We are halfway through the year which means I have been on Baby Step #2 for 6 months.
Honestly, I am not as far along as I hoped. My goal was to either have my Discover card paid off or pretty close to paid off.
However, I am very satisfied with the strides I have made.
I’m also very proud of the fact that I can pay for large payments with cash. Something I never thought I would be able to do.
RELATED POST: WHAT MY DEBT JOURNEY TAUGHT ME
I only set two goals for myself in my last update:
- pay off my Rooms to Go account
- Pay half of my Discover card off
I did manage to pay off my Rooms to Go account, but I didn’t even come close to paying half of my discover bill. Oh well, you win some you lose some.
One of my major goals for this quarter of my debt journey was to increase my social media income so that I can quit my part-time job.
I slowly started to cut my hours at my part-time job because working about 20 hours on top of my full-time job was killing me.
When I cut my hours I was only bringing in about $120 dollars a month. I honestly felt like the gas and my time was not worth it.
So I challenged myself to put a lot of work into my youtube channel and Instagram so that I can start earning income. Once, I could replace my part-time income I quit.
Honestly, its the best decision I made. Since then my income from my youtube channel and Instagram has doubled.
So as of right now, I am working with my salary income to pay off debts.
I am saving up all my earnings from the internet until the first of the year. The plan is to pay my taxes, invest into my youtube channel if I feel necessary and then used the remaining about of money to pay off a debt.
DEBT PAY OFF JOURNEY NUMBERS
FOCUS DEBT: Consumer Debt (Before-$8,322.82; Current-$6,885.11; difference: -$1,437.71) (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 – $786.19; Current – $0; difference: -$786.19) PAID IN FULL
Discover (Before – $2,795.12; Current – $2,533.81; difference: -$261.31)
Capital One (Before – $4,741.51; Current – $4658.30; difference: -$83.21)
I am screaming “I ONLY HAVE TWO MORE CONSUMERS DEBTS”.
The only sad thing is these last two will take longer for me to pay off. They are my first sets of debts that are over the 2K range.
If you take a look at the difference from the last update to this one you will see that I haven’t made much progress. That’s because of two reasons.
First, most of my snowball payment was going towards interest.
However, my debt payoff should be a lot better next update because I applied for a balance transfer and got it! So now I have 15 months to pay off this card at zero interest.
With only making my snowball payment I will hit that in about 13 to 14 months. But of course, I plan on paying the debt off before then. I’m shooting for 5 months.
Learn more about balance transfer cards over at Nerdwallet.
RELATED POST: Debt Journey Update #1
Second, I have not been throwing extra money at debt.
Instead, I have been using my leftover balance to pay for my dentist appointments.
It’s great not having to use credit or my emergency fund to pay for my appointment but sucks because my Discover card probably would be paid off by now.
I have one last appointment and then my mouth troubles gone for now.