I started My Financial Reviews for several reasons, including earning some extra income. Inspired by J. Money’s brilliant idea about having gigs for goals, I decided to focus MFR’s 2012 income towards paying down our student loan.
I’ll be using any after tax revenue generated from here to reach this goal. It won’t be too much, but I’m hoping to make an extra $100/month to pay down the student loan principal.
Just Another Debt That Will Bite The Dust
I’m happy to say that paying down this student loan is just another step in our journey to eliminate debt. Looking back at how it was accomplished encourages me to work hard and get this loan done with.
Credit Cards – Paid Off About $2,500
Years ago I had 3 credit cards and for two of them I went over the limit, which meant I incurred even more fees. I was a college student working part-time which meant I shouldn’t have signed up for credit cards in the first place as my small (and sometimes irregular) income couldn’t handle paying them off every month. Thankfully I came to my senses and worked hard to get them eliminated before I got married.
Now I have a credit card that I use for vacation planning and small expenses and the balance is paid off monthly.
Car Loan – Paid Off About $10,000
Remember when I mention having a limited budget that couldn’t handle credit cards? One reason I was having a hard time paying off the balance each month was because I had big expenses to worry about, including a car loan that I really couldn’t afford.
I bought a car for about $10,000 at a wonderful interest rate of 13.75%. I think the just seeing that interest rate and the fact they wanted a co-signer should’ve clued me in that the car wasn’t in my budget. Unfortuantely I still went ahead on buying the car.
When we got married we decided to pay the car off faster, so we started making extra payments. Our tax refunds and stimulus check went to lower the principal.
Watch Me Make It (or Break It)
I’ll have a monthly update (around the 15th of the month) throughout this year so you can see what progress I make with paying down the student loan. If you have any ideas on earning a bit more money to pay down the loan, please let me know in the comments. Hopefully it’ll help others to conquer their debt this year.
Thoughts on Student Loans
I’m curious – how many of you have student loans? About how much do you have left to pay?
Photo Credit: Marion Doss