Monthly Debt Reduction & Savings Statement – May & June 2009 – “Playing Catch Up” Edition

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Debt Help | Save Money
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 May & June, 2009.

We’re a little behind on our goal progress, and need to play “catch up” like Lance Armstrong.

Our Current Goals

  1. Pay off our credit card debt by the end of 2009 (which started as $9,197 in January, 2009)
  2. Pay off our auto loan by the end of 2009 (which started as $6,036 in January, 2009)
  3. Save $6,000 toward an Emergency Fund by the end of 2009
  4. Pay an extra $50 in principle payments on both our student loans so as to pay them off early
  5. 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. **We are not going to start doing this until we pay down our credit cart debt.

Our Current Debt Progress

We have run into a very expensive unplanned expense that has cost us around $4,500 over the course of the last few months.  It has caused me to cut back to only putting $100 on each of our 3 remaining credit cards, thus severely hampering our ability to hit our goals.  Here is our specific debt reduction for the past 2 months:

  • Credit Cards(3 remaining) Once again, my wife had to charge and unplanned amount to her credit card.  It was for a summer class she has to take once every two years that we had failed to budget for.  Argh!  We paid at total of $117.44 in finance charges over the months of May & June leaving us with a total of $6849.97 in credit card debt to date.
  • Auto Loan – Over May & June I paid $96.43 in interest on my auto loan and reduced the principle by $343.57 lowering my balance to $5,167.57.
  • Mortgage – I continued to pay double principle payments on our 2nd mortgage.

For the the months of May & June 2009, our high interest consumer debt was reduced by $963.66, from $12,981.20 down to $12,017.54

Our Current Savings Progress

Although we have not been having as much success with out debt reduction as we would like due to unexpected expenses, we have been very consistent with our savings!

  • Emergency Fund – was boosted from deposits & interest by $203.43 bringing its balance to $1,038.61.
  • Patio Fund – since our patio has been successfully installed, we have drained that fund, but are still contributing to it for 1 more month to complete the savings.  Over the course of the last two months we had contributed an additional $651.40 in savings & interest earned bringing the total fund amount saved to $1426.82.
  • Auto Fund & Vacation Fund – both increased by $50.55 putting them both at a total of $175.59.
  • Side Hustle Fund – I also started my “Side Hustle” fund to put all the proceeds from my online endeavors.  I do not have a business formed for them yet, and so do not have a business account.  In the meantime I will continue to keep everything separate in this manner.  I also plan to pay for business related expenses out of this fund, until I get something more permanent set up.  Over the course of May & June the fund earned $230.02.

The total amount saved for May & June was $925.4 (which is just over 5% of our gross income) and brings our total cash savings to $1619.81


My debt reduction & emergency savings goals both continue to be lag behind my scheduled goals.  This is okay because I’m still hopeful that some blessing will come my way enabling me to reach my goals.  Just as I have had A LOT of unexpected expenses pop up over the course of the last 3 – 4 months… I also believe a blessing could be heading my way.  If God would have it to be so anyway!

If you desire to track our progress, you can do so directly by following the MDRSS (Monthly Debt Reduction & Savings Statement) tag series here.

DFA is passionately dedicated to helping people break the bondage of debt & work toward financial freedom using biblical principles.

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1 Aaron Wakling

Great Blog post. I am going to bookmark and read more often. I love the Blog template

2 Luke Grand

Keep hammering away at that debt – it will be gone before you know it! Are you using the debt snowball to pay off the smallest debts first, or some other method of lining them up for payoff?

3 Matt Jabs

I am using a combination of the Debt Snowball and the Highest Interst methods.

Based on interest rate & amounts I owe… I choose which debt I attack first. The first high interest debt I successfully paid off was my credit card with the lowest balance (it had around $1,200 at the onset). My other four high interest debts (after my June payments) are:

-credit card 1 = I owe just under $1,600
-credit card 2 = I owe just under $1,600
-credit card 3 = I owe just over $3,800
-auto loan = I owe just over $5,100

Credit card 1 has the highest interest rate of all, so (barring any set backs) I am paying $600/month toward that and $200/month toward credit card 2. Credit card 3 actually has a lower rate than my auto loan, so the third debt I will attack in succession will be my auto loan… then finish lastly with credit card 4.

This method makes mathematical sense and provides emotional satisfaction along the way.

Regardless of the matter at hand, I rarely advocate following any “method” 100% to the tee… most times I will work out some combination of several that work best for me.

That said, some would be much better off following a specific regiment wholeheartedly.

Thanks for the question Luke… what method do you employ?

4 Kevin@OutOfYourRut

Hey Matt–Even if you don’t hit your stated goals by the end of the year, it looks like you’re making solid progress, and that’s what really counts. If you reach “only” 75% of your goals you’ll have accomplished plenty. At a minimum you’ll have set yourself on a positive course, proving to yourself that you can do it.

You deserve credit just for having the willingness to post your personal financials on the web. In a culture where most people have a phobia about disclosing personal financial information about themselves you’re taking quite a big step here. If you can do that you can do just about anything! In a real way, you’re a trail blazer, lighting a path for others–which I believe is the whole purpose of DFA! (Mission accomplished!)

5 sekishin

At some point, years ago – we had NO savings, NO e-fund, and around $30k in credit card debt. After changing spending habits and pounding away at the debt we are out of the black hole and into the light . . . good luck and keep at it . . .

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