I have a new job! I applied for another position at my office in June of 2007, and got it! Now I have a lot of responsibilities, I'm learning a ton, and I'm making more money!
My private student loans are down below $30,000 because I took another no-interest loan from my company for $3600. I am currently paying $175 a week in order to stomp them out with the least amount of interest possible.
The only problem is that I have so much other stuff to concentrate on (including starting graduate school and paying tuition for that as well), that I cannot spend as much time looking at my finances and reading personal finance books etc. Sometimes I feel a little bit out of control, which is why I started the automatic payments. I would be better off if I sat down and looked at my spending habits and saw where I was going off (I have a sneaking suspicion it's my take-out food addiction) track.
Thursday, March 13, 2008
Tuesday, March 20, 2007
2007
By January 2007, I was growing tired of working at the same low-level job for 50-55 hours a week, but knew I had to push through and pay off even more debt before I could imagine leaving. Any entry-level job in another field would probably start at between 35-45k a year. This was not enough to afford my current lifestyle and student loans. I feel myself growing ever more desperate to pay them off and move on to another career. Since January, I have paid $3316.61 towards my big loan. $2553.87 has gone towards the principal and $762.23 has gone towards my interest.
My payments in 2007 are as follows:
03-19-2007
Payment $600.00 Balance $39,426.49
03-06-2007
Payment $100.00 Balance $39,909.05
03-05-2007
Payment $340.65 Balance $40,000.00
02-15-2007
Payment $1,000.00 Balance $40,176.95
02-12-2007
Payment $600.00 Balance $41,149.01
01-25-2007
Payment $425.45 Balance $41,579.59
01-02-2007
Payment$250.0 Balance $41,787.49
I am still upset at not being challenged at my job, and having a low status in comparison to my friends (even though I make more money) and am wondering if this sacrifice is going to kill my career. However, this was my choice. I'm aware I sound like a spoiled brat when I say things like that, but I feel crushed.
As of now my loans are:
$5500 - Paid off May 2006
$45,500 - Currently at $39,426.49 at 8.3% interest
$17,364.10 (found exact amount) - Currently at $16,282.14 at 2.75% interest
I will continue to make updates when I make additional payments.
My payments in 2007 are as follows:
03-19-2007
Payment $600.00 Balance $39,426.49
03-06-2007
Payment $100.00 Balance $39,909.05
03-05-2007
Payment $340.65 Balance $40,000.00
02-15-2007
Payment $1,000.00 Balance $40,176.95
02-12-2007
Payment $600.00 Balance $41,149.01
01-25-2007
Payment $425.45 Balance $41,579.59
01-02-2007
Payment$250.0 Balance $41,787.49
I am still upset at not being challenged at my job, and having a low status in comparison to my friends (even though I make more money) and am wondering if this sacrifice is going to kill my career. However, this was my choice. I'm aware I sound like a spoiled brat when I say things like that, but I feel crushed.
As of now my loans are:
$5500 - Paid off May 2006
$45,500 - Currently at $39,426.49 at 8.3% interest
$17,364.10 (found exact amount) - Currently at $16,282.14 at 2.75% interest
I will continue to make updates when I make additional payments.
Timeline So Far
One thing I should mention about variable-rate student loans. Keep a close eye on your interest rates.
I had a Sallie Mae Signature Student Loan for $5000 dollars. With capitalized interest it came to about $5500. My monthly payment was $52 dollars a month. I started happily paying this minimum every month. I was just proud I could make the payments at all! I also noticed that if I paid more than was due, my payments were "advanced" by the amount I had paid. For instance if I paid $110 dollars, I didn't owe a payment the next month. So I got into a bad habit of paying in advance then waiting for the next payment notice.
One day in 2005, I received a notice that my interest rates were going up. Okay, I could deal with that. My monthly payment only went up a dollar or two. Soon after, my interest rates went up again. I started to become annoyed. I was making my payments on time. I was not a problem account. But again and again, the rates went up, from 7% to 11% within 6 months or so. I was furious! I also noted that often, over $50 of my payment was applied to interest while only $10 was applied to my principal balance.
By then I had received two raises and was making $44,000 a year, plus 10-15,000 a year in overtime. In January of 2006, I was promoted to executive assistant and received a raise to $47,000 and started paying hundreds more towards that account, as much as I could spare. By May, I had paid it off, much to my relief.
