A Beach Lover: How I paid off $4,332 of debt in 1 month!


Its official...I have become OBSESSED with Dave Ramsey and paying off my Debts.  I recently finished his book “The Total Money Makeover" and I listen to his podcasts everyday on my way home from work.  If you’re looking to pay off debts and become a millionaire someday then you need to follow these steps before anything else (PS- The Jones's are poor!)

The only debt Steve and I have right now is my Graduate student loan and our mortgage.  When I started following Dave Ramsey's baby steps last year, I had a car payment, a credit card payment (that would have a $0 balance and then creep its way back up to $500 in no time) and 2 student loan payments, so this is extremely exciting for me to see how far we've come.

My grad student loan is by no means a small loan and when I think about it I get overwhelmed with anxiety and stress, so I just keep following Dave's recommendations and throw extra money at it whenever I can.  You'd be amazed at how quickly you can lower your debt when you actually start trying.

I paid off my last undergrad student loan in February and it was the most freeing experience ever!  I honestly wish that I had not gone back to grad school now, but unfortunately I cant change that now, so instead I am sucking it up and taking charge!

So without further adieu, here's how I paid $4,332 in 1 month.

Amount Paid
Description
 $     660.00
Savings Account
 $       30.00
Ibotta
 $     150.00
Regular Monthly Minimum Payment (Undergrad Loan)
 $     400.00
Citizens Bank Promotion
 $       60.00
Copper
 $  1,862.00
Annual Work Bonus
 $     165.00
Retirement
 $     705.00
Leftover Check
 $     300.00
Regular Monthly Minimum Payment (Grad Student Loan)
 $  4,332.00


February was an exceptionally good month for me with bringing in extra income, it honestly killed me to send it all to debt, but I know it will be worth it in the long run.  I have never once regretted sending money towards a loan before, so think of it like that!

Here's the breakdown:

*$660- I had $660 in an old savings account that I had not touched in a long time, so I decided to take that and throw it at February's debt.  Dave Ramsey recommends only keeping $1,000 in savings for an emergency fund and throwing the rest at debt.  Steve and I have a 17 month old and another baby girl on the way, so we just can't justify only keeping $1,000 in our savings, so we keep our 6 month emergency fund in place just in case something were to ever happen (Dave recommends having $1,000 for an emergency fund, then paying all debts and then saving a 3-6 month emergency fund, so we did steps 2 and 3 a little backwards).

$30- If you're not using Ibotta you need to be.  I literally got $30 for uploading my receipts to this app and just claiming $.25 to $3.00 at a a time, you would seriously be surprised how quickly it adds up.   If you want to sign up, download the Ibotta app and use my code "deremls" to join my team!!

$150- This was the regular February monthly payment amount.  The minimum payment on my undergrad student loan was $110, but I always pretended that it was $150 a month.

$400- I received a flyer in the mail from Citizens bank offering a promo.  If you open a checking account with them and have your company direct deposit $1,000 into the new checking account you would receive a $400 bonus within 90 days.  Everyone told me this was a scam, but it was not and I qualified and already closed out the account with no questions asked.  Citizen's bank charges you $25 a month for a checking account which is absurd, but they didnt charge me for the first 60 days.  If you're paying money for a monthly checking account you need to not and sign up at a local credit union that offers FREE checking accounts.

$60- This is so random, but my husband works for a roofing company and sometimes when they work on jobs they get to take the old copper roofs and turn them in for money.  He gave me $60 from the copper return and we threw that at the loan!

$1,862-This is the reason the monthly amount when up by so much, but I receive an annual bonus at work and this is the amount that I was able to throw at the loan!

$165- Dave Ramsey recommends stopping all retirement contributions until you can pay off your debts.  I'm not a huge believer in doing this for a long time, but I could see the light at the end of the tunnel with this loan, so after the new year I stopped my retirement contributions for a few weeks and put the extra income towards my last undergrad loan.

$705- $705 was the remaining balance on the undergrad loan that I owed and after carefully budgeting for the entire month of February, I was able to pay off the full amount with leftover money from our checks.

$300- My grad student loan is $250 a month and once again I round it up so that I pretend I have to pay $300 every month.

and Voila!! that is how I paid off $4,332.00 in 1 month.  You guys- If I can do something like this, YOU can too!  You just need to STOP spending money, change your spending habits and get creative!

January Debt Paid Off: $1,100
February Debt Paid Off: $4,332
March Debt Paid Off: $630

Grad student loan- I am coming for you!