March 2017 Debt Repayment Update

March 2017 Debt Repayment Update

Over the past year I have tried to track my progress of paying off debt in quarterly updates. At the beginning of 2015 I had a total of $264000 in debt which included three primary debts: our mortgage, a personal loan, and my student loan. My goal for 2015 was to pay off 10% of my debt, which I was able to accomplish. I was also able to pay off a huge tax bill and our HEAT loan for 2015. For 2016 I have several financial goals, but one of them is to continue with the 10% pay off goal, which would mean I need to pay off about $26,400 for the year.

Here are my current totals at the end of the 1st Quarter of 2017:

1) Mortgage: $171,025 168,780.16 166,320.16  162,762.77 161,020 $157,210 $155,120 $152,750 $149,489 $146,580

2) Student Loan: $65,959.39  $65,188.58 64,427.07 63,657.24 63,392 62,903 $62,426  $61,910 $61, 371 $60,800

3) Personal Loan: $27931.41  $25,401.80 $17,484.39 14,169.27 10,994 7,186 $0

4) Car Loan: $21,655 19,919

5) Credit Card 1: $3700

Total: $264,915.80 $259,113.61  $248,231.62  $240,589.28 $235,406 $227, 229 $217,546 $210,860 ($232,515)

This quarter I have paid off only $5216, but I also ran up a credit card bill of $3700. So my net is only $1500. That is the worst quarter I ever have had. My goal for the next quarter is to pay off the credit card and I am WAY behind on my debt repayment goal. My goal is to pay down 10% of my debt every year until it is gone. Well that would be about $29k per year. In order to get back on track I need to pay down about 9000 next quarter, plus the credit card, plus save for retirement. That might be a tall quarter. I am not sure I will meet my goal by the end of the year, but I hope too.

My financial goals for 2017 are:

  1. Continue with the 10% goal of paying off debt. I think this is important to hit every year. It means we need to pay off about $29k this year and in the coming years.
  2. Save at least 25% of our income. This is something I want to really try to hit. Part of the reason we don’t is because we are paying off student loan, car, and mortgage debt. Those debts account for 60% of our budget. If we could eliminate 1 or 2 or two of those items we would have much more breathing room.
  3. Pay for all medical expenses without using credit cards. I currently have some money set aside for upcoming medical expenses. However, I want to beef that up even more and not have to put it on our credit cards. I know eventually we will pay them off, but I want to avoid CC debt as much as possible.
  4. Get Mrs. ROB started on more retirement savings. Because of Mrs. ROB’s employment situation she doesn’t have access to a traditional retirement plan. 99% of our retirement savings are MY savings. That isn’t right. I would like to start Mrs. ROB on her own Roth or regular IRA.
  5. Cutting our budget by about 5%. I know that doesn’t sound like a lot, but we have to start somewhere. Our spending in one month is above where I want to be. I want us to start saving more money. Cutting down on certain expenses like eating out or reducing a debt payment or something would be advantageous.

The other big goal is our goal to start a family. That is not really a financial goal and I can’t really comment about it until we hear some news. Hopefully by the middle of 2017 I will have more information for all of you.

I will update my financial goals probably mid-year, but I am only accomplishing 1 of those goals so far. I have some work to do.

4 thoughts on “March 2017 Debt Repayment Update

  1. Do you have a Health Savings Account (HSA) for your medical expenses? It’s not the same as a Flexible Spending Account (which must be spent in one year). An HSA rolls over and continues to grow (unless you spend from it for medical expenses). It’s another way to “save” in a tax-beneficial way. You can also invest the funds in the HSA in various mutual funds (depending on the choices available through the provider).

  2. Nope, we don’t have the advantage of an HSA. I wish we did. I really wish we had a Roth 403b now that would be sweet.

  3. Slow and steady wins the race! Although I think working towards FI is importance, it’s easy to let your financial situation dominate your mind. It’ll be good for you to divert your attention every once in a while :). Do you excercise/play sports?

    1. You are exactly right on that. In fact, I was making myself a little crazy on that this morning. So I resolved to solve one of the issues and move on. It gives me piece of mind. And yes I hit the gym five times a week and play golf on a regular basis (when I can…living in New England prevents some of that).

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