Sunday, September 14, 2008

Debt Snowball Progress #2

It's been just over a month since I could report progress on My Debt Snowball

A few weeks ago I reordered my Snowball based on paying off the smallest debts first rather than leaving the ones that aren't interest bearing for last. Due to this restructure and working very hard at my second job (and some extra work at my first), I was able to write a check yesterday for Step 2 in my Snowball and pay off my Medical Bills!

My Debt Snowball now looks like this:

1. Banana Republic Card - PAID ($20 Minimum to Medical)

2. Medical Bills - PAID (106.40 Minimum to AmEx)

3. American Express - Minimum $126.40

4. Car - Minimum $200

5. Prosper - Minimum $101.01

6. Bank of America - Minimum $101

7. Student Loan - No Minimum

Thanks to the sale of my company and my second job, I'm making really great progress. I had predicted that I would be able to pay off my next debt by mid-September and I was right! Now the next calculations show that I should have my American Express card paid off by the first week in November if not sooner. With the Debt Snowball, whenever you pay off a debt you transfer that minimum payment to the next one. My minimum payment on my American Express card is only $20, but adding in the minimum payments from the paid off debt allows me to pay a bigger chunk of that debt down every month. I also throw everything I can at the debt that is at the top of my Snowball.

Here is how my 2008 Financial Goals are going:

Get My Networth to -$28000 - Currently at -$30,102

Get my Prosper Loan down to less than $2000 - Currently at $2508

Pay off my Banana Republic Card - DONE

Pay off my American Express - Currently at $610.22

Get Emergency Fund to $1000 - Currently at $339.94

I still think that with three and a half months to go I'm on track for everything but my Emergency Fund. I normally put 5% of my regular salary into that fund, as well as any ING Direct bonuses. When (and if) my raise comes through I will be adding more to it, since I am giving my savings account a raise too... but it still might not be enough to make it. 

Writing that check to pay off my medical bills, though, was one of the best feelings. I am so happy right now!

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