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It’s been almost two years since I last reviewed my overall household debt, which included my mortgage, student loans for both my hubby and myself, an auto loan, and our two active credit cards.
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The mortgage, which is our biggest single debt, decreased by about $2,500 in that time, down to $73,557.27. The payments are automatic so it’s never late.
My hubby’s student loan is our second biggest loan at $31,946.33, which is about $2,700 less than last time. His payments are also automatic so there’s a never problem with paying on time. My student loan was the next biggest loan back then, but with large monthly payments and refinancing to a lower interest rate, I was able put more than $14,000 to it and pay it off entirely by early May 2017.
It was great timing too because I got laid off on May 22. I have since found a new job, with higher pay, and I don’t have to pay any student loans. Woohoo!
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The auto loan for our Chevy Malibu was the next biggest loan after my student loan. My auto loan is set up for automatic payments at $60 more than the minimum monthly payment. It’s also biweekly, so I actually make 13 payments rather than 12 at $60 more than the minimum payment.
With this payment plan, I was able to pay a little under $6,000 towards the loan, lowering it to $5,700.42.
Our second to last debt is our credit cards, totaling $3,295.12. We tend to keep running balances on our credit cards to maintain activity on our credit histories, as well as collect credit card points that I use at Amazon.com. During the 6 weeks that I was laid off, I made smaller credit card payments to ease the cash flow, so my part of the credit card balance is a little higher than normal.
Lastly, we actually added a little debt to our financial situation. My hubby had the displeasure of getting a root canal earlier this year and financed it with a loan from WellsFargo, which is now at $2,282.08. We could pay it off now, but with interest free payments for 18 months, it’s better to put that cash towards his credit card and student loan for the time being.
Our total debt sums up to $116,781.21, which is $22,318.31 less than my last analysis almost two years ago.