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Debt Update

October 17th, 2022 at 05:02 pm

Our credit card statement came yesterday, so I guess it’s time for a debt update.

We were very close to our goal of an $800 decrease in our credit card debt after the addition of interest.

Our current debt total is $19,167.74. We decreased our debt by $775.73. Next month I am hoping to do a little better and even out our progress to at least $800 per month.

We had an unplanned for expensive month and had to cash flow the expense. The Daughter is going to Tennessee for Thanksgiving break, and we totally forgot to plan for the plane ticket! That was $750 after taxes and fees.  If we hadn’t had that expense, it would have been an awesome month, but I’m still happy with our progress. Our goal is “around $800 per month” and we were right there.

They raised our interest rate… AGAIN! I think this is a combination of two things: one, they “see” we are trying to pay off our debt and two, the Fed is raising interest rates. Our interest rate went up to 17.74%. Despite this, we had some wins this month. For the first time since April, when we really decided to buckle down and work on paying off our debt, our minimum payment due is below $500. I know that doesn’t sound like much, but to me it feels like a win. It’s below $500 because we have paid down our debt. Obviously, it is a win that our debt continues to go down. That is a trend we need to continue. In the past, we were very much yo-yo debtors. Our balance would go down only to go back up the next month. Currently, we are on a downward trend… for six months in a row! That is a win! That is progress!

With the holiday season coming up, I need to plan well to stay within budget. I am almost done Christmas shopping but have a few more things to buy. We host a Christmas party every year and it can be expensive if I don’t plan well.  I need to order invitations and buy food. Generally, we have about 75 people come throughout the day. (I know I could not do this and save money or do it differently. I enjoy my Christmas party and this year I budgeted for it and will host it. Please don’t tell me that not hosting it or doing it differently will get me out of debt faster.) I just need to stick to the plan and remain in budget. If I can do that, then my debt will continue to decrease as planned by about $800 per month.

Next month, our debt will fall into the $18,000s. I know it’s still A TON of money, but I need to count every little win!

2 Responses to “Debt Update”

  1. Wink Says:

    You are doing great! You are consistently paying down your debt and planning for upcoming expenses. I host my family every year on Christmas Eve (a much smaller event then yours) but with the cost of food, drinks and gifts it really adds up. I save for it all year in my Christmas fund, so the expense is manageable. We still need to enjoy life while attending to our finances!

  2. rob62521 Says:

    Keep up the good work!

    As for your party...Yes, you could not have it, but I'm going to be a maverick here...sometimes you have to spend money to enjoy life. As long as you plan for it and cut where you can to keep costs decent, I would, if I were you, enjoy yourself. You don't want to be like a lady I knew who was so caught up in "saving money" that she forgot to live life. When she got ALS, she talked about all the things she missed out on. Since you aren't having a party each month, I'd say go for it and enjoy! You can't replace wonderful experiences like this!

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