Each month I will be posting these Monthly Debt Reduction & Savings Statements. It is my intent to use these statements as a comparison against Our Starting Debt Amounts where I listed our debt as of January, 2009 – when my wife & I began our Debt Free Adventure – to summarize our progress toward debt free living.
Here is our up-to-date Debt Reduction & Savings Statement for April, 2009. Sorry this is a little late!
Our Current Goals
- Pay off our credit card debt by the end of 2009 (which started as $9,197 in January, 2009)
- Pay off our auto loan by the end of 2009 (which started as $6,036 in January, 2009)
- Save $6,000 toward an Emergency Fund by the end of 2009
- Pay an extra $50 in principle payments on both our student loans so as to pay them off early
- Pay double principle payments each month on both our mortgages (we have a 75/25 loan) in an effort to pay them off in only 15 years as opposed to another 28. **Update – 3/31/2009** We are not going to start doing this until we pay down our credit cart debt.
Our Current Debt Progress
We continued to pay off a large portion of debt for the month of April, and are inching ever closer to that glorious day of freedom! Here is our specific debt reduction for the past month:
- I PAID OFF MY FIRST CREDIT CARD! YAY! Our card with the lowest balance was paid off taking the amount of credit cards we are paying on from four down to three. This card did not have the highest interest, but did have the lowest balance.
- Although I paid down nearly $650 of credit card debt, my wife had to charge a $400 purchase to her card (which I’m paying off, I love you baby!) so my debt reduction came up against another Goliath this month. We paid a total of $67.24 in finance charges and now owe $7,499.62 in CC debt. I expect this number to lower significantly next month.
- I paid $55.40 in interest on my auto loan and reduced the principle by $166 lowering my balance to $5,481.58.
- I stopped paying the extra $40/month toward the principle of my student loans and am refocusing it on credit card repayment.
- I did continue to put double the premium payment toward my 2nd mortgage.
Our Current Savings Progress
As I mentioned last month, I have all of my savings withdraws come out automatically each month. Thanks to creating my financial network map, I was reminded of the fact that I am not contributing to my 401K or my Roth IRA. I will be looking to change that in the months to come. Even if it’s only 1%, I am going to start contributing, especially in this cheap investing market.
- Emergency Fund was boosted from deposits & interest by @101.03 bringing its balance to $835.18
- Patio Fund was increased by $300.38 bringing it to a total of $525.42
- Auto Fund & Vacation Fund both increased by $25.04 putting them both at a total of $125.04
As you can see, neither my debt reduction, nor my Emergency Fund savings are on course to reach the goals I set for them at the beginning of this year. What that means for me is that I need to continue getting on my knees and petitioning the Lord for help on the matter. He may have already answered my prayer, here’s how. As you can read about in a recent post, Nickel from FiveCentNickel.com has graciously brought me on as an author on his excellent blog. Not only is Nickel giving me the benefit of writing on FCN, he is also generously paying me for a portion of the traffic my articles draw! As time continues to pass, and I continue to write one article for FCN each week, my income will increase. Who knows, soon it may be drawing just the amount of income I need to reach my year-end goals!
Hey Nickel…did you ever think you would be an answer to prayer? 😉
If you desire to track our progress, you can do so directly by following the MDRSS (Monthly Debt Reduction & Savings Statement) tag series here.
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