February 2021 Debt Snowball Update

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It’s time for the February 2021 Debt Snowball Update. Let’s talk about how it went!

Want to watch the video version of this post? Check it out here!

Budget Update

February is the month that we spend the most money. My husband and I were both born in February and we got married in February as well.

Every week in February, we’re doing something to celebrate.

This year, our celebrations looked a bit different because of the pandemic. We bought a few things for the house and ate out a good bit.

Both of our car registrations were due this month as well. The February budget was kind of crazy.

We really didn’t go over any of our budget categories because we budget for February throughout the year.

The total for our February spending is $831.36.

Debt Snowball Update

Last month, we sent out a debt validation letter to our first debt collection agency. This month, we received our response and they were able to validate the debt.

In addition to that, they sent validation for another debt that is not listed on our credit report. That’s one thing that I didn’t expect.

The first bill was for $72.89, and the second one was $39. In total, we owe this company $112.

The next step is to send out a pay for delete letter. Pay for delete letters basically tell the company that you are willing to pay the debt, but only if they remove this information from the credit report completely.

We sent off, and now we’re waiting on a response. I will keep you guys updated on what happens with that.

This month, we also received a check for $748 from our mortgage company saying that we overpaid our escrow account.

We took that and made a payment for $748 directly to the principal of our mortgage.

In addition to that, we got a letter stating that our mortgage is being reduced to $1,212. That is exciting, but we are going to continue to pay the $1,265.64.

We also transferred $730 from our side hustles into our checking account this month.

The total debt paid for February is $2,183.53.

2021 Goals

One of our savings goals is to save money to purchase a car without taking out an auto loan. So far, we have saved $1,555.76.

Our second savings goal is to save, $10,000 for our home maintenance category. We have saved $784.66.

Now, I want to hear from you. How did your debt snowball go in the month of February?

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