$23k Debt-Free

January 2017: Debt-Free Break Down

Loan: $Total debt – $Monthly payment = $Total balance

Credit Card: $9,353.09 – $9,353.09 = PAID OFF!!!

Student Loan: $10,151.00  – $146*** = $10,044.00

Discover Credit Card: $2,217.30 – $55.00 = $2,162.30

Total debt balance = $12,202.12

We stayed with the plan this month and fully paid our NFCU credit card debt. You have no idea just how excited I was when I woke up in the morning and our pending payment has gone through. A great way to start the day 🙂 We have paid just a little over 40% of our total debt and we cannot wait until we tackle the Student Loan next. I know, I know you are probably thinking “Why not pay the smaller amount on Discover card first. Do the snowball method.” True, we have done the snowball method two years ago to pay off smaller credit cards, Sallie Mae, Matco tools, and personal loans. We were able to pay off roughly $10,000 debt. It was during the beginning of Joel’s new career change, but seeing how we sacrificed time apart for about a year, we are able to pay bigger sum to each debt.

I checked Credit Karma and it says that Joel had that Student Loan open for 9 years and 4 months. This means that it has been around for as long as Joel and I have been together, haha (we’ve been together for 9 years and 8 months by the way).


I have posted a little look into our payment history for the last student loan we are working on. Each year, the minimum monthly payment increase. In the last three years, 50% of our total payment has gone to interest prolonging to paying off the loan :/ This is why we want to pay off this loan as soon as possible because it will take another 10 years to pay it off and would have paid double the original loan. In the last 10 years, roughly $6-8k that we paid towards this loan, we were only able to decrease the total loan by $4k out of $15,000. That is how sneaky and demonic student loans are. Our goal is to get rid of this pesky loan before it turns a decade old. We refuse to do a snowball method to pay this off!


***EDITED: Our card was charge $146 with $38 gone to the interest for January. It slipped my mind that this month is a new year meaning that our minimum payment will increase. It increased by $43! This means that we really need to pay off this loan ASAP. We are still aiming to pay it off within the second week of February. Since payment is due on Feb. 5, we are trying not to ruin our payment record, so we will try to pay it as soon as the site lets us pay. Sometimes, we are not able to access and make payment, too early. This means that our balance for this student loan next month will roughly be $10,100.00 estimate with the acquired interest.***

How are you doing with your debt-free journey?


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