Huge Progress! First Post-Marriage Debt Payoff Update – August 2012

If 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.

Student Loan Debt Update – August 2013

"Students make banks rich" (Zuccotti Park Sign) Follow Me on Pinterest We’re married! This is huge for what is now our student loan debt payoff. Prior to being married I had saved up some money that I would use toward the student loan debt once we got married. This update shows a big move and one that we’re both very proud off. Enough jibber jabber. On to the debt destruction update! Ok… so one more thing, just as a reminder… Tori is still on disability and not making her full wage, but she’s getting better and better every day! After she goes back to work we’ll have even more money at our disposal to destroy her debt.

Private Student Loan 1 – 8.0% Variable  DESTROYED!

The current balance on this student loan is $0.00. That’s right! We paid it off in full! WOOHOO! This is a decrease of $3,241.15 since the last debt update. We can’t believe that this loan was originally was well over $20,000 when my wife began paying this down after college in 2011. It feels great to have it gone! Unfortunately there are more loans left with large balances. Sad day.

Federal Student Loan 3 – 6.8% Fixed DESTROYED!

The current balance on this student loan is $0.00 as well. That means that yes, we didn’t only pay off one horrible student loan this month. We paid off TWO HORRIBLE STUDENT LOANS this month! This is a decrease of $3,869.62 since the last debt update. It feels wonderful, but we know we still have a lot of work left to do… speaking of a lot of work left to do, it is time to get to the student loans that still have balances…

Private Student Loan 2 – 5.75% Variable

The current balance on this student loan is $21,861.88… ouch! This is a decrease of $415.99 since the last debt update. 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 $8,158.69. This is a decrease of $25.94 since the last debt update. This is likely the second loan we’ll be getting rid of due to it’s variable rate nature.

Federal Student Loan 1 – 6.55% Fixed

The current balance on this student loan is $7,495.94. This is a decrease of $55.23 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 $7,042.81. This is a decrease of $52.16 since the last debt update. This will probably be the 3rd student loan we pay off.

Total Balance – $44,559.32 (-$7,660.09)

Our realistic goal is to have the student loans completely dead by the end of 2016. However, if things continue to go well with my side business and Tori doesn’t have to continue having more foot surgeries, we may be able to get this debt paid off much sooner than anticipated… more news on that in the coming months.

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

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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. Great job on paying off some of those student loans. Now you can apply what you were paying to those to the other loans and kill those as well. Winning!

  2. You’re making great progress! How does it feel when you are able to say “This one is done!”? No doubt it is a big load off your mind. Congratulations!

  3. Congrats on the progress! You guys will kill those things in no time, I’m sure. =)

  4. Congrats on this! I’m working on my 6.55% fixed interest loan that currently has a $21,000 balance. Getting that debt off my shoulders will make me so much happier, considering it’s half of my total loan balance!

  5. My only debt is a small (<$50K) mortgage and car <$16K) loan which will be paid off in less than 4 years.

  6. Congratulations on the progress, Lance!

  7. Great job! How the hell do you keep track of all of those different loans… Geez.

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