7 days ago, I told you we were in the homestretch of paying off Stacie’s student loan, and today we finally did it!
We had enough money in the checking account to pay the last $970 on the loan, but I don’t like bringing the balance down below $1000 (don’t ask because I don’t have a reason why). So I waited until I got paid today to send the last online billpay for Stacie’s undergraduate student loan. That’s over $10,000 paid off in the last 6 weeks! You’ll want to click through that link above to see how we did it, or keep reading below.
NOTE: Make sure you turn off any automatic bill payments when you pay off a loan! I almost forgot and a payment was set to go out tomorrow. I would have sent them an extra $150 and probably waited a few weeks to get it back.
So what’s next?
So we have 3 remaining debts other than our mortgage, and they all belong to me:
- About $19,000 left on my Honda Ridgeline truck loan (4.5% interest)
- About $11,000 left on my student loan (deferred, but 6.5% interest otherwise)
- About $4,000 left on the tuition in charged on my Discover Business Card (0% until December)
So the question now is which debt to we pay off next? Well, it’s not as easy as saying “the truck dummy!” because although my consolidated student loan is deferred now, I don’t expect it to stay deferred through the summer as I’ll be down to just 3 credits. Also, I’ll be charging another $2600 onto the credit card within the next month or two to pay for that summer class. I have room on the card, but I’ll need to tackle it eventually (at least before I owe another $5200 in late August for the fall semester).
So for now I haven’t made a decision. The student loan is within reach of paying off before summer ends (maybe), whereas the truck will have to wait until year-end at the earliest, but most likely early next year). Then again, I’ve been considering selling the truck, but I’ll get into that at another time.
Oh, and we’ll be spending a couple thousand this year on home renovations (new flooring, 3 retaining walls, remodeled upstairs) and I’d also like to add more money to our savings and investments. There’s only so much money to go around!