This past Christmas was the first time in our married life where Amanda and I decided not to give each other a gift. Not even a stocking stuffer. We cut our 2012 Christmas budget in half from $600 down to $300 total. It was difficult not buying anything for Amanda, but I kept telling myself “This is gazelle intense. This will be the last Christmas we will do this.”
Not giving each other gifts was made easier by December being a month of major traction. After a discouraging debt increase in November, we reduced our debt by almost 10% in one month!
The new job, high product sales, and selling off the rights of some of my software helped to fuel the best month of debt reduction so far. Also, we had a credit card with a $5,000 balance that we were able to settle for a lump sum payment of $2,085.
Our current debt as of January 1, 2013 is $61,454.06. Which is a decrease since last month of -$6,330.86!
Current Debt Numbers
With our current momentum we should be down to just Tax and Student Loan debt at the end of Spring!
| Credit Card | $650 | 1.06% |
| Family | $3,900 | 6.35% |
| Household | $4,500 | 7.32% |
| Medical | $4,847.48 | 7.89% |
| Tax | $18,374 | 29.90% |
| Student Loan | $29,182.58 | 47.49% |
| Total | $61,454.06 |
Changes This Month
Not much will change this month. Amanda’s job ended so she will be focusing on starting the second semester of homeschool with the kids.
I will continue to work my job as well as develop software products. I’ve also got some other products in development that I hope to launch this month. I don’t expect to see immediate return on these since it may take time to ramp up sales, but that is okay since this is a long-game play.
Plan of Attack
In 2012 I developed 15 extensions that currently generate enough to cover our monthly expenses. I’ve set a goal for 2013 to develop 30 more extensions. I also want to build a recurring revenue product that I want to build to $2,000 profit per month.
We hope 2013 will be our year to completely pay off our debt, and we’re ready to hustle to make that happen!
GREAT job!!!! Excellent progress!
That is awesome!! I was looking forward to this update and was hopeful and praying that this month was better than November for you guys. All glory to God!! Cheering and praying y’all on!
Thanks Mckenna and DJ!
Question: How did you get the CC settled? Does it negatively affect your credit?
(I know in the long run, a good credit score will be irrelevant to us, but we do not yet own a home, and I want to make sure our credit is still good in the event we borrow for a down payment in the future … Of course would be nice if, by the grace of God, we are able to do 100% down ….)
Pretty much you call and ask. The older the debt, the more they will probably settle for. Eventually they will sue, but they’d like to get something before then.
It does affect your credit score, but I’m not sure how. It looks like a settled debt. And the creditor will issue a 1099 for ‘forgiven debt’ and that amount will be applied to your taxes for that year.