Hello beautiful people from across the lands. Today marks 10 months since I’ve declared to focus on paying down my debt and becoming debt free, embarking on the road to financial independence. In my blog post “$91,370.18 In Debt!” you’ll see the mathematical break down of my mess. My new debt balance is $90,114 paid in the last 10 months! That is a difference of $1,256.18 paid off. By this rate it will take me 90 thousand years to become debt free. I am my biggest critique so let’s just celebrate the progress of having $1,256.18 less debt. I have been making consistent payments not missing one or being in forbearance for 10 months. That is something to celebrate given that student loans are one of my most expensive lessons.
Debt Payment Plans
I include my monthly payments in my budget and make sure I do not jeopardize missing a payment. All my student loans are federal but are billed through two different lenders which are AES and FedLoan. I make two minimal payments one for $66.31 and the other $181.68. Originally ten months ago the plan was to use the debt snowball method to pay down the debt quicker. I have yet been able to apply those principles.
As I’m typing this out I’m trying to figure out why? The year has been challenging for me financially and when I made up in my mind this what I was going to focus on my starting point was deep in the negative. There are a lot of things that can come into play here on why I’m not further than what I am. The key takeaway is progress has been made toward the better but there is ways to go.
Debt Payment Breakdown
I would like to keep reporting my progress in real time. I’m thinking either monthly or quarterly. Comment and let me know how often I should do debt balance reports. Right now I am not in a position to throw any extra income toward my debt due to me needing to rebuild my emergency fund. Here is how I would like to break down my debt balance reports.
Amount Paid by Employment Income: $1,256.18
Amount Paid by Side Hustles: $0
The journey to debt freedom and financial independence will not be easy but it will be worth it. I’m taking ya’ll with along the way so stay strapped up! Until next time dream, believe, and achieve.