September 2020 Debt Snowball Update
It’s time for another Debt Snowball Update! Keep reading to see how our debt payoff journey went in September.
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Our current budget
Our budget this month was pretty simple.
We eat most of our food at home so we like to keep our grocery budget around $330. There is also $150 available to eat out if we choose to do that.
We ended up spending $391 on groceries, so that was a little bit over budget. We also spent $144 on eating out.
The comedy show that we like to watch every other week is $15. That’s a total of $30 for the comedy show.
Everything else went according to plan in our budget.
Debt snowball update
If you saw our debt snowball update from August, you’ll know that we actually paid off a medical bill that was about $800.
That freed up an extra one hundred dollars in our budget to go towards the next debt. So, now we’re left with our car loan and our home loan.
On our worksheet, you’ll see that the snowball that we had for the medical bill is $100. Now that we have paid the medical bill off, that $100 moves down to the car loan. Our minimum payment for the car loan is now $360 since we have the extra $100.
For our car loan, we owe $4,480.92. We were able to pay the minimum payment, which is now $360.
I also had an extra $6 leftover from one of our categories. In total, we paid $366.92 towards the car loan. That leaves us with a balance of $4,134.36.
It’s normal for your debt snowball journey to fluctuate how much you’re able to pay each month, as long as you are hitting your minimum balances for each of your debts.
I mentioned last month that we aren’t paying anything on our collections right now. The reason why is because I don’t want to restart the statute of limitations on any of the medical bills that we have in collections.
For the home loan, our mortgage is $1265 per month. We’re not paying anything extra on that yet because we’re still working on getting that car loan paid off.
We paid our mortgage of $1265.64 in September. That leaves us with a balance of $188,569.96. That number is huge but it’s okay. We’re going to knock it out.
The bottom line
September was pretty boring for our finances. We paid off $1,632 of our debt this month. We still have a pretty big balance and a long way to go.
Just as a reminder, our current goal is to pay off the car loan by December 31st of this year. We still have a little over $4,000 to go but I think we can do it.
How about you? I want to hear from you! What kind of progress did you make on your Debt Snowball Journey for the month of September?
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