by Hope
Guys! I am officially down to two debts…just two! And I am actively making progress on both!
My student loans came out of deferment based on an income based repayment plan this past month and my monthly payment is $306.50. And I made a small amount of progress on my credit card this past month after the unexpected education costs for History Buff.
Without further ado, my debt update:
(as of 10/14/17) | |||
|---|---|---|---|
| Student Loans | $35,015 | 2.88% | $306 |
| Credit Card | $2,075 | 17.00% | $32 |
| Total | $37,090 | $338 |
My Plan
My June plan is simple…pay off my credit card. Since I have already determined that this will be my lowest cost month in over a decade and I am, of course, taking part in the June challenge…I’m all in! There are few obligations that will pull me away from home and I plan to keep my meals very simple and cheap.
I am just so thrilled to be so close to something that I have been working toward for some many years. And I am so grateful for all the support I’ve gotten from this community.
Now, the student loans…
I don’t know if it will help, but I’ve decided to pay $100 per week to the student loans. This should put me a little over the $306 monthly payment. And of course, once my credit card debt is gone, I will have to make a decision between paying off my student loans and saving towards a car.
The Car Situation
Right now, I am not thinking about purchasing a car at all. Not having a car has not been a hardship for two reasons:
- The twins’ schedules are flexible enough that I am able to run errands in their down time using their cars.
- My grandmother has allowed me to use her car when I was in a crunch, specifically when Princess needs to be somewhere and the twins’ cars are not available.
With Sea Cadet leaving at the end of July and leaving his car behind, there really is no rush for me as I will have free use of his car at that point. While his plan is to sell the car since he will be gone for a year, he has already given me the title to deal with that when it works for me.
Here’s to a fantastic financial month. I’m really looking forward to seeing what all happens this month, I have really high hopes. If you haven’t already, please read the June Financial Challenge. Let’s keep each other accountable!
Hope is a creative, solutions-focused business manager helping clients grow their business and work more efficiently by leveraging expertise in project management, digital marketing, & tech solutions. She’s recently become an empty nester as her 5 foster/adoptive kids have spread their wings. She lives with her 5 dogs in a small town in NE Georgia and prefers the mountains to the beaches any day. She struggles with the travel bug and is doing her best to help each of her kids as their finish schooling and become independent (but it’s hard!) She has run her own consulting company for almost twenty years! Hope began sharing her journey with the BAD community in the Spring of 2015 and feels like she has finally in a place to really focus on making wise financial decisions.
Paying $100 week actually has you paying an additional $1500 plus over a years time, that is great!. Make sure that the overage is put against principal and not towards the next payment due.
I love that you are rounding that loan up and I can’t wait to see how low you can get that card in June. I’m crossing my fingers that you can pull it down to $1000. Have you considered buying Sea Cadet’s car from him? It would mean that you have an affordable car and that he has some spare money for his adventure this year. It would also mean you could get a car without adding a car loan to your budget.
Congratulations on making such good progress. Since you will be driving Sea Cadets car full time, at least for a while, make sure you are listed as a driver on that cars insurance policy. If someone is driving a car , that is not theirs, for an extended period of time the insurance coverage needs to reflect that. You essentially become the full time driver and are not just “borrowing “ it every once in a while.
Yay! Hope, you’ve made a ton of progress in the past six months, especially with the “series of unfortunate events.” Two!! That’s amazing. Keep up the great work.
Keep in mind that credit card interest is calculated daily. To save the most interest and keep motivated you should send in payments as soon as you have the money (regardless of the payment amount). When I was paying down student loans I’d immediately send savings as a payment with sometimes as many as 10-15 payments in a month. For instance, If I saved $10 in groceries that week I’d go in and schedule a $10 payment for that day or the next.
Good luck paying off the card, this month or next month. It’ll be great to be able to focus on the student loan.
Re: the car, buying Sea Cadet’s car from him at KBB value is probably the best option. It can’t be that expensive. If you can’t pay him all at once, just do as much as you can each month until it’s paid off. He can save the payments up for his own next car.
I second the suggestions about your sons car. Buy it yourself and take his name off the title. Even if you are on his insurance, if his name is still on the title as owner he is legally responsible for anything that happens with the car. So worst case scenario, you get into an accident that exceeds the limits of his insurance or results in a lawsuit, he’s liable too.
Good plan on the credit card debt.
If you buy Sea Cadet’s car he won’t have to insure himself on it either. I’m assuming if he’s still the owner he would need insurance whether he was driving it or not.
Good plan with the credit card!
Great plan and another vote for you to buy the car for KBB value. He’ll need the extra cash during the upcoming year. Keep us updated! Can’t wait to see the balance creep down.
Great plan for the remaining debt! For your car situation, please talk to an auto agent to confirm you have the appropriate coverage. Depending on the state and/or insurance company, you or Sea Cadet may need to get non-owner coverage, depending on how his car is titled and who will be driving it. I’m only licensed in NC, so I’m not sure what you need. Also check your grandmother’s policy to be sure she’s covered when you’re driving since you’re not listed on her policy.
Good job. I second paying off the student loans. They can be difficult since you can’t see the balance fall dramatically but trust me those things will continue to haunt you to the grave unless you get rid of them.
Awesome, good job