APRIL DEBT UPDATE || 6-FIGURE DEBT PAYOFF || GETTING CLOSE!

Sdílet
Vložit
  • čas přidán 10. 09. 2024

Komentáře • 97

  • @mattburgess6466
    @mattburgess6466 Před 4 měsíci +16

    I think I would pay the Fed loan 5 next if I were you. The reasons being 1) psychological effect of getting an additional loan paid off this year 2) Paying off a loan sooner frees up obligated cash flow sooner in case of future emergencies and 3) student loans are much worse than car loans in that you can’t do anything about them in case of a future emergency (you can always replace a car with a cheaper one or some other extreme measure with a car that isn’t available with student loans).

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci +1

      Wow, all good points! I had thought of number 3 at all. Thank you for such a thoughtful comment. This is definitely what I’m leaning toward doing 😄

  • @eccabaybudgets
    @eccabaybudgets Před 4 měsíci +12

    Katie, you guys are making such great progress!!
    Since the interest rates are so close and you will get a better emotional reward for paying off Fedloan 5, go for it next! The difference in interest will be negligible with how fast you are making progress.
    It's also great to celebrate milestones along the way or you get bogged down in the big picture. You got this! 😊

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci +1

      Thank you, Becca! I am thinking the same way! I just can’t wrap my head around paying off a $40000 loan right now. 21000 feels so much better 😅

  • @norautterfinnesand2159
    @norautterfinnesand2159 Před 4 měsíci +11

    I'd pay off the student loan. Worst case scenario you can sell the car, buy a cheaper one etc. The student loan can't magically be shrunk/removed if needed.

    • @alwaysemilia
      @alwaysemilia Před 4 měsíci +2

      That’s true! On the flip side, federal loans do have additional protections to reduce payments, in case of job loss. The federal loan is also only in Mark’s name, so in the case of a tragic loss, it would go away. This is actually more nuanced than I thought… a lot to consider.

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      That’s a great point! Thanks for bringing that up ☺️

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      Oooh, Emilia, that’s a great point too! There’s a lot to consider.

    • @pamelahooper-tr7si
      @pamelahooper-tr7si Před 4 měsíci

      I'm sorry but a older vehicle more problems with

  • @terryhenderson424
    @terryhenderson424 Před 4 měsíci +6

    I like your videos because while you have enough cash flow for a lot of spending fun, you apply it pretty diligently to debt. And it shows in the numbers!

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      Oh thank you so much! I won’t lie and tell you that we aren’t tempted to spend a lot more some days, but we know in the long run, it will benefit us so much more to pay off the debt.

  • @catwatches8690
    @catwatches8690 Před 4 měsíci +10

    Wow! What a great month of debt payoff. Great job. If it was me - I would work on paying off Fedloan 5 before the car since the interest rate isn't too different.

  • @libbysworld7649
    @libbysworld7649 Před 4 měsíci +4

    Girlfriend, you are poised to pay off approx. $55K this year if you forecast out what you've done so far. That is INCREDIBLE. To give you an example of how incredible that is, that is my gross pay per year! That is so exciting. Be excited, be happy. You've earned it. Way to go for focusing on your goals. You are doing amazingly!!!! Have a fantastic Monday and see you tomorrow!

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      Thank you so, so much! When you put it that way it does sound pretty dang cool. I’m not sure that we’ll be able to keep up this pace. I feel like the end of the year is always more expensive for us because we are saving for Christmas and buying all of the school supplies and new curriculum, but I’ll be optimistic and hope that 55K is possible 🤩💛

  • @BudgetStuffSaveRepeat
    @BudgetStuffSaveRepeat Před 4 měsíci +2

    I know exactly what you mean when you say, Mark is finally on board… that’s how my husband was about the mortgage, but as soon as he got fully on board, we were able to really kick it up a gear …being in agreement helps out so much!! Great progress Katie!!

