The Damage: So it is not exactly 100!

Before we began our  journey, it's probably helpful to look at what we are up against. After a couple weeks to get the accounts summed up. We finally got the number. And guess what folks, it is not 100.

This is the break down of all the loans that we are owing:

Private	Loan Balance	Rate
Stafford 1-01	$10,890.43	2.33%
Stafford 1-02	$9,015.87	2.33%
Stafford 1-05	$4,742.13	2.33%
Stafford 1-07	$6,694.82	2.33%
	$31,343.25
Stafford 1-03	$10,809.00	6.80%
Stafford 1-04	$15,545.95	6.80%
Stafford 1-06	$11,216.66	6.80%
Stafford 1-08	$16,808.73	6.80%
	$54,380.34
Fed
Direct Unsubsidized Loan	$3,732	2.30%
Direct Subsidized Loan	$3,976	2.30%
Direct Subsidized Loan	$2,954	2.30%
Direct Subsidized Loan	$6,248	2.30%
Direct Subsidized Loan	$3,124	2.30%
Direct Subsidized Loan	$3,124	2.30%
	$23,158
Direct Subsidized Loan	$5,757	6.80%
Direct Unsubsidized Loan	$7,921	6.80%
	$13,678
Grand total	$122,560

Yes, that is $122,560 grand total. So we are looking at about 22k more than what we estimated at the beginning. And at our rate of paying back (est. 24k per year), that means an extra year added to this journey. 

Our main goal right now is to kill of the 6.8% loans first. The total high interest rate is now $54,380.34 + $13,678 = $68,058

And we have to do it as soon as possible.

Are we a bit discouraged when facing this amount? Yes we are. But hey, we already know that it is gonna be bad. And we just have to put on our tough face and deal with it. The longer we delay it, the worse it is gonna get.

Our next step is to cut down spending, and move our funds around. We would want to make one big payment this year. The thing is, all our income and the majority of our funds are from Vietnam. Therefore, we are going to need to figure out the best way to send money back to the US to pay back these loans. At the moment it's not looking good, even the US bank account my husband has is having issue with online banking. Urg, not a good time to break down silly!

On the bright side, I got a raised after my probation period. Not a monumental amount, but it will make it a bit more comfortable for the two of us. 

The Beginning of Our Journey

Hi world,

This blog is created as a way of documenting a new journey that we are about to embark on, one that we have no idea if anything would go according to plan yet. It is to document the process, and also for us to hold ourselves accountable to our goals and plans. 

It's the story of 24 versus 100

$24,000 - is what we are currently bring in. Our joint income as a couple. Annually. 

$100,000 - is what we owe in student loan.

You read that right. We are trying to clear about $100,000 in debt. While making about $24,000 a year.

Are we crazy? Perhaps. Is it Possible? According to our current calculation, it is. Will we make it? We have no idea yet. Let us show you the simple calculation that we did.

Ok so $24,000 is not really our total income. Basically that what's my husband is making. I didn't count mine yet because I make just a little more than a quarter of that, and it fluctuates because I'm a freelancer.

Oh, and we are planning to do it in about 5 years. Hopefully sooner.

Basically, our plan is that we will throw whatever my husband makes into the student loan. And we are living off of my income. Of course since we want to pay off the loan as fast as we can, both my husband and I will try to increase our income one way or another. I will pick up more freelancing jobs, he is actively looking for a better paid position and side jobs as well. But we can only try and cannot guarantee that we will be able to increase our income and by how much. So 24 is where we start.

Based on that, we want to put 24k a year toward the loans. From what we gather, the loan amount plus interest is about $100,000. Take that, dividing by 24k, and we are looking at a 5 year period. It is not going to happen overnight, we know that, but still much faster than the usual 10-20 years as we often seen from student loan payment plan.

Our Game Plan

The first steps we need to take is to understand our finances, both debts and assets.

We need to look at all our savings and cash. Perhaps set an emergency funds, then see how much we can put toward the loan without putting ourselves in a dangerously deprived position.

We also need to look at exactly how much we are owing and the interest rates on all the loan. We are planning to save on interest so all the payment will be put toward the loans with highest interest rate. It's not a new concept.

Beyond that, we are also a newlywed couple. We promise each other to not let the plan ruin our relationship in anyway. We want to pay off the loan as fast as possible, while not depriving ourselves of things we enjoy like foods and traveling. With that, we need a proper plan of changes we can make to our budget and keep ourselves on track. 

And so it begins!