Two months into my debt get off the floor decision and I’ve managed to pay down a significant chunk of my debt this month. The bad news is that I also may have a major setback in my war against debt. This is a recent debt payoff update on my goals for paying down debt.
Debt Payoff Update For May 2017
Last month I had managed to pay off my mom for an airline ticket that she had given me an advance for. In April, I had also wanted to pay down some debt that I had owed to my lawyer. Unfortunately, that didn’t happen. The good news is that this month I made a large payment that cut down some debt in other areas.
How I Did It:
This month I received my State Tax return. I had owed my lawyer a final balance of $606.29. My State Tax return was just over $700 so I applied the majority of my tax refund to the balance that I had owed my lawyers. It feels great to have paid them off. I was also able to apply an extra $134.90 to one of my student loans.
A Setback On My Debt Payoff Campaign
My wife and I have been separated for about a year or so. Since the separation we have been trying to hash things out (hence the lawyer fees). I was hoping that we were at the point where we could move in together again but unfortunately that part is a long way off. In light of that, I just signed a lease on an apartment here in San Diego that will start taking up about 1/3 of my income. I’ll post more on that in another post.
Debt Payoff Goals
My debt payoff goals are still consistent with my April 2017 Debt Payoff goals.
- Begin a debt snowball effect by paying some additional payments towards my smallest student loan.
- Pay off the rest of my lawyer fees when I get my 2017 Federal Income Tax return.
I also added a couple of additional goals:
- I started re-contributing to my retirement fund at work. A couple months ago I had stopped in order to save up a couple hundred dollars. Paying down both debt and saving for retirement are both two important goals to me. So this month I began contributing to my retirement account at work which my employer also matches.
Here’s a more detailed look at my debt payoffs: