Update #5 – December 2016

My new goal in life is to be a hospital.  Apparently, they make so much money, they don’t even need to bill people to stay afloat.  That’s right, we still have not heard a peep from them about our visit in October.  I did call to see if maybe something had gotten lost in the mail, since I’d like to keep my streak of never having to talk to a collections agency alive.  Their response? “No, we just haven’t gotten around to sending anything out yet.”  The good news is that we’ve had so much time to prepare for this bill that we’ve got it covered, and have started replenishing our starter emergency fund of $1,000.  I would have rather had it out of the way before 2017 started just to make things easier, but at least it won’t be stealing our focus anymore.  I wrote a post about what we’ve learned this year and how we plan to adjust for 2017, so if you haven’t yet, go and check that out.  It’s amazing what a difference going all in on something can make, rather than just kinda sorta having an idea of where to go!

The Numbers

Here’s how December went, as of 12/28:
January 2016 December 2016
Car Loan $4,685.88 $2,276.03
Discover Loan $5,511.82 $3,746.78
Discover Card $7,939.49 $4,690.14
K Student Loans $14,058.10 $12,677.00
R Student Loans $47,879.41 $46,764.03
Total $80,074.70 $70,157.09
Total change: $9,917.61 paid off so far, $700.96 paid off in December


The Artwork

Still not below $70k… That’s frustrating.


The Explanation

Like I said above, the looming hospital bill has been the headline of our financial lives for the past two months.  We’ve been able to scrape together enough to cover it as well as almost replenish our BS1 emergency fund.  Let me tell you, that thing comes in handy.  Now that everything is all but taken care of with all that, we can get back to making some serious progress on our debt snowball.  Also, interest is not your friend when you owe it.  I can’t sufficiently describe how frustrating it is to see the student loan balances creep back up after every payment just because we’re not paying them fast enough.  It’s a double-edged sword, though, so when we finally get to the earning interest point, that’ll be a good day!  If you didn’t read my year in review post, we are pushing up the expected payoff date of R’s car from November 2017 to June 2017, and plan to have the Discover loan paid off before the end of the year.  I would love to have everything related to consumer debt crossed off that list before we ring in 2018, but I would also like to eat a hamburger every once in a while, so I don’t know that we’ll be able to swing that.

See you next year!

6 thoughts on “Update #5 – December 2016

  1. Great job (and great blog)! You motivate me to finally get everything into a spreadsheet — it might be the only way to get my husband on board. Here’s to a debt-dwindling 2017 for us all!

    1. Thank you! It really is worth it to get everything down in black and white. I don’t think there’s a better way to start the journey, since it’s basically a roadmap you create yourself! Seeing the amount you owe all laid out in front of you can be pretty painful if you’ve never really looked at it before, but the shock goes away pretty quickly, and you can start to focus on the progress!

  2. Great work!! I had to pop over and see if you had a year end review yourself!! You’ve paid down a bunch this year which is so awesome. You’re so right when you said “interest is not your friend when you owe it.”. Knowing that helps fuel the fire to pay it down. I think big things are ahead for you in 2017! 🙂 Happy New a Year and keep up the good work!! (Lots of !! in this comment but I am genuinely excited to see your progress!! <- there's some more!)

    1. Thanks! Looking at the numbers, it seems like a lot, but I can’t shake the feeling that it could have been so much more if we were more focused for more of the year. But hey, I’ll take some progress over none any day!

  3. Wow! You all are doing an awesome job in planing and paying off your debt. I definitely look forward to learning a thing or two from you. Keep up the great work and thanks for sharing.

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