As of May 1st we have $20,151.02 in debt. This includes 7 different debts. If anyone is watching close enough they will notice that before we paid off the car we had 7 debts and now we still have 7 debts. Here’s what happened. I pulled up my husbands credit report a couple of month ago ( I do every month) and found an old debt from back when Christopher broke his arm and had to have surgery. I didn’t know this existed because we weren’t getting bills or calls or anything. It is in collections, of course, this was back in 2016, so I’m just adding it to the collections SF goal.
For those that don’t know what that is here’s the deal: I have 4 debts that have gone into collections. Three are medical debt and one is a gas card. I’m not being charged interest and am not being harassed by any of the creditors but we do owe the money and will pay it. I’m putting money in a sinking fund every month (it’s one of my debt snowball payments) and when I get enough to pay one I’ll call them up and take care of it. I just recently paid off Kohl’s that way, they offered 50% off of my outstanding debt and I took it. So, all together I have $1,634.34 in collections. Not much.
The other debts are two credit cards and one student loan. All of my extra money is going to one of the credit cards at the moment, then I’ll make the snowball bigger for the second credit card.
Our plan is to be out of baby step two and into baby step three by the end of next year. That’s the projected plan on paper but I’m hoping to make it sooner.
I’m trying to come up with different ideas to increase our debt snowball payments and I’ll let you know what I come up with.
Anyone else on a debt free journey?