$0.00 Yayyyyyyyyyyy! -$1500 Oh crap!

Good news everyone, the student loan balance has been KO'd by the mighty Dreese financial assault squad on Friday, 9/24/10. It's been a long journey and we've finally reached the end! That's the good news.

The bad news is that before Amber and I decided just to pay them off (thanks to some extra money in checking), I had submitted a payment to AES for $1500. Hey there ho there, no problem, they have a "Cancel Payment" link on their website which I took advantage of so I could just go through the payoff process instead. Yesterday I come to find out that AES never processed the cancel payment, so on top of the almost $2500 it took for payoff, they decided to help themselves to the $1500 as well. Gulp.

Upon further investigation it looks like they can only issue a refund by check, which can take up to 30 days. Such service after paying out balance 28 years ahead of schedule! Ironically our biggest financial emergency in a while happens after we've paid off our debt - did not see that coming. To further annoy us, transfering money from savings (ING direct) takes 2 business days, and we had to pay a $185 fee for helping us with our bee situation, so looks like we're in the poorhouse for the time being.

For those looking for the juicy details of the the student loans I made a post on reddit so you can check it out there. Financial success - ahoy!

The Final Countdown

Hindsight being 20-20, I really should have started to document our debt-free journey long ago instead of starting when we're already in the home stretch. I think it would have been more motivating to be able to keep up with our progress on a monthly basis or so, but yet here we are. Better late than never, I guess?

Amber and I got married October 11, 2008 which marked the day that I was no longer debt free. While we did a great job saving money and paying for our wedding in cash, it was once again time to buckle down and look toward our future.

Through some relatively frugal living, generous wedding gifts, some help from uncle Obama (first homebuyer tax credit), and hard work, we will have paid off ~$50,000 of student loans and bought a house in our first two years of marriage. Never one to shy away from complimenting myself, it is an amazing accomplishment.

What's the secret? Well, there isn't one. I read this book, it gave me the ideas and the motivation to do something about my debt (We've probably bought 15 of these so far to give away as gifts so far - If you want one, ask!). Aside from the book, here are some general guidelines that have helped me just starting out:

1. If you're not already, keep track of all the money you spend. This can be an real eye-opener when you see how much those fast food runs add up over time. I'd recommend doing something at least like Mint.com (which does all the work for you), even better would be doing a spreadsheet or a program like Quicken.
2. Create a budget and stick to it. Base your budget off figures you've gotten from past months spending, and what you think you should spend in the categories. Don't freak out if you have to adjust these over time.
3. Minimize your spending. Do you really need a new MP3 player or laptop? That monthly subscription to fantasy football forum? Nope, you don't. And don't try and justify it, either. (I'll punch you in the face)
4. Pay yourself / your bills first. Every payday I'll update my quicken file with the income, and then everything I have to pay until the next payday. This will tell me "what I have left", so I know how stingy I have to be. If I'm out of money coming up on payday, then I guess I'm not going out to eat. Easy as that.
5. Plan ahead! If you know your car inspection is coming up and you're going to need tires, then start setting money aside for it. Life's little surprises can un-motivate you really quickly. Constant vigilance, citizen!
6. Plan for what you can't plan for. Set some money aside that is for emergencies only. If something comes up, you won't "lose traction" or add to your debt.
7. Make some extra money. Whether is be a side job or selling stuff on craigslist, any extra income will help you reach your goals.

Amber and I don't have a tremendous income, but without car payments or a $130 cable bill, what we do make lasts pretty well. We only have to concentrate on getting our mortgage, utilities, and living expenses taken care of, and then anything left over is thrown at the student loans.

Every two weeks (on payday) I feel a great satisfaction pressing the "Make a Payment" button on the AES website and watching the student loan balance drop. We're really in the home stretch now, and honestly it's going to be weird in a few months when we don't have any super-aggressive debt payments. But somehow I think we'll make do :)

7/16/10 Debt Counter: $5,842.47