I passed a big milestone with my debt last month. I am officially under $30,000 in debt. That’s a huge deal. It is hard to imagine that just 7 short months ago, I was $45,000 in the hole.
Passing such a milestone caused me to reflect on my debt repayment journey. I ran a calculation on my student loans to see where I would be had I only been paying the minimum payment.
Current Debt: $29, 167
Minimum Payment Debt: $43,139
I am $13,972 ahead of schedule. That’s nearly an extra $14,000 that could be in my bank account(s). When talking with Hubs about this crazy number, I asked if he would have done the last 7 months any differently. We both whole heartedly agreed that getting rid of these student loans was the best choice for us. But that got me thinking…..
What else could I have done with that money if I wasn’t going to spend it on servicing my debt?
Max out our Roth IRAs for last year and start tackling this year (boring).
Take an excellent trip for many days abroad (Australia, Europe, Japan, oh my! So many choices!).
New living room set (so boring, but it’s on Hubs’ gripe list).
Upgrade Hubs’ electronics. (long overdue. I’m thankful he’s patient).
Down payment? (if we hadn’t spent it yet, the $14k would be accumulating to buy a house soon).
Probably Not Options
Upgraded car (so shiny and fancy!)
PARTY. (‘eeerrr body in the club gettin’ tipsy).
the only other obvious choice. 🙂
A swimming pool for my money. Just like Scrooge McDuck.
Once you were aware of your debt, was paying it your focus?
If I gave you $14,000 and you couldn’t pay off your debt with it, what would you spend it on?