As I have written before, originally my intention was not to pay down this debt early and instead focus on building wealth. But after filing my 2013 taxes I realized that:
- I was not getting a tax benefit for the interest paid (due to my income level being to high, first world problems)
- After looking into my loans in more detail I was reminded that my interest rate was at almost 7%
- The scheduled payments I was making were not even covering interest!
So I made the decision in February or March to make paying of this account a priority, and I did just that! Started paying down the debt at $2,000 a month a now I am free and clear of this debt. Here is the proof:
Unfortunately this does not make me debt free yet. I still have an additional $7,000 or so in student loans and another $10,000 left on my car loan. I definitely won't be paying down the car loan early, it is sitting at only 3.60% interest. I haven't decided yet what I will do about the remaining student loan but I probably won't be paying it off early, I'll have to give it some more thought.
What about you? Have you paid off any debt recently?
Thanks for stopping by,