I’m about to brag, so get ready.
Debt sucks. Like it really sucks. There’s stuff I want to do in my life but then I’m like… oh yeah, debt. and I’m over it. I mean, I’ve been over it for awhile but I’ve started to impatiently refresh my Mint app and check my balances and count down the days until I’m paid so I can make another payment and watch the number continue to go down.
Last week I got impatient. I try to read at least one blog post or financial article a day, just so I can stay excited and keep my eyes on the debt-free prize. I recently read one about debt repayment (and had talked to Ernie about it once before) that said to not worry about your savings while you’re in debt. Obviously a rainy day savings is good so that should something happen, you won’t need to put money on credit. But Ernie said that for my lifestyle, $500 would be a good emergency savings.
I had $871 in my savings, and I got to thinking about my emergency savings account that earns me .01% interest (aka A FREAKING PENNY) every month. Each  month I have paid around $20 in interest on my dental account. While money is just sitting. Seems really stupid to me.
I took a risk.
I transferred $370 out of my savings and made a $370 payment the day after my normal $100 payment went through.
AND IN JUST OVER 1 WEEK, I DROPPED THAT DEBT BY 33%.
Seriously:
June 30, 2015:Â $1,368
July 9, 2015: $915 (-33.11%)
I know that a credit balance of $2500 doesn’t seem like much to tackle, but the thing I’m gunning for is actually my $19,900 car balance… but I can’t get to that until I push through these other little ones. I think that will be the point that I literally turn into an insane person about debt repayment, because that will be the only thing in-between me and being COMPLETELY DEBT FREE. But $19,900 is a big only thing.
If you have any debt, I want to challenge you to put even just $20 extra towards your debt RIGHT NOW. What will that cost you? Making coffee at home, or bringing your lunch, or even (heaven forbid) getting creative with what’s in your kitchen? Perhaps cleaning out your closet instead of going shopping, or DIYing a facial scrub instead of buying a new one since you’re running low?
Just $20.
I dare you.
After looking at my student loans and seeing that basically they haven’t budged since I looked at them 3 months ago and reading your blog last week, I put and extra $50 towards them this month. It is ridiculous. I pay $335 a month and on my student loans and the numbers haven’t gotten any lower because I am paying on interest. UGH!
Also, I am trying to hatch a plan to take advantage of Uber and Lyft’s rewards for referring other drivers. Right now in Nashville, Lyft will give a $500 bonus to any new driver and the driver who referrs them after the new driver completes 50 rides. Then Uber will give a $500 bonus to any driver who is willing to switch to their platform (and complete 20 rides) plus give the person that referred them $500. I did the math and I need 44 people to do this and I could be free of my student loans. I mean I’ve got to know 44 people who want to make $500 dollars plus the fares and tips from their driving, right? Or at least 10 or 20.
I’ll let you know what I come up with.
Also, a big congrats is deserved for paying of that 33%! CONGRATS! I’m proud of ya.
oh gosh. i couldn’t imagine having student loans. they sound like a NIGHTMARE. what is your interest rate for them?
and you should definitely work on getting people to sign up for uber/lyft. even if you only get a handful of people you could put a bigger dent into it and see the number jump a little more, you know? have you had any referrals yet? and/or devised a plan to get them?
&& thanks. i’m going to cry when i pay it off haha
I have three different loans and they all have different interest rates. The highest is 6.8% and the lowest is 4.something%.
I have been working on the site. So far I have a square space site that is partially set up and plan. I just need to find the time to finish it. So far, I have 3 referrals. Also, Megan is probably going to do it too, so hopefully 4.
Congrats! Anything you can put down toward your debt counts. And 33% is huge!
THANKS rachel!! && yes i agree!! – even an extra $5 here or there adds up!
33%?! Way to go, lady! I’m pretty crazy about not touching my savings, but yesterday I was thinking about your last debt repayment post that totally inspired me and I transferred $100 from savings to my credit card balance (which was only like $130 anyway, but still).
HOORAY!!! you must be getting close to paying off that credit card balance, then! DO IT with your next paycheck! do it and celebrate and then get to work on whatever is the next thing to tackle ;D
wow!!! awesome!!! 🙂
THANKS!!! ;D
I don’t know why I’m not blogging about this with you. We need a monthly debt link up. @mattieroush:disqus didn’t you do one once???
Awesome job!! That dental debt will be gone before you know it!
so stoked to talk about a link up and figure that out. we should try to do it at the end of july!! we’ll talk about it soon!!
&& thanks!!! i am SO EXCITED for that to be $0.00 and then to be able to SMASH through my credit card debt! and then take over the world haha.
I join in a budget link-up, just for clothes purchases! But I’d be so down to do a debt link-up. Mostly because then I’d probably work way harder at keeping it down haha! (I never got an email about this, I just came here because I’m linking this post in my August goals post!)
Congratuo!! So so proud of you! I’m getting ready (mental prep for days) to have my own dental debt, as well as student loans… yikes. But, I know I’ll get through it just like you will!
HEY! THANKS!! oh gosh. try to figure out a way to move beyond just mental prep into financial prep, too. even if you’re able to put aside $100 or $200 to pay on a debt right away, you’ll be saving yourself some interest!!
Wootwoot! You go girl!!!! <3
holla! thanks!! ;D
I do that with my mint account too!
it’s awful (because money never magically appears for me to use to pay things off) but awesome (because suddenly i don’t want to spend ANY of my dollars)
Just the motivation I needed to make an extra big car payment! Way to tackle that debt (: