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What are Debt Reports?
Hello! If you’re new to my blog, I write a detailed report each month of how much debt I’ve been able to pay off. I show you exactly how much each loan balance has gone down and where my total debt stands. I do this to give you a real life example of how you can go about paying off your debts, and show you that it is possible and you’re not alone.
This is all here to help you see my progress, good and bad. There are a lot of generic plans out there that may work, but they never really break down exactly what is being done in real time.
After all of the research I’ve done, I can tell you that I am definitely one of the people who learns by seeing examples, not just by hearing generic directions that then leave you hanging to figure out the rest. So I wanted to give people the option of seeing a genuine example of how a regular 26 year old is getting their act together.
You can download my free template to create your own Debt Report. Thanks for showing up here to check out my wins – and losses. Here goes!
Here are the Numbers:
Student Loan @ 6.5% interest – $4,040.40 (-$333.86)
Student Loan @ 3.0% interest – $37,255.83 (-$148.48)
Car Loan @ 2.99% interest – $2,435.75 (-$186.20)
Sears Loan @ 0% interest – $1,030.75 (-$53.00)
Furniture Loan @ 0% interest – $4,744.18 (-$132.31)
That means that this month I paid off $853.85, which, after following two $1,100 months, isn’t the greatest. But, it means that my debt is now below $50k! ☺ My total debt is now $49,506.91!
Here is my progress since I’ve started the blog:
Yes, that’s $13,478 since I’ve started Bright Cents. I’m extremely happy with that progress!
I also got a promotion/raise that goes into effect my first paycheck in March (woohoo!) so my loan payments should increase once that happens.
ICYMI – In Case You Missed It
In case you’ve missed them, here are the stories I was able to bring all of you phenomenal readers this month:
Saving money is not the only important factor to getting out of debt. Earning more is a huge part of being able to pay down your loans quicker as well. This was reinforced for me during my interview with Michelle Schroeder, who paid off $38,000 in student loans in just a few months. Her story is very inspiring, and makes you think about what you are doing with all of your spare time today, vs. what you could be doing to earn money on the side and get your loans paid off faster. Those three hours of Netflix you watch each night could be better spent.
Saving a dollar here and there is definitely important in the grand scheme of things, but when you can earn more, you can make a much larger and faster dent in that debt. Of course, when you do earn more, you also have to keep your level of spending around the same. If not, that extra money means almost nothing when it comes to getting out of debt.
In February I also discovered an awesome new tool called Digit. Digit learns your spending habits and then starts saving your money for you…automatically.
I wrote a full review of it trying to answer any questions you might have, interviewed the founder & CEO, and even created a video so you can see Digit in action before you sign up. After just a few weeks, I have already saved an extra $37 using Digit, and I am one of those people who budgets practically every dollar. Can you imagine how much you can save by signing up?
This month I also broke down my net worth so you can see a real-life example. It’s nothing to want to strive for, as I have a NEGATIVE $19k net worth, but it’s a model you can use to calculate your own net worth. ☺
Have you saved money using Digit, or have you calculated your own net worth this month? I’d love to hear your progress so far. Leave a comment below or send me a message. Hearing about people making progress with their finances it what keeps me going, so please reach out! ☺