[-$58,600] I’m in the 50’s! It’s Neato!

At last!!

At long last, I have reached the 50’s!  Can you believe I’ve been in the 60’s since July of last year!?!

It really doesn’t take long to notice how much reducing my monthly payments impacts my timeline.

Current stats on my student loan:

Original Balance: $112,258
Remaining Balance: $58,600
Monthly Payments:
 ~$1,720.00  (down from $2,720)  😦
Term Remaining on Debtor’s Prison Sentence: 3 years and 1 month  😦
Current (variable) Interest rate: 4.55%  (up from original rate of 3.42%)

I made an extra $84.09 payment to bring my balance to an even $58,600. My monthly payments over the past several months have been not much more than the minimum, which is substantially lower than the $2,720 payments that I was making for most of last year. My monthly payments are down currently for three reasons:

One. I have an international trip coming up relatively soon and I need to have cash on hand for that period of time.

Two. My credit card debt. When I get back, any remaining cash will immediately be put toward my credit card balance until that is paid off. After that, I can get back on track increasing payments to my student loan.

Three. This year I will be making payments towards maxing out my Roth IRA. This will also cut into the money I’ve been throwing at my loan.

I knew I’d have to cool it with my extra high payments eventually as I couldn’t restrict my spending enough to support it. Now, it’s looking like I will be in debt another 3 years, according to the chart. But I’m not too worried yet. My size of my payments will increase in the second half of the year, so this should go down to about 2.5 years I guesstimate. One month at a time…

Shake Your Moneymaker!

Yeah, you know what time it is. Time to mosey down to Motown. This song is my anthem right now and was also one of Motown’s first hits. Shake it, but don’t break it!


Barrett Strong – Money (That’s What I Want) [1959]

Barrett didn’t know this, but that song was written for me.

Blogger Blasts

Zach @ Four Pillar Freedom has been motivating me, through his posts, to give my net worth more attention and to remember why it’s important to work on increasing it (and investments) now rather than later. If you have an interest in financial independence and enjoy data visualization like I do, check out his blog. At 24 years old himself, Zach’s posts tend to aim towards Millennial readers, however, good personal finance principles work for all and provide value regardless of age.

Sample posts:

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BigLaw Investor @ The BigLaw Investor is, surprise!, a law school survivor and ‘Big Law’ lawyer who writes about personal finances and paths to financial independence. His posts are primarily aimed at law school graduates (not me) with big law salaries (definitely not me), but are still helpful for the rest of us with big debts, or those looking to make big changes to their finances. Check out his blog.

Sample posts:

What’s Next

I’m going to look into refinancing into something fixed before interest rates possibly shoot up another 1% this year.  I’m a little anxious about possibly switching over to a new servicer, but if it can save $$, I’ll be willing to try it.  I can always switch back if I want to.

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“Debtor’s prison is real, and opportunity cost is a bitch.” (DDSW Archives)

 

 

19 comments

  1. Dolores Gonzalez · 8 Days Ago

    Congratulations!

    Like

  2. Jill · 8 Days Ago

    I recently found your blog and have read through the entire thing. You are an inspiration! Very motivating for me to get out of my own (massive) debt. Thanks!

    Like

    • Double Debt Single Woman · 6 Days Ago

      Hi Jill,
      Welcome! Thanks for reading and commenting. I’m glad that this blog is helping to inspire you to drop the debt. I went over to your blog and read your posts. For some reason I’m not able to leave comments on some Blogger blogs 😦 , but I’ll be following along! Over $200k of debt is indeed a mountain. With your husband and you working together, you can both tag-team to hammer it down. Welcome to the club of mega-debt monster slayers here. 🙂
      (Edit: I’ve found that if you set your comment options to also allow ‘Name/URL’, I can post using that.)

      Like

      • Anonymous · 6 Days Ago

        Thank you! I changed my settings so hopefully I opened up the comments. I’d love to have your input on this journey ahead. Someday I’ll claim that “mega-debt monster slayer” title!