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci

      Oh my goodness, YES! It really helps when you work as a team! I never wanted to make my family miserable with debt payoff, so I tried to allow for fun things as well, and I think that really helped. He saw that we weren’t going to be shut in at home eating beans and rice all the time 😂

  • @angbudgetanddebt
    @angbudgetanddebt Před 4 měsíci +5

    You guys are doing so good! Definitely get that work assistance started. 10,000 off would be amazing. I would pay the loan off first.

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      Thank you, Ang!! I’m so thankful that he has an employer who even offers such a great benefit 🥰

  • @SmecaWash
    @SmecaWash Před 4 měsíci +5

    Amazing progress I definitely think the 10k added to Fed5 would get you paid off that loan in October or November which would leave only the SOFI student loan…which would give you a great start to debt payoff in 2025 and paying off the vehicle

  • @authenticallyallison
    @authenticallyallison Před 4 měsíci +3

    So many wonderful updates! Congrats on being under $130k. I'm so happy to hear fed loan 4 is almost done and you're on track to get possibly another debt paid off by the end of the year. At this point, go for the debt you want and gives you more peace especially since the rates are pretty similar

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      Thank you so much, Allison! We are going to stay under 130K this time 😬 I think you’re right that we should just go for the one that makes us feel better because that tenth of a point in interest really won’t be too big of a deal.

  • @SaraBudgetOrganized...ish...
    @SaraBudgetOrganized...ish... Před 4 měsíci +3

    Well done in April! That is impressive! Good that you could use the money both for Fed5 and SoFi, but makes sense to put the $10k to Fed5. That way it is way less and you have paid off half of it already.
    Plugged the numbers in just to see it, looks like it would make a $20 difference if you pay off the highlander first (if you use the $10k for Fed5). So do whatever motives you the most!

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      Oh wow, you are amazing for plugging the numbers. I would have thought it would be more than $20, but that’s not bad at all!
      Thank you, Sara!

    • @SaraBudgetOrganized...ish...
      @SaraBudgetOrganized...ish... Před 4 měsíci

      @@KatieoftheHouse you're welcome. Well to be honest it was like 21.30 or something, but with those amounts the extra dollar doesn't really matter. I did use the 8% for the highlander and 7.9% for Fed5. Could be slightly different depending on the interest rates

  • @faithbydesignXO
    @faithbydesignXO Před 4 měsíci +3

    Hello Katie! Happy Monday! Such wonderful progress! Yay Fedloan 4 is so close to being paid off! Under 130k is awesome! 🎉🎉🎉

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      Thank you, Imani! I couldn’t be happier with how the debt payoff is going this year 😄

  • @dair1972
    @dair1972 Před 4 měsíci +2

    amazing!! i cannot find the words to express how much your videos not only help me but also motivate me to keep my journey going. perfect is a understatement for how well your videos are put together. just want to say thanks for posting and please keep up the good work!! as far as the student loan or highlander next, i"m not real sure what"s best but i"m certain whatever you decide it's gonna work out just fine. i really hate car payments but i never had student loan debt and i imagine it's just as horrible!!!!!!!!!!!

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci

      😭😭 thank you so much! Your comments are always so kind and encouraging, and I just really appreciate it. I agree with you that having a car payment sucks, too! No debt is fun, right?! 😆

  • @deeplansandbudgets
    @deeplansandbudgets Před 4 měsíci +1

    Any progress in the debt pay off journey should be celebrated. If you had consumer debt, I would say use the emergency fund to pay it off. Even if you have to add more later due to an emergency, you will save on the interest until you needed it, if you ever did. I will be thrilled if you get Fed Loan 5 paid off as well. What a great motivation. Wait on the Highlander and pay off that student debt. The motivation of that will be huge.

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      Thank you, Dee! I am leaning heavily toward paying off Fedloan 5 first. I know I thrive when I can see an end to something, so knowing it could be gone by the end of this year is highly motivating to me.

  • @a2zbudgets101
    @a2zbudgets101 Před 3 měsíci +1

    Yes, when hubby is on board things move much faster... Great job Katie!!❤❤

  • @BethelBudgets
    @BethelBudgets Před 3 měsíci +1

    So tempting to pay that off but I am SO GLAD you didn't use your emergency fund. Keep going! You've got this! You're SO CLOSE and you're doing so, so great!

