- I paid off another credit card! This is the last card from my college credit card debt and I am so happy to finally be rid of it.
- With the payments made today, I've crossed the next big marker on my debt-o-meter. I have now crossed the $4k threshold for debt paid off. That means I've paid off more than 11% of my debt in under three months!
So, here's the update in numbers:
Student Loan 1 - $1950/$1951
Store Card 2 - $2,638/$2,800
Student Loan 2 - $2,765/$3,148
Auto Loan - $3,735/$4,140
Credit Card 3 - $4,376/$4,577
Credit Card 4 - $4,910/$5,150
Student Loan 3 - $5,610/$5,614
Student Loan 4 - $5,904/$6,048
Total paid to date: $4,131.05
(plus I have my $1,000 Emergency Fund in the bank, which didn't exist before this process started)
All of those little balances are out of the way. The remaining larger balances look a little daunting, but I'm determined to keep the momentum going. I'm going to skip over Student Loan 1 for now and knock out Store Card 2. Student Loan 1 has a whopping $6 monthly payment which must be spread over about 72 years or so, but it has an incredibly low 3.25% interest rate. Store Card 2, meanwhile, sports a 25.24% interest rate and a $80 minimum payment, $56+ of which goes to interest every month. I'm looking forward to the day that I never again have to look at a statement with a double-digit APR. In fact, when I'm through paying off this debt, the only interest rate I ever intend to see again might be for a mortgage. Maybe, but we'll see. Maybe I'll just save up for a house and pay cash. Or maybe I'll build one a little at a time as I can afford whatever Lincoln Logs are needed to build a real-people house.
If I can keep going at this rate, I can be debt free in less than two years. That would be amazing. Most or all of this debt is going to be gone before the girls start kindergarten. That means that I'll be in savings mode throughout most of their school years. I can't believe that as a single mother raising twins I'm going to be able to pay for both of them to go to college by myself! Paid-for college is going to be a reality!