It's been ages! We're only 2 calendar changes away from 2016, which means we're 11 months into the Fa$t. Hard to believe that much time has passed, and I've been Fa$ting that long!
Here's the update for August, September, and October.
Here's the update for August, September, and October.
August = $818.91
September = $757.90 -- lowered remaining balance to under $30K
October = $882.90 -- under $29K
Which brings my total put toward debt since January 1, 2015 to...
September = $757.90 -- lowered remaining balance to under $30K
October = $882.90 -- under $29K
Which brings my total put toward debt since January 1, 2015 to...
$14,327.83
I looked back at what my starting debt was -- 11 months ago, my number was $42K. I started by throwing all I had at my car loan, which was about $5K. I kissed that loan goodbye the end of February, and have since focused all efforts on my student loan balance. As of this writing, my remaining balance is $28,631.51.
Two changes I've made in the last few months have made a big difference in lowering my remaining balance: 1) making weekly payments, and 2) directing how my payments are applied.
By making more frequent payments, the interest doesn't accrue as much on my loans and more of my payment is applied to the principal balance. My payments go further when made more frequently.
While checking in on my student loan account one day, I noticed a link titled, "how payments are applied". I clicked on it, and dove in. I learned that for consolidated loans {me!}, payment is applied to interest first, then split evenly among all loans. In my case, my payments were being split between 9 loans.
I recalled the Dave Ramsey Debt Snowball method, where you pay the minimum on all your debts except the smallest one; that one, you pay as much as you possibly can until it's gone. Then you move on to the next-smallest, and so on, gaining momentum as you go. I did this by attacking my car loan first and then taking on the giant beast that is my student loans. Upon learning I can direct how my payments are applied, I realized I could do this for my student loans. For me, the biggest benefit of this method is eliminating interest!
When I schedule my weekly payment, I email the company that owns my loans with direction on how to apply my payment. I have a template saved in my email with all the info they need (Name, Date of Birth, Account Number, etc.), and include which loan I want the money applied to. For good measure, I include a screen snip of my loans with the loan I want the money applied to starred.
I eliminated my smallest loan within a matter of 2 payments, which felt like a victory! Now, I'm chipping away at the second-smallest loan.
Two changes I've made in the last few months have made a big difference in lowering my remaining balance: 1) making weekly payments, and 2) directing how my payments are applied.
By making more frequent payments, the interest doesn't accrue as much on my loans and more of my payment is applied to the principal balance. My payments go further when made more frequently.
While checking in on my student loan account one day, I noticed a link titled, "how payments are applied". I clicked on it, and dove in. I learned that for consolidated loans {me!}, payment is applied to interest first, then split evenly among all loans. In my case, my payments were being split between 9 loans.
I recalled the Dave Ramsey Debt Snowball method, where you pay the minimum on all your debts except the smallest one; that one, you pay as much as you possibly can until it's gone. Then you move on to the next-smallest, and so on, gaining momentum as you go. I did this by attacking my car loan first and then taking on the giant beast that is my student loans. Upon learning I can direct how my payments are applied, I realized I could do this for my student loans. For me, the biggest benefit of this method is eliminating interest!
When I schedule my weekly payment, I email the company that owns my loans with direction on how to apply my payment. I have a template saved in my email with all the info they need (Name, Date of Birth, Account Number, etc.), and include which loan I want the money applied to. For good measure, I include a screen snip of my loans with the loan I want the money applied to starred.
I eliminated my smallest loan within a matter of 2 payments, which felt like a victory! Now, I'm chipping away at the second-smallest loan.
I'm on track to reach roughly $16K put toward debt in 2015. If I also calculate in what I've been setting aside for our wedding, I will have put nearly $19K toward debt and savings in one year. I can't even believe it. This last month and a half will be tricky, though, with Christmas gifts, holiday travel, heating costs, etc.
I will get a check soon for teaching strength training through community ed, which will help. I've also talked with my family about expectations and spending limits for gifts -- we've agreed on $50 per person. For Novio's side, we draw names among the siblings and have a $30 limit. I think these limits will not only be beneficial for my bank account, but also my sanity! I do not enjoying shopping all that much. Wrapping isn't really my favorite either. And, sometimes I stress and fret so much over finding the perfect gift for each person, and worry if they'll like it, or if it's "enough". A limit will alleviate this a bit. It'll also make it more of a game with a limit!
Thanks for reading... the journey continues!
I will get a check soon for teaching strength training through community ed, which will help. I've also talked with my family about expectations and spending limits for gifts -- we've agreed on $50 per person. For Novio's side, we draw names among the siblings and have a $30 limit. I think these limits will not only be beneficial for my bank account, but also my sanity! I do not enjoying shopping all that much. Wrapping isn't really my favorite either. And, sometimes I stress and fret so much over finding the perfect gift for each person, and worry if they'll like it, or if it's "enough". A limit will alleviate this a bit. It'll also make it more of a game with a limit!
Thanks for reading... the journey continues!