Pre-Baby Debt Update – Our Debt Free Family

debt update

Now we have lower than two weeks earlier than our child arrives and issues are falling into place. As talked about in a few of our current posts, the primary focus for us has been saving and getting ready for the brand new arrival. That doesn’t imply we’ve stopped paying off debt by any means, nevertheless it hasn’t been a hyper-focus of ours in just a few months. We’re getting ready to shift our focus again to paying off debt. Earlier than we do, right here’s a fast snapshot of the place we stand.

The place We Stand

This yr has introduced some MAJOR adjustments for our household. First, my husband began pursuing a brand new profession. He’s freelance writing for a number of web sites and is doing an outstanding job! (You possibly can catch a few of his posts over on Clever Dude). He has rapidly caught as much as my wage with what he is ready to produce every month together with his writing, which is unbelievable. This takes a variety of the monetary burden off of us and can make it simpler to repay money owed and attain our targets.

Talking of money owed, it has been some time since I offered a numbers replace. Right here’s the place we stand:

  • Bank cards: $451 – This shall be paid off in full quickly.
  • Collections: $1,213 – We’re engaged on getting these eliminated.
  • Automobile loans: $16,398
  • Scholar loans: $24,185

We’re persevering with to take the federal scholar mortgage cost break throughout this time. As soon as funds resume, we are going to try and deal with that debt in an identical approach that we plan to repay the automotive (see under).

Plans for the Coming Months

There are some issues altering in our funds over the subsequent few months. In fact, we’re having a child. So, family bills could also be a bit greater than they’ve previously. Moreover, we might want to add our toddler to the medical health insurance. We’re additionally trying into buying life insurance coverage simply in case one thing was to occur to certainly one of us.

On prime of these extra bills, our lease can be going up by $110 monthly. That is to resume it one other yr. If we have been to resume for 2 years, it could go up one other $140. Neither of us needed to make a two-year dedication to renting right here, so we’re going with the one-year renewal. So, our lease goes from $1,495 to $1,605 (plus the $25 pet lease). Hopefully, inside a yr, we may have some financial savings and sufficient debt paid down to have a look at shopping for a house.

Our automotive cost is one other massive month-to-month expense we hope to trim down. The automotive nonetheless has underneath 75,000 miles and we are going to drive it for a number of years. Nonetheless, the $488 month-to-month cost might be crippling. So, we hope that my hubby’s extra revenue will assist us pay it off sooner. We hope to double the month-to-month cost and get it paid off inside the subsequent yr or so.

Exterior of that, we’re going to proceed trucking alongside our monetary journey with our new child. We are able to’t wait to maintain you up to date on our progress!

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