$23k Debt-Free

March 2016: Debt-Free Break Down

Loan: $Total debt – $Monthly payment = $Total balance

Personal Loan: $4,099.34 – $332.77 = $3,757.57

Credit Card: $5,838.21 – $117.00 = $5,721.21

Student Loan: $10,621.02 – $111.18 = $10,509.84

Second Credit card: $1,089 – $35 = $1,054

Total debt balance = $21,042.62

I have decided to post the exact numbers shown for each debt to make it more realistic & less confusing for me. I was a little occupied last month and missed one payment by THREE days. That’s not a good habit since it slipped my mind two months in a row :/

By posting the actual amount, I have a clear picture of the exact orders for which debt we should pay in full first once Joel heads out to sea again.

  1. Second Credit card – We all know that credit card debts are the worse when only the minimum is being paid monthly. You’re actual total charge could even double if you are constantly late on payment, so it is best to get credit card debts out of the way as soon as possible. 
  2. Personal Loan – Next to be paid in full since it is less than the First Credit Card. The minimum payment monthly is also higher. By paying this in full, we can save $334.00 a month (such an unnecessary thing that could actually pay our utilities & phone bill.)

The goal this year is to bring it down to maximum TWO debt to pay off. If we keep up with our budget like we are now, we could possibly pay either half or 100% of the First Credit Card Debt. I’m really trying to stay optimistic this month and I want to focus harder to avoid another late payment. I need to reorganize everything again.

Just looking at our total debt balance and I realized, it can be used for a new home down payment at least 10%. Sort of hurt my feelings to think about that, haha.

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