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Home > Quite an eye-opener!

Quite an eye-opener!

November 5th, 2006 at 11:55 pm

No, not coffee. I actually looked through my numerous papers with loan info. For some reason I ignore the fact that I dont only have 1 loan. I actually have 3. One from my old university. It is unsubsidized at interest of 5.3%. I also have another government granted loan at my university that is--thankfully-- subsidized at 6.8%, that doesn't start accruing until graduation. Then finally, my biggie with the 14.25%... ugh. This is the one I talk about. I've gotten my principle down, thank goodness. But it's still getting there.

My total debt in student loans: $8582.53

Now, I'm still in school, so really I dont have to pay any of this now. But growing up in a household where my parents always were (and still are) in a great amount of debt, I'm gonna try and save myself some money if I can. I pay the interest, and then some on my biggie every month. The other 2 have such low interest that I'm going to focus on the biggie before touching those. It just kills me that I have that much in debt! I know other people here are probably thinking "that aint nothin!"... but the fact of the matter is that it was a little surprising.

At any rate, I've got some serious saving to do. My mom even seemed surprised when I told her I've started putting payments toward my loan... of course, with the interest I'm paying she could see why!

At any rate... I've got a couple goals, or challenges, that I'm going to attempt:

1. Aside from a dozen eggs, I'm not going to buy groceries until the 16th. This looks pretty easy, but I know myself a bit better.
2. Use up what's in my pantry/fridge/freezer! I buy groceries way too often.
3. No eating out at all this week. I'm going to try and convince my friend as well to eat at my house as opposed to the cafeteria at school.
4. No spending money on clothes for the rest of the month. I bought my new work shoes. I think that's enough for the month.

So we'll see how it goes! Later guys!

5 Responses to “Quite an eye-opener!”

  1. tinapbeana Says:
    1162772095

    "3. No eating out at all this week. I'm going to try and convince my friend as well to eat at my house as opposed to the cafeteria at school. "

    try to set-up potluck nights at everyone's place a couple nights a week. make up a checklist and have it so the host provides, say meat. next time, the person who hosted first only has to bring a side dish and the new host has to provide meat. time after that, the first host only has to bring a dessert, the second host brings a side dish, and so on. that way you won't have everyone bringing the same thing every time, no one gets stuck hosting all the time, and you all get to spend some quality friend time.

  2. janh Says:
    1162776120

    Tina's got a great idea. I've heard of the moving dinner type of thing. Whatever it was called...I think it was having dinner at different houses with in the group.

  3. pjmama Says:
    1162799745

    It's not quite as formal as dinner... heh. Lunch in the cafeteria is a little more convenient, because she usually has class right after, but that's a great idea nonetheless! thanks!

  4. Ralph Morgan Says:
    1162803714

    Now for a question that will let you know if you're REALLY serious about getting ahead financially, or just doing enough to salve your "guilty conscious"...

    If you already have enough clothes to get by with for the rest of this month, and if you will still have some outstanding debt at 14.25% (!!) when next months starts - why are you only committing to not buy any more clothes/shoes etc. for the rest of THIS month?

    Take whatever you've budgetted for clothes etc. and work out how paying this amount EXTRA off your 14.25% loan would help you get ahead. Then calculate how much $50 of clothing will really end up costing you if you still have 14.25% debt when you buy it - assume it's costing 14.25% until that loan is paid off in full.

    Yes, I'm a bloke, so clothes probably aren't as important to me as to you, but still, as long as you have ANY debt outstanding at 14.25% you are effectively buying any new clothes on credit at this interest rate! Someone realy serious about saving would't even consider borrowing at 14.25% to buy a depreciating item such as clothing (unless it was absolutely needed for a job interview or some other form of "investment").

    On the bright side, having some debt at 5.4% is not too bad, so you can start spending again as soon as you have no balance left at 14.25%

    Regards
    http://enoughwealth.blogspot.com

  5. Broken Arrow Says:
    1162822124

    I'm not going to tell you what to do, but I have to agree that 14.25% for a student loan is just ridiculously insane. I would try to get rid of it as soon as possible.

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