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$57,010.88 paid off in 2011

January 7th, 2012 at 03:43 pm

Okay, so when I restarted blogging consistently in January last year we owed $67,457.32 in unsecured credit card debt. We now owe $20,228.79.

$67,457.32 Original amount owed
-20,228.79 Amount left on credit card debt
-------------
$47,228.53 Amount paid off in 2011

We really busted tail this year to pay off that much debt and before the surgery in July I was sure we could have paid off the whole thing by the end of the year. Well, life happened of course, and medical is expensive. But we made a lot more progress than I actually thought we had.

As for the mortgage, we started the year at $22,326.63, but it now sits at 18,544.28.

$22,326.63 Beginning amount
-18,544.28 Ending amount
--------------
$_3,782.35 Amount paid off in 2011

Then finally is the loan from my mother who originally covered over $100,000 in hospital debt for us with a 0% loan. At the beginning of the year we owed her $93,000. We now owe her $87,000.

$93,000 Starting 2011
-87,000 Amount left
-----------------
$_6,000 Amount paid off

So all told we have paid off $57,010.88 of debt this last year. Sometimes I really feel like we are getting nowhere, but to see it all added up like that, I know we are getting somewhere and the credit card debt, at least, should be paid off by summer.

We'll have around $8000 coming back to us in taxes, mostly because of our HSA, and we will get 5% of whatever DH's grandparents' house sells for, which should be around $7500, but we don't know when that will be. The buyers are negotiating at the moment and if that falls through there is another interested party waiting. All of that money is earmarked for debt payoff.

There is no rush on paying my mother back. She prefers to get $1000 a month and no more when we can manage the payments (we've skipped a few because of all the medical this year, with her blessing). That gives her a stipend to live on besides social security. If she dies before we pay it all back it is forgiven in the will and not owed to the estate.

So we are getting there. Faster than I thought, even.

37 Responses to “$57,010.88 paid off in 2011”

  1. DeniseNTexas Says:

    That's a lot of debt to owe but that's a lot of debt to pay, too! Congratulations for doing all you've done. I think you're doing very well. Smile

  2. mjrube94 Says:

    Wow Robin, that is really impressive! You're right that adding it all up and seeing the bottom line helps. Congrats!

  3. MonkeyMama Says:

    Good Job! It sounds like with the tax refund and inheritance, that cc debt should be gone pretty soon? Woohoo!

  4. twest Says:

    Congratulations! That is so awesome!

  5. creditcardfree Says:

    You did fabulous this year!!

  6. SicilyYoder Says:

    Very impressive!

  7. CCraw Says:

    That's truly AWESOME!

  8. LuckyRobin Says:

    Denise--Yeah, it is a lot, but considering where we started it's a little less overwhelming than it used to be.

    MJ--It does make a difference to see the hard numbers. Makes it easier to put my head down and stick to it.

    MM--Yeah, I'm hoping by early summer it'll be gone and then we'll start saving for a downpayment on a new house since we can't necessarily count on the old one to sell right away once we put it on the market.

    Everyone else, thanks for the congrats. It does feel good.

  9. Thrifty Ray Says:

    That is awesome work on the debt repayment!! You should be very proud!!

  10. LuckyRobin Says:

    Ray--Proud may come later. Right now I'm just kind of astonished.

  11. baselle Says:

    Hot damn! Impressive!

  12. Shiela Says:

    Great job!
    And by the way, I'm so glad you decided to blog again last year. I like your blog.

  13. LuckyRobin Says:

    Baselle--Your reaction made me giggle.

    Shiela--Thank you. I enjoy reading yours, too. I don't comment too much, but I'm trying to be better at that this year.

  14. frugaltexan75 Says:

    In the YNAB forums one of the people there who journal likened his debt load to a gigantic monster. You have nearly slayed your debt monster this year! Way to go!

  15. LuckyRobin Says:

    Laura--Sometimes it feels like a fire-breathing monster, that's for sure!

  16. PNW Mom Says:

    Congratulations! That is so impressive!

