Since starting our debt snowball in September, Andy and I have been anxiously awaiting the day we would finally pay off that first debt. When I wrote our Debt Snowball Update post in January, I had no idea how soon that first debt would be gone. As of March 4th, 2017….
we paid off our credit card!!!
When we first started our debt freedom journey as a team, our credit card was maxed out at $5,500. (We used it to pay for our wedding expenses.) Technically, I should say “my” credit card, since it’s solely in my name. But my sweet husband took on my debt as his own when we said “I do”!
In September, we got the exciting news that Discover approved us for SCRA relief, meaning they would lower our interest rate from 18% to 5.9% due to my husband being in the military and also were generous enough to apply the SCRA relief going back all the way when I opened the card in July 2013– before I even met my husband! Discover gave us a $1,400 credit on previously paid interest, which they applied toward the remaining card balance. This helped significantly, because it lowered our minimum payment. We kept paying the same amount toward the card even after the minimum payment was lowered, which helped even more!
Then, in January, I got two part-time jobs. They aren’t ideal, but they certainly do help to pay off our debt! In February, when I filed our taxes, I was shocked to discover that we were getting a $2,400 refund! I honestly thought we would be paying in this year, so I had set aside some blogging money to cover the tax liability that would have been caused by my blogging income. As soon as that refund hit our bank account, which happened to be the same day as my paychecks from both part-time jobs, I discovered (no pun intended!) we had enough to pay off the Discover card in full!
Here’s a look at our debt balance in full, as of March 4, 2017.
| Description | Initial Balance (Sept 2016) | Latest Balance (March 2017) | Progress |
|---|---|---|---|
| Discover card | $4,992.86 | $0.00 | 100% |
| Personal loan | $4036.20 | $2,445.15 | 39.5% |
| Student loan | $5923.09 | $5,584.01 | 5% |
| Tithing debt | $1,130 | $1,130 | 0% |
As you can see, we’re over halfway finished paying off the personal loan due to the loan payment schedule. That’s the next debt we will be attacking, and we hope to have it gone by our first anniversary this June! If we keep up the intensity, we could potentially be debt free by 2018!
Are you on a debt free journey?
Why or why not?
If so, how is your debt free journey coming along?