Thursday, April 30, 2020

Debt Update April


As you know, life went topsy-turvy for the whole world during this last two months! I’m sorry my debt update is so late, but blogging has taken a backseat during this time. The Covid19 virus has changed the life of so many people! Us included. It has been an interesting 7 weeks with still more to come. Writing for my blog has not been my priority, but I wanted to update you all on my progress, what there was of it.

This debt update is based on our March update. I’m just being real and trying to be transparent. I do these mid-month because our credit card closes on the 15th. I can’t wait for the day when we are consumer debt free and I can do our financial savings updates at the beginning of each month and I don’t have to take into account when our debt cycle closes! Due to life going sideways, home quarantining, and social distancing, this update is a little late. But, better late than not at all!

Although we are not paying off our debt as fast as I would like, I am happy to say that for the third month in a row our overall debt decreased! It didn’t decrease by leaps and bounds, but we did make progress so I have to take my wins where I can get them.

Here is our current debt totals:

           $17,167.01Credit Card at 16.74% interest
      
Our total debt stands at: $17,167.01 YIKES! It’s a lot of debt. All we can do is just keep plugging away. We dug our hole one shopping trip at a time and all we can do is pay it back one month at a time.

Plus side: we started actively tracking our debt again! Our debt decreased! We paid off $117.93 of credit card debt; that only amounted to .06% of our total debt, not even 1 whole percent!?!?! The fact that we haven’t borrowed any more money from The Kids is still a plus to me. We continue to make progress towards our retirement and to contribute $50 a month to our kids’ bank accounts. We are down to “just” one debt. I know it’s a biggie, but it’s exciting to be down to only one debt!

Down side: No matter how much debt we pay off, it’s never enough. We also had a few months of backsliding and not keeping track of where we were that we are still trying to recover from. L Also, we did still charge on our credit card. Of course, I also hate that several hundreds of dollars went towards interest on our credit instead of towards the principal! It’s actually a little depressing to see how long we have been on this roller coaster called debt freedom. We made some poor choices and have been living in a debt cycle for too long!

Looking forward to: getting our credit card debt below $17,000 () and keeping it that way. I’m also looking forward to staying on the debt pay-off and blogging band wagon! I was off of it for too long and it feels good to be making progress again! I am also looking forward to getting our total debt below $17,000. Even though we have been home, quarantining has been expensive! We have spent SO. MUCH. MONEY on food! I have also bought a lot on Amazon. It’s been dangerous! April has been another very expensive month (ironically) so I’m hoping our credit card balance doesn’t increase and we can actually get the balance down!

Clearly, I’m not in an ideal situation. But if I have to get out of debt one baby step at a time, I can do that.

I hope your debt freedom journey is smooth, uneventful, and beyond successful!

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