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Debt Repayment Motivation

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    Debt Repayment Motivation

    I've posted once here before as far as credit card debt and personal loan debt, and received a lot of feedback.

    I was able to completely pay off my credit card and my personal loan. I will post the numbers below, because really.. it's been a journey, but it's only the beginning. I'm including those numbers because it will help increase my motivation to keep going.

    At the beginning of my debt repayment journey, I owed $69,550.68 for my credit card, personal loan, and ever looming student loan.

    Beginning 4/20/2018:

    Credit Card
    Starting Balance: $1,943.59
    Interest Rate: 14.36%
    Current Balance: $0

    Personal Loan
    Starting Balance: $4,617.34 (opened at $6,352.40)
    Interest Rate: 14.74%
    Current Balance: $0

    I have paid off $6,560.93 so far and both those debts are gone! Now, I really want to tackle my student loan. During the 2.5 months it took me to pay off my credit card and personal loan, I was hellbent on doing so and did not spend a dime on anything that was not essential. I know I won't be able to live like that for the couple of years it will take to pay off my student loans, so I'm not going to pay as aggressively as I did with my credit card and personal loan. With all that being said, I do want to say thank you to this group to push me to pay off my debt and not just live with it.

    Student Loan A
    Starting Balance: $27,690.48
    Interest Rate: 6.8%
    Current Balance: $27,142.38

    Student Loan B
    Starting Balance: $9,587.74
    Interest Rate: 7.9%
    Current Balance: $9,395.34

    Student Loan C
    Starting Balance: $24,332.28
    Interest Rate: 5.41%
    Current Balance: $23,860.54

    Student Loan D
    Starting Balance: $1,379.25
    Interest Rate: 6.41%
    Current Balance: $1,351.15

    Currently, my student loans total $61,749.41. My goal is to have them all paid off by 2022.

    And here I go!

    #2
    Congrats on getting rid of the two worst debts!

    The standard advice for the remaining debt is to focus on the highest interest rate first, loan B. That said, you are familiar with Dave Ramsey based on your previous thread even though you aren't following his plan, but he recommends paying smallest to largest balance regardless of interest rates. Both methods work. He feels, and is probably correct, that knocking out the smallest debt is more motivating. In that case, you would attack loan D first.

    Choose the method that will keep you fired up the best.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

    Comment


      #3
      I'd get D paid off ASAP. Wouldn't it be cool to only have to worry about three loans?

      I'd then go to B because it is next lowest and the highest interest rate.

      Then, it is a toss up.

      I would pay minimums on the ones you are not focused on and put everything extra you have into the one you are paying off. I have a friend who is doing this. He had 15 loans totaling $69k. He has paid off five or six loans so far. This only amounts to $20k but he sees progress and stays motivated.

      Great job on the credit cards. You can do this! Keep coming back here for motivation.

      Comment


        #4
        + 3 to payoff Loan D.

        Congrats, nice job and thanks for the update.

        Comment


          #5
          Update :d

          I PAID OFF STUDENT LOAN D!

          Student Loan D
          Starting Balance: $1,379.25
          Interest Rate: 6.41%
          Current Balance: $0.00

          Three months ahead of my schedule might I add!

          Now I will move to Student Loan B with the ~$9400 balance.

          Comment


            #6
            Originally posted by cdorfish View Post
            I PAID OFF STUDENT LOAN D!

            Student Loan D
            Starting Balance: $1,379.25
            Interest Rate: 6.41%
            Current Balance: $0.00

            Three months ahead of my schedule might I add!

            Now I will move to Student Loan B with the ~$9400 balance.
            Excellent work!!! Very inspiring.
            james.c.hendrickson@gmail.com
            202.468.6043

            Comment


              #7
              Way to go Cdorfish, keep up the good work

              Comment


                #8
                congrats cdorfish...that is awesome 3 months ahead already keep up the amazing work

                Comment


                  #9
                  Well done! Your focus and determination are recognized, it's hard work.

                  Comment


                    #10
                    Originally posted by cdorfish View Post
                    I PAID OFF STUDENT LOAN D!

                    Student Loan D
                    Starting Balance: $1,379.25
                    Interest Rate: 6.41%
                    Current Balance: $0.00

                    Three months ahead of my schedule might I add!

                    Now I will move to Student Loan B with the ~$9400 balance.
                    This might seem like a silly question, but how much do you have in unspent savings?

                    (By "unspent", I mean money not allocated to mandatory known future expenses like semiannual insurance, annual taxes, etc.)

                    Comment


                      #11
                      Status Update:

                      Student Loan A
                      Starting Balance: $27,690.48
                      Interest Rate: 6.8%
                      Current Balance: $27,021.82

                      Student Loan B
                      Starting Balance: $9,587.74
                      Interest Rate: 7.9%
                      Current Balance: $8,408.90

                      Student Loan C
                      Starting Balance: $24,332.28
                      Interest Rate: 5.41%
                      Current Balance: $23,736.58

                      I'm attacking Student Loan B with all I have right now. I've made a decent mark, and I'm going to keep at it.

                      I had Student Loan A down below $27k but interest threw it right back up there, and that's really disappointing. Seeing that really makes me want to consider refinancing, but I'm just not sure if I want to do that.

                      Has anyone here refinanced their loans? What was your experience?

