Sunday, July 21, 2013

Crunching Numbers and Feeling A BIT More Confident

In truth it feels like the debt will never be gone. Over the past few years we've had some huge set backs and some little pit falls. In 2009 our car died and we bought a different one. That point was the highest our total debt has been since purchasing our home. In 2012 our son was born and I didn't work for three months. We incurred hospital debt of about $3000 and my not working combined with poorly managing our money added about $2000 more debt to the 2012 calendar year.

Our total household debt looks like this:
$147,805 beginning 2010. This is the highest point I have recorded.
$127,000 projected beginning 2014

My ultimate goal is to be debt free by 40. I would need to pay off over $15,000 a year to get there. That is a huge number for our income but others have done it and I believe we can too. At first with interest payments being higher I cannot expect payoffs like that. But as the debt snowball gains momentum principle payments go up and interest payments go down. $15,000+ payoffs should be very doable in the last few years. I managed an almost $10,000 payoff in 2011 just starting off with a ton off determination and effort.

It's WAY out, dreaming big, and crazy planning, also a lot of "life" can happen in 6 years but here goes:
$115,000 beginning 2015
$100,000 beginning 2016
$83,000 beginning 2017
$65,000 beginning 2018
$47,000 beginning 2019
$27,000 beginning 2020
$0 beginning 2021... so I'm a year late but in January of 2021 I'd still be 40. Hey, that works.

I could also win the lottery somewhere along the way, right...
too bad I don't play the lottery.


  1. If that is including your home....that is terrific!

    If not, I think it is still terrific!

    I too wanted to be debt free by 40 (not including house). I have 22 months....not going to happen. But I am just focusing on the fact that we are really starting to make headway, and seeing the numbers drop is wonderful.

    Just keep swimming.....

    1. Yep, the house is in there. That is every last bit of debt we have. Home, equity line, car, cards, and medical. It seems like SOOOOO much, but it's going down!

  2. The important thing is the aim. So what if it takes until your 42 or 43. It would still be awesome! Angela

  3. i LOVE your blog! it makes me feel like i am not the only one in this war against debt! you are so right...sometimes it just seems like a losing battle. i am working on our debt as well. not doing too bad but we just married off our daughter this past weekend...and...out of ugly necessity...i had to use the credit card...but...i am going to just keep marching forward...knowing there will be setbacks and disappointments...but small victories that add up will make it all worthwhile. i appreciate your honesty and helps maintain a bit of sanity. :o) your little guy is a cutie...keeping in mind how blessed we are makes me even more determined to keep moving forward...even if it is just with baby steps!

    1. Awe congrats on the wedding! You're so so so right. We just keep marching forward. Baby steps will carry us so much farther than it seems in the moment!
      Thank-you for all the kind words :)

  4. Holy if that includes your house that is nothing. You can definitely do it.