Debt Reduction and Savings Statement – February 2010

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Our goal progress for February 2010

Our debt snowball just keeps on rolling…  :)

Each month I post these Monthly Debt Reduction & Savings Statements so I can continually compare our current debt against our starting debt from back in January, 2009 – when my wife & I began our Debt Free Adventure – and summarize our progress toward debt free living.

Like charts/graphs better? Look in the sidebar for those.

A debt free adventure can be a long, dry road… but continued progress in all areas of personal finance is a sweet breath of fresh air!  Based on our financial goals for 2010 here is the progress we made through February of 2010.

1.  Lending Club debt goal

WE WILL PAY OFF THIS DEBT WITH OUR MARCH PAYMENT!  Stay tuned for the announcement later this month.

Our personal debt consolidation loan of $11,080 – secured through Lending Club in August of 2009 – has been reduced down to a principal balance of $1,925.20 in just six months.  If you’re interested in doing something similar for your debt situation read my advice on debt consolidation and my Lending Club review to see if borrowing through Lending Club is right for you.

February debt reduction progress = $2,318.48.

2.  2nd mortgage debt goal

We are paying double principal payments on our 2nd mortgage until after we pay off our Lending Club loan, however… lately I have been considering paying off my student loan before this 2nd mortgage.  I will be writing a post about it later this month to ask your opinion.  The interest rate on the 2nd mortgage is 8.8% compared to just 6% on the student loan.  At this point both are unsecured loans (since I’m upside down on the home value.)

February debt reduction progress = $71.71.

I also created a SmartyPig savings account as a way for DFA readers to contribute to our debt reduction if they would like.  As of right now Frugal Dad is the only one who has contributed, and for that I give him a big ole shout out!  Thanks FD.  If you want to contribute, just look in the bottom of my right sidebar.

3.  Emergency fund savings goal

We save $100 each month through our Capital One 360 automatic savings plan and will continue to do so until we reach $3,000 (one months expenses.) This is not the preferred Dave Ramsey $1,000 plan, but rather the preferred Matt Jabs 75/25 savings plan:-)

February savings progress = $100.00Interest earned on this account for February 2010 = $2.39.

4.  Side income growth goal

The income growth for DFA continues upward.  As I mentioned on my February 2010 interest paid post, we earned enough this month to cover the cost of our 1st and 2nd mortgage payments.  Woo hoo!

I have a few other ideas to diversify my income, but I will not report on them specifically here… possibly in a future post as things develop.

Other savings

The other savings accounts we have that make up our 75/25 savings plan include:

  • Vacation Fund = $100 added – interest earned for February 2010 = $0.72
  • Next Auto Fund = $100 added – interest earned for February 2010 =$0.60

Thoughts

I don’t really have much to add this month that I didn’t already say above, but to recap… keep an eye out for these posts due out soon:

  • Lending Club pay off announcement!
  • Should I pay off my 2nd mortgage or student loan first?
  • More alternate sources of income.

Thanks for reading… you all rock!

photo by kamshots


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