As regular readers know, I was so excited for the month of November. Since I get paid every two weeks (and we keep a monthly budget that assumes I have 2 paychecks each month) – every once in a while, 3 paychecks arrive within the same calendar month. November was one such month.
Since it’s basically a ‘bonus’ paycheck and it doesn’t fall within the normal budget, we were planning on putting the entire thing toward debt. Because the last few months were slow on the self-employed front – we thought this would give us a nice boost of progress and encouragement.
Now for the sad update….
It has been slow. Really slow. Fall is normally the busy season, but due to slow economy and general uncertainties, this fall’s busy season never really got going.
We don’t really expect it to pick up all that much, anytime soon, so we are considering this a “Crisis.” Now crisis is a strong word – we aren’t majorly hurting, we have some backup funds, however, we are trying to plan the best we can, hopefully heading off a potential HUGE crisis.
When Dave Ramsey talks about times of “Crisis” – such as Job Loss– (which we are kind of comparing this slow time to) – he says to put a pause on the Debt Snowball. Save up the money instead. Use it as you need in the crisis situation. The goal would be to avoid accruing additional debt during the crisis. And Lord willing- once the crisis is over, some (maybe all) of the money you saved up – will still be in your possession. At that point, take that money you saved and throw it at the debt snowball. So this is what we are doing.
All that to say, other than paying our minimums this month, there are no numbers to report.
Total Debt paid in November: $250*
Since 1/1/2012 – Total Debt Paid off: $31,018*
*For the purpose of Baby step 2 we are not factoring in our home mortgage
And then (not to be too big of a downer) but this also means that we will not meet our goal to be completely out of debt by the end of the year.
However, while we won’t meet our goal, we cannot say that it was a complete failure. We are So Encouraged! Just over 31K paid off in one calendar year!?! (and a slow year at that!) We KNOW that we will be able to finish once work starts picking up. We estimate that we have about 16K more to go, so we are really hoping and praying that by as soon as possible in 2013 – we will be debt free.
I’ll still be updating monthly on our progress – and with minimums, we are still knocking out really small amounts of principle every month.
Thanks for following along!