Hi everyone! I've been viewing these boards for a few months and wanted to jump into the action.
My wife and I got married in July 2011 and this past March decided to get crazy on our debt (all student loans) and get these things paid off as fast as we could. We both recently turned 27 and I wanted to have everything paid off before we were 30. But 3 years seemed too long for me so we've set a goal to get all $116k worth of SL debt paid off by Summer 2014. It's gonna be tough but with our income and budget that we're fine tuning each month I think we can make it.
In March 2012 we had around $116k in combined undergrad debt. We had about $18k left over after our wedding and made the bold choice to make a $1k emergency fund and throw everything else at our SL. So right off the bat we got it under $100k which was a little victory.
Since March we're now down to $84,500 left (so about $31,500 paid – about $16,500 if you take away the big pile of cash we started with) and it feels great. We’re following the Dave Ramsey method and have paid off 10 individual loans which was very rewarding. At our pace of around $3000+/month paying down debt we have 27 months to go and we’re inclined to pay more now that we’re getting moving – it really is snowballing.
Here’s a breakdown of our remaining loans:
Jason Citi = $12,369 @ 2%
Jason Citi = $12,047 @ 2%
Jason Citi = $11,473 @ 1.75%
Jason Citi = $13,042 @ 1.75%
Erin Citi = $11,515 @ 2%
Erin Citi = $12,739 @ 2%
Jason Sallie Mae = $9,299 @ 2.326%
Total = ~ $82,487
Can’t wait to pay these off in 2 years and start our EF and reward ourselves with a nice vacay!!! I’ll need the help, advice and inspiration to keep us going now that we’re hitting the large loan balances and won’t pay them off for 4-5 months at a time. I look forward to taking this journey with everyone and getting to the point where we get to keep our income for ourselves!
Hi everyone! Just wanted to give an update since my post back in August. As of today we've been attacking our last Sallie Mae loan which is now only at $2,600 (so about $6,500 paid off in 2 months). The budget is really helping as we feel like we have sooo much money left over to throw at loans. We're averaging around $3k/month on our loans and if we can keep that up we can be debt free by Summer 2014!!
Another great thing is that my new salary starts the 10/15 pay cycle so my paychecks will now have an extra $250 in them. Also, we get paid our bonus 10/15! I don't recall how much it was for but it's around $7,000 - so after tax only about $4,200
but we will be able to pay off the Sallie Mae loan and throw a big chunk towards our remaining loans. Feeling great!
New loan balances:
Jason Citi = $12,287 @ 2%
Jason Citi = $11,967 @ 2%
Jason Citi = $11,396 @ 1.75%
Jason Citi = $12,955 @ 1.75%
Erin Citi = $11,373 @ 2%
Erin Citi = $12,582 @ 2%
Jason Sallie Mae = $2,652 @ 2.326%
Total = ~ $75,216