Debt Payoff Progress – May

Recently, for about a day, I actually had more money in savings and the emergency fund than I owe on my last non-mortgage debt, and for a minute I felt debt freedom. If I wanted I could be debt free tomorrow, but I made a conscious spending decision by choosing to save for a European vacation monthly for the last year and delay debt freedom by two months. I was just approved for my time-off request for summer vacation and promptly bought 4 plane tickets for my wife and I, taking a $2,100 chunk out of vacation savings and putting my plan for debt freedom back on track for August 1, 2012. 

Last month our balance decreased from $4,834 to $3,079 – a reduction of $1,755.

I’ve mentioned that I have a buffer in my final month’s payoff amount of $462, which will come in handy with the vacation expenses.

Normally I show you in graph format how much is left on my debt repayment plan, but that seems a bit silly now that there are only two payments left. One of $1771 and another around $1,326, give or take a few bucks in interest. 

I had originally expected that our vacation would cost $4,000 to $5,000, but that has been revised because our friends will not be able to join us. Instead of going to Paris, Switzerland and Italy, we will be in London for the night of the Opening Ceremony of the Olympics and then in Croatia for relaxation at the vineyard and on the beaches with my family. Because I have relatives there, I won’t have to plan for a ridiculous amount of hotel lodging expenses.  This is always a good way to go. If you have relatives near your ideal destination, take advantage of it. Even if they are slightly out of the city, you can use it as a base to take city breaks into your destination. Also, maximize vacations by taking advantage of nearby hotspots. If you’re visiting London, why not use one vacation day to double your vacation experiences? Be sure to stay within your limits though.

Many of you know I was planning to be on vacation any day now, but my supervisors wouldn’t approve my June request until some things were known. Once they were known, I submitted a new request for the end of July, and will now be officially debt free the day we take off for our trip.

It feels even better knowing that the trip will be paid for before I even leave.



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27 thoughts on “Debt Payoff Progress – May

  1. Congrats on being debt-free! And how exciting it is to be at the opening ceremony of the London Olympics. I was at the 2010 Shanghai World Fair and while I thought it was too crowded at the time. I always think back on it fondly. I hope to make it to the 2020 Summer Olympics.
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  2. Paying for a vacation before you leave is SUCH a nice feeling… and also an unusual one. I keep having mini panic attacks about leaving for Europe next week, and then I remember the balance for my flights or hotels isn’t sitting on my credit card, and it feels so strange. It makes the trip seem “free” somehow — I mean obviously I paid for it but not having the debt hang over you totally changes it.
    Bridget recently posted..Financially I am now in my second year of university!My Profile

  3. Dear John,
    We are sooo proud of you! It will be wonderful having a “guilt-free” vacation! 🙂 Warmly, Shirley & Glen

  4. That’s awesome John! 2 more payments and you’ll be clear of that debt (besides the mortgage).

    It’s also super nice to know that you will get to go on a vacation right after that is cleared up and knowing it is paid for!! Staying with relatives definitely helps as lodging is usually a huge culprit in money guzzling during vacays.
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  5. That’s awesome you will be debt-free in a couple months (other than the mortgage). I am thinking by years end we will be debt-free except the mortgage. I hope you have fun at the Olympics, that has gotta be one of the best vacations you could take.
    DebtsnTaxes recently posted..The June GoalsMy Profile

  6. Congrats John! That is super-awesome! Furthermore, if they approved your vaca request in June then you might not have been able to join our meetup at the end of this month. Sounds like all things worked out perfectly!

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