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Last month I made a promise to make myself accountable for my progress towards debt freedom. So here is my first monthly update for the month of June. I decided to make a large lump sum payment this month to quickly kill off one of my six loans. I figured that this would be a great way to get the momentum started. Not only will this help me stay motivated, but by paying off that loan I freed up $25 a month to add towards my snowball.
A Look at the Debt Table
All together I paid down $2,350.88 in principal this month. Including the interest payments I paid a total of $2,530.01 this month. Overall I’m very happy with the way things went this month, and I hope that I’ll carry this momentum forward. To be clear, I won’t be able to keep this much progress up every month (boy I wish I could). My goal is to pay around $600 a month, but most of that will go towards interest until I can increase the size of my debt snowball.
Currently my monthly payments are all automated, but I will be making manual lump sum payments in addition to the automated payments. I am also actively working to optimize a few areas in my budget to maximize the amount of free cash that I have to pay down my debt. So there you have it, my June update. If you have debt to manage, I hope that you made progress in the month of June as well.
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Hi Ace,
I am in the same boat as you are, I have about $48,000 in student loan debt. I am going to start the debt snowball in about 3 to 4 months (after I pay for some expenses I know are coming up in that time.)
But one thing that might help you out, which I did was to get on a different repayment plan on some of my student loans, lowering my payments. That would free up some of your monthly payments so you could put more towards your debt snowball.
Good luck, I’ll be following you in your quest to be student loan debt free!
Stu thanks for the comment. Your idea of modifying my repayment plan to maximize my snowball sounds interesting. I’ll definitely look into the potential of doing this as it would help move things along. I wish you luck in your battle with your debt as well!
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