January 2015 – Debt Progress Report

Well it is now February and as promised we are publishing our debt progress report for the month of January. This will allow you to see our progress and how much debt we have been able to get rid of in the last 30 days.

Brian’s Progress

January 1st $34,564.96
January 31st $27,103.80

I managed to knock off quite a bit of debt this month. The reason is because I cashed out my retirement portfolio early that I had from my previous employer. I am only 27 and it was a decision I made to take the small hit on my taxes to get this debt paid off as fast as possible. With the money I was able to pay of my entire lending club loan of $4600 and also pay off one of my school loans through Great Lakes.

Remaining Loans:

  • Great Lakes School Loan #1: -$8,996.30
  • Great Lakes School Loan #2: -$4,179.53
  • Great Lakes School Loan #3 -$4316.63 Gone!
  • Credit Cards AKA Lending Club Loan Consolidation $4600.00 (Gone!)
  • Car Loan: -$13,957.87

Brett’s Progress

January 1st: $60,559.10
January 31st $56,477.88

This last month has been fairly normal for my wife and I. We stuck to our budget and were able to save what we had planned on. We have been working on paying off her student loans, as most of them have higher interest rates compared to mine, and managed to completely pay off two of her smaller loans. The next few months may be less exciting, as we have some larger sums to tackle, but here’s to progress!

Together we got rid of $11,542.38 of debt in January!

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2 thoughts on “January 2015 – Debt Progress Report”

    • Hi Petronella!

      I did take a penalty. I will update the post above with the information. In fact I am going to write another post about that on this blog. So my retirement fund had around $10,000 in it. I ended up paying $1,500 of that in taxes. So I really only cashed out around $8,500. The penalty is around 15-20%. While that is a lot, for me it got rid of one of my student loans completely and I payed off all of my credit card debt :) So I definitely don’t regret it and sleep a lot better at night lol. I would only recommend going this route if you are younger because then you have time to put money back into your retirement account. I am 28 right now and approaching the debt free goal :) Once I am I will throw a good portion towards retirement every paycheck. I am just trying to get debt free ASAP.

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