For now, I'm staying put at my job because it pays decent and it's easy work. I have some big financial goals and every little bit counts.
In April, I had emergency gallbladder surgery. We have no insurance so I was stuck with $22,000 in medical bills, which brought our debt total to a whopping $173,100.68.
Our home is included in this amount. I know many say not to include it, but we do not own it free and clear, therefore in my eyes it is still debt.
Six and a half months later, our debt total is down to $160,598.17. I have a poster where I post our dropping debt total each month as an encouragement and to remind us of our goal of financial freedom.
I write out a budget each month showing us what has to be paid each week, which I check off as the bills are paid.
I have two financial goals that I want to reach ASAP-- $1,000 minimum in savings and to buy health insurance.
Since Alfred is military we qualify for Tricare Reserve Select. You have to pay for the first two months' premiums up front, but then it's $204.29/month....much cheaper than civilian plans! I plan to do this by the end of October. We already have dental and vision insurance through his work for very reasonable rates.
I know many people are Dave Ramsey fans, but I prefer Mary Hunt's method of debt repayment. $2,075 of our monthly income goes directly to debt, with a $300 booster added for faster repayment.
Now, according to my RDRP (rapid debt repayment plan) we will be completely debt free by April 2022 or seven years and seven months. That's including the house (which would be paid off by August 2021 or six years and eleven months).
My original goal was to have the house paid off by the time Alfred turns fifty and it looks very possible, as he will turn fifty in April 2022. What a blessing and a relief that would be for him (and me!!), knowing we own our home free and clear!
Here's the run down of where we stand currently and when we hope to pay them off:
CC#1: $3,363.78 --------------> May 2015
CC#2: $1419.19 ---------------> Oct 2015
Loan: $4,320.03 ---------------> Dec 2015
Car: $16,097.92 ---------------> Nov 2016
Surgeon: $1,270.00 -----------> Dec 2016
Old debt: $11,681.25 ---------> June 2017
Alfred's bike: $13,024.12 ----> Nov 2017
Anesthesia: $960.00 ----------> Nov 2017
Home: $87,286.89 ------------> Aug 2021
Hospital: $19,775.00 ---------> Apr 2022
ER: $1,200.00 -----------------> Apr 2022
So there it is in black and white, folks. Every so often, I will post an update on our progress. I am not proud of the amount of debt we have but by golly I don't intend to keep it any longer than I have to!
Working the plan,