Happy New Year everyone, let’s hope it is a happy and healthy one! The end of 2013 is upon us, and although I can’t say the same thing about my student loans I can report that I am making some progress. You may remember that last month I accidently put money into my smallest private student loan instead of the one I had been targeting as my next goal the past few months. I decided to turn this into a positive and figured I could just use this an opportunity to completely eliminate that loan before the end of 2013. It was a bit of a stretch goal, but I figured if I could keep my spending down it would be a great way to end the year completely eliminating a second loan and re-focusing for 2014.So without any further interuption, you can see my December 2013 results right below:
|Loan||Loan Amount||Change||Interest Rate|
|Private 1||$ 15,867.19||$ (164.15)||7.92%|
|Private 2||$ 19,591.45||$ (63.16)||7.92%|
|Private 3||$ –||$ –||7.92%|
|Private 4||$ –||$ (1,907.05)||7.35%|
|Gov 1||$ 3,630.06||$ (32.97)||3.40%|
|Gov 2||$ 3,167.21||$ (24.11)||6.80%|
|Gov 3||$ 5,022.65||$ (40.85)||4.50%|
|Gov 4||$ 1,901.19||$ (14.76)||6.80%|
|Gov 5||$ 5,067.23||$ (39.03)||5.60%|
|Gov 6||$ 2,013.78||$ (15.64)||6.80%|
|Gov 7||$ 4,143.61||$ (31.52)||6.00%|
|Gov 8||$ 3,171.79||$ (24.17)||6.80%|
|Total||$ 63,576.16||$ (2,357.41)|
I was able to completely pay off Private Loan 4 in just two quick months! 2 loans down, 10 to go. I probably lost a few dollars to interest with this loan being 7.3% and the other two being 7.9%, but with it only being 2 months I’m not worried at all. I’m actually really happy how this turned out, and I’m pumped that I was able to take another loan completely off the table. If anything in my situation was to change, that would be one less minimum payment that I would have to worry about.
In total I ended up putting a little over $2600 (with interest included) towards my loans this month, with wanting to pay off Private Loan 4 completely and still having to put the minimum payments towards the rest of my loans. I don’t think it’s going to break the budget, and I still have some breathing room with my emergency fund as long as I don’t inflate my other spending categories on top of that.
I’ve got to say I was feeling pretty down about my loans, and this was the little confidence booster that I really needed. Maybe it wasn’t so much of an accident at all and more of my subconscious telling me that I really needed this small victory. Either way, I will be re-evaluating where I stand with my loans next month based on my original report when I started this blog. I think it will end up with me going back to re-targeting Private Loan 1 and making slow and steady progress on the highest interest loans – hopefully finishing that loan somewhere in the middle of the year. Stay tuned for that update!