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Debt Repayment Motivation

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    #16
    congratulations on the new baby! What a great thing to change your financial future for the kid! And amazing job and good work and congratulations on everything.
    LivingAlmostLarge Blog

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      #17
      Fantastic progress. Thanks for the update. And congrats on the baby!
      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.

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        #18
        Nice work. I had lasik in 2018 and it was the best thing I've ever done for myself so I can't blame you there. I'm surprised you splurged on that car after all the progress you've been making but it sounds like things are generally going well for you, and I think its great you're taking advantage of this time to keep paying on your student loans while deferred. Curious, from your previous and current balances, it looks like you're attacking loan C before loan A despite similar starting balances and C having a much lower interest rate. Any reason you wouldn't shift your extra payments to loan A instead?

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          #19
          Thank you! She is the light of our lives and yes, really, is a great motivator to get out of debt as soon as possible.

          I had gotten Student Loan C down to $19k while A was $24k and it was just the next lowest in line. I'm following the debt snowball method, so since it was about 5k less, that's where I took my aim. I started paying on C with fury about April of this year when student loan interest had already been put to 0%. I thought I could finish it before the 0% interest went away and then still have time to start on A and make a good dent before the waiver was done (which will hopefully turn out to be the case if all things go as planned).

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            #20
            amazing progress so congrats...congrats on the newest addition to your family..such a blessing..and yes they are motivation to get rid of debt...hope you reach your target

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              #21
              Good morning all!

              My husband and I keep an emergency fund that we feel comfortable with, and since our jobs have been very stable after the initial Coronavirus hit, we decided to dig into it and see what we could afford to put towards my loans. We made a large payment ($5300) and finished up Student Loan C AHEAD OF SCHEDULE.

              I'm now working on Student Loan A and throwing everything I have towards it. I hope to work towards this as much as possible until at least December 31 when the waiver expires for no interest/no payments due.

              Status Update:

              Student Loan A
              Starting Balance: $27,690.48
              Interest Rate: 6.8%
              Current Balance: $22,264.92

              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: $0.00

              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: $15,913.90

              Thank you for all the encouragement, I'm doing this!

              Comment


                #22
                Originally posted by cdorfish View Post
                Good morning all!

                My husband and I keep an emergency fund that we feel comfortable with, and since our jobs have been very stable after the initial Coronavirus hit, we decided to dig into it and see what we could afford to put towards my loans. We made a large payment ($5300) and finished up Student Loan C AHEAD OF SCHEDULE.

                I'm now working on Student Loan A and throwing everything I have towards it. I hope to work towards this as much as possible until at least December 31 when the waiver expires for no interest/no payments due.

                Status Update:

                Student Loan A
                Starting Balance: $27,690.48
                Interest Rate: 6.8%
                Current Balance: $22,264.92

                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: $0.00

                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: $15,913.90

                Thank you for all the encouragement, I'm doing this!
                cdorfish. Whats your approach on this next? Focus on paying down one of your debts? Maybe car loan? I'm guessing the student loan interest is at least partially deductible and the car loan isn't.
                james.c.hendrickson@gmail.com
                202.468.6043

                Comment


                  #23
                  congrats! Looks like you are going to make your 2022 right?
                  LivingAlmostLarge Blog

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                    #24
                    LivingAlmostLarge I'm definitely going to make our goal -- by end of 2021!

                    james.hendrickson So I'm going to work on the student loan until the end of this year when the waiver expires. The interest on the student loan is almost 2% higher than the car loan, but you are right, that it is partially deductible (on the student loan). However, I think it is just a mental game with me. I think I'm going to continue to pay off the student loan until it is finished and then move to the car. I know the car loan is smaller at the time being, but because I've had the student loan over my head since 2014, I feel this extremely STRONG urge to just get rid of it as soon as possible. The car loan does not loom over my head as much.

                    The snowball is just to continue to find motivation and it's all mental, so I think because of the mental hold it has on me, I'm going to continue paying off the student loan until it's gone and then move to my car. They'll both be done by next year, so no real harm done either way.

                    Comment


                      #25
                      Originally posted by cdorfish View Post
                      LivingAlmostLarge I'm definitely going to make our goal -- by end of 2021!

                      james.hendrickson So I'm going to work on the student loan until the end of this year when the waiver expires. The interest on the student loan is almost 2% higher than the car loan, but you are right, that it is partially deductible (on the student loan). However, I think it is just a mental game with me. I think I'm going to continue to pay off the student loan until it is finished and then move to the car. I know the car loan is smaller at the time being, but because I've had the student loan over my head since 2014, I feel this extremely STRONG urge to just get rid of it as soon as possible. The car loan does not loom over my head as much.

                      The snowball is just to continue to find motivation and it's all mental, so I think because of the mental hold it has on me, I'm going to continue paying off the student loan until it's gone and then move to my car. They'll both be done by next year, so no real harm done either way.
                      cdorfish I think that is the right approach. Whatever works for you to stay motivated is what is key, even if you might pay a bit more in interest.
                      james.c.hendrickson@gmail.com
                      202.468.6043

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