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Thanks for the congrats everyone, it really couldn't come at a better time. We have done pretty well in sticking with the plan, paying cash for any needs or emergencies along the way.

I might put the car loan ahead of the student loan on the priority list, because of the slightly higher interest rate and significantly higher minimum payment, while making sure that I was going to have enough money to pay off the expiring 0% rates within their grace period. However, I also realize that the ability to knock one loan off completely can be a great reward and provide more motivation. And, at a 0.5% rate differential - it's not really going to make that much difference in the long run especially since you will have the student loan paid off in about 4 payments anyway. So, at this point, go ahead and reward yourself by paying off the student loan in one payment. It's a great feeling!

I actually meant to mention one more condition. This may impact some of the advice in here. Citi Visa is at 0% through July 21st 2011, at which point I believe it shifts to 9.99% - so should I actually be paying minimums and saving a chunk to drop on that before it cycles in August?

I have multiple cards and offers for BT's if necessary, but they come with a 3-4% fee.

Check to see if your car loan has any prepayment penalties. If not, throw a little love that way, although if you have had the loan for a number of years, you have probably have already paid most of the interest and are now paying mostly principal. The interest rates are so close it probably won't cost you that much difference if you go after the auto loan or the student loan.

No prepayment penalties, as it is through a federal CU. It is actually a refinance, which is in one of my previous threads here. [you can find it if you follow the "last post" link history in the OP]

The loan will almost certainly be paid in full before it is due given current progress. We are actually planning to start saving aggressively towards a modest wedding reception and honeymoon at this point. Some savings will go towards a down payment fund as well. All things we have put on hold until the debt is eliminated. Focus.

If I understand correctly, you had about $2,000/month you were using to pay down your debt before. Now it will be about $2,900? At that rate, give interest rates that are near 0%, you should finish paying off everything in about 13 months.

So your 0% promo offers will expire a month or two ahead of the pay-off, but the interest on the remaining balances should be fairly low. (Even with a 20% APR and a $6,000 balance, accrued interest is only $100/month.) All in all, it would seem you're doing great.


That's right. It varies by 300-400 each month depending, but we've been steadily applying an average of $2000 per month to debt. Any extras, windfalls, leftover budget funds not spent on groceries, entertainment, dining out, etc...all to debt.

We feel good about the progress, but are being mindful of the "buzz" associated with news like this, and I am trying not to be triggered by it. The extra money will be wonderful, so long as it is applied responsibly and not to wants that will ultimately be more setbacks. I am lucky to have someone who is standing by me and encouraging me to stay the course. I think she sees the light now that i've been including her in the progress and planning. I can still see her frustration at the large balance amount, but going back from the start, she sees how well we have done.

Consider this: By June of 2012, you should have a net worth in excess of $35,000 - not counting any new 401(k) contributions.

That is so motivating. I contribute the mandatory amount to my pension fund and plan to fully fund a Roth as part of the post-debt plan.

Thanks for all the kind words, once again...this site is such a great tool, both for motivation and knowledge. I always send friends and strangers over here for information. I have never heard anything but praise in return.

Well, off to enjoy the weekend.
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