Alright, now that we are caught up on February it is time to see how we did in March… the last month with an increase in our income. Sad face.
Ok, happy face now because we were able to pay off a loan! We have been working on paying off my federal student loans. I honestly never thought I would see this day so soon in my life. When we started this “paying off” debt process, that loan had a balance of $22,740. If we would have continued paying minimum payments on it, we wouldn’t have had it paid off until 2032. I would be 44 years old in 2032! Yuck.
Instead, I am a 28-year-old with half my student loan debt out of my life! We started tackling that loan in January. We threw a lot of money at that loan in a short amount of time. When I was making those 7-8 thousand dollar payments, sometimes I would think to myself “man, think of the places we could see and the things we could do with this money;” however, paying off this loan was so worth it!
Any who, moving on. We made a few changes to our debt tackling plan in March. We had an opportunity to take out a $25,000 “career starter loan” at a 2.99% interest rate. We were tired of seeing only a very small reduction on the Parent Plus loan due to the 6.75% interest rate. We decided to take out that $25K loan and put it towards the $70k Parent Plus loan.
We have been tackling the littlest debts first in order to apply that payment to the next loan. It was nice to do that because having little “wins” was very motivating and made us want to stick to our plan. Well now that we are clearly dedicated, we decided to start tackling that ugly Parent Plus loan. After putting that 25k towards it, it holds a balance of $44,621. This is where we will be throwing all our extra money. This one will take us awhile. I will now have to update our 2016 Financial Goals to reflect this change. I am not sure what my goal for it will be yet.
Ok, time to get to the good stuff. How much did we actually pay off in March?
Here is a look where our loans were standing at the beginning of March and how much we paid off.
Like I mentioned in February’s progress report, March will be our last month of increased income. Therefore, our numbers won’t be decreasing as fast, but we will still keep hustling! Three loans to go!
How much did you pay off in March?