Feb
2013
End of January 2013 Debt Repayment Update
Photo Credit: Alan Cleaver via Compfight cc
In case you haven’t read my DEBT page, you might want to do so first before reading this end of month debt repayment update. It would just make more sense, so go do it now! 
January was a good debt repayment month for Girl Meets Debt for 2 main reasons:
A) I got rid of my VISA and MASTERCARD and consolidated my credit card debt onto a Personal Loan with a teeny tiny lower interest rate of 11.65% compared to 11.99% and 12.99% respectively. I begged and pleaded and tried to charm talk my way into convincing my bank to give me a lower interest rate but that was the best I could do lol. Apparently I was “lucky” to be approved for the loan in the first place considering my overall debt amount was humongous and I had no financial assets. (Their words, not mine 
)
B) I moved in with J so now I share the rent with someone rather than pay for it all by myself. Before, rent was approximately 31% of my monthly net income, it is now only about 19% of my monthly net income. WOOHOO! And because I moved out mid way through the month, my former landlord found someone else to move in right away so I got back my full damage deposit and half a month’s rent! I also sold my mattress and bed frame to the new tenant moving in so I made over $1000 in extra “income” this month and used it ALL as extra payments towards my Personal Loan!
Now let’s see the exact numbers…
Starting Overall Debt: -$57,458.94
Student Loan: – $45,525.94
Personal Loan: - $11,933.00
End of January 2013:
Student Loan: - $45,424.82
Personal Loan: - $10,564.51
Current Overall Debt: – $55,989.33
Which means I put a total of $1,469.61 towards my debt in January!!! It’s a small dent in the big picture but it is such a relief to pick up some momentum and have the debt ball rolling….
I’ve decided to adopt the popular “Debt Snowball” repayment method and pay off my Personal Loan first since I am currently on interest relief on my Student Loan and only have to make the $101.12 required monthly payment. This minimum payment goes all towards the principal balance. However, the interest relief is up for reassessment next month so hopefully I can maintain my interest relief status for awhile longer, while I pay off the Personal Loan as soon as possible.
I plan on documenting my whole journey to becoming “Girl Meets Debt-Free” so I can see that this blog will be around for a long time friends. $57,000+ in debt will not disappear overnight. Hopefully you will all stay around for the ride 
Mochi and Macarons
February 2, 2013 at 8:39 am (105 days ago)I’ll be around to read. It’s a good idea to clear your highest-interest loan first, and as the others are on relief, this is the best strategy.
Mochi and Macarons recently posted..Investing Series: What Kind of Investor are You?
Girl Meets Debt
February 2, 2013 at 9:08 am (105 days ago)Awww Mochi, you are sweet like a Macaron
Ginger
February 2, 2013 at 11:28 am (105 days ago)Good job at lowering both your expenses and your percentage on your debt. I bet you will be out of debt before you know it.
Girl Meets Debt
February 2, 2013 at 12:57 pm (105 days ago)Thank you Ginger
Morgaine
February 2, 2013 at 7:31 pm (105 days ago)Way to Go! Keep up the good work!
Morgaine recently posted..January Goals Recap and February Goals
Girl Meets Debt
February 2, 2013 at 10:19 pm (105 days ago)Thank you Morgaine
I read your January Goals Recap and you did pretty awesome yourself lady!!!
So I asked the boyfriend why I couldn’t comment on your blog and he said it’s because I am “self-host, but using wordpress” which your blog doesn’t seem to like
I did follow you on twitter though so hopefully we can chat more there 
Colley and Colley
February 3, 2013 at 12:47 am (105 days ago)Where did you get the loan for education? In my point view, student is way too much and you shouldn’t have take that load. Either you could go for scholarship or you could try schools with small tuition fees. However, right now you are doing an amazing job, I mean hats off to you if I were in your position I couldn’t have done that. God bless you
Colley and Colley recently posted..Texas Biker Rally at Capitol
Girl Meets Debt
February 3, 2013 at 7:58 am (104 days ago)I really do think it should be illegal how expensive university tuition is. The amount of debt I graduated university with was so high that for years afterwards I was in “denial” about it.
But like all things in life, I can’t avoid anything forever, so I can’t wait until this personal loan is paid off so I can attack the student loan monster and come out the winner
KK @ Student Debt Survivor
February 3, 2013 at 7:00 am (104 days ago)Glad to have found your blog and I added you to my reader so I’ll definitely be around for the journey. Great work this month paying down a big chunk of debt!
KK @ Student Debt Survivor recently posted..Goals Update-January Progress
Girl Meets Debt
February 3, 2013 at 8:00 am (104 days ago)I’ve been following your blog for awhile now KK. You being a “Student Debt Survivor” just gives me hope and inspiration
Andre
February 3, 2013 at 9:42 am (104 days ago)I wanted to say Thank You for the post above. It is very encouraging to see others trying hard to eliminate their debt and such reports are motivational to others! Keep up the good work. Little by little, your goals WILL be accomplished!!! Thanks again and I look forward to your future reports!
