Debt Paydown Progress Update: June 21, 2024

Business people sitting in a circle, with a graph trending down. Chris-R.net

Since the last update, I have received a few pay checks, allowing me to continue with one of the most important parts of handling debt: making on-time payments!

There has been some pretty good progress made, thus far.

My Current Debt Breakdown

  • Personal Loan A / Balance $20,571.73 / APR 6.98% / Minimum $720.00
  • Personal Loan B / Balance $20,909.02 / APR 15.24% / Minimum $479.44
  • Credit Card A / Balance $8,186.19 / APR 17.99% / Minimum $220.00
  • Credit Card B / Balance $5,678.07 / APR 19.99% / Minimum $153.00
  • Personal Line of Credit / Balance $3,993.02 / APR 14.59% / Minimum: $120.00

This is an overall reduction of $2,204.91 in a little over a month. If things go well, the sale of a vehicle will provide me with some additional inflow in the next week. 95% of this will go straight toward debt repayment.

One of the ways I was able to increase the principle reduction was by being smarter with my meals. It is very easy to make the time excuse as to why going to grab a quick bite makes sense. However, that adds up very quickly – and is an easy enough sacrifice to make.

The reality is, laziness is the biggest contributor to going out to eat on a regular basis. I make a weekly grocery store run, by enough food to get me through the week, with inexpensive lunch options.

I am now at the point where the payments I am making – at the previous minimum amount – is larger than the minimum, thus eating up the principle even quicker.

Extra Payments

Proceeds from the sale of a vehicle should arrive in a week, or so. This will allow me to just about pay off one card. From there, that minimum payment amount will be freed up to go toward another debt.

With these additional funds, my projections are to have everything paid off in January of 2027.

Key Points To Remember

There are more than one factor at play when it comes to reducing debt aggressively.

  • Reduce wasteful spending
  • Find anything that is taking up space & sell it
  • Find items adding to monthly expenditures & reduce/eliminate them
  • Find additional means of adding income – every dollar counts!

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