Private Loan 1: -$9,744.88
I will be the first to admit that I am not entirely certain as to what I will end up “doing” with my life/career. I know that service to others and my community will be a significant focus but the details…the details are unclear at the moment. However, whatever I end up doing, I am certain that my debt will be an obstacle…or many slightly smaller obstacles that make up one large obstacle. In an effort to remain focused and motivated, I will only focus on one obstacle at a time. Thus, with no further ado…
On July 1, 2019, the day I created this blog, Private Loan 1 looked like this:
Private Loan 1
Today, I received my final paycheck and vacation buyout payment from my previous employer; and, after my initial moving expenses were paid (gas, hotels, food, rental application, etc.) AND I paid all of my bills for July, I had about $2000.00 left over. My first inclination was to pitch all of it towards my debt. And while that would have resulted in a great deal of immediate satisfaction, it would not have been the wisest financial choice for a couple of reasons…
1) I don’t have “sinking funds” and still need to pay my apartment security deposit, change my car registration, license, and insurance.
2) The new university works on a monthly payroll cycle, and as I will not have been here for a full month when I receive my first paycheck, so I will need to buffer my August budget.
3) I have only a vague idea of what my check will look like because I moved from a state with a low state income tax and no city tax to a state with a higher state income taxes and a city tax. Paycheck City has helped me do some estimating, but for the moment it is just that. An estimate.
Thus, today, I made a smaller payment of $500.00, reducing Private Loan 1 to -$9,744.88. I should also note that there was also a slight interest rate reduction from 9.865% to 9.400% this month. No matter, this loan still has the highest interest rate of all of my loans by at least a 1.00%, so it remains my immediate obstacle to financial freedom.While I don’t know exactly how I will do it, I plan to be rid of Private Loan 1 this year. Which brings me to…
2019 Financial Goals
While it seems quite late in the year to create a list of financial goals for 2019, July 1st is the start of a new fiscal year, so I am seizing it as an opportunity for a new start. As there are only 6 months left in the year, and my financial forecast is somewhat in flux, my financial goals are rather modest. However, if I can achieve them, it will put me in an immeasurably better place both financially and emotionally.
Goal 1: Pay off the personal student loan of -$1,563.08 (Balance as of 7/10/2019)
- Note: This will be achieved through the remaining minimum payments for this loan; this loan should be paid in full on December 1, 2019. Not only will this free up $312.63 each month to go towards more expensive debt, it will relieve me of an emotional debt to my friend.
Goal 2: Pay off Private Loan 1: -$9,744.8 (Balance as of 7/10/2019)
- Note: I am going to have to seriously hustle to achieve this. Right now, I am projecting that if I am really good with my budget, I will be able to put an extra $500.00 each month towards my debt from my regular paycheck. (More on my hustle later.) $500.00 over the remaining months in 2019 is only $2500.00, so I have no idea how I’m going to earn the other $7,200.00.
Goal 3: Reduce overall debt to less than $120,000.00.
- Note: To have even a sliver of a chance at achieving this, I will have to achieve Goal 2. If I can achieve Goal 2, and with continued minimum payments on the rest of my debt, I would reduce my overall debt to less than $120,000.00. This would be a significant milestone for me in my debt repayment journey and is something I desperately want. Somehow, there is less shame for me in $119,999.00 than +$130,000.00. I know those two numbers are only $10,000.00 apart, but in shame and anxiety, it represents so much more.
2 thoughts on “Private Student Loan 1: -$9,744.88 & 2019 Financial Goals”
Hi there – I found your blog through C at Single Dollar! I can so relate to many of what you mentioned: I'm a 31 year old black woman living on the west coast and working in higher ed. I, too, still have loans for my master's program from (what feels like) way back when. I'm curious, your private loan interest is sky high. Have you thought of refinancing with a private company to cut the interest? It took me awhile to get to that point with my own loans, but did it a year ago and literally cut my interest in half. I'm finally making major progress on them, so wanted to make that suggestion to you.
Hello Bri and thank you for commenting! Do you have a blog, if so make sure to let me know so that I can read about your journey as well. If not, consider creating a blog so I can read about your journey as well. I kid, I kid…not really… :-)Sky high is almost and understatement. So I actually discussed my plan for this loan today in another post: https://debtenddate.blogspot.com/2019/08/debt-psychology-balance-transfer.htmlTo briefly summarize, the interest rate on this loan is so high because it was a private loan (Discover) when I was enrolled in classes, doing a second BA, with no full time job. For a lender, that is very risky, so the interest rate reflects that. Although, I am now gainfully employed, because my debt to income ratio (DTI) is so high, I don't qualify for a traditional refinance. I know cause I tried. So, I recently balance transferred this loan to two credit cards that offered 0% over 12 months with a 3% balance transfer fee. For a lot of reasons, this was the right decision for me. (I talk more about them in that post).Thank you for commenting, I am always scouring the internet for new debt repayment strategies so I always appreciate suggestions!