Well now that 2010 is here I thought I would do an debt update, especially since several people have asked me when I am going to do one again. So wait no longer…
Things were progressing along nicely, we were ahead of our expected debt snowball for 2009, ending December months ahead of the game from extra snowflakes we sent throughout the year as a result of frugal living and extra income from doing work on the side. This really helped turbocharge our debt snowball and took out a chunk of principal.
Then, to top things off we had a really nice Christmas surprise… a check from my parents from the inheritance from my grandfather that passed away in May. This was unexpected… so we put it straight to use with what other savings we had and paid off the home loan completely on new years eve, just the way to ring in the new year. Amazingly, this brings out outstanding debt down to $67,728 left, about 33% of our original balance. WOW… this means we paid off 66% of our massive debt so far!
The ol’ debt snowball has been absolutely amazing. When we started out on this journey, it seemed like months and months went by with barely any noticeable progress. It was very disheartening when we were working so hard. But then eventually we got one loan paid off and things went a little quicker… and now… wow, with only a couple loans left (granted huge ones), all those other payments are gone so we can make awesome progress. By paying off all of those other loans first, now we can use that 1300 a month we were using on them to attack our student loans… quite a bit different than barely finding an extra $20 for an extra payment when we started out several years ago.
So without further ado, here is our updated chart:
Our goals for 2010 are to hit momma’s student loan as hard as we can. At 30k, it’s not going to disappear overnight by any means, but we could realistically cut it in half based on the existing debt snowball plan…
If you are interested in learning more about the debt snowball and paying off your own debt, check out our debt 101 section.
So I ask: How is your own debt repayment coming along? Have any specific financial goals for 2010?
I’d love to hear your own stories and progress…
What a great job you are doing. Congratulations . Our challenge every month is making enough money to fill all the out go catagories. It is good to see younger people doing things right and not waiting till they get our age and wondering all right now what.
Thanks Grace!
I am tracking our goals this year on my blog, it really helps with motivation!
I’m jealous of your progress. Good work!
I too am doing the debt snowball. Started mid-2007. Since then we paid off our TV, my student loan and my husband’s car (three years early!). Now, we are focusing on my car and should be done by the end of the year. Then we move into the daunting task of our 10% home loan. Ugh. It’s going to take us until mid-2012 to take care of both my car and this 10% home loan. It seems so far away!
Abby,
Sounds like you are making good progress as well. It always seems so far away when you start out… but eventually you catch up. We are only part way paid off and I gotta tell you it feels really good… I can only image how good it is going to feel when all the student loans are paid off in a couple years.
Fabulous update! How wonderful on your progress – congratulations! I am just now making progress on keeping up with my daily financial responsibilities. My divorce was final on Dec. 30th so I am hoping to begin anew very soon.
Again, fabulous work.
Paying down debt can be so daunting. Around 2001 I paid off all of my debt except for my student loan. I was able to purchase my home in 2002. I got married later that year and ended up ending up with $110,000 more of debt than I had before I married. The marriage is over, but the debt still looms. I hope I can get a handle on it soon and come back to tell you the good new.