Thursday, March 25, 2010

Money Buckets of Oats

I have decided that I am going to go ahead and pay off my second student loan using the money we have in savings. If I don't pay off this Perkins loan before April 1, I will be charged interest AND a finance fee ($1000...ew). Paying off this loan won't leave much left in savings, but I will be able to put most of the money back once I get paid next week.

I will feel much better know I only have one payment to make each month. The three loans together cost me almost $500 a month, but now I'll only *have* to pay $344. I can easily make that. Don't get me wrong: we are in no way, shape, or form slowing down on our debt snowball; however, having only one payment makes me feel so much lighter.

Also, paying off the Perkins loan will put me over my halfway mark (exactly $11,500/$20,000) for the year.

All of that in only three months. When I started getting serious about my debt in January, I was convinced it would take me four years to pay off $50,000, but after three months, I'm already 1/5th of the way there!

My money goals for the next two months:
1. Get my savings back up to two months living expenses (should be easy peasy)
2. Continue debt snowball

We should be getting back our tax return in the next month or so, and once we do, I'm going to open an ING savings account with the 1% interest. 1% Certainly beats my .35% .

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