Monthly Summary – March 2016

$121,294.75 paid off | 15 months to go

Summary: DONE. DONEDONEDONEDONEDONE!!! I took some of the cushion I’ve had in savings and killed off my last loan as soon as I felt comfortable doing so.  Did I mention.. DONE!

Debt paid off this month: $6,559.35
Total debt paid off: $121,294.75
Total debt payoff remaining: $0.00
Total percentage of debt paid off: 100
Ahead/behind expected: Ahead $28,282.75
Current visualization:

2016MarchVisualization

Debt Payoff Visualization -March 2016

Debt payoff breakdown
Business School Loan #1: $0
Daily interest for these loans: $0
Decrease in daily interest from last month: $1.18

Next month: Nothing. Nothing at all debt payoff related. Next up is building up my emergency fund again.

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It is finished

I pulled some savings out of the cushion I’ve kept and I submitted my last loan payment on Monday. It went through today.

Check this out.

FinalGreatLakesBalance

Absolutely. Surreal.

As cliche as it is, I really do feel freer and lighter. I feel incredible relief, like I can breathe again. Something in me has unclenched.

I also feel slightly unmoored. This debt has been a fixture of my entire adult life. It’s going to take a few days to adjust.

In the meanwhile… YUSSSSSSSSSSSSSSSSS!!

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Monthly Summary – February 2016

$114,735.40 paid off | 15 months to go

Summary: My taxes came out about where I’d thought, so we’re rolling in to the end game now. At the end of the month I threw a preparatory large payment at debt with an eye on the deathblow next month.

Debt paid off this month: $5,521.03
Total debt paid off: $114,735.40
Total debt payoff remaining: $6,559.36
Total percentage of debt paid off: 94.59
Ahead/behind expected: Ahead $23,745.40
Current visualization:

2016FebruaryVisualization

Debt payoff breakdown (only one loan left!)
Business School Loan #1: $5,521.03
Daily interest for these loans: $1.18
Decrease in daily interest from last month: $0.99

Next month: The finish line.

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Four figures and an exit plan

With an eye on paying off my debt before my birthday next month (because HAPPY BIRTHDAY TO ME), I’m working an exit plan and the finish line is in sight.

By throwing some extra money against the debt this month, the current debt total stands at four figures. Four. Figures. Yeah? Oh yeah.

Come my next paycheck, in addition to my usual payment, I’m going to take a chunk of my savings and throw it against the debt in one final glorious face slap.

And that should do it.

For a while now, I’ve thought this would be the end game. I’ve kept a bit more in savings throughout this process as I knew the payoff process would take several years. Having cushion in there has been enormously comforting and made the deeper month-to-month sacrifices easier to accept. This is a good use for it as well.

I’m not emptying my savings, of course, and that will build up quickly again once I’m not chucking $3K a month down a black hole…

Now I’m mad all over again about the black hole thing.

Debt, how I hate you.

It’s strange to think about the other side of this. Soon a reality will exist in which I do not have school debt hanging over my head.

I can’t even picture how that will feel. Just… wow.

Next financial priorities: Saving up an emergency fund of 3-6 months of expenses and starting up retirement savings again. It’s about time.

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Never stop

It’s time for a little math thought exercise.

The next required payment for my remaining loan is September of 2024. Let’s see what happens if I just stop repayment now and wait until then. I mean, I’m close, right? Around $12,000 is a number you can get your mind around, so I can just stop now and pay that off any ol’ time, right?

*pulling out pencil from behind my ear*

September 2024 is 8 years and 7 months or about 8.6 years from now.

The interest rate for the loan is 6.55%. Let’s run two scenarios, one in which the interest compounds quarterly and one daily.

What is $12,080 compounded at 6.55% interest quarterly for 8.6 years?

I’ll give you a minute…

Okay, so what is $12,080 compounded at 6.55% interest daily for 8.6 years…?

Answer to both: Over $21,000, which means an additional $9,000+ would be added over that time.

Said another way 75% of the current balance would regenerate by the time I’m required to pay again.

Never stop. Don’t ever wait for the next payment due date as doing so allows interest to accumulate and you’ll just have to pay it off again and again and again. Punch those loans in the face with everything you have and don’t stop until they’re done.

 

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Monthly Summary – January 2016

$109,214.37 paid off | 16 months to go

Summary: January was a three paycheck month. Oh yeah. We also took that vacation we’d been saving for. I cannot tell you how much that was needed. And we didn’t spend the full amount we thought we would.

Debt paid off this month: $3,642.02
Total debt paid off: $109,214.37
Total debt payoff remaining: $12,080.38
Total percentage of debt paid off: 90.04
Ahead/behind expected: Ahead $20,246.37
Current visualization:

January2016Visualization

January 2016 Debt Payoff Visualization

Debt payoff breakdown (only one loan left!)
Business School Loan #1: $3,642.02
Daily interest for this loan: $2.17
Decrease in daily interest from last month: $0.65

Next month: I’ll do my taxes in February, the outcome of which is always random, it seems. The last few years I’ve gotten a couple hundred bucks back. I’m hopeful this year will be similar. Also, I’m up for a promotion at work which should bump my salary if I get it. Fingers crossed.

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Monthly Summary – December 2015

$105,572.35 paid off | 17 months to go

Summary: I paid off one of my business school loans this month! I don’t have nearly the animosity towards my business school loans as I did my med school loans. I created a visualization for the final business school (and final overall!) business school loan, appropriately with a finish line theme.

December didn’t have an impact on my

debt payoff velocity, for which I am very thankful. Yuss! Here’s to planning and saving for Christmas throughout the year.

Debt paid off this month: $3,981.42
Total debt paid off: $105,572.35
Total debt payoff remaining: $15,722.40
Total percentage of debt paid off: 87.04
Ahead/behind expected: Ahead $18,626.35
Current visualization:

2015DecemberViaulization

Debt Payoff Visualization – December 2015

Debt payoff breakdown
Business School Loan #1: $2,057.80
Business School Loan #2: $1,923.62
Daily interest for these loans: $2.82
Decrease in daily interest from last month: $0.71

Next month: Back to the usual in January. So excited to begin the final year I’ll be in school debt. My latest projections put debt payoff in May-ish. Happy new year’s, all!

 

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