Update #6 – January 2017

This month, we had a break in the storm clouds long enough to make another big payment on R’s car.  God willing, we’re well on our way toward paying it off by June!  I know I’ve said this before, but interest on debt is the WORST.  We actually sent $1643.98 towards debt this month, but $529.18 was eaten up by interest.  It’s so hard to make such big payments only to see it all but wiped out due to interest accumulation.  At least as we go along, that will start to matter less and less.

The Numbers

Here’s how January ended up:
January 2016 January 2017
Car Loan $4,685.88 $1,666.03
Discover Loan $5,511.82 $3,578.65
Discover Card $7,939.49 $4,663.83
K Student Loans $14,058.10 $12,544.43
R Student Loans $47,879.41 $46,589.35
Total $80,074.70 $69,042.29
Total change: $11,032.41 paid off so far, $1,114.80 paid off in January
jan-17-chart
Under $70k!!!! Now on to the next line…

The Recap

This was only the second month that we’ve been able to make a huge payment on the car in the six we’ve been really focused.  The other four have included a hospital visit and unexpected car repairs, which has meant we’ve needed to press “pause” and either replenish the emergency fund or save up for the expense.  Lesson one: Emergency funds are necessary, because life does happen.  Lesson two: Credit cards are a horrible system to rely on for emergency expenses, because what happens if we have two emergencies?

Speed Bumps Ahead

I’ve always been that guy who files his taxes as soon as the W-2 hits my inbox.  It’s been nice in the past because R and I both have always gotten a refund, and if those settlement loan commercials are to be believed, “It’s my money and I need it now!”  This year, however, is different.  My part-time job had a really wacky tax withholding schedule which resulted in my tax withheld being waaaay lower than it should have been.  So now, R and I have until April to save up a little over $1,000 in order to keep the fine folks at the IRS off our backs.  At least we have jobs and income to pay taxes on!

Also, my car just hit 172k miles not too long ago, and the original spark plugs are still holding on for dear life.  I’m planning on getting some much-needed work done, and though I have cash to cover the work planned, surprise repairs are not uncommon with the Goldy Oldy.  I have learned that putting unnecessary repairs off until I can afford them is possible, though, so hopefully we won’t run into too much trouble.

10 thoughts on “Update #6 – January 2017

    1. That’s the plan!! It’s actually doing a lot better than I probably give it credit for, I haven’t really had any major problems with it yet. Well, ones that weren’t expected, anyway. Hopefully it holds together through the rest of the debt snowball!

  1. Interest on debt! That can be a real bummer when paying off loans but I’m glad to see you’re making good progress on everything so far, keep it up!

    1. Thank you for the encouragement! And interest in debt is absolutely a bummer. Calculating it all out really helps me see how much debt is killing our ability to produce wealth, and provides great motivation for getting rid of it! Hopefully we can be on the other side of the interest coin, where it earns us money, soon!

  2. You know I didn’t even take interest fee’s into consideration when I posted our debt payment for January. You’re right, it does take a bite out of repayment. The difference in debt owed from 2016-2017 is quite encouraging! Great job! And how awesome that you’re rockin’ a high mileage car. We have a Honda that’s at 235,000 and still going strong. Knock on wood!

    1. I had never calculated it out before, but I just knew the progress numbers I’d been putting on here sounded low. I had no idea interest was killing us so much! And high five for the Honda club! My car is a Ford, but R has a Honda that’s in the same mileage ballpark, and it’s humming along great!

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