The last three months have been big in my debt pay off journey. In the last three months, I have been able to pay about $5,000 of debt off and wipe out three debts.
How was I able to pay off so much debt in such a short time; perfecting my budget, making sacrifices, gaining more income.
RELATED POST: Debt Journey Update One
January Goals
✅ DEBT REPAYMENT
In January my goals were to start baby step 2 and pay off my best buy account and mattress firm account. However, I was able to pay off both including my CareCredit Card and start paying off my Rooms to Go account.
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✅ INCREASE INCOME
In reality, I said I wanted to increase my income, but at the same time, I cut my hours from my part-time job dramatically. Working 40 hours a week and then turning around and working 20 more was taking a major toll on me.
So in January, I decided what I really wanted was to increase my income by working at home so that eventually I can quit my part-time job without the pressures of feeling like I needed it.
You know what happened! A company reached out to me about them being their Instagram manager. The job pays weekly and it allows me to learn more about growing social media accounts because now I can test techniques.
✅ STICK TO BUDGET
January I had a successful no spending month, but February I did terribly. While I did stick to my budget I feel like because I earned the extra income I spent money on things that I did not need.
DEBT PAY OFF JOURNEY NUMBERS
FOCUS DEBT: Consumer Debt (Before-10,372.10; Current-$8,322.82; difference: -$2,049.28) (This total does not include my monthly payments of other debts not included in category one. See my debt journey story to see how I break down my debts).
- Best Buy (Before – $395.45; Current – $0; difference -$395.45): PAID IN FULL
- Care Credit (Before -$645.10; Current – $0; difference: -$645.10) PAID IN FULL
- Mattress Firm (Before – $840.22; Current – $0; difference: -$840.22) PAID IN FULL
- Rooms to Go (Before – $1,212.19; Current – $786.19; difference: -$426)
- Discover (Before – $2,835.78; Current – $2,795.12; difference: -$40.66)
- Capital One (Before – $4,838.81; Current – $4,741.51; difference: -$97.30)
LAWDDDD! I can’t believe I have 3 more consumer debts to knock out. I know it is going to take a lot more patience as these last three consumer debts because the numbers are so high as well as the interest. However, I am still determined to get rid of these in 2018.
Next Three Month Goals
- Fill all my sinking funds – I have about 5 categories of sinking funds I want to fill all worth a total of $1000 dollars.
- Pay off Rooms to Go and half of my discover card balance.
If you want to know where I started from please check out this post.
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