I went with what seemed like everyone was suggesting on Friday and paid off the Target card. My credit card debt is now down to $2501.34. I can hardly believe it.
My student loans are at $3,645.73. What I don’t know is how much is left on the new to me car. I have to get that from my parents. And the interest rate which, given my dad’s fantastic credit history might actually end up less than the student loans.
Without that information I am in a better place than I was in September 2010 when my credit card and student loan debt came to $11,727.56. Now, those two line items come to $6147.07, despite all the setbacks I’ve had since 2010.
My car loan was $9203.91 back then, and I do expect that to be a bit higher now, but I’m not sure it’d be significantly higher to bridge the gap. I’m pleasantly surprised at this discovery. I did not think I had progressed that much. It makes me feel good the sacrifices I have had to make over and over again have not been in vain.
So, what’s the plan moving forward? Snowball method.
I send $360 to student loans and credit cards every month. Before, $34 was the “extra” and everything else was minimum payments. Now my minimum payments add up to $231 leaving me $129 to throw at what’s left. Going along with the Snowball plan, Macy’s is next on the chopping block, then Express, then Dell, then Student Loans, then the car.
This is of course until the next wrench gets thrown at the system.
However, since I have less to pay off now than I did then, I think this also means I have a better chance of getting farther along with my payments before any wrenches come soaring into view. Plus, I’m going to keep putting money into savings.
You know, I hear so much about finding your reasons to be debt-free and how those reasons can really make or break someone’s chance of actually reaching that state of awesome. And for me, what it comes to is wanting a simpler and less stressful life. Which to me means, being more independent.
It is hard to diversify your income sources when you’re too tied up with getting by day to day. And you’re getting by day to day because your income is too low. And your income is too low because it’s not diversified. And around and around it goes. It’s a hamster wheel of stressful doom and I hate it but it’s hard to get off.
So I’m trying to cause little chinks in it. I’m trying to chip away at it and break it up enough so I can jump off.
I don’t want a lavish lifestyle. I want a comfortable lifestyle. I want to be in a place where I don’t have to think about money, and I don’t think it takes a million a year or anything spectacular to get there. I think it takes getting used to a particular lifestyle and sticking with it. I think it takes accepting limits. I think it means letting go of everyone else and being comfortable in your own skin. In other words, money has very little to do with it but there is a certain point you have to get to financially.
So, let’s see. Let’s see where I get to this year. Let’s see what I can accomplish. Let’s see what I can build. Let’s see what I can eliminate. Let’s see what wrenches are out there.
Sandy recently posted about how she kept herself going while she was in “gazelle mode” and I have to say, I really do believe in rewards. So what kind of rewards should I set up? What milestones do you think are worthy of a reward and what kind of reward do you think is a good one? Do you budget for rewards?
Cassandra
March 11, 2013 at 7:53pmThis is awesome! I know how it feels to finally pay down debt that seems overwhelming. Good job!
Mutant Supermodel
March 12, 2013 at 11:27pmIt really does get to feel overwhelming some times. Not just the debt, but the whole picture.
Scooze
March 11, 2013 at 8:20pmGood job! Seeing the numbers go down every month is very satisfying. I have paid off significant cc debt ($20k) and am now debt free except the mortgage. Now thay I’m there I can tell you that watching the savings numbers grow every month is even more fun! You’re almost there. Its truly empowering. I love rewards, too. Are there any things you’ve cut from your budget lately that you miss? You could make those into rewards. I think they should be treats that you’ll really look forward to, like an evening out or a concert. Doesnt have to cost a lot.
Mutant Supermodel
March 12, 2013 at 11:26pmYou’re totally right. Little things are nice. I might even make them to scale– the bigger the payoff the bigger the prize.
nicoleandmaggie
March 11, 2013 at 8:39pmWooo! Good luck!
The best thing about being debt free, I think, is that your money no longer works against you (because of the money lost to interest), but it can start working for you. That makes everything, everything, so much easier. You don’t have to work so hard to get to the same place.
Mutant Supermodel
March 12, 2013 at 11:25pmYou’re right. And that’s exactly what I mean about lessening the craziness of it. Fingers are crossed this goes better than it’s gone before.
bookishbiker
March 11, 2013 at 11:34pmThe only time I remember buying myself something as a reward was when I paid off my credit card – I bought an ipod nano (once I’d saved up the 150-ish bucks). It sounds lame, but paying off my car loan was kind of anticlimactic, and paying off my student loans was reward enough on its own!
Mutant Supermodel
March 12, 2013 at 11:24pmI don’t think it sounds lame at all. I think it’s a pretty good one actually.
Linda
March 12, 2013 at 2:41amBudgeting for rewards…hmmm…I guess that may have to be my vacation fund. I actually have my entire paycheck direct deposited into a savings account called Vacation. From there, I allocate money to pay bills every month. So that vacation fund really is my “pay yourself first” account. I love to travel so that is my reward. And I love to see that vacation fund grow as I think about what type of trip I can afford this year based on how big it has gotten. What do you love to do? That should be your reward.
Mutant Supermodel
March 12, 2013 at 11:24pmI like your system. It must really make you think pulling money out of vacation to pay for anything else! I still have Disney on the brain.
First Gen American
March 12, 2013 at 10:10amIt really is amazing how much progress you’ve made even with your setbacks. Great job.
I like the vacation idea too, but frivolous things you enjoy like makeup or a pair of shoes may also be nice. I’m not a big clothes person but I think that would be fun. I always feel very pampered when I get a pedicure. I started doing them when I was on the road as part of my “me time” after I was completely debt free and they’re only $25 up in NY where I travel. My first one ever was a gift from my husband when I was pregnant.
Mutant Supermodel
March 12, 2013 at 11:23pmThanks! Frivolous is pretty nice. I’ve been dying to get a hair cut. It’s been a year since my last one. My mani/pedi was amazing. I would love a cleaning lady one day. That’d be my big reward.
Grace
March 12, 2013 at 6:20pmI think you’re doing great. The wrenches WILL come, but the blows will only be glancing, not middle of the forehead. Maybe I’d better stop this metaphor while I’m ahead.
Mutant Supermodel
March 12, 2013 at 11:18pmLOL!! I was so happy to see you posted on your blog! Yes it’s a dangerous metaphor. But accurate.
judy
March 12, 2013 at 9:13pmGreat job! We are chugging along here also
Mutant Supermodel
March 12, 2013 at 11:18pmGood to hear from you
Thanks for not forgetting me! We’re the little engines that could.
K.K.
March 13, 2013 at 12:38amHi! I found your blog through Graceful Retirement. I try to give myself a small amount of cash (which varies quite a bit depending on my current budget) each payday that can be spent on anything, lunch out at work, new-to-me books, whatever. Since I budget it in I don’t have to feel guilty and I feel less deprived, even though my overall monthly budget is tight. Also, I live in South Florida too and I’m always on the lookout for free activities. If I find anything good I’ll make sure to send it your way.
Mutant Supermodel
March 13, 2013 at 2:37amI like that you budget yourself treats regularly. I think that’s important. And hooray for a fellow South Floridian!