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!
Lance Cothern, CPA holds a CPA license in Indiana. He’s a personal finance, debt and credit expert that writes professionally for top-tier publications including U.S. News & World Report, Forbes, Investopedia, Credit Karma, Business Insider and more.
Additionally, his expertise has been featured on Yahoo, MSN, USA Today, Reader’s Digest, The Huffington Post, Fast Company, Kiplinger, Reuters, CNBC and more.
Lance is the founder of Money Manifesto. He started writing about money and helping people solve their financial problems in 2012. You can read more about him and find links to his other work and media mentions here.