So last month our debt was at $5768.
There are some reasons for it being so much lower this month:
We got a $2000-ish tax refund we weren’t expecting. An extremely nice surprise! I was literally dancing around the house when I saw this show up in our bank account. I put $1000 of this into our savings account – so now we finally have a little emergency fund!
We took advantage of a Covid relief forbearance program with our mortgage company for 3 months so we do not have to make the payments until the end of the 3 months when our usual mortgage payments will resume. We don’t have to make up for the total of the three non-payments at the end of it – it’ll just go back to it’s usual $1530 a month. I wouldn’t have agreed to the assistance program if we had to pay it all of at the end of it because we obviously won’t be able to do that.
I know this is trading one debt for another (which some of you’ll probably disagree with me about) but avoiding mortgage payments for 3 months should (assuming we stick to our budget – which we are doing pretty well at so far) get us to only $900 of credit card debt by the end of it. The credit card debt has been one of my biggest stressors for a long time now. I want it off of my shoulders & we’ll be very careful not to get into credit card debt again.
Also, our mortgage is for 29 more years so adding 3 months to that 29 more years didn’t feel a big deal when, by doing it, we would be able to pay off almost all of our credit card debt. In 3 more years my husband will be earning about $250,000 a year so we’ll be able to pay off the mortgage quickly that way.
We also have until April 2022 to finish paying off that left over debt of $900 so we can make it work.
Also, I want to tell you that I haven’t broken my shopping ban again since the first time I did it for fixing my hair a while ago. I am proud of myself but, because of our rather strict budget, I haven’t really been tempted to at all yet.