A big debt payment & progress check-in

April 21, 2010 at 9:47 am (debt stats)

Well, as of today I have passed the quarter mark for debt paid! I am a wee bit over 25.5%, so I rounded it up to 26%! I feel good – I had enough of a surplus this month to pay $600, RIGHT NOW. The month isn’t even over, so I may be able to squeeze in a few hundred more prior to my first paycheck of May.

I had an unexpected $253 payment arrive this month. A prior employer from 10 years ago had been bought out for a lot of money in cash. There was a small amount still in escrow, which finally cleared. I was recently contacted by their accounting department to update my address (though FaceBook of all places!) which is how they were able to find me and send me my missing money. So I did what any good snowballer would do – I immediately put it towards debt. All of it.

That extra payment helped make up for the measly 1% paid off last month.

So… time for a check in with my debt progress so far. I have a goal of my birthday, May 2014, 5.5 years from starting my debt plan. I had gotten off to a slow start, which is what happens with most people. I had to set up a budget, get used to limiting my spending, and at the same time, create a cusion in case of emergencies. Building up a $1,000 emergency fund while very necessary to being successful to staying on budget and not creating new debt, is not the bam/wow/amazing beginning we all wish for. It can be a little demoralizing, to SAVE before you pay off any debt.

So I’ve been paying debt off for 1 year and 4 months (even though my blog started in October, I didn’t start debt payments until January). I have paid roughly 1/4 or 26% of debt. If I triple the time I’ve taken, 1.33 years x 3 more quarters to go, that equals 4 years. If you add 4 years to now, that is April/May 2014! That’s pretty darn amazingly close to my deadline!!!!!  As I’ve just illustrated, this means I am completely on track!!!!

Now I still don’t feel self-congratulatory or anything. I still feel mired in debt. But it’s important to realize that hey, I’ve already paid a third of what I have left to pay. I’ve gone from $45K in debt to $33.5K. That’s pretty darn cool!!!

April is feeling like a good month. My money issues are clearing up, I’m back on my debt payoff track, it’s spring, and regardless of anything that’s happened to me recently, I’m still moving forward. It may sometimes be the speed of molasses, but sometimes it becomes a sprint!

Stay focused everyone!

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