I don’t think I’ve mentioned it much on the blog, but I have this goal in the back of my mind: I want to pay off $20,000 of our student loans this year. Not just send Navient that amount, but actually see the total of those two loans (which are H’s) plus the Citibank card balance (which is where we transferred part of the loans) decrease to somewhere in the neighborhood of $40,000. (The balance of those three loans was at $60k at the end of December, 2014.) That means paying MORE than $20k in a year. It’s not my written-down, committed-to goal, but it’s my pet goal that I’ve been nursing as I’ve been squirreling away money each month to send to Navient.
It’s not the end of the month, but I had a little bit of time yesterday to update the “About Our Debt” page. I use Mint.com and happened to be poking around and I discovered something pretty awesome:
According to this, we had $68,998 of debt in June, 2014. On May 17th, we have $50,883 in debt.
If we can pay off $2k of debt by the end of June, then we will have successfully paid off $20,000 in 12 months! Of course, I’m really looking to decrease our debt amount to $40,000 by December 2015, but this would still be a milestone to celebrate and would give me the confidence that we can really get that amount paid off this calendar year.
In related news, I’ve been cautiously enthusiastic about our rising net worth – after we sold our house, our net worth decreased rather significantly (which I wasn’t expecting, as we made money on the sale!). However, we’ve more than made up for it and we’re now up to around $78,000!
This is important to me because it’s another way of demonstrating how our hard work of paying down debt is working in our favor: every $1000 we send to debt eradication is another $700 we raise our net worth. (Okay, that’s a crazy guesstimate, totally based on the fact that interest is a bastard.)
Despite all of that good news, I do have to make up our “Budget Check In” post for this month – and it is not pretty. Oof. More later this week.