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Posted on Jul 12, 2013 | 7 comments

Getting Debt Free: June 2013

Getting Debt Free: June 2013

Another month, another monthly recap. Our June recap is a bit different than last month. Every month we make progress towards becoming debt free and quitting the American Dream. Every month we get closer to leaving to go see the world. Some months the progress we make feels much bigger, even though it’s pretty close to the same amount we pay off each month.Other months it feels like we haven’t done much. Let’s see how we did towards getting debt free June 2013.

Each month our credit card utilization goes down a bit more. While our credit scores go up. It’s good to no longer feel stressed out over balances and to know you have a handle on your finances, again. Not to mention, that whole not running out of money before you run out of month thing.

This month didn’t result in a bill being paid off in full. But, we are so close to paying off the next one! It will for sure happen this month. Could even have two paid off this month.

Start with the Smallest Debt First

When we first started paying off our debt, we started with the smallest debt first and have been working our way up the list. That means, every time we pay off a debt the next debt to pay off is larger than the last. With bigger debts to pay off, it will take longer to pay them off. Sadly, we probably won’t be seeing a debt being paid off every month, anymore.

Getting Debt Free- June 2013

Making Progress Towards our Financial Goals for June 2013.

I don’t like this. Not one bit. I like paying off a debt every month. We both do. We get though that this isn’t always going to be possible since we can only pay off as much as we have available in funds. With that in mind and knowing we like to mark off a debt paid in full each month, I made us a new goal to complete by the end of 2013.

Selling More to Get Out of Debt

By the end of the year, I want us to have fully paid off 5 more of our debts. That gives us a little less than 6 months to do it. That means we have to get TIGHT with our funds and bring in more additional funds each month. If we fully stick to our budget and bring in around $250 more each month, we will reach the goal of having all 5 of these debts paid off in full!

How do we plan on making these additional funds? We are going to have another garage sale in August. This weekend we are starting to list bigger items on Craigslist. I’ve landed a monthly freelance article with an on-line magazine and Drew continues to work construction on the side. We will also start listing other items on-line to sell.

All of these things should bring us in the additional funds each month and more. Hopefully, the more will be enough to pay off 6 debts instead of our goal of 5 by the end of 2013. It’s my own additional goal to pay off one more debt before the year ends.

In June, we also looked into refinancing our home loan and getting a home equity loan. We decided that both of these were not for us. Yes, there is the potential to pay back less money, but for us it wasn’t the best idea. We already have a good home loan interest rate and we don’t want to tap out our home equity. Instead, we will get a nice chunk when we sell our house that will go towards our world travels.

Now to figure out the best way to utilize those funds the once we receive them and to not get taxed like crazy on them. Sounds like we’ve got some more financial research ahead of us! And more goals to make.

As of the end of June 2013, we have 4 debts paid off in full and 13 more to go. We went up one debt this month when we had to get some things repaired on our vehicle. We started working towards becoming debt free in January 2013.

What type of progress did you make towards getting debt free June 2013?

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About Kimmy Hayes


Kimmy Hayes is the founder and editor-in-chief of AfterGlobe; a site on becoming debt free and traveling the world as a married couple. In 2012, she planned and coordinated her own do-it-yourself destination wedding on the beautiful island of Maui while serving as a moderator for the on-line community, The Knot. She is passionate about traveling to experience new cultures, snorkeling the waters of the world and reading with her toes in the sand.

7 Comments

  1. I love this so much! My husband and I have the same goal. We don’t own our house, we’re down to one car, and we’ll sell that when we move to Taiwan in October. The only debt we’ll have after that is four student loans between the two of us. We’ve started selling and giving away everything, too. Every time we pay off a bill, I feel so much lighter and happier!
    Rae recently posted…5 things I won’t pay forMy Profile

    • Rae- That’s great. I’m so glad you stopped by to share your good news with us on getting closer to being debt free. Not to mention moving to Taiwan! Very inspiring!

  2. As another couple in the process of debt and ‘stuff’ reduction- we relate. It is such an emotional process too but OH SO LIBERATING!!! we are about 3/4 way on our path to getting debt free.
    Divergent Travelers recently posted…Photo of the Week: Bruges, BelgiumMy Profile

    • Congratulations! That’s really exciting. Keep up the awesome work and you will have it all paid off in no time!

  3. It’s always good to weigh the pros and cons to each financial decision and pay off those obligations that require the most up front costs or high interest rates, even doing a refi is important based on your short to long term interests. Thanks for sharing.
    noel recently posted…Hawaiian food, local potluck styleMy Profile

  4. Best wishes on your journey! I paid off my credit card debt before starting my RTW trip, but still have school loans. I factored that into my travel budget for the next year. I didn’t want to wait too long to get on the road. Selling my car and taking public transportation a year before my trip helped me put an extra $500 a month towards my savings. Everyone thought I was crazy for selling my car in a town where public transportation was perceived as bad. Keep it up!
    Mig recently posted…7 Tips to Reduce Spending on the RoadMy Profile

Trackbacks/Pingbacks

  1. Getting Debt Free- July 2013 Recap - AfterGlobe - [...] closer to reaching our goal to become free of debt. After not paying off any bills in full in …
  2. Getting Debt Free: August 2013 Recap - AfterGlobe - […] Sometimes, we can’t believe how quickly another Getting Debt Free recap comes around. The past month was one of …

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