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Keep On Swimming – Debt Pay Off Update February 2014

Time flies! Another month has gone by very quickly and that means it is time for us to update you on our debt pay off once again. As I’ve mentioned in the past, we’re finally seeing the light at the end of the tunnel, which is pretty awesome! We’re so excited and ready to get rid of this student loan debt once and for all.

The closer we get to the end of our student loan debt pay off journey the more we want the loans to be completely gone! However, at the same time, we find ourselves considering enjoying ourselves a bit more because the end of the debt is near. Do we buckle down extra hard and try to pay off the debt even earlier, or do we lighten up an enjoy life a bit more, even if it means delaying the pay off date by a month or two?

The other battle we’ve been fighting is whether or not we want to take some of our cash to pay off the student loan debt earlier. In the long run, it doesn’t really matter much either way. Why? Because we want to save up a large chunk of money for an emergency fund. Part of it will be in cash and we haven’t decided whether the second half will be in cash or investments. Ideally, we’ll have a year’s worth of expenses between the two. I’ll keep you updated as we decide if or when to deploy some extra cash to kill the loans early.

Finally, it’s time for the student loan debt update! Here’s how we’ve been doing over the last month:

Federal Student Loan 1 – 6.55% Fixed

The current balance on this student loan is $7,048.28. This is a decrease of $162.50 since the last debt update. This student loan will be the last one we vanquish in our journey to total student loan debt annihilation.

Federal Student Loan 2 – 6.55% Fixed

The current balance on this student loan is $2215.00. This is a decrease of $4,293.70 since the last debt update. This is the loan we’re currently trying to destroy. This loan will definitely be destroyed before the next update! YAY!

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 ANNIHILATED!

This was a smaller loan at a little more than $4,000 but it too was destroyed in the August 2013 update.

Private Student Loan 2 – 5.75% Variable VANQUISHED!

This loan, originally over $23,000, was vanquished in the December 2013 update.

Private Student Loan 3 – 4.75% Variable SLAUGHTERED!

Originally at over $8,000, this loan was slaughtered in the January 2014 update.

Total Balance – $9,263.28 (-$4,456.20)

I really wish we were a bit further ahead of where we currently are, but I definitely see a pay off date of March or April as possible. It really depends on how the next couple of months go and if there are any pop up expenses we weren’t expecting.

It also depends if we end up using some of our non-emergency cash to speed up the pay off a bit. We are expecting a tax refund, which we’ll apply once it is finalized, but I still have a bit of work to do to finalize my taxes.

As always, tune back in next month for an update on how we’re doing. If we somehow pay off the debt before the next update, there will be a post before the usual mid month post. Don’t expect it though. I don’t see that as possible unless we dig into our emergency cash.

Are you trying to pay off any sort of debt? How is it going? I’d love to hear your story in the comments!

Dear Debt

Tuesday 18th of February 2014

You are doing an incredible job with the student loans! I still have a ton left, and trying to pay over 1k a month. It's been a process. I know there are months I want to slow down and stop, and others I can't stop thinking about it and just want it gone!

Lance Cothern

Wednesday 19th of February 2014

I totally understand where you're coming from. Keep on going and it'll be gone before you know it.


Monday 17th of February 2014

Great job knocking out that debt! We are trying to get out of debt and it is posts like this that keep us motivated!

Lance Cothern

Monday 17th of February 2014

Thanks! Glad I could help motivate you!


Monday 17th of February 2014

I would advise that you not divert the cash from emergency fund to pay off debt. As soon as you do, life will rear it's ugly head and you'll have no money to pay for what ever happens. I totally understand your desire to knock out the last of the debt but just stay the course and you'll get there. I speak from experience :)

Lance Cothern

Monday 17th of February 2014

Thanks for the insight Kathy. I don't think we'll end up dipping into our emergency fund, but it has been tempting!

John S @ Frugal Rules

Monday 17th of February 2014

Very cool Lance! That's an awesome feeling to be able to see light at the end of the tunnel in terms of your debt. That can be a hard balance to know if you should take some cash to pay it off sooner or just do what you normally do. I could see it from both sides, but either way you'll paid off in full very soon!

Lance Cothern

Monday 17th of February 2014

It will be gone soon and I can't wait!!!


Monday 17th of February 2014

Great job knocking out all of those student loans, Lance!

Lance Cothern

Monday 17th of February 2014

Thanks Holly :)