Mid-October debt repayment update

It’s been a little over a month since we began our aggressive debt repayment plan and we have an update for you all!

For the most part, I plan to give these updates on a monthly basis, but since this one is a little odd, I thought I would do it now. This one includes some payments which we won’t be able to make in the future, so it’s a lot larger than most months, but we are pretty excited about it.

At the beginning of this month (starting in early September, so not exactly this month), we had first calculated our debt. That being said, we’ve been making payments for almost a year now so we had well over $200,000, but I’m not sure exact numbers. Regardless, when we first began religiously calculating our numbers last month, we came to the conclusion that we have $196,021.80 in debt.

Let me repeat that. $196,021.80 in debt.

Does it cause your breath to catch? Probably not because you don’t have to repay it. But holy shit, it’s fucking terrifying (excuse my language). It’s a suffocating mountain and we have no idea how to get out of it. But we are working toward it.

How did we get this debt, you ask?

Well, it’s pretty easy to rack up debt these days. It started innocently enough, we both decided to go to college and get a degree so that we could get jobs in the future (what a catch 22 of our society…ugh). Anyway, we met in college. We both went on to grad school and got masters degrees. We then bought a car (used, about ten years old, but still a loan on it to pay for it). We then got married and racked up some bridal debt. Then we had credit cards that we used for emergencies and repairs and those built up too. So, that’s how it happened. Here’s a handy little pie chart you can look at if you want to see some specifics – It’s definitely not pretty.

Where our debt comes from

So that’s what happened. And what can we do? Nothing really. It happens. It happened. It’s done. We can’t go back, all we can do now is go forward.

And so we are. We are working our asses off to pay off our debt as quickly as we possibly can so that someday we can have a baby, buy a house, raise a family, be debt free. Isn’t that the dream? We don’t hope to be reach. We don’t hope to buy a beach house or never work or take monthly vacations to the Bahamas. But to own a small house and raise our future babies without $200,000 of debt would be amazing.

So, back to  business. Since we began our aggressive debt repayment journey we have repaid $7,926.86 – since the beginning of September! Woohoo! This a huge contribution for us.

So, how did we do it? Thus far we have cut our expenses and took all of our extra cash and put it toward loans. We are working on a full budget (you’ll get to read more about that soon!) and we are trying to work on gaining some extra income. As of right now, this was done mostly with extra money and a cut in expenses. We are learning to live frugally (follow our blog to learn more about our frugal living!) and stay within our means.

What does this month’s repayment do for us? Well, our debt is now down to $188,094.9 and we are one step closer to getting to where we need to be!

Here’s a pie chart showing you this months repayment!

october

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How are you working to repay your debt? Do you have ideas? Did this post inspire you? Do you have suggestions for us? Let us know! We love to hear from you! Share your stories in the comments below. Don’t forget to follow DIY Jahn for more on debt repayment, living simply, and DIY crafts that are fun and exciting!

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