Saturday, August 3, 2013

What Debts Do We Have?

Okay, so I'm not sure my husband would be cool with me sharing his financial business on the internet. I guess he's into privacy or something. Psshh. So, this post will be a little vague, but I wanted to share a little about what debts we now have to pay off.

Credit Card: This is already paid off actually. He had a card with some wedding expenses and a car repair on it. We went ahead and took care of that as soon as we got back from the honeymoon, using some cash we got as gifts and a little bit of savings. So, score! One less debt!

Car: His car is due to be paid off in 2015. We have enough in savings to actually pay this off this month and still have almost four months of expenses in savings. So, we're going to go for it and take care of this by the end of August. Score, again! Two less debts!

But, here's the biggie: the student loans (duhn, duhn, duuuuhhhhnnnn). This will be the only thing left to pay off after this month. He has four loans, totally the same amount as all the debt that I paid off last time (so if you're dying to figure it out, do some digging and have at it).

It's...daunting, I'm not going to lie. I didn't actually know the total of the student loans until the other day. It's something he's been in some denial about, I think. I knew they existed and I guess I was sort of in denial too. But, I've worked out a budget and it looks like we should be able to pay between $1,500 and $2,000 per month toward his loans (depending on the month, other bills, etc.). Which is GREAT. That leaves us with money to have a little fun and for each of us to have some spending money of our own.

So, if we were to keep up with this plan, and could throw our tax returns at the debt as well, we might be able to pull off being out of debt by the end of 2014. The only reason that I'm not comfortable proclaiming this is that we might have some big changes up ahead (Freddie's job, going back to school, and hopefully a baby at some point--I hear they cost some money). But, I want to prioritize now to get as much paid off as we possibly can. My husband is on board and still kind of in shock that we have already paid off some of the debt and at how aggressively I think we can do the rest. But, I've done it before, and I know I can do it again. And if we can pull it off in less than two years, I'd be pretty excited.

Because after that? FREEDOM.

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