Andre recently posted..My Debt Report – January 2013
Girl Meets Debt
February 3, 2013 at 10:24 am (104 days ago)Thank you for your kind words Andre. I agree, seeing other people’s debt reports are motivational!
pauline
February 3, 2013 at 2:30 pm (104 days ago)Good luck with your journey! The biggest part is getting started, I am sure it will melt down quicker than you think.
pauline recently posted..99 money mistakes and a $999.99 giveaway!
Girl Meets Debt
February 3, 2013 at 2:38 pm (104 days ago)Thank you Pauline. I really really hope you are right
Cassie
February 3, 2013 at 5:02 pm (104 days ago)Well done! I’m impressed that you managed to pay off such a large chunk of debt right off the bat! I know my totals didn’t come down that quickly at the start. I’ll be following along for your journey. Best of luck!
Cassie recently posted..Monthly End Recap – January 2012
Girl Meets Debt
February 3, 2013 at 5:37 pm (104 days ago)Cassie, I’m about to get mushy for a few seconds here…You were one of the first bloggers to read and comment on my blog and I just want to say THANK YOU
Cassie
February 3, 2013 at 6:32 pm (104 days ago)Not a problem
Check out the “Money” tab on my blog header.
Cassie recently posted..Monthly End Recap – January 2012
fabulously frugirl
February 3, 2013 at 5:23 pm (104 days ago)What a great way to start tackling your debt this year!
It really is crazy how much universities can get away with charging for tuition. I’m sure lowering one of your biggest expenses will go a long way to making your debt go down faster! Good luck and can’t wait to see your numbers for next month.
fabulously frugirl recently posted..I’m back! … with my 2012 Expense Recap
Girl Meets Debt
February 3, 2013 at 5:43 pm (104 days ago)It’s sad to think how many young graduates out there finish school and start life in the real world with a mountain of student loan debt like myself. Having such a high debt balance can almost make it seem “unreal”…
I already know paying less rent will mean that I can pay off my debt a little bit faster. If only rent was free
anna
February 4, 2013 at 3:16 pm (103 days ago)What a great start to your payoff! Keep the momentum going.
anna recently posted..Playa del Carmen and Tulum, Mexico
Girl Meets Debt
February 4, 2013 at 3:31 pm (103 days ago)Thank you Anna
I’ve been following along with your weekly financial updates too and you are doing pretty darn awesome as well!
Kathleen, Frugal Portland
February 5, 2013 at 2:55 pm (102 days ago)That’s fantastic! One of the keys to getting though a very long process is to celebrate milestones. And throwing $1400 onto your debt is certainly a milestone! I suggest having a party once you get under 50K, under 45K, and so on. That way, you’re focusing on your next mini-goal rather than not being able to see through the long tunnel. Keep up the good work!
Kathleen, Frugal Portland recently posted..February net worth: I saw my shadow
Girl Meets Debt
February 5, 2013 at 3:01 pm (102 days ago)Celebrating Milestones every 5K sounds like the BEST idea I’ve heard in 2013
Why didn’t I think of that???
Thank you Kathleen!
Do or Debt
February 7, 2013 at 3:36 pm (100 days ago)Just found your blog! I am in a similar situation with 55k left to go, after an original 68k student loan balance. Congrats on the big payment. It feels good, huh? I agree with Kathleen, celebrate the milestones.
Girl Meets Debt
February 7, 2013 at 3:50 pm (100 days ago)Hi! Thanks for stopping by and commenting! I always feel kinda giddy when a new “face” finds my blog
$13K already paid off? That’s AWESOME! I’ve always felt like I was the only one in the PF community with a debt that was $50K plus…I’m going to be reading your blog to follow your journey to becoming debt-free
Laurie @the frugal farmer
February 8, 2013 at 3:53 am (100 days ago)I think your numbers look great! We too have a huge debt load, and it often does seem like it’ll take forever to paydown, but lots in the PF world say that things just start to roll after awhile and the payoff numbers just seem to increase more than it seems like they should. You’ll be debt free before you know it, Girl!
Laurie @the frugal farmer recently posted..Mom’s Spanish Rice
Kelly
February 20, 2013 at 7:42 am (87 days ago)I’m not sure about student loans anymore but when I had my OSAP loan ‘interest relief” meant we aren’t charging you right now but it is still accumulating. i.e. I didn’t have to make any payments on my loan for 6 months after graduating – but then found out that interest accumulated that entire time. Just be careful – knowledge is power. Keep up the good work – it is worth it. Paying off your debt is a great feeling.
Nico
February 21, 2013 at 3:31 pm (86 days ago)Nice blog, its very nice to see you plan and set up some goals. I’ll be sure to check your new postings, I love people that plan to get rid of their debt asap instead of just accepting debt as part of normal life. way too go! I also have Students loans to pay back! Started at 46 000 and down to 26 000. Its rewarding to pay down debt, but as you pointed out its sad having to get into such debt just for a chance at a decent career, not to mention trying to save for a car and a house when prices keep creeping up!