I just wish these loans would go away. I don’t want them anymore and I don’t want to deal with them anymore, so I’m trying to pay them down as quick as I can.
Nelnet Student Loan $ 397 ($1,350) While I have not sent this yet, this is what I’m expecting to send in a few days. Unfortunately I couldn’t squeeze an extra $400 out of last months budget (I should have worked an extra 30 hours), but I’ll be able to take care of this by the month’s end, and then it’s on to the next one!
Direct Loan $6,439 ($253). I’ve been paying my new payment ($77) to this, and my parents help me out with this as well. I recently figured out that if you’re going to make 2 payments to a student loan, it’s best to do them one right after the other. The reason for this is that they clear out the interest then apply the remaining to principal (I have a full post on the topic here). If your next payment is a day or two away, you will be paying more of the money to principal than to interest. I’ll start snowballing this next month, with a goal of having it gone by Christmas.
Great Lakes Loan $ 12,635 ($150) When I originally checked on this in mint, it said I owed more than I did last month. I didn’t think that could be true (and would be hugely demoralizing if it was) so I went to the borrowers website. It had the true amount, but I’m beginning to notice mint does not always play nicely with debt. That’s a good enough reason for me to get out of debt!
This is for my vehicle. I had already started trying to become debt free when I bought this, so I was quite torn as to wether or not to take on new debt while I was trying to eliminate other debt. If you want to read more about it, check here, here and here. Despite most of the advice I heard, I went ahead and took out a loan on this. I made the right move.
Ford Credit: $ 18,841 ($281): It’s interesting to watch the amount of money that gets applied to principal each month. It seems to be very heavily dependent on what day I make my payment in the month. It’s due on the 15th, and sometimes I pay it the first week of the month, sometimes the second. I applied $7 more to principal last month than I did this month because of it. Kind of a lot when you’re thinking about it.
Total Debt Level: $38,042 ($2,499) I was kind of shocked to see that I made this much progress, but I’m no where near out of the woods. It does look like I’ll reach my goal of having my total debt level under 37,500! (actually, if I didnt make that by the end of the month, I’d consider myself a huge failure.
Last month I went on a small vacation at the beginning of the month, so I didn’t get to pay down as much as I would have liked to. This month was nice because I got a lot of hours at my second job and I was fairly tight with my spending. The month after this should be pretty good too as my second job has gotten rather busy and I’ll probably be spending more time there (read the entire weekends) for a bit until a project wraps up. On the upside, my snowball is gaining traction and will soon move on to a new target!
How are you doing towards paying off your debt?