Debt Payment Update

Debt Payment Update

At the end of March I provided an update on some financial challenges that I had set for myself for 2015. My first challenge was to pay of 10% of my debt by the end of 2015. My total debt was about $264000 (including my mortgage).  In order to make that challenge I have to pay off about $6500 per quarter to reach it.  Natural payments would only get me to about $18,000 so I have to come up with an extra $8-9000 to meet my goal. At the end of March, I had 259,370.34. So here were where my debts stood.

1) Mortgage: $171,025 168,780.16 166,320.16 (Now)

2) Student Loan: $65,959.39  $65,188.58 64,427.07 (Now)

3) Personal Loan: $27931.41  $25,401.80 $17,484.39 (Now)

Total: $249,113.61 $248,231.62

This quarter I have reduced my debts by almost $11,000. In other words, I have paid off an extra $4500 in debt. I did part of this by basically taking the extra paycheck I was getting for teaching an extra course load and putting it toward debt. Additionally, any time I got a little bit of extra money (200 here, 100 there) I would put it to my debt. I actually paid off $1500 from these little side hustles (e.g. extra grading or programs at school that will give me an honorarium of $100 or so). Right now I am just attacking one of the debts. I am putting all extra money toward my personal loan. If things work out I could have it paid off by the end of 2016, maybe even sooner.

I noted that at the end of March I was a little behind. Now I can say that I have not only caught up, but I am actually ahead of schedule. If I just continue with my normal debt payments I should get really close. Thankfully the summer provides me with some extra opportunities to earn some extra money so I should be able to put myself totally on track by the end of the 3rd quarter. It looks like I will meet challenge 1 for 2015….let’s cross your fingers. I am back on track. And depending on how things look I might even set a new goal (e.g. going below $235000 in total debt or even $230,000).

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