The purpose of this blog is to document my family’s journey out of debt and to financial semi-independence. One of the benefits of having a platform like this is to track our progress, with accountability. Well, it’s time to come clean about our current status – for better or for worse.
This is where we were with the credit cards at the beginning of 2015 (close to the time that I started this blog):
- $5,000 at 21.99%
- $5,400 at 14.99%
- $5,600 at 19.24%
- $2,000 at 21.99%
- $1,800 at 9.9%
- $4,500 at 0% (until May 2015)
- $3,300 at 27% (we’ve been paying this one off every month)
- $4,500 at 19.99%
- $11,100 at 12.99%
A total of approximately $43,200.
At the beginning of 2016, I reported that we were down to just under $30,000.
This is where we are right now:
- $3,494.15 at 15.24%
- $1,731.94 at 9.9%
- $175 at 0% (until January 2017)
- $2,435.88 at 23.49% (paid off every month*)
- $9,015.43 at 13.24%
- $13,052 on Debt Consolidation Loan at 14.49%
*The charges on this card represent most of our monthly expenses, including daycare, groceries, gas, internet, insurances, and cell phones. We receive points for this card that we use on miscellaneous Amazon purchases like diapers, granola bars, etc. I am not including this one in the grand total, because I did not in January and I know that we will be paying it off in full this month.
Have you totaled it up yet? Let me do you a favor, it’s still $27,468.52 🙁
I had really hoped that all of efforts would have paid off with a bigger impact on our outstanding consumer debt. We’ve been working on developing more side hustles to increase our income and saving money by being as frugal as possible.
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So, what happened? We had expenses for my sister’s wedding and Mr. Smith’s truck needed repairs that cost a whopping $1,800. Those are the big ones. Of course, we have to keep everything in perspective. We’ve also been making payments on my student loans, both mortgages, and making small contributions towards my 401K. I really wanted all of the consumer debt paid off by the end of 2016. However, I should be thankful that despite some extra expenses, we’re still moving in the right direction. Not so long ago, a big vehicle repair bill like that would have been utterly disastrous. We would have had to find some space on our already maxed-out credit cards in order to pay for it. I remember the days when we were calling to find out how much available credit there was on each card, to cover any and all unexpected expenses. Also, we’re looking forward to receiving a big check for my bi-yearly tutoring side hustle in August.
Am I a little disappointed? Yes. But I’m encouraged by a sense that the momentum is changing. In a recent discussion with sister, I actually mentioned numbers instead of just ambiguous “debt.” She was surprised and asked how it happened, how it got that bad. The answer is compound interest; it is a powerful force. When you’re in debt, every little purchase is just adding to snowball. The balances grow, and the snowball gains speed and it seems near impossible to slow it down. But we’re used to hearing the snowball metaphor used for debt payoff. This too demonstrates how small things add up over time.
I like to think that accumulating debt and wealth are two sides of a mountain, and your finances are the snowball. We’ve stopped the downhill motion of falling deeper into debt. With significant effort, we are pushing our snowball to the top of the mountain and are nearing the peak. Once we get this thing over the summit, it should start gaining speed again, but in the right direction this time.
We still have a long road ahead of us and a mountain of debt to destroy, but I have faith in our ability to succeed on this journey. Our next net worth update will be much different. Thanks for following and keeping us honest <3
Numbers going down is always a good thing. That’s the right direction and you’ll eventually arrive at your destination with your commitment. I commend your efforts and congrats on your journey so far!
Thank you so much <3 We are committed to getting out of debt and staying out of debt. There is no going back, we have to keep moving forward.
Good on you for sharing. As you say, you are moving in the right direction, and with momentum, and that is all that matters. The past is past, you are creating your future.
The Personal Economist recently posted…Firedrill!!! What would you do?
It would be easy enough to just post ambiguous statements about “progress” or to lie about the numbers, but I appreciate the accountability. Drafting up this post has actually given me some motivation to kick hustling and saving up a notch.
Keep up the good work! Progress is progress so feel good about that. I look forward to your next update!
Thanks! I am trying to stay positive and focused on our forward progress. The next net worth update will probably be at the end of the year or beginning of 2017.
Things like this rarely ever work out so that it goes in a straight line. You had a FANTASTIC 2015 and should be applauded for that, and even though 2016 hasn’t gone as well, when you average it out you have made great progress and it allows you to set a path forward to get things moving even more quickly again. Stuff happens. You can’t help things like repair bills. But it’s how you react to the stuff that makes all the difference. I think you’re doing great.
Money Beagle recently posted…How Parents Can Teach Their Kids Not To Be Rapists When They Grow Up
Thank you. You’re definitely right – we are making great progress when you look at the big picture. And, the rest of 2016 should be much better with my tutoring money and hopefully no more big expenses.
So happy that you feel the momentum is changing. It can definitely be disheartening when things crop up that you didn’t anticipate (dang cars!). But you seem to have a fantastic plan! Can’t wait for the next update!
You are making great progress! You’ll get there in no time with the amount of dedication and perseverance you are putting forth!
I sure hope that you’re right – all we can do is keep hustling and saving 🙂
Interest is a killer! I keep adding up how much we’ve paid off every month and thinking, But wait, I paid so much more than that!
Great job on your progress and heading in the right direction! Our credit card debt is in the same ballpark as yours – I just crossed below the 30k threshhold. My goal is to pay off our $13kish card this year – race you to it 😉
Ugh, I hear ya. I hate looking at how much money we earn every month, just to pay the credit cards their interest.
Thanks, and I’ll take you up on that challenge, but I hope we both win <3
Wow! I think you are doing so well on your consumer debt. Congrats on making it this far! You’ll be debt free soon–keep up the awesome work. Woot!
Thanks so much for the encouragement – we’re on our way and it’s going to be awesome when we get there 🙂
Your ability to deal with the truck repair without scrambling is HUGE! Sometimes the bottom line doesn’t tell the entire story. There are lots of situations that present zigs and zags in your figures. The actions you take when those situations occur will ultimately shape your financial picture. You’re doing great, Harmony!
Mrs Groovy recently posted…Wealth 101 and the Power of Stigma
I appreciate everyone’s support so much, it gives me motivation to keep going. We’re definitely on the right track . . . finally!
I’m also in a set-back phase and it is the first one that does not feel overwhelming. Solidarity.
ZJ Thorne recently posted…Ways To Be An Ally
It feels better than you would think, doesn’t it?
Harmony- so important torealize you had two significant expenses (car repai and wedding) and neither went on a credit card to be payed off at slater date. Not accumulating new debt is half the battle. Kudos!!
Plus your debt IS going down.
You’ll get there. Slow and steady wins the race. We’re all cheering for you!
Thanks Kim! Yes, we are on a roll and we are going to destroy that debt!
You’ve turned the tide in your finances and that’s huge. Your new extra expenses were paid for without credit, all while paying down your debt faster than required. Thanks for sharing your update and keep pressing on!
Kalie @ Pretend to Be Poor recently posted…Burbstead Update: Birds, Bees, and Sweet Peas
I like visualizing a changing tide . . . there goes all that horrible debt out to sea 🙂
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