Tuesday, November 17, 2015

Budget category explanation: debt

We are blessed that the only remaining debt we have is our student loans.  Unfortunately, they have been with us an embarrassingly long time!  I graduated in 2000, my husband in 2006, and we've been chipping away at them ever since, sometimes making payments so low that the interest outpaced the payments.  We are gung- ho about paying them off now, though.
My loans have the lower interest rate, so they are lower on the totem pole of debt payoff.  I have two different lines for my husband's- the first is the required payment, the second is extra payments we make.  They will sort of flip- flop next month, as we are switching from an income- based repayment plan to the standard repayment plan on the loans, so the larger payment will now be the required payment.  I figured that will light the fire a bit- no excuses to miss a payment if it's not an optional payment!

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