Our $25,000 Debt Reduction Goal
Closing in on these final months of our year long Operation Debt Reduction, we feel the need to set a dollar amount goal for our debt payoff from July 1, 2011 to July 1, 2012. Initially, we didn’t want to give a specific number so we wouldn’t feel defeated if we were nowhere near reaching it. Last summer, when Brad and I set about this challenge to change our spending behavior in an effort to pay down our debts, we honestly had no idea what we were even capable of saving on a monthly basis or paying towards debt. We were newbies to the world of saving. However, we feel now that we can aim for a set number knowing how much time is left in our spending lockdown. Having already paid down nearly $20,000 in just over 9 months, we believe we are capable of paying off $25,000 by July 1. What an achievement it would be to say we paid off $25,000 in 1 year just by changing our spending habits. So there it is, our goal is set.
By applying our March savings of $21.89 on top of our minimum monthly student loan payments, we’ve reduced our debt by $411.20. Not a huge reduction, but we’ll take it. We’re ready to reconcile our savings and come back with a better number at the end of the month. No foolin’ around in April!
To check out our debt reduction over the past 9 months, click here. How are we doing this? Check out our spending lockdown and monthly savings.
The 60’s! We finally made it to the 60’s!
After applying an even $2,000 dollars to my student loan from our February savings of $2,382.28, I finally feel we are making traction. In the history of my student loan, I don’t ever recall paying it off in big chunks as I’ve been doing in the past few months. I was always a minimum payment kinda girl with student loans. My old thinking was, “Oh, this is good debt, and I have a locked down incredibly low interest rate. I should just keep paying it gradually for the next 20 years.” Who was I foolin’? Myself.
I honestly can’t believe I ever thought this way. It’s like I wanted to carry this debt around like a cherished relic from my college days. In only 8 months, while paying off over $10,000 in credit card debt, we’ve still managed to reduce my student loan debt by over $6,000. At the rate we’re going now, we can pay off this loan within the next year. And you know what? I don’t think I’ll miss it.
To see our debt reduction from the past 8 months, click here. To see how we’re doing this, click here.
About Me
My husband and I, both artists, are seeking financial sanity amidst the financial insanity in the San Francisco Bay Area. We are on a quest to change our spending habits, get out of debt and start saving.
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