I have some exciting news on the debt front today: I PAID OFF MY FURNITURE LOAN!
As you can see on the progress bars, I updated CC #9 (the furniture loan) to show that it is now paid off! Woot woot!!
The final payment went through today and now my online account shows a $0 balance. I’m so excited to be rid of that payment, and it came just in time too. (See my post at Red Debted Stepchild last week for more details on why it’s good timing.)
Like I’ve talked about before, I’m planning on putting most of the money from this payment toward the next credit card on the chopping block, CC#4. Prior to last week, my plan was to have CC#4 completely paid off in September or October, but now it’s looking more like it may be November before that credit card is eliminated.
I’m trying not to get discouraged about that setback, and the truth is I don’t feel too bad about spending the money on getting my car repaired, buying a new computer, and getting a new internet router (more on that soon), because all 3 were necessary for either A) safety reasons or B) to continue working on my side hustles/online income. Yes, it slowed down my debt progress a bit, but in the long run I think it will actually speed up my progress as I will be able to save time not waiting on my ancient computer and broken router to be able to work on the internet. It has already greatly aided my productivity online.
Anyhow, now that the furniture loan is gone, here is how I plan on using that $150/month instead:
$20/month toward a health fund (for my monthly RX and other doctor’s appointments as necessary)
$20 more/month toward building up my EF
$110/month as a snowball toward my other debts
$150/month from the furniture loan payment
Prior to deciding to get out of debt, I probably would’ve gone shopping for more furniture in August or September and charged it to the same card, thus starting the 12 month interest free promotion over and still having that $150/month payment for another year. Ugh! I’m so glad I’ve gotten wiser and decided I don’t want to be in debt forever. Yes, I still want some more/new furniture to replace my college freebies and thrift store finds, but now getting out of debt is more important to me than getting more furniture.
How has deciding to get out of debt changed your priorities?
Photo courtesy of: Images Money