Wednesday, August 06, 2008

The Difference

Because I’m a nerd, I did a little more analyzing of my line of credit loan tonight. I mostly like looking at the running balance along the right side of the page and to see how fast that has gone down.

Our real push on this (OUR LAST) debt started in January. Since January, we have made 34 payments toward this loan for a total of $14,000 knocked off the principal. (insert happy dance here). Those payments are for a wide range of amounts, some as low as $3.00 to others well over $1,000.

If I had only been paying the amount due, which basically was the interest, I would have made only 8 payments for a total of $2240 and my principal would be exactly the same today as it was on January 1.

$14,000 = good
$0 = bad

I’m telling you this because I want to give you a real example of how getting out of debt works. Spend way less than you make and send every single extra penny you have toward your smallest debt.