I wanted to post an update on my debt situation since starting this blog and putting in an active effort to change my spendy lifestyle. One of my first posts, written on December 30, 2015 included my original debt tally and I’m here to post the progress made since the beginning of the year.
Right now I’m focusing on my highest interest debt and working my way down. Once I’m done paying off my highest debt, I will apply those payments to the debt with the next highest interest rate. I am most definitely making the minimum payments on everything else! My payments for the lines of credit are set up as interest payments only, that way I can dedicate all my debt-payment money to my high interest visa card first.
-Visa: $15,530.50 (19.99%) – $2469.50 down from beginning of the year!
-Line of Credit 1: $12,000 (8.8%) – no change
-Line of Credit 2: $13,253.71 (7%) – $16.29 difference from the beginning of the year
-Personal Loan: $20,000 (2% – family loan) – no change
I have mixed emotions about the tally; I’m happy I was able to get almost $2500 towards my debts in a month and twenty days (as opposed to my prior life, where I likely would have added that amount or more to my debt!) but I’m also quite melancholy looking over the expense reports of the past two weeks, seeing all that potential debt-paying money go towards expenses and course fees. This is the emotional fork in the road where I need to focus on the good and feel positive about my achievement so I can keep that good energy flowing about my money situation. I truly believe the pre-Frugal Desperado me would have squandered that money and added even more debt to my name if I didn’t make these changes and embark on a new lifestyle, and I need to feel proud of that instead of feeling sad I couldn’t make a bigger dent in the debt. I’m making a conscious choice to feel great about this!
So what’s next? Although the last two weeks had it’s expenses, today is a new day and a new week is around the corner. My course fees are all paid for so I don’t see anything big creeping up. I want to institute a “Mega Frugal March” for myself where I really tighten the buckles on my frugal efforts. I’d like to see another chunk of debt paid down next month, so here goes! Now that my books are here and the weather is getting lousier, I have every motivation to stay home and study, avoiding all spendy situations. Winter hibernation for the win!