Let the debt reduction begin!

debt

Photo credit: GotCredit via Foter.com / CC BY

Although I had managed to make our first (but small) debt payment two weeks ago, last Friday’s paycheck finally got us gained us some great traction. My paycheck included holiday pay for Family Day and some overtime hours, so although I anticipated a fat paycheck, I wasn’t sure just how fat. Turns out it was the biggest paycheck I’ve received to date at $1,982 – for you high earners, yes, that may not be a lot, but for me, it was a tad exhilarating checking my bank accounts Friday morning!

After setting aside what we needed for our upcoming bills, we managed to pay off $788.72, more than double what we needed to pay off per week ($334.77) to meet our goal of eliminating our debt by year’s end. That brought us down from $14,395.28 to $13,606.56. That number has now dropped to $323.97!

HELOC balance March 4

We’ve still got a ways to go before we even hit the 100% mark, which was the point at which we started trying to pay off our debt last year ($11,576.25) and further still from the lowest point we had reached last year ($8,699.82) but this tunnel vision we’ve got for paying down our debt has really helped us cut out unnecessary spending.

How are you progressing towards your goals?

Mrs. Unchained 55

6 Comments

  1. Thats a pretty sweet pay cheque indeed. Glad your debt repayment goal is moving along nicely. In my experience, I found the more tunnel visioned I was, the more additional income opportunities were available. You woul probably finish paying this off a lot sooner than you planned. Goon discipline.

    • Thanks!! I’m guessing we will be able to pay it off before year’s end since I’m also anticipating a tax refund. I think as long as this remains at the forefront of our minds, we’ll see consistent progress (although definitely not as significant as this week’s paycheck!)

  2. Congrats on your debt progress. It has been a while since we hit debt free status but not that long ago since mortgage free became our reality. Debt free is a great way to live and a worthy goal because it opens up a whole lot of positive possibilities.

    • Thanks Tommy! We’ve got quite a bit of debt so it’ll be awhile before we can focus on extra mortgage payments, but I can’t wait!!! It just may not be the highest priority in the near future since our mortgage rates are still relatively low…

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