Paying Off Debt Update

Paying Off Debt Update

So at the beginning of 2015 I gave myself a couple of overall financial challenges. Challenge #1 was to pay down 10% of my total debt, which stood at around 264,000 in change. That meant I would have to come up with $26,000 to achieve my goal. I want to start doing quarterly, if not monthly, updates to determine where I am and keep myself accountable. So here are my debt totals as of today (I would’ve posted on March 31, but I just decided to do this).

Mortgage=171,025  $168,760.16

Student Loan: $65,959.39  $65,188.58

Personal Loan: $27931.41  $25,401.80

Total: $264,915  $259,370.54

Total Debt Paid Off in Q1: $5544.46.

So this isn’t too bad, but in order to keep up the pace and pay off my debt I have to make up about $1000. In fact, as I am typing this I think I might actually put $1000 to my debt payment to catch up a bit.

If my calculations are correct, however, just my regular debt payments will only be about $15000 for the rest of the year. So I need to come up with another $$7000 to keep myself on track. I think I can do it and I would’ve actually been able to accomplish that goal if we didn’t have our little tax dilemma. If you include the taxes I have actually paid somewhere north of $10000, but part of that came from our emergency fund that went to pay some of the taxes.

So I still have some work to do, but all in all, not a bad first quarter, particularly considering that we had a tax bill that drained us of a few thousand dollars. Now time to get back on track.

2 thoughts on “Paying Off Debt Update

  1. Can I ask what is the plan to pay off the debts? Snowball? Avalanche? Also when I first read the article I thought you had $264,000 in student loans, thank goodness that’s just the total amount:)

  2. Sure, well, my plan is to be totally debt free (everything) by the time I am 50. I am 41 now so that gives me over 8 years, but there are some reasons for a longer time-line. Primarily, b/c I am hoping that we will be starting a family in the next year or so. My first goal is to pay off the $90,000 by the time I am 45. So we are talking about $25,000 per year. My specific plan is a combination of what I call snowball/chunking. What I do and this is b/c I like round numbers is that I make minimum payments on my debts and save whatever money I make from side hustles, extra classes, etc and then save up a specific chunk (e.g. $2000 or $3000) then take that chunk and pay it down on my lowest debt. If my calculations are correct I can probably pay off about another $10,000 on my personal loan. Then pay the rest off by December 31, 2016. Then I focus on my student loans….save method. I know it isn’t the perfect method, but so far it hasn’t been bad. My goal overall is about $26000 by the end of the year, but that includes all debt and I think that is reasonable.

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