Our Debt Repayment Progress & Savings Goals #34

I haven’t written a debt repayment report since May 5th.  That’s largely because our lives have been upended by our decision to move to Arizona and then our actual move.

Now, we’re somewhat settled in Arizona.  I’ll be honest, we do have a balance on our credit card.  However, I’m not including that amount in my debt report yet.

Why not?

Well, for one thing, we’re waiting for my husband’s employer to reimburse nearly $3,000 in moving and relocating expenses.

We’ve also had many, many unexpected expenses that have caused us to have a balance.  (People told us that a long-distance move could be expensive, but we didn’t really appreciate just how expensive!)  Here are some of the unexpected expenses that have ended up on our credit card:

  • Nearly $800 in auto repairs to get our 10 year old car (with 135,000 miles on it) ready to make the 1,750 mile trip to Arizona including replace the battery, cleaning the headlights, repairing the exhaust system thanks to a large hole in the pipe, and a host of other repairs that are slipping my mind right now
  • $400 for temporary health insurance.  (My husband’s employer’s health insurance will kick in a few weeks after he starts)
  • $800 to $1,000 in medical expenses (Before we left for Arizona, we took care of all the medical appointments we had put off like an eye exam for my husband and Bookworm complete with new glasses, food intolerance tests for the kids and me, and a few appointments with the foot doctor for my husband.)

While we had many unexpected expenses, we’re also getting unexpected money back such as:

  • my husband’s unused vacation time,
  • our deposit from our apartment

I hope to include our credit card balance next month when I know exactly how much I owe after the reimbursements and the unexpected money come in.

Here’s the report for this month:

Husband’s student loan #1:  $12,211.60               -40.43

Husband’s student loan #2: $16,386.13               +67.82

Total:  $28,597.73                                                            +27.39

A few notes:

The Negative:

My husband’s student loans are in deferment because he’s in school more than half time.  We didn’t pay much at all from May through July because we were saving money for the move.  I did make a payment at the end of July to try to pay off all the accrued interest, but obviously I wasn’t completely successful as our balance bumped up a bit.  Before his loans go back into repayment, I intend to pay off the rest of the accrued interest so that won’t become part of the balance in repayment.

The Positive:

There’s not much positive right now.  Our emergency fund is nearly drained; we’ll likely have an outstanding balance on our credit card next month; and the student loan balance isn’t decreasing.

There is some good news, though.  We’re settled in Tucson, and once we pay off all the moving expenses, we should be able to get ahead financially more quickly than in Chicago because the cost of living is cheaper here.

Emergency Fund

Right now, our emergency fund is resting at $633.

When we became Gazelle Intense on October 20, 2011, our balance was $57,966.01.  Since then, we have paid down 50.6% of our debt, or $29,368.28.

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Comments

  1. Hang in there! You took a hit with those unexpected expenses but sounds like if you stay on track you’ll see on upswing soon. I also posted a FinStat today — momentum can be slow at first, but once it really gets going that is where the fun begins! (Cant wait to get there…I’m just building momentum myself)

  2. Can I ask what are the interest rates on your student loans? I’m working on a project about student debt (the result of a massive increase in fees in the UK) and the figures are scary.

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