Another month in the books and I am excited to say that I was successful in achieving some of my debt reduction goals I set for myself coming into the month. Leaving August I had $179,908.36 worth of debt tied to my name. This month I was able to put another solid dent into that number as well.
My debt is primarily made up of two things at this point:
Coming into the month I had $7,385 in credit card debt and a nice healthy $172,224 in student loan debt. It still hurts every time I have to write those numbers. This may come as a surprise to you but I am really starting to believe that my debt has been a blessing in disguise.
Because I wanted so badly to live a “normal” life, I was determined to find a way to make ends meet so that I can live comfortably without the stress of chalking up over $2000 a month in student loan payments. Over the last few years I have created multiple successful online businesses and have learned how to generate significant income online.
So once I tackle this debt I am looking forward to have more cash flow to do the things I love with my family. Until then, I will be disciplined in sticking to my game plan which includes investing and debt reduction.
So what do the final numbers look like for September?
This screenshot was taken right from my Personal Capital account. I was able to put a little over $10,000 towards my loans this month. As you can see above, over the last 53 days I have paid down my student loan debt by $23,964. This is such a liberating feeling. Not long ago I remember feeling hopeless. I thought that this debt was something that I was going to take to my grave. Once you decide to take action anything is possible. As I see this debt getting lower and lower, I am becoming more obsessed with eliminating it completely!
So how about that credit card debt? Unfortunately, I was not completely able to knock this one completely down to zero. I made a promise to myself that this will be my top priority next month. With that being said, I was still able to throw a few grand at it this month without stretching myself and my budget for September too thin.
As you can see above I was able to reduce my credit card debt by $3,108.73. It feels good knowing that I will completely eliminate this next month.
I would like to drive down my debt by another 5-10k next month. I believe it is achievable, but I am evaluating where I want to put my money next month. I have been testing P2P lending platforms for the last two months and I believe it makes more sense to invest more at this point of time based on returns. With that being said, clearing all of my debt is my top priority. I truly believe that is the ultimate freedom.
I will begin to document some of my investments as well so you begin to understand the entire landscape of my current financial state. I am also finalizing a mortgage refinance and evaluating all of my monthly expenses including insurance to see where I can save money. A penny saved is a penny earned and I know that every dollar counts towards achieving financial freedom.
Debt at a Glance