My Debt Payoff for 2008
So I have the approximate data for how much debt I paid off in 2008.
Car Loan:
Started – $8,347.40
Ended – $2,289.46
Total debt paid off – $6,057.94
Student Loans:
Started - $18,032.51
Ended – $17,285.56
Total debt paid off – $746.95
Total combined debt paid off – $6,804.89
When I started 2008, I had almost exactly $3000 in savings and not much else. Some of the money that was added to that savings along the way (to add up to the $5000 I paid my parents in November) came from my tax return in May and the stimulus package, but the rest of the debt payoff came from my regular monthly payments. Obviously it’s still slow-going, but it’s nice to think that I can get my debt down about $3800 dollars less each year…and possibly even more. Yay!
My Expenses, 31 October 2008
Up-to-Date Expenses:
Gas x 8: $334.00
Car Tax and Decal fee: $89.38
Bank fee: $25.00
Maryland Renaissance Festival: $48
Parking: $1.50
EZPass x 4: $140
Car Loan: $88.71
Student Loan: $174.01
Church/Charity: $130.00
Groceries: $15.42
Gas bill: $25.28
Internet: $44.99
Panera: $6.55
Verizon: $59.52
Power: $31.73
Baptism Gift: $13.18
Metro Pass: $10.00
Soda at MCM: $2.00
Rent/Water/Fees/Cable: $1055.83
Dinner at RC’s house: $5.00
Estimate for CVS: $15.00
Income: $2775.60
Expenses: $2315.10
Net Effect: $460.50
I’m going to Mass tonight (I think) for the All Saint’s Day Vigil Mass, so I’ll be giving even more money to the Church! I don’t know yet how much (well, I kinda do), but I’ll wait until I’ve actually done it to record it here.
Though I’ll count it for November, today is a day I’ve been waiting on for a long time: the day I pay my parents $5000 and bring my car loan total down to $2366.34.
After I resigned from teaching at the end of the 2006-07 school year and remained unemployed (except for working at my father’s office for a week or two) for six months, there were times when I wondered if I’d ever get the $5000 in time for 1 November 2008. For the longest time I kept $3000 in my Vanguard Money Market account and I knew that if I had to dip into that money, I would feel really broke. Instead, I got a job just in time to not have to do that. Then in May I received my tax refund and my stimulus check and was able to put those into my Vanguard account, too. Soon I built up the $5000 that I needed and then I ignored it. I let it sit until I pulled it out so that I could have it in my checking account, ready for this day.
So I’m pretty proud of myself. Even though my net worth isn’t increasing, my debt is decreasing. And $20,000 in debt is so much better than $25,000. I THINK that my new total of debt after today’s payments clear will be: $19,789.91. And that thrills me.
My Debts
Sometimes I wonder what would be so bad about paying the exact monthly rate for my car payment and student loans until they’re all paid up, the car by November 2010 and my student loans by December 2021. I’d be able to save more money, especially as I earned more money, spend a little more on myself, etc.
The interest I’d pay would be ridiculous, of course. You can look down on my sidebar to see my count of what I owe on each loan, and the student loan is a LOT…in my eyes, anyway. I know that most people who take out student loans have a much higher balance than I do.
B and I have discussed marriage (though that won’t be for a while yet) and how it wouldn’t take long to pay off my loans. He has minimal debt at this point, but he’s considering getting his Masters and perhaps a Doctorate. I told him that if we were married, I would of course help him pay for school. Both of my aunts married poor men (my aunts were poor, too, but had decent jobs) who worked part-time or full-time jobs while getting advanced degrees. My aunts worked full-time and helped pay the way. One aunt sold an old sports car that she adored for extra money, too. My uncles got those degrees, got better jobs and both my aunts stopped working as soon as they had children, partially because that was a priority to them, but mostly because they helped make it so their husbands could support them and the kids.
B said that he wouldn’t want me to pay for his Masters, but he’d let me help with the doctorate. I don’t see how it makes much difference except that he might find a job that will help pay for the Masters. Regardless of that, he’ll have to take out student loans to help pay. I don’t want us to be paying my loans AND his at the same time, so I’d like to get rid of my loans as soon as possible.
I’d also like to get rid of the debts because I don’t want to rely on this relationship working. I mean, I’m pretty sure that it will, but I don’t want to be a woman who spends frivolously because she thinks her husband will one day see to the savings and debt paying. It will probably be a good two years before we get married (IF we get married) and I’d love to have all my debts paid by then, but I know that it’s unrealistic for me to pay off over $25,000 in two years. I’ll pay off $5000 in about two months, but even then $20,000 in a year and a halfish is unrealistic for me given my current expenses and current salary. Four thousand a year might be doable, but I don’t know. We’ll see how it goes.
My Story
This all seemed relatively fine; I got a used car in wonderful condition for a fairly good price and I knew that I could make the payments with my fancy new salary. Except that I hated teaching. At the end of the year I resigned with no intention of ever returning. Previously, I’d been smart enough to choose the 10-month payment plan (instead of the 12) to make sure the money grew interest in my account instead of Fairfax County’s, and I’d set aside that extra money in a separate account. I foolishly decided to wait on finding a new job while I enjoyed the summer and recovered from a stressful year. That led to me being out of a job until mid-December. I had to live on my savings until that point and my expenses were increasing while I had barely any money coming in.
That September I moved out of a 2-bedroom apartment I shared with a roommate into a one bedroom which cost a lot more; my roommate was getting married and I didn’t have anyone to live with to share expenses. I realize I could have lived with a stranger, but in the past I had such a horrible living situation that I’d rather struggle financially for a while than struggle emotionally.
So here I am in April, with more debt than assets. My biggest trouble is sticking to a budget, so that is what I will start working on first.
