In truth it feels like the debt will never be gone. Over the past few years we've had some huge set backs and some little pit falls. In 2009 our car died and we bought a different one. That point was the highest our total debt has been since purchasing our home. In 2012 our son was born and I didn't work for three months. We incurred hospital debt of about $3000 and my not working combined with poorly managing our money added about $2000 more debt to the 2012 calendar year.
Our total household debt looks like this:
$147,805 beginning 2010. This is the highest point I have recorded.
$127,000 projected beginning 2014
My ultimate goal is to be debt free by 40. I would need to pay off over $15,000 a year to get there. That is a huge number for our income but others have done it and I believe we can too. At first with interest payments being higher I cannot expect payoffs like that. But as the debt snowball gains momentum principle payments go up and interest payments go down. $15,000+ payoffs should be very doable in the last few years. I managed an almost $10,000 payoff in 2011 just starting off with a ton off determination and effort.
It's WAY out, dreaming big, and crazy planning, also a lot of "life" can happen in 6 years but here goes:
$115,000 beginning 2015
$100,000 beginning 2016
$83,000 beginning 2017
$65,000 beginning 2018
$47,000 beginning 2019
$27,000 beginning 2020
$0 beginning 2021... so I'm a year late but in January of 2021 I'd still be 40. Hey, that works.
I could also win the lottery somewhere along the way, right...
too bad I don't play the lottery.