Okay…I know this post is late but this Monday was a holiday in the U.S. and blah, blah, none of that really matters, I was just procrastinating putting this up because I am ashamed of my progress. 😔 But I decided to be a grown a** woman about it and post it it anyways. Ugh.
September Student Loan Balance(s): -$131,848.28
August Student Loan Balance(s): -$132,084.30
This is a difference of $236.02, which is significantly less than the minimum payments of $1,342.73 because interest still sucks AND…
1) More accrued interest – When I transition from University A to University B, I went from being paid biweekly to monthly. This meant, if I had a student loan payment due on August 1st, it would have been paid on July 15th under the old pay schedule. Under the old pay schedule, the next time I would have paid it would have been August 15th and approximately only 30 days would have passed. However, because I now get paid on the 1st of each month, I made the payment on July 15th which meant the payment due on August 1st was satisfied. However, I did not make a payment on August 15th as I no longer get paid biweekly but instead made a payment September 1st. This meant, 45 days have lapsed between the payment I made on July 15th and the payment I made on September 1st. While it doesn’t seem like this would be that significant, the 15 additional days of accrued interest over the amount of debt I have really adds up. Next months debt update will be more “normal.”
2) Balance transfer fee – If you read the post about my self-refinance, you’ll know that I incurred a $295.00 balance transfer fee when I transferred Private Student Loan 1 balance from the originating lender to two credit cards offering 0% from the next 12 months with a balance transfer fee of 3%. While I had lofty goals of paying off the fee by September 1st so that my balance on the loan didn’t rise, it was obviously a fail.
3) No side hustle – This was also a goal for August and I didn’t really make any progress. I would like to say that that I was still “transitioning” into my new role and trying to “understand” my new schedule a bit better but these would be lame excuses. I really just wasn’t as aggressive as I needed to be. I have also become hesitant to take low paying side gigs like I used to (ala $7.50/hour) because I feel like my time is worth more than that. And it is, I guess. But given the amount of debt I have, $7.50/hour is better than nothing so I need to get with it and either find something at a better hourly rate or suck it up because doing nothing is no longer an option.
Okay. That’s it. I’ve used up all my pride to make this post.