Debt Update

I have been in a posting slump lately and I think an easy post to do would be to talk about how my debt payoffs have progressing (especially since we’ve been making good progress on them)

Student Loan : $6325
Loan from my parents : $4000
Auto Loan 1 : $5493
Auto Loan 2 : $4678

Total : $20496

That number is high but not scary. If you compare it with the numbers I posted a year ago, we have paid a whopping $29220 the past year. We have enough money in the bank to pay all of it off, but that would wipe out our entire savings/ emergency fund and so I am not very keen on doing that.

I am hoping to pay off my student loans by the end of 2011. That’s a pretty aggressive goal and does not leave any room for slip-ups. In order to make that happen, we’ve decided not to fly home for Christmas. My parents have offered to pay for us to fly, but it is very embarrassing to let them help us. After we pay off the student loans, we want to pay my parents back by March 2012 even though it is interest free. We’ve been able to knock off these loans pretty quickly the last few months because we made a conscious decision to not divert any money to savings or travel until they are paid off. I think we will not be doing that for our car loans. The balances are small enough that with just a little extra every month we can pay it off in 2012 anyway.

So this is where we stand today. Any thoughts/ideas?

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2 Responses to Debt Update

  1. you guys are doing SO great! Keep it up!

  2. Way to go! Your progress is amazing (and inspiring!)

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