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci

      Thank you! I know I would have regretted that and would have been so stressed out. I just need to keep exercising that little patience muscle 😉

  • @stefsonabudget
    @stefsonabudget Před 4 měsíci +2

    You guys are killing it Katie! I wouldn’t use the emergency fund because you guys are making great progress without it. Just keep doing what you’re doing! 👏🏻. I honestly wouldnt worry about the vehicle. I would keep focus on the loans. I’m the same. I like to get the ones that will never come back gone. Vehicles are just so “anything can happen”. You could have to start over in the blink of an eye regardless of where you’re at in payoff. Awesome progress this year Katie! 👏🏻👏🏻👏🏻🎉🎉🎉

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      Thank you so much, Stef! You are so right that anything can happen with vehicles. We learned that the hard way with our last one 😭

  • @UghUgh1234
    @UghUgh1234 Před 4 měsíci +2

    I definitely would pay off the student loans first! Vehicles can come and go, student loans do not.

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      YES! 🙌🏼 I kind of just want those loans to get out of here.

  • @irisymontalvo
    @irisymontalvo Před 4 měsíci +2

    Excellent job. You’re doing great.

  • @brookebond007
    @brookebond007 Před 4 měsíci +2

    Great job with the debt payoff! I would recommend you go after Fedloan 5, which would be using the snowball method and tackling the next smallest debt. Also, since the interest rate is close, it's not a big deal to switch which ones you pay for.

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci

      Right?! Another commenter, Sara, said that it would not be about a $20 difference in interest overall. That doesn’t seem so bad! And I do want to see Fedloan 5 go as soon as possible!

  • @catgodfrey6451
    @catgodfrey6451 Před 4 měsíci +3

    Y’all r doing amazing. I agree with you pay off Fed Loan 5😊❤😊

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      Thank you, Cat! Im so surprised that everyone is pretty much in agreement. I think that will be more satisfying to get Fedloan 5 knocked out next ☺️

  • @niki9638
    @niki9638 Před 4 měsíci +1

    Inflation is taking a toll on our budget, so having to make more adjustments. We had tornadoes come through last week-not bad, just general damage that we’re having to fix/replace some things on the farm.

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci

      Inflation is terrible now. I wish it would finally calm down.
      I hope your insurance steps up and helps with the repairs you need to have done. You guys shouldn’t have to pay for everything 😫

  • @terryhenderson424
    @terryhenderson424 Před 4 měsíci +2

    Which first? Some of those student loans charge compounded daily interest and in those cases, the annual interest percent seems to be dwarfed by the daily compounding. Personally, I would attempt to find a debt calculator that allows you to play what-ifs and select the one which will give ypu the fewest interest dollars paid. Or, if income loss is a concern some sort of scheme which will allow you to reduce minimum payments or make arrangements.

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      Interesting points, Terry! Thank you for bringing that up. There is daily interest calculated on his student loans.
      I have thought about the possibility of income loss, too, and student loans seem “safer” in that situation. I still have some things to think about 🤔
      Thank you for the comment! 😀

  • @debratakagawa4764
    @debratakagawa4764 Před 4 měsíci +2

    Wow, another amazing debt update. Seeing how low the balance on your student loans has gotten is just fantastic. I think jumping on fed loan 5 next will be the most emotionally satisfying as it really seems like a burr in your backside.

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci

      A “burr in my backside” is the perfect way to describe it. I am just tired of it being there.
      Thanks so much for the advice and encouragement, Debra ☺️🧡

  • @Lifeoverdebt
    @Lifeoverdebt Před 4 měsíci +1

    Amazing progress Katie! I agree with you,I think that FL5 would be my next target. I think you will get the most satisfaction that way!

  • @Divasbudgeting
    @Divasbudgeting Před 4 měsíci +1

    Good afternoon❤ thank you for sharing your journey with us and making those large number not so discouraging. Hope you had a wonderful Mother’s Day

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci

      Thank you for watching! I feel more encouraged to have others along this journey with me ☺️🥰

  • @charity7273
    @charity7273 Před 4 měsíci +1

    Great progress, honestly I would go after Fed Loan 5 simply because getting it done increases your cash flow. That's one less mandatory payment. Then you can hit the car loan hard next year

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci

      Thanks, Charity! That would be so nice to free up some money in the budget! That just accelerates the next payoff, too 🙌🏼

  • @jessieschultz429
    @jessieschultz429 Před 4 měsíci +1

    I say pay the Fedloan 5, it would be nice to knock another debt off that column. Keep up the great job!

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      Thank you! That’s definitely what I’m leaning toward right now. It would just feel so good to have it finished 😄

  • @nicolethomas9
    @nicolethomas9 Před 4 měsíci +3

    I would pay off fed5 then paying for the car loan. It sounds like u already have it in mind what is better for your family

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      Thanks, Nicole! I do think that’s what I’m leaning toward ☺️

  • @beekeepstrack
    @beekeepstrack Před 4 měsíci +2

    It sounds like you will have more motivation to pay off FedLoan 5, both because you already have more motivation and because you have a chance of fully paying it off (or getting really close)!

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      Yes! I definitely I’ll be more motivated if there’s a possibility of paying a loan off versus just paying what we can, knowing the car wouldn’t be paid off this year no matter what.

  • @williamwarren9448
    @williamwarren9448 Před 4 měsíci +1

    Katie ! If sofi IS eligible for payments by employer it does change dynamic!!! I would go for fed loan 5 as long as current administration is NOT making progress to help …. That’s a lot of ifs !! Glenda

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci +1

      I’ve had that in the back of my mind, too. Part of me thinks it will never happen and I shouldn’t wait for someone else to pay it off.
      However, I also know I’ll be kicking myself if they make a big announcement a few weeks/months after I pay it off 😫

  • @BudgetingOver40
    @BudgetingOver40 Před 3 měsíci +1

    Hey Katie! This is amazing progress in your debt payoff journey. I would pay off the student loan first since it’s a smaller balance. That would be a huge boost getting down to 3 debts by the end of the year. #motivation

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci

      Thank you so much! I agree that that would give me a huge boost of motivation 😄

  • @wunderwriter1
    @wunderwriter1 Před 4 měsíci +1

    I would target the student loan next. It’s an achievable (if challenging) goal, but I think you’ve shown you’re up for it, and what a huge motivator to go into 2025 with just one student loan!

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci

      I really think we can be free of everything except SoFi by the end of 2025! That would feel so good!

  • @domesticnaturalista9283
    @domesticnaturalista9283 Před 4 měsíci +2

    Congratulations!! You all are doing amazing!

  • @HB-kq4zw
    @HB-kq4zw Před 4 měsíci +1

    Happy dance!!!!! ❤ Katie, yall are doing amazing!

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci +1

      💃that’s me dancing with you! Thank you so much!

  • @BridgettesJoyAtHome
    @BridgettesJoyAtHome Před 4 měsíci +1

    Definitely get Fedloan 5. Since it is a smaller balance, you will feel like you are making fast progress. I know you are excited to see Fedloan 4 paid off soon! You are all doing great!

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci +1

      I am SO excited to see it go! It won’t be long now 😉

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci +1

      I am SO exciting to see it go! It won’t be long now 😉

  • @terryhenderson424
    @terryhenderson424 Před 4 měsíci +2

    Congratulations on yet another debt repayment month.

  • @curvyechronicles
    @curvyechronicles Před 3 měsíci +1

    You guys are doing awesome and I hear cheering with you!!! 🎉🎉
    Also I would do fed loan 5 over the car just with that being a big major goal it’ll feel so much better ❤

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci +1

      Thank you, Courtney! I have new loan developments now that I need to discuss with y’all! 🤣🤣

  • @searegoth
    @searegoth Před 4 měsíci +1

    Get your car loan down to make sure it's not underwater in the event the car gets totaled...even if you have gap insurance. Having an underwater loan on a depreciable asset is risky. This could give you more options if anything in your situation changes. You could then swap (sell and buy) the vehicle with a more cheaply financed vehicle, say sell current at 30k and finance a vehicle for 20k and wipe out 10k debt there. You never know if the federal govt will continue to go after student loan debt so it might make sense to pause the aggressive payments on fed loan 5. The fed govt is also very flexible on repayment options if you run in to anything unforeseen. Lastly, it may be less efficient, but throw the student loan repayments from the employer on the sofi loan since it's a private student loan...even when it's a lower interest rate. This avenue will still let you see great progress but also open up potential options with your federal debt.
    Americans are addicted to cars and car loans. Take a stand against car debt. Don't be like everyone else who has an 80 month loan and the car is costing you $1200 a month between insurance, gas, finance, etc.

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci

      This was very insightful. Thank you for taking the time to comment. You made some good points about the student loans being more flexible. I have thought about that, too. Plus, if something happens to my husband, those loans will disappear, but we’ll still have the car debt.
      Unfortunately, we didn’t get to pick where his employer send the student loan money. We just got a letter saying they sent the payment to the federal loans, but I was hoping we would get to pick! The fact that they are sending it to the federal loans does make the car a more favorable choice in my mind though.

  • @McGTexas
    @McGTexas Před 4 měsíci +1

    I vote to pay off fedloan 5 first, once you snowball 4 and 5 towards the highlander next year, itll be gone so quick

  • @KristenHuckeba
    @KristenHuckeba Před 4 měsíci +1

    Pay off the debt that’s weighing you down first!

  • @dearfinance
    @dearfinance Před 3 měsíci +1

    Hey Katie. In my opinion, I would get that student loan paid.

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci +1

      Thank you! That’s what I was leaning toward as well! We have some new developments now that I need to share though 😅

  • @sidneysfamily8760
    @sidneysfamily8760 Před 4 měsíci +1

    I would pay off the car. Are you able to write interest off on student loans? 2024 MAGI is $195,00 for married.

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      Unfortunately, we weren’t able to write that off last year due to his income. That’s a very good point though because not everyone is in the same situation.
      Thanks for pointing that out! ☺️

  • @gentlecharmbudgets
    @gentlecharmbudgets Před 4 měsíci

    But you could have 21k paid off of that highlander and until you get the 100% sure that they will pay on sofi I wouldn't touch fed 5. Just cause they allowed you to list it doesn't mean they will pay on it. But you are doing amazing so witchever you decide don't lose your Momentum that you have achieved.😊❤

    • @KatieoftheHouse
      @KatieoftheHouse  Před 4 měsíci

      Hmmm that’s a good point! It would probably be smart to double check that before we do payoff 5! I’d hate to miss out on free money!

  • @buyerclub2
    @buyerclub2 Před 4 měsíci

    You KNOW that I think you can pay off both 4 and 5 in 2024!!. Go for it!! I think your logic makes sense. Think about it. If you accomplish the goal only things you have left is a SOFI loan that is likely going to be subsidized by his employer and a TOYOTA (that will last a long time, certainly longer than 2025, where you will have a new goal get it paid off by the end of that year. BTW, my DIL just got notice that her student loan was forgiven. I think its because she is a teacher for 10 year. But to be honest I never quite understand the explanation she gave me.
    But for those who have student loans and work either at non profits or in service industries by all means investigate.

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci

      That’s awesome that your DIL had her loans forgiven! Yes, folks like teachers who work at non- profits can have them forgiven after ten years. Marc would have been eligible for that if he had started working at his current employer right out of school, but unfortunately, he worked at a private company that was contracted by hospitals, so it didn’t count. He did try though 😂 so he’d have to work about her 8.5 years with his current to get his loans forgiven now, but with his income, he doesn’t qualify for reduced payments, so he’d already have them paid off by then anyway.

  • @turtlescanfly7
    @turtlescanfly7 Před 4 měsíci +1

    Amazing progress! I agree with everyone else that you should tackle fedloan 5 next. The interest rates are so close that it doesnt really matter

    • @KatieoftheHouse
      @KatieoftheHouse  Před 3 měsíci

      Thank you! Yeah, it’s really close on the interest. Hopefully it won’t matter too much either way. ☺️ thanks for watching!