Let me be real for a minute. It is so much fun to share our debt repayment progress when we are gazelle intense, but when we are in the situation we are in now, where our debt is actually creeping up, writing this report is no fun. It is actually a little bit painful, but I am committed to doing it and being total honest, so here goes.
Our last debt repayment report was October 3, so here is the (lack of) progress we have made since then:
The current balance and the change in balance since the last report are:
Personal credit card: $11,972.38 +627.28
My student loan: $4,556.59 -163.53
Husband’s student loan #1: $5,269.37 +41.76
Husband’s student loan #2: $8,418.33 -0.00
Husband’s student loan #3: $17,177.48 +71.52
Total: $47,394.15 +$576.67
A few notes:
The Negative:
Over the last two months, our credit card debt (and our overall debt load) has increased thanks to the following situations:
- My computer died and we paid $550 for a new one from Costco
- I had a private consultation to talk with a freelance writing expert for ways to increase my freelance writing income, in addition to getting a few other services. This was $400.
- We had medical bills which topped $1,500. Quite a few of them are related to my current medical issues, but I was also shocked to see that my daughter’s emergency room visit to get stitches was barely covered. The original bill was $707; the insurance got a $200+ discount, and then all the insurance paid was $40. We were left with a $434 bill.
- My husband was docked $750 in salary for October and November because his employer didn’t take out enough tax to compensate for the free classes he is taking.
- My husband’s and my airline tickets for his conference in California are on the credit card, but that expense (less my ticket), should be reimbursed within 4 to 8 weeks by his employer.
The Positive:
- After the conference and the upcoming paycheck that will be docked $750, we should be on stable ground. Most of my medical tests are done, so we will be able to rebuild our emergency fund. After that is done, we will work on aggressively paying debt again.
- My husband’s loans are currently in deferrment because of the classes he is taking, but interest is still accruing on some of the loans. This month we skipped payment because we were trying to survive his docked pay. However, after this, we intend to keep paying so the interest doesn’t continue to accrue.
I am going to start further breaking down our debt. Our first priority is paying off the credit cards. On October 20, 2011, our overall credit card balance was $20,316.63. The credit card balances now are $11,972.38, so we have paid off 41% of our credit card debt, or $8,344.25.
Well it sucks that things have come to a halt but it sounds like it’s all from stuff that is temporary or one-off type of things, so concentrate on the progress you made before all this and know that you’ll be able to pick back up with it pretty soon. Almost 20% gone in about a year is pretty good considering where you started and the bumps you’ve hit along the way.
I know it’s not easy when you have months where you’re not making progress, but just writing up & tracking is keeping you accountable in the long-term. Your luck is going to turn around!
You’re right. Being accountable makes me want to get back on track even faster.
I think you’re doing a great job.
It’s been some time since I stopped by your blog but I always found this series so inspiring. I’m sure that the challenges have you frustrated but you are making such great progress. Praying the medical issues are settled and that you are encouraged by how much more prepared you were for these challenges because of your diligence.
Thanks, Tammy. 🙂
Great Job paying down 41% of your credit card debt so far. I’m sure it can be frustrating to see months with negative progress, but you’re sticking with it, and it sounds like last month had an unusual number of unexpected expenses.
Yes, I am hoping we can get back on track this month. It will take a few months to erase the damage done, but our first priority will be an emergency fund.