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25k in 36 months


Can you believe a few blogs ago, I asked for a 40k+ job and I got one? So yes, be patient. I thought that with that amount, I would change my status from AWESOME --> I'M FRICKEN AMAZING, but it didn't. I still feel the same, but just can payoff more debt now. So I'm excited to announce my student loan plan!

I'm just after being debt free. Paying my student loans in 36 months = 3 years! After doing the math and really preparing myself physically and psychologically, I can do it. So that cat I almost wanted...out the window. I can still shop; I mean, I already budget myself to only $50/month. In addition, I'm going to sell clothes online some time soon. Anyway, here's the plan:

I have autopay for $265/month = $3,180/year
2nd job/additional $300/month = $3,600
========totalling = $6,780/year

Balance of $25,481.99/$6,780 = 3 years and 7 months, but that could be cut down from the auto deduct and the second job, and also raises over 3 years if I stay with the same job.

However, according to the math of .25 when you auto pay, the real balance could be $19,110.75, which knocks down a whole year...

Aiming for 3 years is the plan. However, the actual balance from each payment will hopefully knock a few months off. I can't wait to take photos of each time I knock down a payment.

--This is the effective plan:
1) Call Navient to split my payments bi-weekly. (I called and they only do monthly withdrawals on their end, but if you pay on your end, you won't qualify for the .25 autopay discount. The choice is yours.)
2) Start with just $100/month extra from my bank's bill pay. If you don't have to make the effort to write/send it, you're not as attached to the money.
3) Work 2nd job and all of that pay goes toward loans
I also plan to do the snowball method mixed with interest rate:
01. $871.79
02. $3302.62
03. $5568.73
04. $1563.20
05. $1560.20
06. $3302.62
07. $5568.73
08. $3916.16
09. $2561.44
10. $2668.30

In 3 years, I will be done with student loans && my car payments. That means sky high credit score, just in time for buying a home! I'll have my 401k going and my own personal savings. And in 3 years, KP will be 17 and he's in line for my car. Yes baby, you can have it and I'm seriously getting a 5k car after my car. I am waiting.

Here's a TEDtalk to motivate paying off debt: Adam Baker - Sell your crap. Pay your debt. Do what you love.

Learn more about paying back student loans here

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