Less than $100,000 in non-mortgage debt that is…but it’s still huge!
Ok so I finally sat down to look at where things stand. I’m a lazy ”PFer” in the sense that I don’t monitor my debts regularly. Yeah kill me but I couldn’t tell you on any given day exactly how much I owe and only do a full overview every few months. To add insult to injury I haven’t checked my credit score in probably 18 months and round my numbers. We’re in a crappy financial situation and doing what we can to fix it. There’s nothing more than that.We’re in a full on blizzard with our heads down pushing forward, but guess what? We’re moving in the right direction and most days that’s all I care about.
I can’t believe I’ve been blogging this long without actually discussing these numbers so let’s take a look at where things are and how we’ve progressed in the last 12 months.
The most NON- mortgage debt we’ve ever been in at any given moment is just shy of $143k. Sickening to think we owned more than we gross in a year between both of us. This includes our vehicle loan, DMP debts, student loans and student lines of credit.
Before Starting this Blog
I started this blog in September of 2012. Just before starting this blog, our debt was sitting somewhere around $112k which means before even starting the ‘ol blog we managed to pay off $30,000 somehow. I wish I could tell you what or how but I have no idea. We always paid our minimums, some months more, some years applied extra cash but had no plan. Our finances were a mess. I don’t know what we did to pay off $30,000. Wow.
Last 12 months
In the last 12 months we have paid off just over $14,000 in principal. I feel the need to stress the principal part since interest is such a bitch. We have no debts higher than 5.5% interest which, though still sucks, is better than double digits. We currently owe about $97,000 in non-mortgage debt which includes student loans, DMP and car loan.
Entering 2014: Next 12 months
We will officially be entering 2014 owing less than 100k. This is HUGE. Anytime someone breaks a milestone it feels great. Buhbye three digit debt! My goal for 2014 is to pay off a minimum of $20,000 in principal. I want to enter 2015 owing in $78,000 range. If we’re able to pay off at least 20k per year in principal every year, we will be non-mortgage debt free in just shy of five years though have ambitions of four. I have to be realistic though and think about life too. Ideally we don’t move from our small home until this debt is gone. I think it’s doable. If we decide on more kids, it will also be within the next five years. Though when this happens we will be working on vehicle loan only or possibly tail end of student loan.
For now I’ll accept my small victory of breaking the 100k mark and look forward to my next annual check-in, hopefully with reports in the $75-$80k range! Now onto find ways to make some (legal) money to pay this down!
How are everyone else’s goals shaping up?