Three Steps Forward, Two Steps Back

Student loan deal faces an easy path in House - http://edtechpost.com/student-loan-deal-faces-easy-path-house.html

When you hit the submit button or send off a check with a student loan payment, a feeling of accomplishment surges through you.  You eagerly sign onto your student loan website to check how much of your principal has been taken off once its cleared and you face the reality;

Interest is murder.  I still have a ways to go.

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That’s how I’ve felt this past week despite making an extra two payments.  Since I freelance and sell on the side, I get money throughout the month and put it towards student loans.  Interest is getting tacked on daily, so when I do payments, I wait until I have at least $20 more than the interest that has accrued since my last payment (interest is done daily).  While I’m seeing my loans go down, I mourn for the amount that is given over just in interest.  I’m paying a decent amount over what the minimum is, so hopefully as it continues it starts to show more.

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erase student loan debt? scholarship scholarship scholarship

Part of my goal until the end of the year is to have better control on my debts. I’m trying to get to the place where I’m enough ahead that the initial loan payment plan is now pushed back into the next year (aka I’ve paid 3+ months in advance) and I keep going with it.  I’ve done that with one loan so far and plan on continuing to with the remainder of my tax refund to even it out on my other two loans.  Though, it is sad that on one loan, 4-5 days after my last payment, I owed $7 in interest.  Yikes!

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Mos def!

A word on benchmarks because I haven’t really mentioned them-I’ve set up a series of 20 benchmarks on my loans.  I’ll be making a longer post about it at another point and time, but basically once I’ve paid off enough to get my principal down to a certain number, I reward myself.  I have my rewards and benchmarks set up already (again, another day another post).  I have 20 set up and I’m just about at ($16 away from) my first benchmark.  Maybe paying off my loans isn’t completely backtracking?

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Day of The Doctor (DVD) Final Details & Extras

I’ve done two extra big payments this week and I’m relaxing a bit this weekend.  I’m visiting my best friend and her husband (we’re doing a Doctor Who party for the 50th anniversary too. I have some Christmas money and a giftcard to my favorite bookstore where they live, so it’ll definitely be a fun weekend of shopping, nerdiness and good times.  We may go to see Catching Fire on Sunday too.  I’ve been on the fence about it, but I want to see it now with all the extra hype.

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How do you keep yourself motivated when you feel like, despite being aggressive with paying off debt, you don’t seem to be making much progress?

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4 thoughts on “Three Steps Forward, Two Steps Back

    • I just got a new statement and while my balance dropped, it still feels like despite hard work and paying extra, it hasn’t made as much of an impact (but its a slow process). Hope you can find a babysitter to see Catching Fire-its a great movie!

  1. Benchmarks are really important. When I was paying off my debt, seeing the debt go down and then celebrating those milestones I’d set out for myself (usually $5k chunks) was the only thing that kept me going. Sometimes I’d look at the balance and think, “oh screw it, it’s never going to go away” but as I paid and as the numbers went down I got more and more into it, and before I knew it I was halfway through. Hang in there and keep celebrating the small victories!

    • Good to hear that celebrating the milestones worked for you. There are definately times I look at my balance and wonder when it’ll ever be paid off. I am excited for certain milestones and it’s a good incentive to keep paying extra.

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