February 1st has rolled around which means it’s time for another Debt Payoff Report. Since October of last year, I’ve been on a streak of lowering my debt by over $1,000 a month and January was no disappointment. I was able to pay my debt down by $1,788 and most importantly, hit another milestone…
Another loan has been crossed off the list!
I made my last payment to Wells Fargo and feel a sense of relief now that I have 1 out of 2 credit cards closed and gone FOREVER. It was so painful to see that dreaded interest charge of $40-50 a month on my statement. Now I’m on a mission to tackle my last credit card…CHASE.
I’m using the Snowball Method to pay down my debt which means that, according to this system, the next debt to tackle was my ECSI student loan. I decided to bend the rules here a bit. Because my ECSI loan was lower than my Chase credit card amount by only $800, I decided to focus on paying down my Chase credit card instead. There were 2 reasons for this. First, I HATE credit cards and want to get rid of them ASAP. Second, my Chase interest rate was about 3x the amount of my ECSI student loan rate. When you’re on a debt payoff journey and are following a system, you have to make decisions that work best for your situation.
Keep on keeping on.
I love posting these Debt Payoff Reports because it’s so helpful to look back and see how much I’ve progressed. I am starting to see that I’m gaining a bit of momentum and that keeps me motivated. If you are paying off debt, I recommend that you either log in your monthly payments into an excel sheet or write it down on a piece of paper so you can look back at your progress.
I’ve been on this debt payoff journey for about 3 years now and there are times when I get a bit discouraged. I’ve learned that the trick is to find ways to motivate yourself to get back up and on your journey. I can’t tell you how many times I’ve wanted to go buy an iMac with the extra cash I have but I just look back at my progress and think to myself:
“Once I’m debt free you know what I can do with my money?…. Anything I want.”
Question for you:
What do you do to keep yourself motivated on your debt payoff journey?