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Posts tagged with: seeking advice

Considering Student Loan Payments

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My student loans are in deferment until next spring. Up until this past week, I hadn’t made any payments since they went into deferment.

But I know the interest in accumulating and adding to my already large balance. And it’s time I did something about that. Even if it is just a little something.

I asked the BAD Community for guidance on what debt I should be targeting over the next couple of months last week in my September Debt Update.

Student Loan Balances

Here is where it stands right now (screenshot taken 9/10/18:)

student loan balances

I’ve never really paid attention to the Group A and Group B and I’m not sure how that affects anything since they both have the same interest rate.

Plan of Action

With a target on a different debt, I have some questions about my student loan plan of action. Knowing that no payments are due until next spring AND that it is accruing some interest.

  1. Should I add a small regular payment toward my student loan debt to my monthly budget?
  2. If yes, should I target a specific Group? And how does that matter?
  3. If yes, how much should I add to my monthly budget? I’m guessing it should be enough to cover interest and prevent an increase in the on-going balance.

I paid $100 toward Group B last week. Another one of my flying by the seat of my pants decisions. But I feel like I need  a solid plan with this. And I need your advice.

 


Starting to Review the Next Step

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Within 8 weeks of this post, I will be consumer debt free.  I will also have saved approximately $5,000 from new jobs, odd jobs and selling a few odds and ends here and there over the last few months.  Now I have to plan the next step.

If I kept going at the rate I’m going with no other changes, paying $2,400 per month towards debt, my student loan debt would be wiped out by the fall of next year.  Isn’t that amazing!

However, we are going to need a car especially by September when school starts back, not to mention the idea of traveling in our sardine can is starting to give me and the kids hives.  Just a quick trip up to one of Little Gymnast meets had us all saying “never again.”  And since I’ve taken on new work with teaching both in person and online, I am definitely going to need some help in getting everyone everywhere.  Not to mention, both the twins are ready for a bit more independence.

We have already established that the twins will be paying 50% of their car insurance, plus gas and maintenance on their car.  (It’s in great shape so other than routine stuff, not anticipating any big bills for the time being.)  That means I will up my insurance payments a bit to help them out (anticipating $100 monthly increase on my part.)

So my thought at this point is to find a family car, obviously older that gets relatively good gas mileage which would be comfortable for us to travel in a bit (remember two trips to GA to see family over the next 5 months.)

I know there are going to be lots of opinions on this.  So the facts are…when this happens my only debt payments will be to my student loan currently right at $300 per month.  I will have $5K saved from recent odd jobs (this does not include approx $3K in my EF.)  So tell me what you think…