Our Financial Goals: Paying Off Debt (March 2012)

The tagline of this website is “Living Abundantly on Less” and one of the reasons for that tagline is that we have debt.  Currently we owe:

  1. $25,480.68 to Sallie Mae (4.5 Interest Rate)
  2. $9,913.95 to Citimortgage (7.78 Interest Rate)
  3. $107,371.45 to Wells Fargo Home Mortgage (6.25 Interest Rate)

(According to Zestimate, our house in Maryland is only worth $94,000 right now.  It looks like we won’t be refinancing anytime soon…)

Grand Total: $142,766.08

Total of All But The Larger Mortgage: $35,394.63

If you do the math, we’ve paid off another $2900 in the last 4 months since my last financial update!  Yeah!  I am excited that we have been able to continue our debt snowball even through the Thanksgiving and Christmas holidays, and two cross-country flights.

Brad and I are following Dave Ramsey’s Debt Snowball, but in the case of our smaller mortgage, we have chosen to list that with our debts.  (Dave usually recommends saving your mortgage for last, but we have two mortgages, and our smaller one has the lowest pay-off and the highest interest rate.)

Our goals for our financial future include:

  1. Paying off Citimortgage in the next 2 months.
  2. Paying off Sallie Mae in the next 14 months.
  3. Saving a 3-6 month Emergency Fund.
  4. Financing our Retirement.
  5. Creating College Funds for our kids.
  6. Paying off Wells Fargo.

After moving 2700 miles six months ago, we are pleased to still be making steady progress on our goals.  Of course, we know obstacles will come up, and other priorities will take precedence (like attending my sister’s wedding in Maryland, or purchasing a vehicle with more seats?) but we want to keep our eyes on the goal of becoming debt-free!

What are your financial goals, and how are you accomplishing them?

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4 Responses to “Our Financial Goals: Paying Off Debt (March 2012)”

  1. Christie says:

    Good job! Is the smaller mortgage a second mortgage on the same property? If so, I think Dave would advise as you have done and include that with your other debts. Well done!

  2. Rachel says:

    We just paid off our car loan with this year’s tax return! What a blessed relief :). Now it’s just one student loan to go. Our income is smaller than its ever been (now that I stay home with our baby girl), but I am daily blessed and encouraged by God’s gracious provision for us as His children. Keep up your hard work! You have already come so far!

    • Jessica says:

      That’s great! We’re still waiting to file our taxes until we get everything together. With the move in September, some of our documents have taken longer getting to us. We hope to use whatever we get back to finally pay off the Citimortgage debt. Congratulations on paying off your car! 🙂

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