Just writing out some thoughts. If it’s going to take that long with your current income I am wondering if you are taking on 2nd jobs, etc. to be able to throw at it. Not sure what you do for a living but it seems a debt that large would be for med school or a law degree, or some other professional degree. Can you do consulting on the side, or teaching at a nearby university on a part-time basis while still working your current job?
Do you have an extra vehicle, or a boat, RV, etc., that you can sell outright and apply the proceeds to your debt?
I am just trying to think of extra things you can do. No judgment. Maybe you’ve done these things already.
it’ll give you wonderful peace of mind. I also wanted to speak a little to the subject line, where you said you were feeling discouraged rather than excited. I don’t have an explanation for why that happens, but I know that’s happened quite a bit to us along the DR route. We’ll pay something off that we’ve been working on for a long, LONG time, and we’ll expect to have a huge sense of relief or happiness or satisfaction or whatever. Nope. What we see instead is how high that next financial mountain seems to be. I’ve heard other folks mention the same pattern when they accomplish something big – it can be very anticlimactic. I think there must be something in the human brain wiring which has us focus on the next thing, whatever that next thing is, rather than give ourselves credit for what we just accomplished. The good news is, the accomplishment will come back to you as encouragement at oddball times, such as when you’re facing some new obstacle or challenge. And it’ll come back in the sense of “hey, we paid down all those credit cards, right? Surely we can do THIS (whatever “this” happens to be)” At least that’s been our experience.
Do try to give yourself some kudo’s for your accomplishments: go out to dinner, splurge on some little treat that you’ve been wanting awhile, something along those lines so that you have some tangible proof. Then get going on that next challenge. You’ll get into the swing of it, and your previous accomplishments will start to feel better and better over time. Good job!
Great feeling, ain’t it? 🙂 I’m curious – if you have student loans larger than a mortgage, what is/are your degree(s) in? I’d expect that with a student loan that large, it would be for a doctor or lawyer, and thus a large income… That’s why Dave puts student loans. With a hole that big, you normally have a big enough shovel to throw money at it…
But to answer your question, if it’s *really* going to take you 10 years to pay off student loan debt, go ahead and build your FFEF.
We paid off our last credit card and my car this month! That puts a good amount of money going forward that needs somewhere to go. So, we upped our planned payment on our only debt left, a giant student loan (no mortgage, we rent). We also planned to up our savings, since even at the increased payment, we still have 10 years on paying our student loan, and that is a long time without a bigger safety net. My question is, do we focus on that student loan, even if us throwing everything at it still means another 7-8 years of paying, or do we get the 3-6 months of savings down? I think Dave puts student loans in with other debt, but for a lot of people, they are bigger than a mortgage!!!
With different rates and different balances. Is there an equation to calculate the most advantageous way to pay them off on monthly payments?
Just follow Dave’s Debt Snowball. Arrange your debts from lowest balance to highest. Pay all you can on the first one, and make minimum payments on all the rest. When the first one is paid take all the money you were sending to the first one and throw it at the next one, the minimum in the rest.
Generally, smallest balance to largest. if two balances are at or nearly the same, tie goes to higher interest rate