A Factory Working, College Grad Getting Out of Debt


Whew!  Sorry it took so long guys, I did not realize how long it would take for me to get all of these financials put together.  So now that I finally been able to collect everything and sit down and put it together, let’s continue shall we?

Now that I have a goal, it’s time to show the true numbers.   The time has come for the schematics of the process, and the dirty details of everything that has to be taken care of while I am also saving for my rainy day fund.

I am a recent full-time college student graduate.  I have student loans and expenses that came from being a student on a daily basis.  So we have to first look at my debts in order to start taking care of my dreams.

Car loan: $4,565.

This is my biggest part of my budget right now.  Considering that my car loan used to be $16k two and a half years ago, I am very proud of myself on being able to knock this down so quickly.  Instead of just paying the $250.91 monthly pay, I instead pay $301 every month and put the rest on principle.  You will be amazed at how much this takes care so quickly!  It takes care of both interest and pays a little more than needed to take the car down to decrease future interest on the loan.

If money starts heading my way, I would like to increase the payment an extra $20 a month to $321 if possible.  But it’s not necessary.

Credit cards: $8,000.

Being a college student on a limited income, this has been a necessary evil to survive on weeks and months when most of my paychecks have been going towards car insurance and car payments.  I pay about $250 a month on payments, but that is over the minimum requirement.  I try to pay as much as possible off it I can every month to help make my living situation a little more doable.

My goal is to upgrade this to $300 a month and to rely on cash only from now.  So far, I have been doing very well with the cash only rule.

My student loans: about $20,000.

My goal is to pay $75 on this every two months while I am still in college to get a head start on the payments.  I know this seems silly, but currently my loans are only gaining a very small amount of interest, and this $75 will start making head way.  Besides, the less debt that my boyfriend and I have equals more money for us later down the road to put towards our wedding, a house, and the furnishings.

Total Debt: approximately $33k.

Wow.  That’s not even breaking things down further.  That can happen later in other posts, because just looking at this now… Looking at what I have to take care of while doing my emergency fund is overwhelming.  Things look scary at the moment.  Very scary.  Is this really possible to do?

Count those raindrops!



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