42K x 30 – Month 4 Update

Student Loan Debt Chart - Feb 13

I’m a little behind the ball on this, but can you blame me?  I was in Vegas the week I was supposed to recap  my plan to pay off my student loans by my 30th birthday(1 1/2 years away).  But before I left, I sent a very important check… one that paid off another loan!  Here’s the numbers for February:

  • Starting Balance: $40,112.82 (Feb 1 ,2013)
  • End Balance: $39,147.53  (Feb 28,2013)
  • Paid Towards Loans: $1,143.33
  • Interest Paid$160.79
  • Principle Paid$982.54

Oh yeah, I passed the 40K mark and we’re down in the 30Ks!!!!  And I scrambled together enough $ to pay off the next loan in my short term goals:

Short Term Goals  Pay off this loans in this order (deadline)

  • 1-08 @ 6.55% (February ’13): $0
  • 1-07 @ 6.55% (April ’13): $2,453.16
  • 1-05 @ 6.55% (Sept ’13): $5,224.54
  • 1-06 @ 6.55% (???): $5,135.07

It was SUCH a stretch to payoff that loan this month, but I DID IT!!!  And how?!  I have a min of $370 to pay towards all my loans, so on top of that I had to come up with $750 to pay off that loan I’ve been chipping away at for months.  Well, I started by only paying $40 (instead of $160) to my VSAC loans this month (which have no mins and low interest rates).  That gave me $120 extra.  I saved every penny after paying bills, and since we get to claim Avery’s daycare and not pay taxes on it, that little extra gave me the $$ I needed to pay off another loan, woot woot!

Here’s a glimpse into what my massive spreadsheet looked like this month:

Spreadsheet pay off student loans february 2013

With another loan paid off, my minimum payment went from $370 to $352.  That’s great news, not because I would ever just pay the minimum, but because I can put that $18 difference into the next loan I’m going to pay off – not much, but hey, every little bit helps!  The more I pay now, the less I pay in interest in the long run!

Speaking of that next loan, I have to vent.  We had banked on getting $ back for our taxes, but it doesn’t look that way.  Last year we got lots back, but because this year is nothing like last, we are looking at possibly having to pay!  Eek.  All those thousands of dollars that went to taxes last year and it wasn’t enough?!  We were planning on putting away the $1,000 we get for having Avery (into his growing college fund), and split the rest between Vinay and I to go towards debt, like my student loans.  I’ll be lucky if I get a couple bucks to go towards them now, and that really puts a kink in my plan because I was hoping to pay off the next loan ($2,453) in April.  Doesn’t look like that will happen, which means either I have to get creative and find more $, or push my deadline back after my goal of my 30th birthday.  Ugh.

March Plan

  • Pay $352 minimum to Sallie Mae
  • Pay an extra $500 to Loan 1-07 ($2,453.16) 
  • $40/wk. to VSAC Loans

Reflections Although I’m bummed about our taxes, I am thrilled about paying this loan off…but I did have to go thru the usual crap with Sallie Mae.  Mailed in my check to payoff the loan (cuz you can’t do it online).  They processed it incorrectly, applying the payment equally to all my loans.  I had to email and correct them, wait a few days, and then it was correct.  So annoying.  But kinda worth it since it’s paid off!

Do you plan on getting $ back for taxes?  How do you spend it?

Did you miss the previous posts on this financial challenge?  Play catch up here:


6 thoughts on “42K x 30 – Month 4 Update

  1. Well done on paying another one off! I love it that you’re trying to pay them off asap. Too many people don’t pay any attention to debt and just let it get out of hand. Well done and fingers crossed for the 30th birthday goal! But even if you don’t quite make it, you still will havee saved yourself so much money in interest. Well done!

    • thanks, Elske. I’m kinda bummed I won’t meet my 30th birthday goal, but you’re right, in the end, I’m saving so much by paying them off, so I can’t feel too bad about it

    • thanks, Fen. We’re taking another look at them and might get a little back – but nothing near what we were hoping for. Oh well, looks like we’ll just have to keep plugging away at the debt the old fashioned way…

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