on our full plan for ditching our debt, you can catch up here.

Some things that went particularly well this month:

  • We paid off Student Loan 1!
  • Paying off Student Loan 1 gave us an additional $46.67 toward our Snowball. Reminder: We’re only rolling forward 75% of each monthly payment so we get a little relief (and reward) from paying off our debt.
  • My business continues to be crazy profitable which is allowing us to stay on top of our bills and counteract most credit card purchases (see the next section for details.)

Some things that didn’t go well this month:

  • Much like last month, while income was high, a charge on the credit toward an investment in my business caused our credit card debt to climb. Thankfully, this was the last payment toward that investment and now we can really do some damage!
  • We ate out a lot. Like, a lot – a lot. We’re definitely getting that behavior back under control, if not for our budget, then for our waistlines.

So here’s where we stand:

DebtBalance: January 31Balance: February 28
Student Loan 1$320.07$0.00 – YAY!
Student Loan 2$1,576.89$1,487.30
Credit Card 1$2,765.47$2,670.99
Student Loan 3$5,470.57$5,375.54
Personal Loan$9,722.42$9,625.08
Renovation Loan$11,400.60$11,253.73
Credit Card 2$22,816.81$23,836.94
Credit Card 3$19,000.00$18,500.00

Two things that are keeping us motivated:

  • With Hank getting a job and the investment payments in my business being finished, I feel like we’re at a true turning point where things are more predictable and controllable.
  • Paying off a debt – even a small one – is a huge motivator!

You Need a Budget continues to be an amazing tool for us to plan ahead and ensure we can continue on this path. When you use this link to sign up, we’ll both get a month free!

Until next month!


One thought

  1. A lot of your balances went down… That’s a good thing!!
    You are completely aware of your activity and have a good plan in place. You’ll see good progress if you stick with it. Thanks for sharing. I’ll give an update after March. Keep up the good work.

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