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In my last debt payoff update, I noted that we were 7 months away from paying off all our debt (minus the house).

A few days ago we paid off my wife’s student loan. When she graduated about 10 years ago, she owed about $25,000.

That leaves us with just my student loan, with a balance of approximately $8338. When I graduated 8 years ago, I owed about $20,000. In addition to the credit cards that were paid off years ago, and our two paid-for vehicles, we’ve paid off more than $90,000 in debt accrued over the past 10-15 years. Paying off credit card debt was one of the best decisions we ever made.

As I’ve mentioned before, we follow Rule 4 of my 10 Rules to End Your Debt and Change Your Life, which is Pay Off Your Debts, smallest to largest.

This is controversial advice in the personal finance world.

Yes, I would save a little bit of money by ranking them by interest rate, but the value of momentum and getting smaller debts off the books and out of your mind outweighs the small monetary benefit you’d getting by focusing on interest rate.

So let’s take a look at an accelerated debt payoff calculator and see if we are still on track to be debt free this summer.


ADP data courtesy of

As you can see, if I was just paying the minimum on my remaining debt, it would take me almost SIX AND A HALF YEARS to pay it off. But by factoring in my minimum payment plus the extra $1650 we pay each month, you can see that we will pay this off in 5 months.

That means we are still on track with our goal, despite the tough spending season of Christmas.

If you’ve been following this site for a while, you know that we are also attempting to pay off our debt while saving for a European vacation that will cost approximately $5000. My main goal for the next 5 months is to do both without falling off my debt freedom schedule.

This will be tough, but we have been saving for the vacation for a while now, and will pay for it in cash. If you want to read about why we are choosing to practice conscious spending and delay debt freedom by a few months in order to take this trip, read here.

For us, we have only this opportunity this summer to take this trip, and it’s worth it to us to delay debt freedom for a few months. If we don’t, it might be a few more years before we can do it again.


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