I know I've been writing a lot lately about frugality and money, so are we surprised that I'm talking about it again today? No way! Hope along for the ride.
Recently, Ian and I made a decision to tackle his loans as early as possible. We have just begun the repayment process since they were deferred for two years while he was in school. It was a nice "break" - it gave us the wiggle room we needed to pay off mine! But now his have come in, and they are hefty. We have the typical 10 year repayment plan, but our new goal is to pay them off in 5 years!
I mapped it out and figured how much extra we would have to pay per month to make this happen. The amount is just beyond our budget, so with selling on ebay, etsy, and blogging, I'm able to contribute to the extra $140 every month we'll need to make this happen.
The number one reason we are determined to do this in 5 years is because the interest on the regular 10 year plan is over $10,000. Yes, that's right - 10 grand.
We know paying them earlier will not eliminate all interest, but I know it will be far less than the original number. I have heard that repaying loans sooner than necessary can affect your credit score This is something I need to look into. We have very good credit right now, and I don't want to mess with it.
So wish us luck! Maybe I'll give you updates every 6 months to tell you if we're "on track" with our goal! Do you think we can do it? I do!