In addition to paying the minimums on each of my student loans ($389), here’s how April broke down:
Starting balance as of April 1: $3,061.61
Additional payments to smallest loan: $1,129.28
Principal: $1097.98 Interest: $31.12
Brings my smallest loan total down to $1,963.63
I cannot believe that this loan alone charges me over $1/day in interest!
This month these extra payments are a result of $250/paycheck and it was a 3 paycheck month. The rest was purely a result of babysitting.
This past weekend I made $195 babysitting, which should have been added to my debt, to bring my total down to $1768.93. But I made an exception to the rule: all extra income goes towards debt.
The dress I bought this weekend was $90 and I set aside $100 to get my hair done. Since January I haven’t made these splurges, but my roots are showing badly and I
needed wanted a dress for an upcoming wedding.
I could budget for these things and always have that money on hand, as experts suggest. But I’m choosing to remain more focused on debt and then when I
need want something (occasionally), I can spend the extra money. When I have that money available, I find something, literally anything, to spend it on automatically. When I have to consider making exceptions to higher debt payments, it requires me to think the purchase through and ultimately makes my exceptions happen less frequently.
Part of me wants to beat myself up for keeping $200 to myself for wanted items when it could bring my loan payment down faster. That’s probably a good thing because it means I am still passionate and motivated to pay these loans off! However, I’m saying it’s OK. I’m going to focus on the fact that I paid a whopping $1,129.28 extra towards debt in just 30 days, even when part of that month was spent on vacation! Each month I improve my progress so a few rewards to maintain a relatively normal life won’t hurt me. Deprivation is not the answer for getting out of debt, it’s all about finding the right balance of progress and reward.
Now, I’m not 100% sure how May will pan out considering side jobs can pop up at the last-minute. This $200 splurge makes me run the risk of not being finished with this loan until the first week or two of June. As badly as I wanted to say good riddance to my smallest student loan by May 31st, it’s not the end of the world if I’m a few days late. I need to remember that just a month or two ago I was hoping to have it paid off by Halloween!
Cheers to progress and a new month to start fresh!