3rd Semi-Annual Report for Debt-Reduction: Feeling Fierce

DH = Dear Husband
 
            The Christmas rush is on, and DH is working nonstop. This November, like last November, has been a strong financial month. Money has been flowing into the business account. Our household account has been beefed up because I had three rather than the usual two pay periods, and DH collected his annual expenses claim for working from home. As a result of the healthy household account, DH didn’t have to pay himself a salary in November – and he won’t have to in December either – meaning more money is left in the business account to pay down the business debt. DH went to the bank today and put $7,000 against Debt #3, bringing it below the $50, 000 mark to $49, 340.
            It’s the end of November, and that means it’s time for our third semi-annual report. Here are the numbers:
Start of June 2012:  Total Debt = $257, 400
#1 New Car Debt – $8,600
#2 Old Car & Course Debt – $12,800
#3 Business Debt – $80,800
#4 Mortgage – $155,000
End of November 2013:  Total Debt = $191, 460
#1 New Car Debt – $0
#2 Old Car & Course Debt – $0
#3 Business Debt – $49, 340
#4 Mortgage – $142, 120
            Our total debt reduction to date adds up to almost $66,000. A quick look at the three six-month periods that we’ve had so far in our journey out of debt suggests that the most recent six months have been the least successful. 
          1stsix months: $26, 000
          2ndsix months: $24, 000
          3rdsix months: $16, 000
But we had to pay for a new roof this time, as well as a tree removal. If I add the $12, 000 cost of those expenses to what we managed to pay off of our debt, it turns out to be the most successful half-year yet. I think that the best thing we did in the last six months was to avoid getting sucked into yo-yo debting with our big expenses. We saved up and paid for them outright. 

Looking Ahead & Feeling Fierce

            I’m feeling fierce as I look ahead to the next six months. I want to do Christmas on a budget. I want to get my discretionary account in order. I plan to counter the likely spring slow-down in DH’s business by cutting expenses and selling off items that are cluttering our house. I’ve recently started to read Mr. Money Moustache’s blog (more on that later), and I’ve been inspired to dig deeper in our debt-reduction efforts. DH, who for years felt frustrated by my non-engagement in our finances said this morning that he was going to start writing a blog called “Being Married to Prudence Debtfree: What Have I Created?” I don’t think I’ll be that scary, but you never know. The next six months will tell.

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