At the outset of this blog I chronicled how much debt I had accumulated. Currently, the balance on my debt stands at $95415.90, Just over 66,000 of that debt is student loan debt. My goal in writing this blog is to talk about issues important to personal finance, advise others about getting deep into debt, and to chronicle my journey to financial independence. I have discussed my strategies to pay off debt, but never given a really specific goal as to when I want to be done with debt. After looking at my pace of paying off debt over the past two years my goal is to be debt free (non-mortgage debt) by 45. I am 41 now so that gives me just under 4 years to do it. That means I will have to pay off about $24000 per year in debt to get out of it.
As it stands now I pay about $1500 per month in debt. However, half of that includes mortgage debt. So the reality is I am only paying about $9000 per year in debt reduction. I need to come up with an additional $15000 per year to pay down the debt. I am not totally sure how I am going to work this out if I am going to debt snowball it or some other method. I have an idea, but I want to mull it over a bit and share it in another blog post. But no matter how I get there my goal is to pay off $95415.90 by August of 2018 (my 45th birthday month).
I don’t think I will have a problem paying off a smaller portion of the debt because the monthly payments put me to finish that particular debt by