This is the seventh post of Our Journey to Become Debt Free. If you would like to read the others to catch up, please check them out!
Here is our debt free progress through May:
But $20,000 is still a lot of debt…
And here are our totals starting June:
(By the way, I made a mistake on this for last’s month’s post. But the picture is corrected now. Sorry)
In June, our groceries budget crept up a little at $461.24.
The large purchases we made were a new (to us) refrigerator and a freezer. I had been looking for a stand up freezer for months on Craigslist and finally someone put up a Commercial Stand Up Freezer and a Commercial Refrigerator. They were only asking $600 for both of them! I jumped on the deal. Being a Commercial Refrigerator, it has no freezer. I thought it would be strange to not have a freezer in the Kitchen, since we keep the Freezer in the Sunroom, but it doesn’t bother me a bit. I love having all the extra space in the Refrigerator too. This is the fridge from my Chalkboard Fridge post :
We sold the small chest freezer we had for $75 and our Refrigerator/Freezer for $150. So we came out to $375 for a Stand Up Freezer and a new Refrigerator. Not Bad!
I told you we got two new loans in June. New loan number 1: we refinanced our mortgage. We originally bought our house back in 2008 before things really collapsed so our interest rate was higher than market rates. We refinanced with our current mortgage company through a streamline program with the USDA. We didn’t have to put any money down but we had to go back out to 30 years. The refinance lowered our interest rate 3 points and knocked $250 off of our monthly payment. We think it was worth it!
“If you want something you’ve never had, you’ll have to do something you’ve never done.” Dave Ramsey
Remember that quote when I tell you this.. We sold our 2009 Altima and bought a 1999 Honda CR-V. The 2009 Altima had a loan balance of $7,793.66. I sold it for NADA value at $10,800 so I had about $3,000 cash in my hand. Then, we got a small personal loan at $3,000. We know, Dave Ramsey wouldn’t be proud. But we took our $6,000 and bought me a 1999 Honda CR-V. The vehicle was around $5,000 so I used some of the money to replace the stereo in the CR-V and have the windows re-tinted. For the sake of our debt, I went from a 2009 to a 1999 and you know what, I love my new (to us) car!
Finally, we used a $49.45 rewards point credit and added $891.18 to it to pay off our Chase! June was a fun month. I enjoy buying cars, I know I have a sickness. The CR-V is the 7th car I’ve bought in the past 9 years. But I’m done! I love my CR-V and plan to keep it until it won’t take me where I need to go, or until I can pay cash for something else, whichever comes first. 🙂
I hope you’re enjoying reading this series, as much as I’m enjoying writing it. Paying down our debt is so exciting to us and I am loving reliving it. It’s been great to be able to refer back to YNAB ($6 discount here) and see exactly what happened every month to refresh my memory.