It’s official! I called the bank to find out our car loan payoff amount, and she told me it was $0! I was expecting a few dollars left, but apparently the loan is all gone.
I’ll have to go to the DMV to pick up the title. Woo hoo!
Our 48-month car loan was paid off in about 18 months. By paying it off early, we saved about $800 in interest. We ended up paying about $910 in interest, though.
All told, in less than two years, we paid off $11,500 in car debt, roughly $10,000 in credit card debt, and have saved six months of expenses as an emergency fund. What?!
We did this by cutting our household expenses where we could, saving a portion of Shane’s paycheck and my blog earnings.
Though we sometimes had different motivations, we both were committed to paying off debt and building up savings.
Next up: Saving for a down payment on a house.
We’ll be able to take all that money we were throwing at the car loan and the normal car payment of $277 per month and any additional savings we can scrape together and start saving for a down payment and the closing costs. More on that soon!