In January of this year I decided to really focus in on the elimination of debt. Since all debt is not equal I created tiers for my debt:
- Tier 1 – Consumer debt – the shittiest of all debts. Some of this is rolled in debt at a low interest rate, but it is for purchased items.
- Tier 2 – Includes 3 long term debt items that aren’t dire but should be taken care of eventually. They include the debt on my solar panels, debt associated with my boat and debt on my permanent life insurance policies.
- Tier 3 – Not on my radar just yet but these are mortgage obligations.
Last month I ripped through a ton of debt because of a bonus I received. This month we are about even, but it isn’t exactly fair because as I write this I just got back from a trip with the family to Washington DC. So I put some cash towards the card, but a bigger chunk will happen next week when pending charges complete.
As it relates to January 1, 2025 my debt is now down 18%. That number is up from last month which is a bit frustrating. I think this will look very different for May’s Update.
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