October 2018 Debt Payoff

October 2018 Debt Payoff image

We’ve had our baby emergency fund ($1000.00) for a while, so this month we decided to get serious about paying off our debt. We’ve done this a hundred times before. We’ll get serious and then forget about it. Not this time. We are determined to pay off these credit cards and be done with them forever. We’re going to do it for good this time. I figured putting this on my blog would help to hold us accountable.

Total Debt Breakdown

Here’s a breakdown of our debt situation at the end of September:

Hospital - $50.00

Lowe’s Credit Card - $711.04

Capital One Credit Card 1 - $1037.79

Amazon Credit Card - $1,984.22

Capital One Credit Card 2 - $4407.68

Total Debt - $8190.73

What We Paid Off In October

We were blessed in October with Bryce’s handyman side business and my proofreading business, so we were able to put $1500.00 toward debt! Our current balances are:

Hospital - $0.00

Lowe’s Credit Card - $0.00

Capital One Credit Card 1 - $293.67

Amazon - $1984.22

Capital One Credit Card 2 - $4407.68

Total Debt Remaining - $6685.57

Game Plan

We are Dave Ramsey fans, so our game plan is to pay off the smallest debt first and then apply that payment to the next one until all the cards are paid off. This is called the debt snowball, and it’s an extremely effective way to pay off debt quickly. Paying off the smallest debt first gives you that quick win of paying off the first debt and the motivation to keep going. I know this is true because, like I said, we’ve done this before. We know that the quick little wins really do give you that needed motivation. We’ve already paid off two debts this month. Feels so good!

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Our Current Debt-Free Date

We are scheduled to pay off all this debt at the end of April, but if things continue to go well for us (and I’m confident they will), we will be paying these off a lot sooner.

I chose not to include our mortgage in these numbers because we are focusing on just the credit card debt at this time. We will be selling our house sometime next year and buying some land to build a house on. That’s the plan, anyway! We also have no car payments.

What’s Next?

After we finish paying off these credit cards, we are going to focus on saving cash for a proper work truck for Bryce’s handyman business. He’s currently hauling his tools around in a 1998 Honda Civic. There have been many times he’s needed to haul large tools or lumber or a ladder, and he just couldn’t do it because he has no room in his little car. He needs a truck, so that’s our next project.

I’m so excited about finally doing this! We haven’t been the smartest with our finances in the past, but all it takes is a decision to change, right? We’ve made the decision, now we’re doing the work.

I plan on doing a post like this every month until the debt is gone, and then I’ll do one each month of our savings goals.

Are you debt free? Tell me your story in the comments!

Kari Cox Mom For More
Kari Cox, Mom For More

I’m Kari

Thanks for stopping by my little blog where I’ll share my journey to financial freedom, working from home, and all the mom things.