Debt Repayment Projections 2019

I have decided that I am not comfortable waiting longer than three years to pay off our 253k in student loan debt. Four just seems too long; when we can make some changes and focus in, three just seems more acceptable to me. Two years would be pretty difficult–doable, but I don’t think we are ok with forgoing some travel plans to see friends and family in order to meet that deadline. Traveling to see family in Ohio eats up our budget (as does other fun travel that we are ok with postponing–like our dream vacay to Argentina).

So, three years it is. A goal! I set out to calculate what our repayment would look like by snowballing our debt this year and adding in 600 extra dollars a month to federal student loans fully by September. We actually have another student loan that is set to be paid off in September that we pay 1500 to currently. This is a private loan at a higher interest rate. This frees up 1500 to be put toward our federal loans, which would make it 4000 by the end of September. I’m also setting a goal cut in spending of 300 dollars a month starting now. I will also be getting a raise this year, as will my husband, so I’m adding 300 onto the other 300–although, I think the truth is that this total raise will be more like 1800. The total payment would be 4600 until the end of the year by the end of September–perhaps more, depending on whether or not we decide to travel over the holidays.

If you are interested in playing around with loan amortization based on monthly payments, I use this site. It’s easy to plug in various scenarios, but is there a better one? Please share with me!!

Student Loan Debt Repayment Comparison Projection

With paying 4,600.00 a month after September, this would put us on to paying off in 4.75 years (2025) which is under our goal of 3 years (2023). So, this means we would have to bump up payments significantly—7,000.00, actually–in the next year to achieve this goal. Raises and cutting spending (for example, I’m thinking of switching to a different phone plan) will have to happen. If we don’t bump up at all, it would take us 11 years (which is out of the question! And the reason why I’m analyzing all of this).

I love spreadsheets and creating graphs. However, I am not currently using a spreadsheet to track or calculate student loan payoff or adjust for scenarios. Currently I’m just making little notes in my notebook. Does anyone have a system that works well for this? I have done some searching, but haven’t found anything yet that I’d rather use. I am also not that great at creating spreadsheets with more complex functions other than basic arithmetic (English teacher over here ready to learn!)

What’s your strategy for debt repayment? Share below!

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About the title of this blog

I know the word ‘ignorant’ has negative connotations. People who are ‘ignorant’ are uneducated, lazy, easy to be manipulated. When someone calls someone else ‘ignorant,’ it can often be in a pejorative way. However, the dictionary definition is: lacking knowledge or awareness in general; uneducated or unsophisticated (obtained from a good ol’ Google search).

I think a large part about being a successful adult is recognizing when you just don’t know something, instead of acting like you do. The truth is that I’m ignorant about a lot. My fancy four-year college degree and Masters degree is wholly un-useful when it comes to, say, anything related to living in a home that’s over 100 years old. Except if you count going to the job that pays for me to live in the house.

The reason I started this blog is to document my progress and learning for myself and anyone else who could benefit from this. I recognize my ignorance in many areas of personal finance, even if I am pretty decent some parts of it. I have some to teach, and lots to learn.

In the words of Vicki Robinson, “no shame, no blame.” It’s not easy for me to not kick myself every now and then about things I’ve done. I don’t like messing up, as I’m sure nobody does. Understanding my areas of ignorance (or areas for growth, if you want a more positive connotation) and then overcoming them is liberating. It helps me move on and be better. So, I hope people can come to this blog feeling kind of like me–looking for more things to learn, and ready to ask questions–no shame, no blame.

-SB