Monday, May 14, 2012

Debt is almost gone

Earlier this month I charged almost the rest of the balance of our high interest debt off. This month I charged a total of $9.766.39 to my credit cards to pay off our debt. I left a little bit on for next payment so they take the full amount with the interest to have the exact amount taken to be paid off. I cash flowed $2,987.00 and raided my emergency fund to pay off the other $6,779.39. The emergency fund raid took savings down to just over 2 months of expenses. However, it will be back to just under 5 months after June is done. Of course my emergency will also cover more now that my required expenses will be dropping since this debt will be gone. I still have some personal loan debt from family that I need to pay off but that won't be a big issue and I can make a steady monthly payment to that now. It feels so good to know that come June 1 that high interest debt will done with and I can start back on my path toward financial independence. My savings rate will hopefully be staying right around what I've averaged so far this year, 73.53%, but the majority of that will go towards investing. June will be an awesome month since the high interest debt will come off and of course my marriage coming up on June 24th. Plus I'm looking forward to my bachelor party in Vegas. So many exciting things are on their way.

And the best part about charging it on my credit card and paying it off in full is that I get to take advantage of my cash back and mileage programs on the two cards I used. I was able to get 1.10% cash back and an extra 6,779 miles. All in all it feels great to get this just about done with.


  1. Congrats on getting your debt paid down. I remember the feeling of relief when I had finally paid off all my debts (besides a mortgage and car payment). Now you can use the extra cash to purchase more DG stock. Instead of other companies making interest on you, you can invest and earn interest in the form of dividends from them.

    1. Thanks. It definitely feels good to get that just about done with. I'm looking forward to plowing that money into my emergency fund to build it back up and then shifting that toward more DG stocks. I'll see my dividend payouts grow a lot the 2nd half of this year. I'm still not sure if I'll hit the $1,000 in dividends but I should at least get to the point where my expected annual payout without increases should be at that mark. That will be a huge milestone.

    2. I probably should have used some of my investing money to pay down the debt but the opportunities that Mr. Market were presenting around that time were a little to enticing. It's worked out for me since I've made about 10% in capital gains and then the dividends on top of that.

  2. Jonathan,

    Congrats on becoming very close to debt free. Other than student loan debt, which has a very low rate that's tax deductible, I'm debt free as well. Every dollar I don't send in to service debt is a dollar I can invest and grow and eventually turn into 2,3,4 dollars.

    Best wishes!

  3. It'll be awesome to start putting interest to work for me instead of draining my accounts. I'm very excited to get to put together my shopping list for discounts. Thanks for stopping by!