Several months ago in November 2018, I decided to take control of a situation and pay off some debt that had been lingering around for far too long.
Debt Snowball Total
Here’s how the debt snowball started in November 2018.
Loan 1: $1,043.99
Loan 2: $5,400.05
Loan 3: $5,792.96
Loan 4: $31,129.13
Total debt: $43,366.13
Debt Snowball Progress
Since I started paying off the debt I’ve made some major progress!
The first loan was paid off quickly since we had an emergency fund already.
The second loan also was knocked out rapidly thanks to savings we already had in place.
Then I started making extra payments on the other loans I planned to tackle for the year.
Every little bit counted! This first extra payment was especially powerful for me because it came from earning money on YouTube – something that I wasn’t sure I’d be able to do in any meaningful way.
Then I shared a debt update for December 2018.
In that first month and a half the debt went from $43,366.18 to $36,436.06. Those big chunks of debt payments added up to $6,930.12!
I changed the loans at one company to a graduated repayment plan so I could stuff more money to principal payments and reduce the total amount faster with each payment.
And then I kept making payments!
Seriously, I think my hobby might be making debt payments. $125 at a time.
At the end of January 2019, I had another good debt snowball update!
The debt went from $36,436.06 to $35,423.73. It wasn’t as big of a payoff as the first month of debt payments, but it still felt like good progress! $1,012.33 paid off was great considering we overspent for the month on everything else.
February got off to a good start with bonus debt payments as well.
And today I made yet another hefty chunk of a payment!
So that’s a quick rundown of where the debt currently stands! I can’t wait to see what it is at the end of February when I do my next official debt update.
Debt Snowball Thoughts
I’ll be honest, I didn’t expect to be paying off debt or sharing any of this online connected to my “real” self. I’m not anonymously talking about money. My friends and family know our income and budget numbers. It’s all a little scary…. but it’s also so empowering!
I feel incredibly empowered for multiple reasons when I’m making these debt payments. It’s severing a tie to the past that I no longer want or need. It’s taking care of family. It’s making me realize I can do anything I set my mind to doing.
It is also inspiring. I’m connecting with a ton of people on YouTube who are also paying off debts, getting their finances in order, and improving their lives. It’s pretty awesome.
I’m also starting to think up ways that I can ramp up payments by both spending less and earning more money. To be honest I want a much bigger shovel so this can be finished sooner rather than later, which means I need to find ways to earn more money and increase the income I have to throw at the debt. Time to get serious!