Thursday, June 12, 2014

2014 Debt Repayment Progress...

I got promoted and started earning my first six-figure salary in April 2012. During 2012, a lot of the extra income went to repay medical loan debt from two surgeries as well as auto repairs. 2013 was the first year that I was able to make any meaningful progress towards debt reduction and I made some progress. I am aiming for 2014 to be my best year yet for debt repayment. Each year will get better until I am completely DEBT FREE!

In 2013, I managed to pay off $7,224 in principal. Through the first five months of 2014, I have been able to pay off $5,011 or 69% of what I was able to pay off last year and I haven't reached December when my annual bonus pays out. This year, it should be no less than $13,000 after taxes so you can see that with continued monthly payments and my bonus, I will be able to reach my goal of paying off $20,000 in debt this year.

YTD 2014

2013

3 comments:

Anonymous said...

Hi Chitown! That is terrific. Will you be at the 200K mark by the end of the year? Have you considered the snowball method with the private loans, and paying minimums on all of the rest? (The Dave Ramsey way?) Would that be helpful? You'll really feel a ton of satisfaction clearing out that private debt. Those interests rates are scary. I am paying down student loans at 7% and I hate it!! There are a lot of people in the same boat. Keep whacking away at it!!!

Chitown said...

Hi Anonymous! I will be just north of the $200k mark at year end. My entire plan surrounds the Dave Ramsey snowball method. It's pretty awesome way to pay off the student loan debt. I think I'll post the plan again next week so everyone can see the conceptual plan. Fingers crossed, I'll pull it off. My private loans are around 4% variable right now. When I was in law school, rates were higher at 10%+. My absolute priority is to get the private loans paid off ASAP. I am finally under the $100k mark and I will be under the $90k mark at year end. =)

beachgirlsblog said...

Way to go! Can't wait to see how it goes for you during the rest of the year.