Getting Debt Free: May 2013
When you are making progress towards your goal of becoming debt free, writing a monthly recap on getting debt free always feels great. Especially, when you really start seeing progress being made from all of the hard work you’ve been putting forth and each month continues to get better than the month before. We love seeing certain numbers go down and others go up.
Tracking Credit with Credit Karma
Our credit card utilization continues to go down. This month we saw a big drop with 6% less credit card utilization. Since Jan 2013, our utilization has gone down a total of 21%. That’s HUGE!
Our credit scores continue to go up. My credit score made a jump going up 6 points for May. That gives an increase of 25 points overall. If only it wasn’t for that dumb drop, my credit score would be outstanding.
Paying Off Debt
We paid off one more of our debts in full and even earlier than planned. Technically we didn’t have to pay it off until later this year, but we went ahead and paid it early to not have to think about it anymore. I for one will be glad to have one less bill to worry about each month.
With the continued rise in our credit scores and the decrease in our credit card utilization, we are going to look into refinancing our home for a lower interest rate. As well as, see about getting a home equity loan to finish up a few house projects and pay all of our other debts off. This won’t get rid of our other debts, but instead move them all to one place, giving us one payment instead of over a dozen to manage. Overall, it would mean paying back less because we’d have a lower interest rate with a home equity loan than we currently do with our credit cards. It would also give us the opportunity to start saving some money each month towards our world travels. We’ll let you know in next month’s update how all of this worked out for us and what we decided to do after speaking with our credit union.
Our getting debt free May 2013recap: We have 4 debts paid off in full and 13 more to go. We started working towards becoming debt free in January 2013.
What type of progress did you make towards becoming debt free in May?
All photography by Kimmy Hayes © 2013.