Earlier this week, I authorized a payment of $400 from our checking account to great lakes, the people who are servicing my student loan. Once that payment hits next week, there will be less than 5,000 on the balance! That means that I’ve paid of 90%+ of the consumer debt that I had in 2009! Back then, I had 55k+ in consumer debt, between credit cards, a vehicle loan and my student loan and it felt like a lot of money. (55k is still a lot of money). Occasionally I think back and wonder what I would have done had I had a bit of a cash buffer and no debt how much money I could have made in the market. Oh well, live and learn.
This has been a very long journey, and now I can see the light at the end of the tunnel. After paying off the truck last year and leaving 1 debt with a balance around 9k, I kind of lost motivation and started spending money on other things, and only paid a total of 600 extra to the student loan in all of 2013. Even though by that point I’d paid a total of 45k down in debt, because of the debt snowball method I was never really focused on paying a debt that was more than 6,000 (Though the truck was higher than that before the hail storm).
Those numbers made sense to me. Anything that I was focusing on was 6k or below when I started focusing on it, so it was easy to keep my focus and see the light at the end of the tunnel, but this last student loan has been different. It didnt look easy to pay off because the number was so big and daunting. Since the number was so big, I just kind of bumped up my minimum payments until I got to an area where I felt like I could knock out the debt (like 5500 or less) and then focus in on it and knock it out. There seems to be a bit of a mental block with us where I dont really feel like focusing on paying off debt if the balance is so large – I really dont know how some of these people do it. The psychological aspect of it all still amazes me.
We are almost to the end, and because of that, H and I have started to talk about what we want next, and I’ll be writing about that soon.