$60,000 in Debt: Month 18

Wednesday, November 11, 2015

Another loan bites the dust!

I paid of my next oldest student loan.  This one was from my Sophomore year of college.  This brought me down to only two more undergrad loans and, though it's kind of hard to see here, my interest accruing loans are now under $30k.  That doesn't mean much but I do love those little milestones.

This month I decided to break down my interest accruing loans.  I mainly did this so I could do some math easier but I thought it looked nice all broken down like this.  Doing it this way let me better see what I WOULD have been paying if I weren't trying extra hard to get rid of these loans.


The two that I've already paid off don't look like much.  But, if I had let these two small loans live out their full lives, I would have paid around $2500 in interest.  That's $2500 on top of what I was already working to pay off.  Because I paid one off in 2014 and one off this year, I paid just around $1000 in interest.  It still is annoying that I've paid even that much, but this still a savings of around $1500. And that is just on those two loans.  The others haven't been paid off yet, but they will all be paid off well before the expected end date.  If I didn't do that, I could expect to add another $16,000 to my total in interest.

Because of paying off these two loans, I've also brought my monthly payments down from $597 to $515.  That's $82 a month I can put towards something else (though it is most likely just going towards a different loan now!)

In other news, the house fund is going to be my focus again for the next couple of months (we may be leaning back towards buying versus renting).

Lastly, I said last month that I upped my 401k to 8%.  Well, I got a little bit more of a pay raise with this new position than I was expecting so I just bit the bullet and bumped it up to 10%.  I'm hoping since it will coincided with a loan being paid off I won't notice too much of a difference. I've been doing more reading about early retirement and even though I'm only 28 I already feel like that would be the greatest thing ever!

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