My $45,000 loan loomed large. Next up was to tackle my monster private student loan which had scooted up to an 8.2% interest rate.
I was 23, and my need to concentrate on my debt seemed ludicrous to friends who had none or low student loans. I tried to explain my desperation, but they didn't seem to understand. They thought I was money-obsessed when I calculated how much I could contribute each month to my debt.
Now, by no means was I living a severely frugal life. My apartment was nice, I bought decent clothes and went to the Caribbean for a vacation. I was making quite a lot in comparison to my friends. When I look back, I realize I could have paid off a lot more by now. But I did spend Saturdays and evenings working and on the internet learning about money management. In 2006, I paid $4000 in student loan interest alone. The kicker is I could not write if off because I made too much money.
Time to take a break!
I had a Sallie Mae Signature Student Loan for $5000 dollars. With capitalized interest it came to about $5500. My monthly payment was $52 dollars a month. I started happily paying this minimum every month. I was just proud I could make the payments at all! I also noticed that if I paid more than was due, my payments were "advanced" by the amount I had paid. For instance if I paid $110 dollars, I didn't owe a payment the next month. So I got into a bad habit of paying in advance then waiting for the next payment notice.
One day in 2005, I received a notice that my interest rates were going up. Okay, I could deal with that. My monthly payment only went up a dollar or two. Soon after, my interest rates went up again. I started to become annoyed. I was making my payments on time. I was not a problem account. But again and again, the rates went up, from 7% to 11% within 6 months or so. I was furious! I also noted that often, over $50 of my payment was applied to interest while only $10 was applied to my principal balance.
By then I had received two raises and was making $44,000 a year, plus 10-15,000 a year in overtime. In January of 2006, I was promoted to executive assistant and received a raise to $47,000 and started paying hundreds more towards that account, as much as I could spare. By May, I had paid it off, much to my relief.
My $45,000 loan loomed large. Next up was to tackle my monster private student loan which had scooted up to an 8.2% interest rate.
I was 23, and my need to concentrate on my debt seemed ludicrous to friends who had none or low student loans. I tried to explain my desperation, but they didn't seem to understand. They thought I was money-obsessed when I calculated how much I could contribute each month to my debt.
Now, by no means was I living a severely frugal life. My apartment was nice, I bought decent clothes and went to the Caribbean for a vacation. I was making quite a lot in comparison to my friends. When I look back, I realize I could have paid off a lot more by now. But I did spend Saturdays and evenings working and on the internet learning about money management. In 2006, I paid $4000 in student loan interest alone. The kicker is I could not write if off because I made too much money.
Time to take a break!
About Me
The number one reason for I'm starting a blog is that my friends are pretty tired of hearing about money, debt, 401ks, interest rates and overtime. However, this is my life. I need an outlet to keep myself on track to freedom from my debt.
I am 24 years old and live in New York City. I graduated from a local private university with approximately $68,000 in student loan debt. Even worse, I graduated with a Political Science bachelor's degree. Worst still, I was not interested in teaching or publishing books.
I had found choosing a major to be a difficult task. I searched online for personality quizzes, asked friends, acquaintances and strangers; I read books and articles...and the main theme I heard was "What would you do if you didn't have to worry about money?" Ummmmm, well...no idea. I didn't really want to "do" any one thing. I just wanted to read about it. So I did the next best thing. I chose something I liked to read about and discuss. For some reason, I thought Political Science far more practical than Sociology, Anthropology or Urban Studies. I laughed when thinking about what jobs Sociology Majors could possibly obtain after graduation. Social work! Ha!
In addition, I didn't have to worry about money at that point. I had work study! I had paid internships! I had a band scholarship! These jobs generated $250 a month for food, entertainment and miscellaneous. Money was no object! So I majored in political science without a care in the world towards my financial future.
While I was in school, I paid little notice to my growing student loan balances. I am thankful my mother kept all my loan information straight and filed away. Otherwise, I would have had to do major research to find out what I owed and to where.
In hindsight, I should have gone to a less expensive school, but if you know New York, you know that "upstate" consists of freezing, barren lands full of hippies, hicks and a SUNY school called Stone-eonta. I couldn't bear to go up there. I figured my private NYC college costs would be made up in great internships, job contacts and knowledge of the real estate and layout of the city I would most likely live in upon graduation. In truth, I do not regret it. I did get good internships and have a huge network of college friends who still live in and around the city. I have a 1-thousand dollar-a-month one-bedroom sublet on the Upper West Side. These things take some effort, people.
