I saw this on another personal finance blog and thought it would be good to start tracking my progress as I pay down my debt. It will help to keep me more accountable of my debt while telling my story.

Where we started:

January 1, 2020:
$41,447 in Credit Card Debt
$26,500 in Automobile Loan 1
$1,560 in Automobile Loan 2

February – Took Debt Seriously and started paying smaller accounts

Between my wife and I we had several credit card accounts with various interest rates:

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My Cards:
Card 1: $5,514 Interest Rate: 26.49%
Card 2: $5,468 Interest Rate: 26.49%
Card 3: $1,456 Interest Rate: 21.49%
Card 4: $4,316 Interest Rate: 15.49%
Card 5: $2,643 Interest Rate: 26.6%
Card 6: $3,617 Interest Rate: 0%
Card 7: $1,560 Interest Rate: 24.6%
Card 8: $1,875 Interest Rate: 25.49%

My Spouses:
Card 9: $3,675 Interest Rate: 27.49%
Card 10: $1,560 Interest Rate: 25.49%
Card 11: $1,750 Interest Rate: 18.49%
Card 12: $1,543 Interest Rate: 21.49%
Card 13: $1,175 Interest Rate: 26.49%
Card 14: $1,430 Interest Rate: 18.49%
Card 15: $3,865 Interest Rate: 15.49%

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In March I used money from savings to pay the smaller accounts,

Cards 3, 5, 7, and 8 from my accounts as well as card 11 from my spouse’s account were paid off. Then I used the stimulus check and found money from a retirement medical savings account that I had to cash in since I left the firm that offered it. With this amount, I paid off cards 10, 12, 13, and 14.

In April I combined the amounts on cards 1 and 2 to a zero percent interest card and paid off the smaller automobile loan completely. I also paid off card 4 with a combination of savings and saved money from the pandemic.

In May, we paid off card 9 leaving just the new zero percent interest rate card, card 5, and card 15.

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Currently we have:

Card 1: $10,639 Interest Rate: 0% – New Cards 1 & 2
Card 6: $2,644 Interest Rate: 0%
Card 15: $2,305 Interest Rate: 15.49%

Automobile Loan 1: $24,244 Interest Rate: 1.9%

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My plan now is to have Card 15 paid off by beginning of July, and Card 6 paid off by the beginning of September. I have approximately $2,300 extra a month to pay off the loans. By using the avalanche method, once the other two cards are paid off I will have $2,500 to pay down Card 1 and then the auto loan.

Tracking my spending during the pandemic I was higher than normal on groceries, but less on eating out, our routine medical care, gas for the vehicles, and clothing. We are down approximately $500 per month for the past two months.

Reduced Hours From Pandemic

My spouse is about to lose a day per week of pay but my job is secure and I will not be back in the office until at least September. All travel has been canceled for me for the year and most of our trips will be shorter local trips. Each of these changes has enabled us to pay more towards debt and put less towards vacations and frivolous spending.

Of course, most of these cards were a result of bad decisions, including the vehicle loan. We put on hold buying a house for now and have a month of expenses in a high yield savings account (HYSA). Last week I put a small amount into an investment account.

I also have a 401k, a 457 account, and a pension all totaling $61,487 currently. As well as a fixed pension that will give me an additional $300 per month upon retirement. My net worth is barely positive but coming from negative just a few months ago to a positive today I am pleased with the progress.

My goal is to have all revolving debt paid off by November and split the debt payments between the automobile loan and adding to savings. I am looking to have three months of expenses in an HYSA by March of 2021. What is good about not having high-interest debt, my monthly expenses go down by more than $1,000.

Brief Setback

July will be a bit of a setback as I have to pay taxes. I failed to adjust my withholding to account for my daughter turning 17. This reduced our tax credits by $2000. I also had to adjust my w-4 for this year to account for the change which reduced my income further.

Finally I increased my 401k contribution to 4 percent with a 3 percent match from my company. While this may not be the best option while I am still in debt, I know maximizing my retirement is important since I am fast approaching 50.

A few years ago I would be wondering where I would come up with the extra money, this year I am not worried about it at all. What a difference a few years make.