Happy Thursday! 😛
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 –
End of April Figure -£5,930
End of May Figure -£5,570
I put a total of £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 than a year! That’s around £8,000 in principal debt and a little over £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 £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 £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 work 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! 😛
How did you do in May? 😛