After I graduated in 2004, my mother and I looked over my loan information and realized with dread that I would owe $570 a month in payments.
$17,000 in federal loans ($160/month)
$5,500 in Sallie Mae private loans ($52/month) at 7% interest
$45,500 in another private student loan ($357/month) at 7.5% interest
At that point, we consolidated the federal loans for 30 years at 2.75% interest. The federal payment went down to $82 dollars a month. Still, I felt sick at the thought of huge payments over my head for 30 years.
I then made a decision to pay them off as fast as possible. I had to take the highest-paying job I could find. I was nervous about finding any job, let alone one that would allow me to make large student loan payments. I ended up taking a job as a secretary at a firm where overtime was not only allowed, but encouraged. My starting salary was $35,000, more than any of my friends'. Overtime was allowed after a probation period. My best friend who worked there and I signed up for overtime every night.
I found an apartment with a roommate in an outer borough paying $750 a month each. Utilities were also minimal. It was a nice neighborhood with a nice landlord. I had a boyfriend who lived in Manhattan so I could spend a good deal of time enjoying that part of the city as well.
That first year, I made mistakes and probably spent too much building up my business wardrobe and going out with friends. However, I did work a lot and was able to pay rent, student loans and save money too.
In the next post, I will talk about getting into paying off my student loans and dealing with the struggles of my job.
I am 24 years old and live in New York City. I graduated from a local private university with approximately $68,000 in student loan debt. Even worse, I graduated with a Political Science bachelor's degree. Worst still, I was not interested in teaching or publishing books.
I had found choosing a major to be a difficult task. I searched online for personality quizzes, asked friends, acquaintances and strangers; I read books and articles...and the main theme I heard was "What would you do if you didn't have to worry about money?" Ummmmm, well...no idea. I didn't really want to "do" any one thing. I just wanted to read about it. So I did the next best thing. I chose something I liked to read about and discuss. For some reason, I thought Political Science far more practical than Sociology, Anthropology or Urban Studies. I laughed when thinking about what jobs Sociology Majors could possibly obtain after graduation. Social work! Ha!
In addition, I didn't have to worry about money at that point. I had work study! I had paid internships! I had a band scholarship! These jobs generated $250 a month for food, entertainment and miscellaneous. Money was no object! So I majored in political science without a care in the world towards my financial future.
While I was in school, I paid little notice to my growing student loan balances. I am thankful my mother kept all my loan information straight and filed away. Otherwise, I would have had to do major research to find out what I owed and to where.
In hindsight, I should have gone to a less expensive school, but if you know New York, you know that "upstate" consists of freezing, barren lands full of hippies, hicks and a SUNY school called Stone-eonta. I couldn't bear to go up there. I figured my private NYC college costs would be made up in great internships, job contacts and knowledge of the real estate and layout of the city I would most likely live in upon graduation. In truth, I do not regret it. I did get good internships and have a huge network of college friends who still live in and around the city. I have a 1-thousand dollar-a-month one-bedroom sublet on the Upper West Side. These things take some effort, people.
After I graduated in 2004, my mother and I looked over my loan information and realized with dread that I would owe $570 a month in payments.
$17,000 in federal loans ($160/month)
$5,500 in Sallie Mae private loans ($52/month) at 7% interest
$45,500 in another private student loan ($357/month) at 7.5% interest
At that point, we consolidated the federal loans for 30 years at 2.75% interest. The federal payment went down to $82 dollars a month. Still, I felt sick at the thought of huge payments over my head for 30 years.
I then made a decision to pay them off as fast as possible. I had to take the highest-paying job I could find. I was nervous about finding any job, let alone one that would allow me to make large student loan payments. I ended up taking a job as a secretary at a firm where overtime was not only allowed, but encouraged. My starting salary was $35,000, more than any of my friends'. Overtime was allowed after a probation period. My best friend who worked there and I signed up for overtime every night.
I found an apartment with a roommate in an outer borough paying $750 a month each. Utilities were also minimal. It was a nice neighborhood with a nice landlord. I had a boyfriend who lived in Manhattan so I could spend a good deal of time enjoying that part of the city as well.
That first year, I made mistakes and probably spent too much building up my business wardrobe and going out with friends. However, I did work a lot and was able to pay rent, student loans and save money too.
In the next post, I will talk about getting into paying off my student loans and dealing with the struggles of my job.
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