It’s payment day!
I was advised by my lender to only make a payment once a month. If I want any money to go to the principal, then I need to let the daily interest accrue. If I were to make a payment mid-way through the cycle, then the money would go straight to interest. Therefore, I’m collecting large amount to throw at the balance, but only once a month. That gives me approximately thirty days to gather up the monthly payment. I just hold on to my extra income and when the 14th rolls around – BAM! I hit that student loan hard and where. it. hurts.
This month, I managed to pull together a total payment of $3,800.00. Here’s where that money came from.
$1,860 – Replacement Vehicle Fund
I paid off my twelve-year-old car several months ago, and since then, I’ve been putting the same amount as the car payment away in a separate savings account. I decided to wipe it out and start over, but only this once. I just needed to see another large chunk of the loan go away. Plus, I’m not touching my emergency fund, which is more than $1,000.00. I felt a little better about dipping into this money because I knew I had the emergency fund.
$900 – Last Payment from a Contract Job
It was my last payment for the year from one of my contract jobs. I was able to pay all my bills and live off the monthly paycheck from one of my other contract jobs, so I can throw this entire paycheck at the loan debt.
$340 – Craigslist Items Sold
A friend gave me an old drum kit that was in her basement, and I had a vintage Christmas tree to sell. I also had an assortment of sewing supplies to unload. I posted them all Craigslist, and buyers came through.
$430 – Temporary Office Jobs Over Xmas Break
I had a few weeks off between December 8th and the start of the new year. I contacted a job placement agency for which I’ve worked in temporary positions in the past. They put me to work for a one day assignment and a week-long assignment (that started with a three-hour training the week prior.) I made $10/hr in the day-long job, and $11/hr in the other.
$170 – Magazine Assignment
Sometimes I write for a regional magazine. I put the entire paycheck toward the debt.
$100 – Squeezed from December’s Budget
I managed to keep expenses low over the holiday and put back an extra hundred dollars. I transferred it over to savings early in the month and didn’t even miss it.
And that equals $3,800!
When I look at that total, I can’t help but think that I paid on the loan for a decade and didn’t pay off as much as I’ll pay off in one payment today. The only thing I can do is acknowledge that disappointment, and be grateful that I’m making these payments now. Each one is a step closer to The Dream.