Since I seem to be starting a new phase in my life, Trying to live on less and be more frugal, I also am working on become debt free within a year. I owe a good amount in credit cards and medical bills and want to pay it all off so that I can save for a house. The last year has been pretty tight with no extra money to pay these things down/off because I've been out of work and my salary has been cut. This past April I started using coupons and reading many blogs and articles and saving money, paying off debt and being frugal and it has really helped.
I've been cutting back so much that I was just able to pay $700 of my medical bills. It's not alot but it's a start. There's a few things that will be happening over the next month that will greatly help in my debt free mission. First, I just finished paying off a bank loan so that will give me $65 more a month. Second, I only have one car payment left :) so that will give me $377 more a month. Third, Hopefully I will be returning to work soon which means no more Cobra Health Insurance payments which will give me $400 more a month. Fourth, Returning to work will increase my salary 40% which will give me $2000 more a month.
The way I'm thinking about things is if I continue to live very Frugally with all the extra money I will be getting($2842) monthly I should be able to pay off my approx $10,000 Debt in 12 months. I am going to have to be real tough with myself and it defiantly won't be easy but it'll be worth it if I can buy a house in five years. I will continue to update my progress as I go along!
