Our Loan Profile

With my tax refund in hand, I paid off one of my student loans. By redirecting the payment on my loan to my wife's smallest loan, we will have the loan paid off by next year at the latest. With a little luck and frugality, we may be able to pay it off by December.

Remaining Debt:

1. Mortgage and Heloc – the combined payment is 12.5% of our combined gross income.
   
2. Car Loan – my wife's vehicle is paid off and my payment is 2.2% of our combined gross income. Because the car loan is at zero percent interest, we are not paying anything "extra." Next year, we are planning on buying my wife a new car. In the meantime, we are setting aside $400 per month in a "car fund" at Emigrant Direct.
   
3. Student Loans – combined MANDATORY payments are approximately 4.5% of our combined gross income. After we pay off my wife's loan, we will redirect the extra amount towards her Stafford Loans. Because they are not deductible or dischargeable, they are the "worst" loans in our portfolio. As a result, they are the priority.
   
4. Credit Card Debt – Net Debt = Zero. Our credit card debt is paid off in full each month.