The Loans

The List

1. The Truck
• $2,256
• Estimated Payoff Date (EPD): November 2011
• We decided to upgrade my truck from a 1993 GMC Sonoma to a 2001 Chevy S10.  It's bigger, it has 4WD, and it can get us, our stuff, and the dogs around easily.
2. Gate Loans
1. $2,604
2. $2,628 
3. $2,799
4. $4,978
• These are some small loans from Willamette that were mostly for living expenses and books.
3. ECSI
• $5,486
• This is a student loan from Willamette
4. Stafford Loan
• $10,942
• This is Kristi's loan for her MAT program at Willamette.
5. FSA
• $22,495
• This is several federal student loans consolidated into one loan payment.  Had I to do it over again I wouldn't have consolidated and kept them separate as they would have been smaller loans we could have paid off individually as time goes by to keep us motivated.  As it stands now this loan looms large at the end of trail. 

Grand Total: $54,000 and change

This is the goal: Debt Free in 2 years or less.  Piece of cake.

Each month is a new challenge, especially as the holidays approach.  Kristi and I recreate our budget each month based on upcoming events and past budget history.  For example, next month we'll increase our food budget because we'll be hosting Thanksgiving for Kristi's family and therefore will have to buy turkey and most of the food to make the side dishes.  In December we'll increase our Auto Expenses because of our planned trip to California to visit my family.  

However, the plan each month is to contribute about $2000 towards loans.  This includes their minimum payments and our Debt Snowball money.  The minimum payments are fixed, but the Debt Snowball will fluctuate each month depending on our budget and if any needs/emergencies pop up.  This month we had to take Riley to the vet, so our contribution will be about $1500 instead of $2000, but hopefully we'll average $2K and above.

As we work our way through the list I'll make a post when each debt is paid off and how we reacted to paying it off.  I'll also update the remaining debts and post a goal for the next pay off date.

Feel free to play the home game along with us as we begin our Oregon Trail to Debt Freedom.