In my last debt payoff update, I told you we had just paid off my wife's student loan, leaving just one more debt – my student loan.
At the time of that writing, we owed approximately $8340.
After another month of aggressive debt repayment, the balance stands at roughly $6560.
This means we are still on track to be debt free minus the house by the end of July.
Let's crunch the numbers through our handy free online accelerated debt payoff calculator. I recommend you utilize one of these to see just how much time you have until debt freedom, and how finding extra money to throw at your debt can impact your timeline.
By entering in the total debt, interest rates, payment amounts and additional lump sum payments, you can see that we are now 4 months (actually less) away from paying off my student loan.
According to the payoff schedule table, in the fourth and final month of payoff, we will only need to make a payment of $1,312 to completely eliminate the debt. This means we have a buffer of around $400. I don't plan on using it, but it will come in handy as we take an expensive European vacation at the same time as we are scheduled to be debt free.
Do you think we can do it?
As I've said recently, we had a trip scheduled for June. I got some (bad-ish) news that my boss won't approve my time-off request because of some unexpected work issues. This means we will probably have to go more than a month later than we were planning. While not terrible news, it does make planning this trip almost impossible, and the pessimist in me thinks it will result in higher plane ticket costs.
The good news is that we will have an extra month to save.
Stay tuned as I will be doing an update on our quest to paying off credit card debt while saving for an expensive vacation.