July was a pretty good month. We paid off the medical loan and made an extra payment towards a student loan. This month was even better. Our second windfall arrived and one more student loan is now gone. September is looking very good, too.
Debt Reduction Progress in August
The second windfall arrived about mid-month and then we had to wait ten days for it to clear. (Why do banks still do this? Why?) Once that was done, my husband eagerly set up the transfer to eliminate one student loan entirely. Thanks to other extra payments, the balance was just over $4000. Now it’s $0.00!
Debt Goals for September
In early September, we’ll make a $5,900 payment toward another student loan, which will use up the windfall and leave us with a $4500 balance we can pay off by the end of the year. We also have extra money in our checking account to cover the bills associated with some recent wedding-related travel, but it looks like we spent less than planned, so the leftover will also go toward debt.
Debt Plan Update
With one student loan gone and another cut in half, we’re well on track to reach our original goal by November. Then we’ll turn to taxes. We may withhold my paychecks in Dec. to cover part of the taxes, but we’ll still owe a bundle in April.
Progress on Other Goals
We’re holding steady with our $1,000 emergency pad. Although part of it was used up when I had to buy new tires after getting a flat on the highway. I knew the expense was coming, I just hadn’t planned to buy them on a Tuesday afternoon. Replenishing the funds won’t be a problem, though.
I’m still debating our retirement plan. I’d like to start saving 10% of our income, but since neither of us gets a match, I’m leaning toward Roth IRAs, with the overage going into our 401K plans.
The house plan is still on indefinite hold. If prices come down 15% by spring, we’ll start looking, but our bottom isn’t expected until fall 2009. On the other hand, I loathe our apartment. Every day, my hatred burns a little stronger. I may not last until 2009 in this place. If it comes down to a choice between buying early and murdering my neighbors, I’m sure we’ll go with buying early.
How’s your debt progress coming?