As I mentioned a few weeks ago, after paying my taxes, I was fairly tapped out. And I was reminded of what it feels like to be short of cash. Not exactly a comforting feeling.
Fortunately, it only lasted for a couple weeks.
God blessed me by sending more clients and projects my way than I can possibly handle by myself. And THAT is a whole ‘nuther problem, but a good one to have.
Jehovah-Jireh is my Provider. He never lets me down. ;-)
Anyway, this past month, I played it fairly conservative with paying down my debt. Here are the latest numbers:
As you can see, I paid off $1,499.78 in the last 30 days. That Prosper balance is looking smaller all the time. Depending on what happens, I may just pay it all off within a couple months.
On another encouraging note, my unsecured debt is now below $15,000. Won’t be long and all I’ll have is the van loan left. I’m looking forward to that big time.
The Secret to My Success
One of the things I’ve been doing now for more than two years is tracking my debt on a monthly basis. It’s now second nature. I look at the numbers every month, no questions asked.
This has contributed to my steady progress probably more than anything else. I looked at those debt numbers even when they were going up. The pain made me take positive action.
Anyway, if you’re NOT doing this, I strongly encourage you to start. Update your debt numbers every month. Face the truth. Then do something about it.
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{ 9 comments }
I track my numbers every month as well and it is refreshing to see the balances drop over time. I will be free of my Lending Club loan next month….so I know how you feel.
That’s awesome, Lulugal. And I agree: It’s VERY refreshing and motivating to see the balances drop every month.
I went through the post minutely. I can realize what you have tried to express here. I can say that, without reducing your existing debts, you may have the idea that I have a good amount of money as my savings. But ultimately, the amount after paying the debt is your net savings. So we should cut down our outstanding debts at the earliest.
I’m fairly new to your blog, but I’ve been noticing every month that you say you’ve paid down your debut by X amount. Do you have an earlier blog where you discuss what your plan is to pay off that debut? It doesn’t look to me like you’re getting income above and beyond and you’re doing this on what you normally get. What’s the secret!
Hey Susan,
Thanks for the comment. I just sent you a private email.
To answer your question, yes, I do have a “system” for how I’m paying off my debt.
You can download the PDF report here:
[link provided in email]
Also, you can click on the Case Studies category on my blog to read some of my past updates on steps I took to reduce debt.
http://www.debtreductionformula.com/blog/category/case-studies/
Thanks!
Ryan
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Thanks so much for the taking the time to post this information. With the economy the way it is right now with all the layoffs and more to come; government spending and deficit out of control; the continued housing slump; one wonders where to turn for help. Thank you.
I’m new to your blog, but I’ve been noticing every month that you say you’ve paid down your debut by X amount. Do you have an earlier blog where you discuss what your plan is to pay off that debt? It doesn’t look to me like you’re getting income above and beyond and you’re doing this on what you normally get. What’s the secret!
@Will – Thank you for your comment. I have published my plan to pay off debt. You can get it by opting in to my list in the top right of this blog. The report is called “Stomp Out Debt.”
Alternatively, you can click on the Case Studies category.
http://www.debtreductionformula.com/blog/category/case-studies/
Most of my posts about my personal finances are in that category.
Also, it’s important to note that I’m self-employed so my income fluctuates. That means some months I have less and some months I have more. When I have more, I’m able to pay down my debt faster.
In the beginning (which in my case was approx Nov 2007), it was a lot harder to make any progress. I originally owed $76K. Since then I’ve cut that in half, which means I’ve got more cash flow to work with.
Finally, I’ll also say that increasing your income is extremely important when paying off debt.
You don’t have to, of course, it just will take a lot longer. Probably 3-5 years. I was more interested in the 2-3 year plan. And that required me to increase my income. Since I’m self-employed, I’m in a better position to do that than most folks.
So there you have it: full disclosure. :-)
Ryan
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