401K Loan Paid Off!!

I mentioned a couple of weeks ago that my hubby got a new job. I also mentioned that all the PTO hours that he didn’t use in the previous job and the severance pay was enough to pay off the 401k loan and pay for fall tuition for his MBA. The money finally came in after some confusion and a few phone calls. Our 401k loan is finally paid off!!! Our wedding that we had with debt is finally our wedding without any lingering bad taste of debt. Hooray~ I’m so excited right now. We still had almost two years of payments left and now it’s just gone.

My hubby’s MBA started in the fall of 2012. He took 4 classes in the fall 2012, 4 classes in the spring 2013, 3 classes in the summer 2013, and another 4 classes right now in the fall 2013. So far with the tuition assistance from his previous company, PTO hours, some cash flow, we only have $11,000.00 in MBA loan through all those classes. Yes, it’s still a lot of debt, but $11,000 doesn’t even cover the tuition for 4 classes that he takes in a semester. It’s less student loan we thought we’d have by now, so I’m happy with that number so far. He still has a year left after the current semester and since he doesn’t get any tuition assistance from his new employer, the difference of salary from his old and new job will be saved as tuition money.

We still have a lot of debt and we will be adding more to finish my hubby’s MBA. But getting rid of 401k loan is a big milestone for us and I’m happy with the progress that we’re making. Our net worth started with a negative number when I started this blog and now it’s in the positive and I’m just having so much fun watching these numbers change even if it’s very incremental.

How are you guys with your debt pay off challenge? Are you still adding debt to your current debt like us?


5 thoughts on “401K Loan Paid Off!!

    • I was kind of getting restless, but with this loan being gone, I feel motivated again. I just can’t wait to scream “I’m debt free!!!”. At lease you know to save money for your wedding unlike us who started with new debt on top of existing debt.

  1. YAY, so exciting for you and your hubby!! Congrats, Michelle, and $11k for his MBA loans is not that bad – you’ll get rid of it in no time. Happy for you, girl, keep it going! 🙂

  2. Pingback: 2013 Financial Goals Reached!! | Michelle's Finance Journal

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