Our Debt-Free Plan For 2016

This point in my and my wife’s life is anything but “normal”.

We got married at 18. We both love the Bible. I completed only one semester in college.

Many would be fine accruing tens of thousands of dollars in dollar-941246_1920.jpgstudent loans (nothing sinful about that) and then find themselves not knowing what they wanted to do for a career.

I didn’t want to do that.

So we did something that was very “un”normal. I finished out my semester, dropped out, and we moved. Now that we’ve become somewhat settled, we’ve got a game plan to pay off all of our debt. Before 2017.

The short of it is $4750 in student loans, (from one semester!) and $3000 from a very helpful family member. So a grand total of $7750 plus interest.

We decided to go with the Debt Snowball approach, meaning pay off the lowest debt first and go from their. The benefit is it creates less people to pay faster, and the satisfaction of knocking out debts one at a time. So we’ll be throwing all our money on the $3000 and doing minimum payments on the student loans.

We’ll be putting a down payment of $1000 towards the first debt. We will still have $1000 left over in savings for any emergency that might crop up at any point.

After budgeting our whole month of march with both of us working, we’ll be making $400 payments on the smaller debt, and $100 payments on the student loans. One great thing we noticed was that we may be able to put as much as $700 towards the first debt. Praise the Lord!

All of this said, if nothing major happens and things go relatively smoothly, we should be debt free by mid-November!

So here’s hoping and praying things go well and I’ll certainly give updates on our journey!

 

 

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s