Hope’s Debt Update – January 2021


of hope

This has been a month for the history books and the goal of getting out of debt in 2021 is closer than ever. I’ve worked a record number of hours for my company between my new corporate job and maintaining a handful of existing clients. I’ve earned a record amount.

I thought it was time for a debt update.

Original debt
Last update
current balance
Minimum. payment
Student loan # 1$ 17,000.00$ 3,478.45$ 02.88%$ 0
Student loan # 2$ 21,750.03$ 19,184.23$ 19,242.592.88%$ 306
Honda HRV$ 21,200.00$ 16,012.86$ 12,769.083%$ 1,600
total$ 59,950.03$ 38,675.54$ 32,011.67$ 1,906

Get out of debt

My student loans will be paid out automatically starting this month. The minimum payment is $ 306. I will continue to pay this amount every month until my car is paid off. I hate that interest rates have caused this loan to grow over the past few months.

Even if the government suspends the required student loan payments again, I have decided to keep paying that amount. It makes it easier to keep my records and budget. (And it will reduce this larger debt, at least minimally.)

Car payment

I’m increasing my minimum monthly car payment to $ 2,000 per month. (This month I paid $ 2,200 for my car as my income was higher than expected after all the deductions.) If there is additional funds on my monthly budget and my 2020 ROTH is max, it will be used towards my car payment.

This will be real … I will have no more debts, or at least most of the time, in 2021!


I diverted $$$ to my ROTH account with every paycheck. However, I haven’t found a way to bring this back to 2020 instead of 2021. Therefore, I manually made additional contributions so that I can set these as contributions for 2020. My goal was to maximize 2020 by the 3rd new paycheck. I’ll just miss this a little. So it will take me until the end of February to hit the $ 6,000 goal. (Remember, I started contributing back in the fall of 2020 so I wouldn’t have to raise the entire $ 6,000.)

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