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I decided to start my debt-free journey at the beginning of this year and procrastinated on getting started. I knew everything I needed to get started as far as creating a budget, deciding on a method to tackle my debt, and saving for emergencies, but I did not put my plans in action. I know you all heard the saying that “a plan without action is nothing,” and that’s exactly what I did with my plan “NOTHING.”

I follow other money and debt management blogs on social media, and I see all of them that have achieved their debt-free goals, and some are showing progress towards their goals each month. Watching their progress on social media has inspired me to start my debt-free journey by sharing it with others, which will, in return, holds me accountable and put my plan into action.

So April 2020 I started my debt free journey and started making progress towards paying off my debt.

We Will Discuss:

  • My Target Debt Balance
  • Things I Cut Out Of My Budget
  • How Much Debt I’ve Paid Off
  • My Goals For Next Month

My Target Debt Balance

As of April 2020, my target debt balance that I’m working to pay off is $79, 441.75. This includes credit cards, personal loan, student loans, and two auto loans.

I’m not proud of that balance, and the way I got there is by bad choices and going after things that I want instead of what I needed. All that matters is what I do moving forward with my debt.

My goal is to pay this debt off in two years using the debt snowball method. How did I figure out two years? I used an excel spreadsheet, listed all my debts, and determined how much I will put towards each debt each month. As of now, I have a little over $300 of extra money to put towards debt each month because I’m saving for a Permanent Change Of Station (PCS military jargon), which is a move to another duty station. Once I reach my goal balance for the move, I will have more money to put towards debt.

Using the debt snowball methods will increase my extra money each month as I pay off each debt. If you don’t know what the debt snowball method is, please check out step three of my getting started steps here. There you will find how the debt snowball works as well as other methods to help pay off debt.

Things I Cut Out Of My Budget

As I created my budget, I realized I needed to cut some expenses to free up some extra money. Instead of cable TV, I now use Hulu and Netflix. I invested in some Roku devices because my TVs are not smart. A Roku is a device that turns your TV into a smart TV, sort of like the Fire Stick.

Instead of paying over $100 in Cable and Internet, I now only pay $15 for Netflix and $12 for Hulu Premium. Hulu Basic is only $6.

Cutting out Cable TV has saved me $60 for extra money towards debt.

I also cut eating out all the time, set a monthly amount for groceries and spending. Reducing these expenses and setting monthly amounts to each category that my family needs helped free up money to put towards debt.

How Much Debt I’ve Paid Off

So, how much money did I pay off this month?

I paid off $378.65!

This amount is small compared to how much debt I have left to pay, but I can’t focus on my target debt balance. My focus is on how much extra money I put towards my target debt balance each month until it is paid off.

With this amount, I was able to pay off a credit card and a personal loan, which gives me more money to put towards debt in May.

I love the Debt Snowball Method.

My Goals For Next Month

For the month of May I plan to:

  • Continue saving towards my PCS.
  • Put over $400 towards my debt.

Summary

Paying off debt can be hard at first as you take small steps towards your Freedom. Celebrating the small wins will help build your motivation for achieving your goal.

If you are struggling to come up with a plan to start your debt-free journey, you can get access to my Budgeting Tools and my Six Steps To Become Debt Free.

If you have any questions on my April Debt Payoff Report or would like to contact me, please comment below or my contact page.

Debt Payoff Report

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