You may remember that we hit a bit of a roadblock. We moved, couldn’t sell our house, and paying an almost $600/month mortgage on top of other expenses has prevented us from paying extra on debt. However, because of a miscalculation on the principal vs. interest on my second loan…we’re still pretty much on track with our original plan.
We have also now rented our house (YAY!). So that extra $575 (which covers the payment) will now be divided up in this way: $400 toward debt reduction and $175 divided between a tithe and savings. We may work some of that into our budget categories if special needs arise.
Student Loan #1, $8,000 $2,982
Student Loan #2, $11,000 $8,900
Mortgage, $59,000 $57,800
Total Debt: (approximately) $78,000 $68,782
Student Loan #1: $8,000 (Current balance $2,972)
Feb 2013: This is PAID OFF, as of Feb 9, 2013!!! Yay :)
Student Loan #2, $11,000 (Current balance $8,900)
March 2013: Pay $1,800 from tax return. New Balance: 9,200 (Because the balance on the first loan was more than anticipated, we won’t be paying a lump sum toward this second one right now. However, we’re still ahead of schedule, since the current balance is just under $9,000.)
March 2013-Feb 2014: Pay $192 (reg. payment) + $400 (from the rent we’ll be receiving). Since we’ve already gotten used to living without it, we’re going to be adding it to the debt cause. My calculations assume that $92 from the regular payment will be applied toward interest, meaning that $500 per month would be applied toward the principle. Projected Balance: $4,520 $2,900
Feb 2014: $2,900 from tax return (Pay Off Student Loan #2!!!)
We are hoping to have sold our house by this time (our renters have expressed an interest in possibly buying it), but if not, the plan will continue until we get that debt paid off as well. Can’t wait!!!