A Factory Working, College Grad Getting Out of Debt

The Breakdown

Okay, as I said before, I was going to do a breakdown of all the debt.  So here we go.  As of October 5th, 2012, these are the results.  I will be making an end of the month assessment and starting in November, give updates of budget goals, progress, and achievements.  Like I mentioned before, the month of October is being used as a baseline month for the budget’s impending creation so that’s why the routine of how I want things to go on this blog are going to be a little off…

Car loan: $4,564.49. This one doesn’t need to be broken down.  The loan is through a credit union, and has slowly been paid off by adding an extra $50 onto the principle every month.  This month’s payment will be $301.00

Credit Cards: These babies I always pay more than the minimum payment.  So we’ll see how it goes next month..

  • Chase: $2,372.37  Minimum payment: $50.00.  This month’s payment will be $107.37.
  • Pay Pal Bill Me Later: $1,905.10  Minimum payment: $27.00. This month’s payment will be $55.10
  • Best Buy Store Card: $1,173.54  Minimum payment: $36.00. This month’s payment will be $58.54.
  • Amazon Store Card: $835.25  Minimum payment: $20.00. This month’s payment will be $45.25.
  • DressBarn Store Card: $480.46  Minimum payment: $25.00.This month’s payment will be $40.46.
  • Capital One:  $516.97  Minimum payment: $25.00 This month’s payment will be $46.97.
  • Best Buy Mastercard: $377.15  Minimum payment: $16.00.This month’s payment will be $37.15

Total Credit Debt:  $7,660.84  Total Payments:  $390.84

Student Loans:

ECSI: $650.00  Still in grace period.  

Direct Loan:  $18,862.74  Still in grace period.  

As these are still in the grace period, I’m going to let them slide until the very end of the month.  This will allow me to see if I have anything left in the bank after my weekly checks to see if I can put some money toward them ahead of the interest accruing dates.  Of course, that’s not until March, so I have some time, but I want to get ahead on this as soon as possible… It makes the minimum payment a month go down if I start early, and I definitely want to make sure I’m not hanging myself from the debt later when I could easily help ease the pain for when the grace period ends.

Other anticipated bills this month:

License Plate Renewal:  Not sure what this is quite yet, as I’m still waiting on the letter from the BMV.

Complete Total Debt: $31,738.07   Total Payments: $691.84

Ahahahahaha… Yes, that looks so overwhelming right now.  Good God.

Please let it rain!

DecMeadow

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3 responses

  1. This is great! You’ll be so glad you recorded these details, so that you can really see your progress. Good stuff. Now you have a target.

    I’m not sure of the interest rates you’re looking at on anything, but I want you to strongly consider doing the debt snowball approach, rather than paying a little extra toward everything. The reason is psychological, but also effective because you will be eliminating bills and minimum monthly payments much faster.

    It looks like you are putting almost $250 extra per month toward debt repayments. But if you put that entire extra amount toward just ONE debt, the smallest credit card, it will be gone in two months. You’ll make minimum payments on all the others.

    The Best Buy minimum payment of $16/month will be totally gone from your budget from then on (and then your available amount to put toward debt goes UP by $16/month).

    The next target would be the Dress Barn or Capital One. Since the balances are close, I’d go by the interest rate to determine which to target.

    This method will give you results so much faster and you’ll get satisfaction of eliminating payments. This is going to help so much when the student loans start coming due.

    Credit card interest is calculated in an entirely different way from your car loan. The car WILL be paid off by a certain point, even if you never make extra payments. The credit cards have to be attacked, because if there isn’t a substantial amount thrown at one each month, the interest will recalculate and you’ll see the balance hasn’t been reduced by much. It sucks.

    There’s a few good debt snowball calculators out there so you can plug in the numbers to see the effect.

    I forget, do you have a small emergency fund of $500-1000 set aside?

    Email me if you have questions. I’d love to hear from you!

    October 8, 2012 at 9:05 am

  2. I’m kind of obsessed with this and I ran some numbers, assuming roughly 10% interest on your cards and 6% for the car. I know the cards could be higher, especially the store cards :/. But. With a $40 payment on the Best Buy card, it will take 10 months to pay it off.

    Target it with all you’ve got, and it’s gone in 2 months. Do the debt snowball and by March, you’ll have 3 cards eliminated. This could be a huge boost for when it comes time to start making student loan payments.

    go to whats the cost .com and plug in your numbers, or try some of the calculators at Bankrate.

    October 8, 2012 at 10:43 am

  3. Courtney

    You’re so brave! The beginning is so scary–seeing that total! But, once it is down to a reasonable number you will feel amazing! I was featured on Kacie’s blog and my starting debt was over $56,000! Now, it’s under $7,000! Stay motivated and keep on track and you will knock out those debts in no time! I agree with Kacie’s comments about targeting one card at a time instead of spreading your payments over each debt–it really does help to cross them off your list one at a time! Best of luck!

    October 8, 2012 at 11:22 am

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