Debt Elimination Progress: May 2018

Originally Posted on June 2, 2018 in Free, Fun, Family

Given that we’ve made significant progress in reducing our spending and increasing our debt repayment that are major, sustainable behavior changes, I felt comfortable pursing an option to reduce the interest we’re paying on our current credit cards: balance transfers.  I applied for one balance transfer card that had 0% interest for 15 months and no transfer fees.  They approved me for a bit over $3000.  Then I applied for another card at 0% for 18 months with a 3% balance transfer fee (this will take only 2.5 months to come out ahead of our interest rates).  They approved almost $10,000.  These two allowed me to eliminate my highest interest rate balance (the Visa) entirely and reduce my next-highest rate (the AmEx) by about $5,000.  I will save over $100 in interest every month, which can help pay off the principal much faster!  Because of the balance transfer fee, the amount we reduced our debt by this month was a bit less, BUT we should catch up quickly!

Progress from May:

• Continued to reduce food spending. I’ve started baking at home, making my own salsa and pizza, and went to Aldi (already in love with it–you will see a post when I’ve been a few more times).  I’m seeing the light at the end of the tunnel for this budget area and finally feeling less out of control in this area!
• Balance transfer cards. As described above, we are committed enough to really paying off our consumer debt once and for all to make this worthwhile for us.  I didn’t do it at the beginning because I know I’ve start “payoff” plans before and quit; balance transfers can be a big risk for debt repayment, but I feel quite good about our ability to pay off the balances before the introductory rates expire.
• Our debt payoff is slowing down, but we are still making progress every month.  I anticipate a modest raise in July, which will help, but our pace is slow and steady for May and June as we prepare for a lengthy trip to Korea to spend time with family.  We continue to focus on ways to reduce our spending.  Here are the numbers for the end of May (with new accounts considered):
  • Visa Card: $0 (transferred and finished)
  • Home Improvement Loan: $3,500
  • AmEx: $8,000 (transferred a lot)
  • Balance Transfer 1 (0% for 15 months): $3,038
  • Balance Transfer 2 (0% for 18 months): $9,589.30
  • TOTAL: $24,127.30
  • Amount paid off this month: $508.88
  • Amount paid off TOTAL: $6,828.70

Add the reduction of non-consumer debt and we’ve torched $8,546.41 of debt in four months.

Goals for June:

1. Cancel cable internet while in Korea
2. From June 20 (when the kids and Min leave for Korea): absolute minimum groceries until I leave.
3. Try spin classes when other exercise classes are cancelled as the Y rebuilds–keeps me focused on goals.