Ashley’s May 2023 Debt Update


It’s been a minute since my last debt update and these are some of my favorite posts, as they keep me accountable! So without further ado, here’s where my debts stand as of May 2023.

May 2023 Debt List

Debt Current Balance Original Balance APR Minimum Payment May Payment
Carmax $9,513 $20,539 (10/2021) 3.45% $374 $374
Mohela $26,561 $96,020 (2014) 0% currently $0 currently $0
Total $36,074 $116,559 $374 $374


Since my last update in February, I’ve paid $2,291 on the car (an average of $763/month). I always make the first payment at the beginning of the month and the over-payment at the end, and I haven’t yet made the overpayment this month. I’m hoping to pay at least another couple hundred in principal-only overpayment this month. My goal is to get this debt paid off by the end of the year. That’s a stretch goal, as it means payments will need to be a bit hefty (over $1300/month) for the remainder of the year. But I plan to make a substantial overpayment during my 3-paycheck month next month, so it’s still realistic and do-able.


I’ve made no additional payments on my student loans since my last update in February, but the big update is that my loans were officially transferred from Aidvantage to Mohela when I was accepted into the PSLF program. Per their online tracking tool, I still have 41 payments to go until I’m eligible for loan forgiveness (approx. 3.5 years). Right now I’m making no payments and, instead, put money into a dedicated High Yield savings account that I eventually plan to use for paying down student debt (and/or paying off the car early???). The account ear-marked for student loans has $2163 in it currently. Ideally, I’d like to save up enough to pay off the lowest student loan in full. The lowest loan is $4702, so I’m still quite a ways off and this is a lower-priority savings item right now, as my main focus is paying off the car.

Progress feels slow going given that I’m just chipping away at these relatively large loan balances. But I’m committed and especially excited to pay off my car! I’m putting so much toward it right now that it takes a big chunk of my monthly budget! Once that debt is cleared, it will free up a lot of money for other savings and debt-payment goals. Can’t wait!

How do you prioritize which debt(s) to pay first? Snowball method? Avalanche? The most psychologically satisfying? Something else?

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