May 2014 Debt Repayment Update

Happy Thursday! πŸ˜›

This is my 11th debt repayment update. It’s hard to believe I’ve been making overpayments towards my debt for nearly a year now, it certainly feels as if I’ve been doing this for much longer! I made my first overpayment in July last year and have since paid off a substantial amount of debt.

May has been an expensive month for me. I had to go back home unexpectedly at the end of April and took a short trip to Tuscany in May. I have also changed my plans and instead of going to Croatia at the end of May, I went back to my hometown instead to spend more time with my family and friends. My flights to Croatia were non-refundable, so all I could do was change them at extra cost.

Let’s look at the numbers –

Personal Loan
End of April Figure -Β£5,930
End of May Figure -Β£5,570

I put a total of Β£462.00 towards my debt in May, including interest. This converts to approximately 780 USD and 850 CAD.

May was not the best month in terms of debt repayment, but I feel so much better by looking at a bigger picture. Because the reality is this: I have paid off 60% of my debt in less thanΒ  a year! That’s around Β£8,000 in principal debt and a little over Β£1,000 in interest charges paid off! That’s a lot of cash to throw towards debt in less than a year.

My next goal is to eliminate my remaining debt of Β£5,570 by December 2014, exactly one year ahead of schedule (my original debt free date was December 2015). If I want to be debt free by 30th November 2014, I have six (wow, only six!) debt repayments to make and my monthly payments should be Β£1,025 on average including interest. I have still got one extra month where I can make a payment and still reach my goal of debt freedom by 31st December 2014!

I haven’t got any trips to plan for the remainder of the year (I am taking a trip in June but I have already paid for it in cash) and apart from going back home to spend time with my family and friends I will not be travelling much at all (which is okay with me as I’ve been doing quite a bit of travelling lately). That said, I have taken two unpaid weeks off workΒ  in August and my debt repayment will take a blow since I won’t be able to throw as much as I’d like towards debt. I’m hoping to earn as much commission as I can during the months of June and July though (commission is payable on top of my basic salary and varies from month to month). I am determined to stay focused and spend as little as I can to reach my goal of debt freedom in six short months! Here’s hoping! πŸ˜›

How did you do in May? πŸ˜›

You may also like

16 Comments

  1. Considering the unexpected change in circumstances last month and travel/flights to contend with, I think you’ve done great! And how fantastic is it to think that you might be debt free by the end of the year – that must be a massive incentive!
    Nicola recently posted…Why I love No Spend Days!My Profile

  2. GCP there must be something in the air honestly, many have been unhappy about their debt payments last month including myself. The important thing is that you still made a huge payment, big enough to be someone’s rent so you’ve done well. Especially having to fly home and go on trips, I don’t think I could do all that and still pay debt.

    I only made minimum payments to the sum of Β£230 last month. It stinks I know but June is looking like a better month.

    How exciting for you that debt freedom is practically round the corner? The way time is flying at the moment, blink and you’ll miss it…

  3. I never left of comment on your previous couple posts, I’m so sorry for you loss. If there is anything I can do, or if you just want to chat let me know.

    And congrats on your amazing debt repayment progress, I can imagine how hard it would be living in such an expensive city.
    Janine recently posted…Comment on Vienna, Days 33 & 34 by lauraMy Profile

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge