April 2013 Debt Repayment Update: One Debt Gone!

How is it already almost the second week of May? I think when, at least in this part of the world with our crap winter, you wish time away it sometimes goes faster than we’d like. While I’m happy about the impending good weather I’m not to much looking forwards to my baby turning two next month. I’m still in awe I’m not pregnant let alone the mother of a two-year-old!

April was a monumental month for us. I finally paid off one of my student loans! It was the smallest of our debts (starting balance around $4,200) so I’m glad it’s finally gone and no longer have to think about it (even if, as of March 2014 it was sitting at a 0% interest rate). I’ve mentioned before that I’m not paying our debts off in any particular order. I tend to put money towards debts that annoy me more than make and reasonable sense (in terms of expert advice). Honestly, I am of the opinion that as long as you’re paying debt off there is no right or wrong way. Some methods may have you paying more interest but at the end of the day we’re moving in the right direction and that’s all that really matters!

Paying off my loan this month meant we put more than our $2,063/month minimum (to be debt free in 46 more more months). Whooo! In April we were able to put $2, 131.84 towards debt. If I’m being honest I could have put about $100 more towards debt but I decided to spend a little money this month of stuff I normally wouldn’t have for my husband, kid and I. You better believe I made that $100 go far πŸ™‚

Now that this debt is paid off, I’m unsure where I will redirect our money. Again there is no ”wrong” answer I just don’t know what will give me the most satisfaction. The 0% loan that will go down fast and probably give me the most relief when it’s gone, the pesky <$3,500 loan which annoys me because of it’s size or the vehicle, which though would be nice to pay off, is a secured (vs. unsecured) debt. All debts are less than 5.5%.

Which debt would you tackle next? Personal satisfaction? Annoyance? or Practicality?


  1. Congrats Catherine! That’s awesome!

  2. Congrats! I tend to focus on debts that annoy me first. My main priority is my private student loans but credit card debt kind of ranks up there with it.
    Kasey @ Debt Perception recently posted..Winning $25,000My Profile

    • Catherine says:

      There’s something to be said about peace of mind (even if the numbers don’t add up…)

  3. If we’re not going for the math answer, and they’re all relatively low interest, I think I’d probably focus on the $3,500 loan because it’s nice to be able to shave off a creditor in just a few months rather than waiting a year or so for the car to be done. But that’s just me πŸ™‚ Nice job Catherine.
    Alicia @ Financial Diffraction recently posted..Financial Update – April 2014.My Profile

  4. Great job paying off one of your student loans! I bet that felt awesome!
    Holly@ClubThrifty recently posted..Keeping Up With the Joneses: Our Frugal Yard RemodelMy Profile

  5. I know that there are all sorts of schools of thought as far as paying down debts, but I am with you, whatever is going to be the most motivating for you is what you should do. It is a long journey to pay off student loans and you have to do what is best for you personally rather than what a book or “expert” says. Congrats!!
    Shannon @ Financially Blonde recently posted..Music Mondays – She Works Hard for the MoneyMy Profile

  6. It must have felt amazing to pay off one of your student loans! I think everyone needs to follow the debt payoff strategy that keeps them motivated. I’m focusing on my private loan with the highest interest rate first.
    Tre recently posted..April Update & May GoalsMy Profile

  7. Congrats! I can’t wait until I have paid off one of my loans. Keep up the momentum! Also, happy to hear you used a bit of dough to spend on your family πŸ™‚
    J @BoyfriendIsABanker recently posted..May BudgetMy Profile

  8. Congratulations! On paying off a loan, I love that feeling. I’m paying off my car next because it annoys me and has the highest interest. I agree with spending a little something on yourself and the fam. Reward yourself for all your hard work. I did and it was GREAT!
    Debt Busting Chick recently posted..Blog Lovin SundaysMy Profile

  9. Great job! I personally did the snowball (lowest balance first) instead of the highest interest first. Since one debt gets paid off relatively quickly, it allows that payment to go to the next debt faster. I know I definitely paid more interest during my debt repayment but the quick wins and striking debts out were such a great motivator. Like you said, however you decide to tackle it, you’re getting rid of it. Keep up the good work! πŸ™‚
    Morgaine recently posted..Monthly Budget Update: April 2014My Profile

  10. Nicely done! I know it’s not mathematically the best option, but I advocate taking care of the smallest dollar amount debts first. I think the psychological impact of ridding yourself of another debt proves more valuable in the long run than the interest you could save by paying off the larger debt.
    Brian @ Luke1428 recently posted..Goodbye Mortgage and Lender B.O.A. Hello Baby Step 7!My Profile

    • Catherine says:

      I’m leaning most towards that for that reason. The mathematics don’t make a huge diff on the end since they’re all similar interest rates.

  11. Congrats! Good question…I would choose whatever one was the heaviest monkey on my back.
    Tonya@Budget and the Beach recently posted..Budget and the Beach Turns Two!My Profile

  12. Great job!! I know how good it feels to be one less debt in debt! I tend to go with logic and pay down highest interest rates first, but I’ve been known to upend that and pay off whichever creditor I hate the most at the moment. I dunno about student loans in Canada, but there are special circumstances in which us US folks get a reprieve from paying if we fall on hard times – we don’t get such treatment from the credit cards, so something to keep in mind!
    Mom @ Three is Plenty recently posted..April 2014 Early Retirement ProgressMy Profile

    • Catherine says:

      Yes Canada and US are vastly different for student loans. I technically only have one ”loan” left the rest are lines of credit in my own name from a bank. I can however write off the interest I pay on my student loan which is why it will be the last one I tackle.

  13. Congratulations, Catherine, that’s fantastic! I like your approach to paying off the most annoying debt first, but if I were to give you my two cents, I would focus on paying off a smaller debt first. I personally find it more satisfying to pay something off completely opposed to bringing 2 or 3 debts down 25-50%.
    I don’t blame you for using $100 to treat your family – I would have done the same!
    Debt and the Girl recently posted..Life UpdatesMy Profile

  14. I am thrilled for you! Very exciting! Ever milestone is a huge accomplishment! On to the next one and to becoming debt free! Congrats!
    Bre @ The Weight of Debt recently posted..Monday Monologue #16- Life’s NonagonMy Profile

  15. Wahoo! That’s great work Catherine πŸ™‚ I hope you enjoyed the extra $100 for you and your family as well. Sometimes you just need to spend a little on yourself.
    Shoeaholicnomore recently posted..Guest Post: 10 Frugal Fashion Tips and TricksMy Profile

  16. Congrats, it looks like you had an awesome month. I would most likely focus on higher interest rate debts, that is unless one annoyed me very badly. I tend to like to attack the debts that cost the most first.
    Joshua R recently posted..Budgets = Happiness (Science Says So)My Profile

  17. Congratulations!! I love reading debt paid off posts. I think that you just need pay off the debt that you feel like paying. I’m constantly tweaking my process depending on what’s going on.
    Michelle@ShopMyClosetProject recently posted..Why Being #2 Is The Best (Financial) Thing To Happen To The U.S.A.My Profile

  18. That’s great news Catherine. You are both still young with careers and a family and to be honest many people are walking the same path. I envy the strength of those that work hard towards financial freedom that have mortgages, kids, student loans etc at an early age. Some people just don’t seem to care. Although we didn’t have kids early we managed to get to debt freedom before 40 but that could have been different for us. The point is all of our situations are unique and no one knows what happens behind closed doors. I often say do what’s right for you and your family as long as you are following your own dreams and budgeting *wink. No one says you have to conquer the world by a certain age. Good for you.. can’t wait to read more about your journey, you’re an inspiration to many. Mr.CBB
    Canadianbudgetbinder recently posted..Saying goodbye to the mortgage payment: April 2014 Net worth update (+0.31%)My Profile

  19. Unloading any type of debt must feel awesome. Good for you and thanks for sharing this news with us. You seemed to have an incredible month and just focus on the next month at hand. It’s all about steps not leaps. Every month you are one step closer to achieving your goals.

  20. Congrats! Whoo-hoo! Momentum!


  1. […] sleep! β€’ This is Why I Blog – Girl Meets DebtΒ talks about why she continues to blog! β€’ April 2013 Debt Repayment Update: One Debt Gone! – Plunged in Debt talks about how she has paid off one of her student loans! Congrats Catherine! β€’ […]

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