Closing in on these final months of our year long Operation Debt Reduction, we feel the need to set a dollar amount goal for our debt payoff from July 1, 2011 to July 1, 2012. Initially, we didn’t want to give a specific number so we wouldn’t feel defeated if we were nowhere near reaching it. Last summer, when Brad and I set about this challenge to change our spending behavior in an effort to pay down our debts, we honestly had no idea what we were even capable of saving on a monthly basis or paying towards debt. We were newbies to the world of saving. However, we feel now that we can aim for a set number knowing how much time is left in our spending lockdown. Having already paid down nearly $20,000 in just over 9 months, we believe we are capable of paying off $25,000 by July 1. What an achievement it would be to say we paid off $25,000 in 1 year just by changing our spending habits. So there it is, our goal is set.
By applying our March savings of $21.89 on top of our minimum monthly student loan payments, we’ve reduced our debt by $411.20. Not a huge reduction, but we’ll take it. We’re ready to reconcile our savings and come back with a better number at the end of the month. No foolin’ around in April!
The 60’s! We finally made it to the 60’s!
After applying an even $2,000 dollars to my student loan from our February savings of $2,382.28, I finally feel we are making traction. In the history of my student loan, I don’t ever recall paying it off in big chunks as I’ve been doing in the past few months. I was always a minimum payment kinda girl with student loans. My old thinking was, “Oh, this is good debt, and I have a locked down incredibly low interest rate. I should just keep paying it gradually for the next 20 years.” Who was I foolin’? Myself.
I honestly can’t believe I ever thought this way. It’s like I wanted to carry this debt around like a cherished relic from my college days. In only 8 months, while paying off over $10,000 in credit card debt, we’ve still managed to reduce my student loan debt by over $6,000. At the rate we’re going now, we can pay off this loan within the next year. And you know what? I don’t think I’ll miss it.