July has been a much better month financially than June. Notsomuch because I haven’t been spending (I definitely have been), but because I hit some payoff milestones.
With our rent check this month, I paid off the last of my undergraduate loans! Look how beautiful!
It only took me ten years…but that’s ten years with a three year, interest accruing break.
In another milestone, I made my usual payment to my “law school” loans today, and my balance is now 2/3 of the original principal. I’m not sure at what point I would have gotten to this point with just my minimums, but I haven’t historically put much more than the minimums on these. Mostly I round up my $286 payment to $300, almost always applying the extra to the smallest loan. I’d say doing this has gotten me 1/3 of the way paid at least a couple of months earlier than I otherwise would have gotten there. Every little bit helps. [Edit — I think I’m about four months ahead of myself, from paying about $14 extra most months]
Now that my undergrad loans are gone, I’ll be concentrating my extra payment on the smaller of these two loans (currently about $5,600). The bad thing about these loans is that making my payments isn’t always easy to administer. If I don’t want to get charged a processing fee, I have to schedule the payment ahead of time, for one of four days in the month (something like the 5th, 15th, 20th or 30th?). I originally was scheduling the payment to be toward the end of the month, but now I make it on the 15th (due the follows 1st, I think). Unfortunately, rent payments go into a different bank account than I usually pay these from, so in months I’m making two payments, I’ll have to update the bank account info for the extra payment, then change it back ASAP so I don’t forget for the next regular payment. There’s no way to store two sets of payment info, as far as I can tell.
In most months where I’m not making an extra payment, my monthly payment for these two loans should be $550, about $191 of which is the minimum payment for the larger loan. This means $359 will be paid on smaller one ($1,059 when I’m making an extra rent payment), with about $330 initially going to principal each month. If hubby is working in the fall, I’m hoping we’ll get this small one paid off my the end of the year. If not, I’d expect to be done with it by the end of March.