Mind Blowing Debt Reduction ($10,000+) Student Loan Debt Update October 2013

Mind BlownIf you’re new to Money Life and More, in December 2012 we decided it was time to open up to you, my readers, and shared our very first debt update.

As always, our lives are constantly changing. Since the last student loan debt update, Tori has returned to work! YAY! This is big news for us because she’ll no longer be getting just a partial paycheck through disability. She’ll now be earning a full-time pay which will definitely help us put more money toward debt destruction.

Tori’s full-time employment means that we can use the extra cash we were saving just in case her job didn’t come through. This knocked a big portion off the debt total this month. There has been another huge change in our lives as well, but I’ll be revealing that when I can in a week or two.

Well, no more waiting. Here is this month’s results in our debt destruction journey.

Private Student Loan 1 – 8.0% Variable  DESTROYED!

This loan was originally over $20,000 but was destroyed in the August 2013 update.

Federal Student Loan 3 – 6.8% Fixed DESTROYED!

This was a smaller loan than the first, but it too was destroyed in the August 2013 update.

Private Student Loan 2 – 5.75% Variable

The current balance on this student loan is $10,751.31… woohoo! This is a decrease of $10,036.71 since the last debt update. Clearly this is a huge stride toward student loan debt destruction. We’re so excited by this huge result this month.

This is the highest balance loan but it has a lower interest rate for now. After running the numbers, we decided paying the variable interest rate loans off first would only cost us minimum amount of extra interest. To us, the piece of mind of getting rid of a variable rate loan is worth it.

Private Student Loan 3 – 4.75% Variable

The current balance on this student loan is $8,105.43. This is a decrease of $27.21 since the last debt update. This is likely the second loan we’ll be getting rid of due to its variable rate nature.

Federal Student Loan 1 – 6.55% Fixed

The current balance on this student loan is $7,371.25. This is a decrease of $62.47 since the last debt update. This will likely be the last student loan we pay off.

Federal Student Loan 2 – 6.55% Fixed

The current balance on this student loan is $6,925.13. This is a decrease of $58.96 since the last debt update. This will probably be the 3rd student loan we pay off.

Total Balance – $33,153.12 (-$10,185.35)

Our realistic goal was to have the student loans completely dead by the end of 2016, but things have been going well lately. Now we’re thinking we can pay of the debt much more aggressively. The end of 2015 is the absolute latest that we think the debt will be paid off. I think we might be able to do even better though and get the student loan debt destroyed by the end of 2014. I can dream, right?

Do you have any debt you’re trying to pay off? Do you have a goal for when you want it paid off by?

Like What You See?

Join the other readers who have signed up for our email newsletter! No spam, just periodic updates to help improve your finances!

About Lance Cothern

Lance Cothern, a Certified Public Accountant (CPA) licensed in the Commonwealth of Virginia, is the founder of Money Manifesto. You can read more about him here or connect with him on Facebook, Twitter, Google+ or Pinterest.

Comments

  1. Wow Lance you guys are killing it! I’m also trying to get out of debt. I need to do updates I think since I find them motivating. Keep up the great work!

  2. Nice job, but don’t forget saving and investing for retirement.

  3. Congrats to getting so much paid off. I’m quite a ways away but love hearing stories like this as they keep me inspired!

  4. Great job, you guys!!!! You’ve really done well this year! Our pile is much too big right now for me to handle figuring out how long it’s going to take to get it gone, but I’m hoping it will be shorter than I think it will. 🙂

  5. This is great news. Can’t wait to read the next update, I’m sure you’ll have even more great numbers. Keep it up, focus and push through it, you’ll destroy all the debt step by step.

  6. I think it’s awesome that you keep such close track of it! To me that makes it so much easier to stay motivated about payoff because those numbers are staring at you every day! 😉 I think y’all could definitely do it by the end of 2014, looking forward to reading about it! 🙂

  7. Congrats on the huge progress, Lance. You are killing those student loans. You’ll be student loan free before you know it. And congrats to Tori for getting all healed up and back to work.

  8. Nice job with the debt repayment!

  9. Nice work, Lance! As that number gets smaller and smaller, you can feel yourself getting more and more excited, can’t you? We’re only 5 months away from completing our Debt Management Program and paying off over 100K of credit card debt…..Can. not. wait! It was nice to meet you in St. Louis – hope you had a great conference!

Share Your Thoughts

*