DAY 2: STUDENT LOANS
I think the way to start this post is to discuss who we are and where we are in our situation. My girlfriend and I have been dating for 5 years. This is the end of our first year out of college and I have decided to make a stand against our college debt. I plan to payoff our loans and debt in 5 years and am using this blog as a daily reminder to myself that this is my goal. We currently bring in $4250/month and we spend every dollar every single month. So this is a large challenge to undertake. Wish us the best.
Currently we owe $126,619.19.
Table Showing if all Loans go to Terms
| Loan | Amount Owed | Total Paid If Loan Goes To Term |
|---|---|---|
| Girlfriends Car Loan | $11,489.95 | $12,665.13 |
| My Student Loan 1 | $32,929.26 | $77,493.15 |
| My Student Loan 2 | $31,136.22 | $77,493.15 |
| Girlfriends Student Loan 3 | $26,924.00 | $38,731.19 |
| My Student Loan 4 | $17,662.56 | $23,307.76 |
| My Student Loan 5 | $4,969.07 | $8,131.75 |
| My Student Loan 6 | $1,508.13 | $1,685.01 |
| Subtotal | $126,619.19 | $236,008.52 |
Table Showing if Paid of in 5 years.
This is a large hurdle but it will save us $88,407.07 over the 25 year period. Now that we can see the savings the next question is how much will we have to increase our payments to achieve this goal. Also a little note for people who want to achieve an audacious goal like this. Make payments according to your paycheck schedule. I get paid weekly so we make weekly payments. This decision alone will save us $11,425.37 in our 5 year payoff. It is a great thing to do and it is so simple now with Automatic Bill Pay from today's banks.
Monthly Loan Payments
To make us able to reach our goal we will have to double our weekly contribution. This is not going to be easy but I think we can do it. Tomorrow I will focus on our revamped budget so that I can get all of our information posted. To obtain our goal.
I will say that to reach our goal I plan on getting a second job. I hope to get my girlfriend a second job as well, but I do not know if I can convince her to work a second job and work her current job where she is on her feet at all time.
| Loan | Amount Owed | Total Paid |
|---|---|---|
| Girlfriends Car Loan | $11,489.95 | $12,557.80 |
| My Student Loan 1 | $32,929.26 | $38,837.33 |
| My Student Loan 2 | $31,136.22 | $37,848.81 |
| Girlfriends Student Loan 3 | $26,924.00 | $31,751.70 |
| My Student Loan 4 | $17,662.56 | $18,903.54 |
| My Student Loan 5 | $4,969.07 | $6,421.63 |
| My Student Loan 6 | $1,508.13 | $1,640.64 |
| Subtotal | $126,619.19 | $147,961.45 |
This is a large hurdle but it will save us $88,407.07 over the 25 year period. Now that we can see the savings the next question is how much will we have to increase our payments to achieve this goal. Also a little note for people who want to achieve an audacious goal like this. Make payments according to your paycheck schedule. I get paid weekly so we make weekly payments. This decision alone will save us $11,425.37 in our 5 year payoff. It is a great thing to do and it is so simple now with Automatic Bill Pay from today's banks.
Monthly Loan Payments
| Loan | Current Weekly Payments | 5 Yr. Weekly Payments |
|---|---|---|
| Girlfriends Car Loan | $75.00 | $48.30 |
| My Student Loan 1 | $54.00 | $149.43 |
| My Student Loan 2 | $50.00 | $146.75 |
| Girlfriends Student Loan 3 | $39.00 | $121.82 |
| My Student Loan 4 | $25.00 | $72.71 |
| My Student Loan 5 | $20.00 | $24.70 |
| My Student Loan 6 | $25 | $12.50 |
| Subtotal | $288 | $576.21 |
To make us able to reach our goal we will have to double our weekly contribution. This is not going to be easy but I think we can do it. Tomorrow I will focus on our revamped budget so that I can get all of our information posted. To obtain our goal.
I will say that to reach our goal I plan on getting a second job. I hope to get my girlfriend a second job as well, but I do not know if I can convince her to work a second job and work her current job where she is on her feet at all time.
