It’s been a while since I got to announce that a debt was paid off (September to be exact), and looking back on that post I can see how excited I was to have freed myself from my first “big” credit card payment. Today I’m even more excited because I’ve finally got another debt paid down to a $0 balance. CC#6 is GONE! #anotheronebitesthedust
I made my final payment online on Friday, so technically the debt was paid off in January, which puts be a full 2 months ahead of schedule (based on my latest debt payoff timeline). I made several extra payments toward this card in January thanks to my freelance income and encouragement from my accountability partner, Laurie.
Every time my account started to show more than about a $20 surplus above my monthly budget, I made an extra payment toward my credit card. Admittedly, there were a couple of times that I didn’t want to use all of my extra toward debt, but Laurie’s encouragement helped me to just do it! Prior to January whenever I’d have a surplus in my account, I’d think “well, I’ll just wait and make one large extra payment at the end of the month”. But by the end of the month I’d have found different ways to use that money instead, like going out to eat.
I’m still not perfect, I spent a bit of my extra income toward things I probably shouldn’t have, but I also used a good majority of the amount above my “required” side income to pay off CC#6.
Now that CC#6 is paid off, here is my updated payoff plan.
|CC#||Balance (1/31/2015)||Monthly Payment (Minimum Payment)||Interest Rate||Goal Payoff Date|
|#8||$1,343.36||$194.00 ($34.00)||22.9% (ABOUT $375.00 AT 0.00% TILL 9/2015)||9/1/2015|
|Student Loan||$6,674.37||$93.07 ($93.07)||6.55%||4/1/2018|
My total monthly (planned) payments will stay right around $529.07 each month. But as I did in January, I will try to put more toward my debt whenever I can thanks to my freelance income and anything else I can do to get my hands on some extra money! 🙂 I’m still hoping to get this debt paid off well before the estimated timeline shown in the table.
How should I celebrate my latest credit card payoff? (Something frugal please!)
Stay tuned to see my total January results on Wednesday.