How to eliminate over $20,000 of debt in one year. (Or more like, how I plan to)

Well, well, well, the internet works fast. So if you were to believe my last post, then you might think I was a newly minted five-thousandaire. Meaning I had a net worth of $5000.  Turns out that’s not entirely true.

I need to come clean. I have closet debt.

Screen Shot 2017-05-28 at 4.11.15 PM

I took out:

  • A student loan in late 2007 for $15,000 to “support” me while I attended a fire academy. My plan was that I would make enough as a seasonal firefighter to pay off the loan in a couple of years.
  • Well, it’s 2017, I am no longer a firefighter and I have around $11,000 left to pay off.
  • Plus the $5000 personal loan I have to pay off (That I took out after I hit that deer that led to this blog)
  • And my stupid $15,0000 Auto loan that I got into before I was “financially awakened”.

All told and with what I’ve paid down my total debt comes out to $28,883. That is a rather large number when you are looking at it from an inverse net worth. I found this number the easy way using Personal Capital. I’d heard a lot about this app (mostly good things) for a while but was going to hold out until the beginning of next year to have a good starting point. I instead decided to ramp up to next year starting now to give it a test spin and see how I like it. It has already proven invaluable on day one. Like I mentioned before, I am a visual learner. I need to see exactly where and how my money is working to understand it. Personal Capital does this in a different way than YNAB.

It tracks investments and net worth-related stats much better than YNAB. They are two tools for different applications that compliment each other in the bigger picture.

Anyways, the whole point is that I am still in debt up to my eyeballs. But the $5000 I have in net worth against the seemingly insurmountable wall of $20,000+ worth of debt that I am up against is the spark I need to light the signal fires of my march towards financial independence. Every $5000 saved, then $10,000 will be a marker point on my path to crush debt and begin to truly save and flourish.

I project a year to two years from now depending on how circumstances play out. I might get a new, higher paying job, I might start my own money-making venture or it might be a combination of those things. Or something else entirely! I don’t know, and that’s what’s a little exciting about it. I don’t know what is going to happen, I only know that I am going to make something happen. I am going to make a focused effort and try. You can follow me on this journey or you can just continue on and do your own thing. Like you will do regardless.

I’m rambling. At the least, you should check back every once and a while to see if I’m staying on track. I plan to. But we all know know how that goes…

 

 

 

 

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