Thoughts on our Debt Free Plan for 2018. The holiday's semi killed us. We had…
Breaking It Up and Breaking It Down
Debt. I Hate It.
There is not one single, solitary, thing I do not like about debt. I don’t care what my credit score is. I really, truly, don’t. Yet debt and I have become cozy bedfellows. It is like sleeping on a mattress that is engulfed in bed bugs. Ever had bedbugs? I have and it is not pleasant.
These little buggers get all up under your skin and leave little flea/mosquito bite type welps and they itch like a mother. Bedbugs are NOT your friends and you certainly don’t want them in your bed. This is how I feel about debt. I have such a fire to get out of debt and, frankly, Hunter peed on my fire when he got sick.
Well, friends, neighbors, and confidants…it is time to reignite that fire and reignite it we did. I love it when Big Daddy and I are in the same ocean but when we are in the same boat, we are unstoppable. We are now in the same boat 🙂 Makes me happy.
We were going to roll our van payment into our next debt, but with Hunter being sick, that just isn’t possible, so we are doing it the harder way. The next debt that we have will be my student loan. It is the gift that keeps on giving, in terms of interest rates. The current interest rate is 6.8% and our current payment is $183.
I have been paying on this loan since 2014 and sadly, I still owe as much as I did back then because of circumstances and interest. The estimated payoff date is July 28, 2025. Just absorb that. I will be paying SO much more than my original loan, that it just makes me sick.
The total payoff years is 11 years. If we continue down the road we are going, our total payments will be $30,954 and the total interest will be $11077. This just makes me nauseous. Absolutely nauseous. The sad thing is, is I don’t even use my degree. So I am pretty much just flushing money down the toilet.
It is What it is.
Our goal is to pay this off in 18 mths or less. We are doing this by A) making our regular payment B) selling things in consignment stores, movie joints, electronic joints, etc C) Big Daddy working OT D) stop excessive spending E) staying on a tight budget F) Praying.
I know we can do this because we paid our van off in 4 mths when the original payoff was 4 years. We weren’t thrilled to be on a tight budget, but we did it and we paid for a wedding. It can be done with discipline. I figured we need to add onto our monthly payment around $1300/mth in order to pay this bill off in 14 mths.
If we are doing this, then our payments will come out to $20730 (a difference of $10224) and the total interest will be $854 (a difference of $10223). Wow. Just wow. Writing that out ignites my fire even more!
Here is to the Journey!
I will be posting on a more detailed look at our budget in the days to come).
Eat my shorts, student loan debt! Mama’s buying a new mattress and getting the “bedbug” filled one OUT!