Update #18 – January 2018

Hey!! If you’re new to the site or haven’t been here in some time, you may be wondering what this post is. TL;DR – my wife Rachel and I started our marriage together with over $80,000 worth of debt between us. That got old REAL quick, so we turned to Dave Ramsey’s Total Money Makeover for help getting out of it. Though we “started” our journey as a New Year’s Resolution to each other in January 2016, we started really hitting the gas when this blog launched in August 2016, and I’ve been posting these monthly progress updates ever since. If you missed the last one, you can find it here, or you can see all of them from the Updates link on the home page.

Here we are, at the first month of 2018, and I think the slowest one we’ve had so far in terms of debt snowballyness.  I’ll get in to what happened at the end of the post, but let’s get to the good stuff first.

The Numbers

January 2016 (Start) December 2017 January 2018
Car Loan $4,685.88 PAID OFF!! 03/17
Discover Loan $5,511.82 PAID OFF!! 06/17
Discover Card $7,939.49 PAID OFF!! 10/17
K Student Loans $14,058.10 $11,030.66 $10,889.20
R Student Loans $47,879.41 $42,657.18 $42,462.93
  Loan 1   $2,802.82   $2,781.13
  Loan 2   $3,086.67   $3,064.87
  Loan 3   $1,883.13   $1,869.83
  Loan 4    $3,417.41   $3,393.27
  Loan 5   PAID OFF!! 12/17   —
  Loan 6   $31,467.15   $31,353.83
Total $80,074.70 $53,687.84 $53,352.13

Total Change:

$26,720.87 paid off since 1/1/2016
– $9,957.61 paid off in 2016
– $16,469.25 paid off in 2017
– $334.01 paid off in 2018

– $334.01 paid off this month

The Artwork

Debt Snowball

Payoff Projection

No ground gained, but none lost, either. Still projected to pay off our debt in April 2024.

The Road Ahead

Perhaps you’ve noticed our little graph up there reaching a plateau.  I think this is the first “normal” month we’ve had since I left my second job, and it’s the first one we’ve really felt the effects of not having that income anymore.  Losing the wiggle room in our budget has really affected our ability to pay down our debt, and even more so with a surprise we had earlier in the week.  I don’t know about you, but I’m super nerdy when it comes to tax season.  As soon as all the forms start rolling in, I’m putting them in to TurboTax.  This year is a bit of a shift, though.  Between the two of us, Rachel and I had six W-2s from last year, and somewhere in all that craziness, our tax withholding got seriously out of whack.  We’re on the hook for a little over half a month’s salary in taxes owed, and we have two months to come up with the money.  I’m not sure exactly what will happen in these next two months, but I have a feeling that plateau is going to get a little longer before we can focus on the snowball again.  For now, the plan is just to put every spare penny and then some aside for Uncle Sam come mid-April.  I’m thankful that my God is bigger than the IRS.  He sure knows how to put us in situations where we have no choice but to trust Him.

3 thoughts on “Update #18 – January 2018

  1. Six W2’s is a lot of W2’s.

    It’s awesome you’ve been able to pay off so much debt in so little time. I bet it feels great! My wife and I are on a similar track.

    1. It is indeed. And thanks for the encouragement! It can get a little frustrating looking at some of our more successful months compared to months like these, but you’re right, we have made a lot of progress, and we are very grateful for that. Good luck to you and your wife! Lots of changing families like yours and mine are what make up changes in society.

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