        Like

  3. Alisha Wright · 8 Days Ago

    Hi DDSW,
    Have you heard of YNAB? It is a budgeting app that you may find useful and help to keep you from going into credit card debt in the future. It costs around 84 a year, but you can try for free for 34 days.

    Like

    • Double Debt Single Woman · 6 Days Ago

      Hi Alisha. Well, unless YNAB is going to rip the credit card out of my hands, I don’t see how it’s going to stop me. LoL. I’m joking (mostly).
      I’ve never actually tried YNAB. I read up on it. Thanks for the suggestion!

      Like

  4. nicole · 8 Days Ago

    Yes! That’s how you start the year! Congrats! Awesome! Goals!

    Yes, I agree adding money for retirement is important. Let’s let the time work for us.

    Like

    • Double Debt Single Woman · 6 Days Ago

      Thanks, Nicole. Hopefully, I don’t stay in the 50’s as long as I did in the 60’s. I’ve left it too late not to put something into retirement now. I can get lost money back, but not lost time.

      Like

  5. I think it is a great idea for you to switch servicers!

    I suggest you switch to a fixed interest rate, since rates will only continue to increase given the economic climate. Just be careful about switching to a new servicer too many times. The more you refinance, the more your credit score will go down. The further your credit score drops, the harder it will be to get a new servicer and better rates, etc.

    Also, make sure you are getting a deal. A lot of servicers like Credible, Earnest, and SoFi give you money for refinancing with them. I get emails from them about referral bonuses all the time. Call directly and ask if you can’t find anything. I’ve seen bonuses range from $100 to as much as $1,000 depending on the conditions. Since you are still over $50,000, you will probably qualify for one of the better deals.

    Congrats on being in the 50’s and good luck!

    Like

    • Double Debt Single Woman · 6 Days Ago

      Thanks, SaraBee! Thanks for the heads up on switching servicers too many times. If I can get a good fixed rate I plan to stay with that servicer for a while, unless they turn out to be difficult to work with.

      Like

  6. Cathy E. · 7 Days Ago

    Hi Girly,
    I love your balanced life. I am so excited about your trip! Travel is my “make it happen” for this year. Stay disciplined and devoted. You are amazing. Question: what software program do you use for your graphics? They’re great!

    Like

    • Double Debt Single Woman · 6 Days Ago

      Hey there. Yes, I’m going to work in travel while paying off debt. I don’t want to be on a “deferred life plan” and end up waiting until I’m closer to 50 than 40 before I can start enjoying life.

      The tool that I used for this post is https://unbury.me/
      Enjoy!

      Like

  7. Maria · 7 Days Ago

    Yey, congratulations!
    It sounds like a good choice to at least look into refinancing to a fixed rate. You don’t have that long to go, so worst case scenario you’ll be paying for some peace of mind for the next 2-3 years.

    I know that’s not the route you’re taking, so I’m just wondering – are you ever tempted to use your investments and pay off the remainder of your debt?

    And I’m so happy for you that you have another much wanted international trip happening this year. 🙂

    Like

    • Double Debt Single Woman · 6 Days Ago

      Thanks! I’m also more excited than I can put into words about the trip. So looking forward to it.

      I’m not tempted to use my investments to pay my debt at all. My ‘investment’ money is all locked away in retirement accounts. I could take the money out, but the penalties for doing so before retirement age would be horrible.

      Like

  8. Fiscally Fit Chica · 7 Days Ago

    I’m so excited for you to be in the 50’s. And very proud.

    Like

  9. Michelle · 4 Days Ago

    Yasss! Way to go being in the 50s! The 40s are right around the corner.

    Like

  10. zeejaythorne · 4 Days Ago

    The 50s look great on you! I think you’ll get what you want – especially with all of your dedicated focus!

    Like

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