Debt free journey update
Welcome to our debt free journey, where we also take steps towards becoming financially independent and possibly retire early.
I want to share our debt situation, so others in debt might gain some inspiration from it. You might feel alone in your journey but there are so many of us. It’s not inherently bad to have debt, but it’s not something we want to keep lol. So let’s get into the numbers as of Q1 2023.
Our debt right now
We have 3 shared loans to pay off, where 2 of them are private and have no interest accruing. Finally we have a student loan that is quite a bit bigger. This will accrue a little bit of interest over time, but it wont be much.
We plan on snowballing our way out of these debts, starting with minimum payments on all of them. We’ll focus on Private Loan A first and then roll that over to Private Loan B while making payments on the student loan. All our extra money from tax returns and such things, will be pooled together to make extra payments on the student loan.
We haven’t started to pay them off yet, as we recently moved to a new home and had a lot of costs to take care of. The student loan payments will be “activated” in a few months, where we will start payments.
All in all, we have around $ 44,000 in debt and this update is where we start our debt free journey.