                      Comment


                        #12
                        Originally posted by cdorfish View Post
                        Status Update:



                        I had Student Loan A down below $27k but interest threw it right back up there, and that's really disappointing. Seeing that really makes me want to consider refinancing, but I'm just not sure if I want to do that.
                        If you are making the monthly payment, how is that possible?
                        Gunga galunga...gunga -- gunga galunga.

                        Comment


                          #13
                          interest is more than monthly payment? How much is the refi of student loans?
                          LivingAlmostLarge Blog

                          Comment


                            #14
                            Not sure if this is still active, but I just wanted to post an update!

                            To answer the last post, interest was more than my minimum payment would cover on the largest loan (Student Loan A). I did consider refinancing at one point, but decided against it. I’m actually glad that I did because my loans are considered public by department of education and therefore got to benefit from the CARES act. They are currently in “deferment” although I pay on them still and have 0% interest until 12/31/20.

                            Since 2018 and working hard on that debt and disappearing from this board...

                            September 2018, I got lasik eye surgery and used a program through the doctor for 24 months 0% financing. The surgery was $4950 and I could NOT be happier with my decision to move forward. I’ve worn glasses/contacts since I was 7 years old and have 20/15 vision for the first time in my life.

                            November 2018, I got a brand new car. Looking back now, I would have went with something cheaper and used, but it's done and over and I'm paying it off.

                            And the best part of everything, I got pregnant February 2019 and had our daughter September 2019. I paused my attack on my debt and restarted with a vengeance in January 2020 when I returned from maternity leave. I’ve also been promoted and gotten a raise and work about 6 hours of overtime a week.

                            I also put just under $1,000 on a credit card around Christmas 2019 but paid that off by January 10, 2020.

                            Status Update:

                            Student Loan A
                            Starting Balance: $27,690.48
                            Interest Rate: 6.8%
                            Current Balance: $23,139.94

                            Student Loan B
                            Starting Balance: $9,587.74
                            Interest Rate: 7.9%
                            Current Balance: $0.00

                            Student Loan C
                            Starting Balance: $24,332.28
                            Interest Rate: 5.41%
                            Current Balance: $9,293.93

                            Student Loan D
                            Starting Balance: $1,379.25
                            Interest Rate: 6.41%
                            Current Balance: $0.00

                            Lasik Eye Surgery
                            Starting Balance: 4950
                            Interest Rate: 0%
                            Current Balance: $0.00

                            Car
                            Starting Balance: $23,952.78
                            Interest Rate: 4.99%
                            Current Balance: $16,298.12

                            I’ve worked the numbers about a million times, and I will be debt free (except for our mortgage) by the end of 2021 (hoping for actually September 2021, but giving myself a few months of grace and if I finish early then GREAT). Every extra penny I get, I put towards my debt. So far in 2020, I’ve paid $29,342.31 towards my debts.

                            Just wanted to share, see you guys in 3 months (fingers crossed) when I pay off Student Loan C!

                            Comment


                              #15
                              Originally posted by cdorfish View Post
                              Not sure if this is still active, but I just wanted to post an update!

                              To answer the last post, interest was more than my minimum payment would cover on the largest loan (Student Loan A). I did consider refinancing at one point, but decided against it. I’m actually glad that I did because my loans are considered public by department of education and therefore got to benefit from the CARES act. They are currently in “deferment” although I pay on them still and have 0% interest until 12/31/20.

                              Since 2018 and working hard on that debt and disappearing from this board...

                              September 2018, I got lasik eye surgery and used a program through the doctor for 24 months 0% financing. The surgery was $4950 and I could NOT be happier with my decision to move forward. I’ve worn glasses/contacts since I was 7 years old and have 20/15 vision for the first time in my life.

                              November 2018, I got a brand new car. Looking back now, I would have went with something cheaper and used, but it's done and over and I'm paying it off.

                              And the best part of everything, I got pregnant February 2019 and had our daughter September 2019. I paused my attack on my debt and restarted with a vengeance in January 2020 when I returned from maternity leave. I’ve also been promoted and gotten a raise and work about 6 hours of overtime a week.

                              I also put just under $1,000 on a credit card around Christmas 2019 but paid that off by January 10, 2020.

                              Status Update:

                              Student Loan A
                              Starting Balance: $27,690.48
                              Interest Rate: 6.8%
                              Current Balance: $23,139.94

                              Student Loan B
                              Starting Balance: $9,587.74
                              Interest Rate: 7.9%
                              Current Balance: $0.00

                              Student Loan C
                              Starting Balance: $24,332.28
                              Interest Rate: 5.41%
                              Current Balance: $9,293.93

                              Student Loan D
                              Starting Balance: $1,379.25
                              Interest Rate: 6.41%
                              Current Balance: $0.00

                              Lasik Eye Surgery
                              Starting Balance: 4950
                              Interest Rate: 0%
                              Current Balance: $0.00

                              Car
                              Starting Balance: $23,952.78
                              Interest Rate: 4.99%
                              Current Balance: $16,298.12

                              I’ve worked the numbers about a million times, and I will be debt free (except for our mortgage) by the end of 2021 (hoping for actually September 2021, but giving myself a few months of grace and if I finish early then GREAT). Every extra penny I get, I put towards my debt. So far in 2020, I’ve paid $29,342.31 towards my debts.

                              Just wanted to share, see you guys in 3 months (fingers crossed) when I pay off Student Loan C!
                              Codorfish, we love these kinds of updates here.
                              james.c.hendrickson@gmail.com
                              202.468.6043

                              Comment

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