Update #7.5 – March 7, 2017

Yep, that’s right.  It’s time for the first mid-month update.  As you’ve probably noticed by now, I reserve these update posts for mile markers along our journey towards debt freedom.  Most of the time, they’re just a way to check in and see how we’re doing month-to-month.  Every once in a while, we’ll have something more momentous to share, so I’ll interrupt our regularly scheduled program to throw some digital confetti.  In this week’s episode…

WE PAID OFF OUR CAR!!

This is our happy face. Not forced at all, and definitely not a just-got-done-running-in-the-park picture.

Remember that hospital bill we’ve been expecting since October? It finally came.  We had gotten a preliminary statement from Rachel’s insurance that said our portion would be a little north of $2,300.  It hurt, but hey, at least she’s alright, yeah?  So we began to save, and as the months went by and no bill came, we eventually hit the amount that we thought we’d need.  It just sat in our checking account, earmarked “hospital bill.”  Hooray for the envelope system!  Anyway, after several phone calls to the hospital, a worried post to Reddit, and combing through forums to see if this months-long process was normal, we decided to just wait, not touching the money until we were absolutely sure we wouldn’t need it anymore.  Last Friday, we finally got validation that we actually were, in fact, at the hospital in October.  The good news?  Something had happened with the insurance, and our $2,300 responsibility had been slashed to only $100.  Rachel got the mail that day, read it 17 times, and then sent a picture to me while I was at work.  We’ve never been so happy to send someone money in our lives.

Since we had that money saved up, we paid it right away.  The rest of it turned into a giant windfall.  We could finally get rid of this car payment and slay the first giant monster standing between us and being debt free!!  We could also save up the rest of the money we needed for our tax bill, allowing us to put more toward the next item on our list, my personal loan from Discover.  Funny how these things snowball, isn’t it?  So we called the loan office yesterday and paid the entire thing off!  I don’t know exactly what happened in between that original statement from the insurance company and the bill we got on Friday, but I absolutely know that God is good.

So, one week from my last update, here’s where we stand:

The Numbers

 

 

January 2016 March 7, 2017
Car Loan $4,685.88 PAID OFF!!
Discover Loan $5,511.82 $3,409.11
Discover Card $7,939.49 $4,636.80
K Student Loans $14,058.10 $12,420.13
R Student Loans $47,879.41 $46,370.62
Total $80,074.70 $66,836.66

The Fancy Chart

Well, Mint is being dumb again.  The new debt total shows in the 7- and 14-day views, but not the custom one I’ve been using.  Hopefully it’s sorted out by the end of the month, because that drop is glorious!  Just pretend you’ve got a bunch of green bars, and the one on the far right is like the shorter, cooler one out of all of them.  Wearing-sunglasses-up-against-a-wall cool.

 

What’s Next?

So, now that we’re done with the car (minus getting the title changed and all that jazz), we move on to the epitome of my dumbness: my Discover personal loan!  This is the one that I took out when I so wisely maxed out my credit card, and I so wisely transferred the whole thing to a loan, right before I so wisely ran the credit card back up.  It’s gonna feel real good to get rid of this one.  We’re eight months ahead of where I had originally projected we’d be when we first started this back in October.  Maybe our new goal should be getting debt-free before I turn 30?  That’s only 27 months away, but if things keep going the way they’re going, I think we can get pretty close!

18 thoughts on “Update #7.5 – March 7, 2017

  1. Awesome news — congrats on the BIG win! Had something similar happen last month — we knew my husband’s W-4 withholding wasn’t high enough so when I started my job (in August) we tried to play catchup. Had the max withheld PLUS an additional $150 per pay period, because he also got a raise last year and we knew we were going to get hammered, just not sure how hard.

    Saved up $3k for the IRS… and wound up getting a $5 refund (and $40 from the state). Ain’t life a barrel of fun? Felt GOOD making that huge payment.

    I think you’re definitely gonna make it by age 30. 😉

    1. That’s awesome! Playing the guessing game with the IRS is never fun, but it feels sooooo good when it pays off (pun slightly intended)!!

  2. Wow, from $2300 to $100? That must have felt amazing! Glad to hear such positive news this month, it must be amazing to see such progress on your debt!

    1. It was surreal! A huge relief, and complete reassurance that God is working things together for our good. I can’t wait to see what He does next for us!

  3. Thanks for your transparency! It’s always awesome to see someone demonstrating how easy (and gratifying) it can be to pay off debt.

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