October 2020 Debt Snowball Update
It’s time for the October 2020 Debt Snowball Update. Let’s see how our debt free journey went for the month of October.
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Budget Update
Our October budget went pretty smoothly. I was really excited that our electric bill was only $110 this month.
When we moved into our house, the electric bill was on average $212. That’s about $100 of savings that we had this month to use towards other things.
We have been more mindful of turning off lights when we’re not using them. Unplugging things that we don’t need also helped bring the bill down to a more manageable number.
We went over our grocery budget this month, but we used the savings we had from the electric bill to cover the overspending.
The last thing I will talk about in our budget is my side hustle. I made $1,500 this month.
My average is about $1,000 so this was a good month for me. I use my side hustle income to cover the expenses for my blog and my YouTube channel.
After that, I put money towards vacations or any trips or holidays that are coming up.
I transferred $1,000 from my side hustle income to our main budget this month.
Everything else in our budget was pretty normal.
Debt Snowball Update
In the month of September, we paid a total of $1,632.56 towards debt. Let’s see how we did this month.
The first debt is our car loan. The starting balance was $4,134.36.
We paid the minimum payment, which was $260 plus $100 from our snowball for a total of $360.
In addition to that, we added an extra $688 to that payment. That is a total of $1,048 towards the car loan this month.
The new balance is $3,109.69.
The next debt is collections. We don’t pay anything towards the collections just yet because we’re not sure how to go about it.
Anything that we do right now can restart the statute of limitations, so we just leave them alone for now.
The last debt that we have is our home loan. We are only paying the minimum payment right now because we’re still working on the car loan.
The mortgage is 1265.64 and we have a remaining balance of $188,108.50.
The Bottom Line
Just to recap, we paid a total of $2,898.20 of our debt in the month of October.
Our goal of paying off the car by the end of December is looking kind of tight right now, but I still think we can manage it.
Now, I want to hear from you. Are you making progress on your debt free journey? Let us know in the comments below so we can motivate each other to get it done.
