January was a fairly good month for us. Even after depleting our emergency fund and them pumping it back up to $1,000, we were still able to pay off over $1,400 in debt. Also, keep in mind that the $1,400 we paid off is only the reduction of principal and doesn’t count the interest we paid. So technically, we are making over $2,000 worth of debt payments per month.
For those of you who don’t read my weekly article over at Frugal Dad, I recently announced that I got a new job in Washington, DC. The job doesn’t start until mid-April, but it will be a HUGE income boost for us. This new job will increase our income by approximately $4,000. I will be doing the same job but since I will now work in Washington, I get a cost-of-living pay increase. Another great thing about the new job is that we will no longer have to pay rent in Pennsylvania. The new job will help us cut our expenses by $4,800!
Since we have already been living on less than we make, ALL of these new earnings and savings will be put towards debt. That is an $8,800 new shovel! It will feel great knowing that we will be able to pay things off almost twice as fast.
Anyway, here is what we paid off for January:
Your doing awesome Adam and it looks like I started reading your blog at a good up time.
I have just finished my debt management plan set up and am waiting on hearing if my creditors will freeze all interest and charges, if they say yes then I will be amazingly better off every month!
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Glad you started reading. I’ve enjoyed your comments lately!
Good luck! Credit card companies can be a pain. I guess that’s one of the reasons we used a family loan to pay them off. I can’t imagine what our interest rates would be on them right now!
The rates are what spurred me to do the debt management plan… I couldn’t keep up with the interest.
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Congrats – good job;) February will also be an exciting month for me in terms of getting rid of debt – I’ll be losing one credit card and a student loan, too.
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Nice! It always feels good to say “bye, bye” to debt. Never again, right?
Good for you! Sounds like you are really on a roll now, and that’ll pick up even more when you start your new gig.
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Thanks for the support! I can’t wait to start my new job. More time with the wife plus more income. A win-win!
This is just great. I actually really enjoy reading about your progress. I’m glad you came out of the debt closet. It makes this blog more fun to read.
Thanks Caro. Glad you enjoy reading now. You didn’t before?
Hopefully, I can post more frequently soon. Work is killing me!
well, I only have so much time, but I did move you higher on my reading list. Quality over quantity, remember that.
Nice job with the debt reduction. Keep it up and soon you’ll be debt free in no time! Congratulations!
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Thanks for the support!
This is very impressive….Congratulations on the new job!
Congratulations on the new job, Adam! You are doing a really terrific job paring down your debt.
Stay focused and before you know that debt yoke will be history!
That light at the end of the tunnel is financial freedom – and it is a beautiful place to be.
Best,
Len
Len Penzo dot Com
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Thanks for sharing your journey! I enjoy reading your blog. And congrats on the new job.
What a wonderful way to meet your debt elimination goal! You are doing it right. Write down your goal and tell as many people as you can about it. That way it’s tough to go back on it. Good luck on your new job!
Hey Adam,
It takes alot of courage to do what you’re doing in a public venue. People are going to pat you on the back, but you’re also going to hear a little criticism. In that vein, I noticed in your first post that you said that the family loan bothers you the most. In this post, I see that you’ve only paid back $250 of that loan thus far. Though it is probably interest-free, that loan should be paid first. Whomever loaned you that hefty amount of money obviously loves you very much. You don’t want to endanger that relationship by putting them last in this process.
I wish you the best!
The family loan is next on our list after the personal loan. We just wanted to get those two small debts out of the way to free up some extra cash.
Thanks for the comment!
Congrats on the new job. You guys are doing awesome at staying focused on your goal of paying down debt. $2000 a month is outstanding. Keep it up!