Sunday on the Homefront: Progress on Debt Free

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Hey Everyone!

Good news this time around! I remember telling everyone I wanted to start our “Snowball Method” to become debt free. So far we have made some progress!

As I mentioned, earlier this year, I paid off all of Justin’s credit cards. That freed up almost $2000 of debt and $80 of minimum payments a month. So far that extra $80 a month has secured our grocery bill. We now don’t have to choose between eating or paying bills. We did more things, like cancelling our T.V. package (saved $40 a month) and cut back on other spending. So far we have been doing really well! It hasn’t been nearly as stressful trying to survive every month, it’s been reasonably pleasant.

Now, I’ve started dropping extra cash onto my own credit cards. At this moment I have $102 a month in my own credit card/student loan bills. Six months after I leave school (so October 2015) my payments will jump to $317. This is because I will no longer be in deferment for my private student loans. Those things have got to go. Right now I’m attempting to kill off the credit cards (their balances are low-ish) and there is no way I could pay off $12,500 in private student loans, or even pay enough to change their payments.

So far I have dropped my one card from $750 to $590 while maintaining the minimum payments on everyone else. I’m adding an extra $50 a month until that card is paid off. I’m also throwing extra cash I earn from odd jobs and sales on to lower it faster.

On the bad side of things. Every month that I make all the minimum payments ($302 including my car), I gain $80 in interest on top of it. That means, every month I’m gaining $382 in interest from my student loans (mostly). That is incredibly ridiculous. If someone had actually educated me on my loans instead of saying “you have your whole life to pay them off”, I probably wouldn’t have gone to school. After next semester I will be over $72,000 in debt from school. Was it really worth it? I’m not sure, but I don’t really have a choice now.

There is hope though. The Department of Education allows me to put my federal loans into “Income Based Repayment”, so that means, if I stay poor, I won’t have to pay much on them. But that $12,500 in private loans does not get that help. I have to pay it whether I can afford it or not.

Anyway, that’s what’s going on with the Debt Free stuff. I’m making progress on my consumer debt, but no progress on student loans yet.

Other than that, we are filling christmas orders from the pottery shop (click here to check it out! Not too late to order!). We want to thank all of you for your support! We got a lot of orders and it’s helping us out a lot! I’m also doing a lot of grunt work, trying to get our garden plans solidified. I have 2-3 months until I need to start planting things indoors, so I need a solid plan right now! I’m also getting artsy with our flower/herb bed. If I have my way about it, it’s going to be great! I’ll try to get some pictures up soon.

Anyway, have a great week!

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Ben

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8 Comments Add yours

  1. cecilia says:

    Once you are done with those cards (and put them in a drawer – not in your wallet) that will be a big Job well done. I hate credit cards as much as I hate the television. A little every week on the rest will always pay off.. it is hard isn’t it. Well done plugging away.

    1. Thanks! They are already locked in a fire-safe box. I don’t even know where the key is. As soon as they are gone, it’s off to work on those student loans!

  2. You can do it! This month we paid my last student loan payment and it feels AMAAAAAAAAZING!! Stick with it!

    1. I will! We have almost $100k between the two of us, but we’re doing everything we can to pay them off!

  3. Robin says:

    Good job! I’m working on doing the same. The credit card is our biggest bill and I’m determined to pay it off in 2015. Every extra cent goes toward it. It’s discouraging and exciting at the same time.

    1. I love watching the balance go down! Makes me really happy!

  4. Love to hear that. My family is two months away from being debit free. 6 long years in the making. It’s worth it. We are no longer slaves to the lender

    1. That’s encouraging to hear as well. We just started this month, so it’s a long road ahead, but I know we can do it!

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