It is now July, the second full month that we’ve been working to save money and pay off our debt. We actually made a bit of progress on our debt this month. With us finally out of baby step one and onto baby step two of Dave Ramsey’s baby steps to financial freedom, we’re heading the right direction.
We even put a bit extra towards our debt snowball because we saved our emergency fund in six weeks! Find out how we did it here! We actually finished our emergency fund halfway through June so we were able to start the debt snowball a bit in the second half of June.
Here is our debt in order from lowest total to highest total for July 2017
Credit card: 380.47 (cut this total in half from last month!)
old hospital bill: 2,796.64
Ford Edge: 11, 137.87
Student loan: 23,777
For a grand total of 38,091.98
That’s almost $2,000 paid off in two months.
I actually paid a $100 extra on the old hospital bill as well. Now this is not part of baby step two but I decided to use some money from our HSA to help put a bigger chunk on it. I mainly just did this because I realized what the HSA balance was and figured I could use a little portion of it.
So What’s Our Plan for July??
Well, the first thing we’re going to do is finish paying off that credit card. It is our smallest total, so we have to start our debt snowball small and work it to get bigger. If we have any extra money at the end of July we’ll get to work on the old hospital bill too.
The plan isn’t huge, but it’s effective. We’ll be at 10% paid off soon! Our debt snowball will be huge towards the student loan before we know it.