  17. LuckyRobin Says:

    Thanks, PNW Mom.

  18. patientsaver Says:

    That's really incredible, LR. Truly an inspiration for a lot of people here.

    Could you tell us how much household income you have? It would be very interesting to see what you're living on and what percentage has gone to debt repayment vs. living expenses.

  19. NJDebbie Says:

    You've inspired me to keep paying as much as I can to our huge mortgage debt! Thanks and keep up the good work.

  20. LuckyRobin Says:

    PS--This year DH is grossing $157,953.00.
    Federal Income Tax is $29,848.52.
    Social Security is $4485.60.
    Medicare is $2177.80.
    Alaska SUI Tax is $200.67.
    Medical is $7759.95.

    So net is $113,480.46.

    $113,480.46 Net Income
    -$57,010.88 Minus Debt Paid
    --------------
    $56,469.58

    But if you then take out how much we have spent on out of pocket medical expenses this year:

    $56,469.58
    -_9,542.36 Medical out of pocket
    ----------------
    $46,927.22 is what we live on.

    What is left is still over twice as much as DH was making when we got married and it is definitely more than enough to live well on. This is the first year he has had such a substantial income to make progress with. The new job (he's been there a little over a year) pays far more than we ever thought it would. This year he will be allowed to contribute to a 401K which will bring it down a bit more, but there will still be plenty to live on. Most of our married life was spent living on $23K to $40K net.

  21. LuckyRobin Says:

    Thanks, Debbie. I am happy to hear that.

  22. Petunia 100 Says:

    WOW! Pat yourself on the back!! Smile

  23. patientsaver Says:

    thank you, LR, very interesting. And pretty much in line with what my average living expenses have been for the past 5 years or so...in the low $40s range.

    So how much more debt to go? Hopefully you can start plowing all that extra income into the 401k. That would be ideal.

    Oh, sorry, I see my answer right at the top of your post.

  24. LuckyRobin Says:

    PS, well we can't plow all the extra into the 401K as we are saving up for a downpayment on a new house. We are going to save very, very hard for a year, possibly a year and a half (depends on whether our old house sells and for how much) and then after that we are going to throw as much as possible at the 401K while holding back enough to cash flow college for my daughter (two years local community college followed by two years at the local university) and then my son (who is exactly four grades behind her). When DH hits the right age we are going to take advantage of that catch up thing. We should be able to start maxing out the 401K in 2014 and do so every year after that.

  25. rob62521 Says:

    Wow, have you worked hard! Congratulations!

  26. Looking Forward Says:

    That is FABULOUS!!! Big Grin

  27. LuckyRobin Says:

    Thanks, Rob and LF. It's been hard, but so worth it.

  28. Ima saver Says:

    Gosh, you have really done a good job! Keep up the good work!

  29. LuckyRobin Says:

    Thanks, Julie. I only hope we can do so well this year.

  30. starfishy Says:

    little late to the party here, but congratulations! that's a grand accomplishment!

  31. LuckyRobin Says:

    Thanks, Starfishy. Hey, where've you been? I haven't seen you post for a while.

  32. acirone79 Says:

    Wow! I need to read your back story. How'd you do it? I admire you!

  33. LuckyRobin Says:

    A lot of little things, really, and one big lump sum at the beginning of the year. Mostly we've lived on half the income this year.

  34. jperryharris Says:

    Amazing! Huge difference compared to our living expenses that total no more then $25,000.00 a year which equals to no more then $2000 a month we strive for surviving off $2000 or less per month. But yes those medical expenses can add up very quickly! Keep it up and you'll be debt free in no time, just don't forget to never forget where you came from so you don't end up back at that same place you started! Great work! Hard work always pays off! Smile

  35. LuckyRobin Says:

    Oh, believe me, I never want to go back to where we came from. When we are debt free we will be able to live on so much less and save so much more. I never want that debt load on my back again, ever.

  36. LuxLiving Says:

    AWESOMELY AMAZING!!!! Terrific!

  37. LuckyRobin Says:

    Thanks, Lux. It sure does feel that way.

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