After Pay Day

Things have been so hectic. I'm still in the middle of trying to refinance my student loan and it's extremely frustrating. Wells Fargo keeps saying the my Mom doesn't qualify for a cosigner (even though she's my current cosigner). At first we thought that Wells Fargo looking at her debt to income ratio and not considering that most of her debt comes from this particular student loan. Then, in one of my many, many delightful chats with a rep they said that Wells Fargo makes sure not to consider the loan they are currently holding against someone if all they are trying to do is refinance. My mom had already faxed in a few credit reports showing that the only outstanding debt she has is this loan. Of course I tried to explain that to them and they did their usual, "well I can't discuss this with you because you're not the cosigner" bullshit so I had to get off the phone, ring up my mom, and have her call back.

So, she calls back and gets another rep who tries to tell her all sorts of nonsense but luckily I told me mom to request a supervisory review because they were clearly being misleading. We should know if the next few days what they decide. The thing that's REALLY frustrating about all of this??? It's probably all worth nothing. All I want is a low, fixed rate. When I first started paying back this piece of shit loan I wanted a fixed rate because over the long run it's the smarter choice (and Lord knows I'm a stickler for consistency) but all they could offer me at the type was a variable rate of 8.5% versus a fixed rate of 13%. That's so freakin' ridiculous. That's credit card rate ridiculous. This time around I do qualify for a fixed rate as low as 7.49% and I would love that! All I want is to be able to plan down to the penny where my money is going, to not live in fear of this slimy, fat cat banking hiking up my rates on whatever whim they like.


What I have:
Checking: $51.12 (after rent + student loan + lots of ice cream this weekend)
Savings: $1800.41

What I Owe:
Wells Fargo Student Loan: $82,888.05
Credit Card: $58.76

During my lovely chat with Wells Fargo I also decide to cancel my auto withdraw. I'm so sick of being broke every first of the month. I end up with like 20 bucks left over so I have to rely on my credit card or dip into my savings and I hate doing that. Since I'm so ahead in payments I have some wiggle room to figure out a way to pay back a lot but not in such a way that leaves me scrambling.

6 Month of Loan Payments

I have put off the entry forever. Which is strange because I'm very proud of what I have accomplished. I think I'm just being utterly lazy.

Let's review! I had originally wanted to save 1k a month until I could make a chunk $10,000 payment. However after some research I realized I would get slightly better results by making two monthly payments. So it began, I have lived off of only a few hundred (if not less each month). I pay rent, student loans, bills, gas and grocery and whatever left is mine for either saving or fun. Most months I end up with around $20 bucks in my account before payday.

What I Paid in 2012

                      Amt Toward            Amt Towards
                          Principle                   Interest
January                $6.54                     $739.06
February             $116.89                  $628.71
March                 $96.05                    $649.55
April                   $75.11                    $670.49
May                    $118.89                  $626.71
June                    $95.05                    $650.55
July                    $117.29                   $628.31
August               $97.19                     $648.41
September         $97.89                      $647.71
October             $119.47                    $626.13
November         $99.46                      $646.14
December         $120.99                     $624.61
TOTAL           $1,160.82                  $7,786.38

Seriously, look at January, only $6 bucks towards principle!!?!?!? Fuck you Wells Fargo. I didn't really keep track of my payments during the first year, I set up automatic payments and just didn't deal with it. I didn't want to think of what was going to principle or how much I was paying in interest or even how long it was going to take. I didn't feel like I had the power to, even if I knew what kind of financial trouble I was in there was nothing I could do about it. Once I got a new (and much, much, much better) job I was able to have the extra cash to take care of business.

What I Paid in 2013 (so far!!)


                      Amt Toward            Amt Toward
                          Principle                   Interest
January               $101.04                   $644.56
January pt2         $708.44                   $291.56
February             $394.37                   $351.23
February pt2       $712.04                   $287.96
March                 $459.96                   $285.64
March pt2           $715.86                   $284.14
April                   $403.41                   $342.19
April pt2             $719.51                   $280.49
May                    $427.72                   $626.71
May pt2              $723.25                   $276.75
June                    $412.41                   $333.19
June pt2              $446.45                   $253.55
TOTAL             $6,224.46                $3,949.14



                         Payment    Amt Toward            Amt Toward            
                               MAde                     Principle                   Interest
July                        $745.60                   $415.81                  $329.79
July pt2                  $600.00                   $                             $
August                   $                              $                             $
August pt2             $                              $                             $
September              $                              $                             $
September pt2        $                              $                             $
October                  $                              $                             $
October pt2            $                              $                             $
November              $                              $                             $
November pt2        $                              $                             $
December              $                              $                             $
December pt2        $                              $                             $
TOTAL                $1345.60                 $414.81                  $329.79


I am so proud of what I've been able to do with this loan. I've paid close to 600% more in just 6 months than what I paid in my first year. I will end up paying close to the same amount of interest (if not slightly lower) this year even though I'm paying so much more. I sometime's get so discouraged because I have so far to go but I just have to remind myself that I'm only 27 years old and I've only been at this for 6 months.

You Might Be Broke If......

-You've ever re-used a coffee filter

-You have no shame in using rubber bands and tape to hold together everyday items

-You can easily ignore any sound that might mean an appliance is breaking

-You have paid for groceries in loose change

-You experience overwhelming joy when there's free food at work

Financial Update: After Bill Pay

So I did a Pay Day check in a few days ago but I wanted to re-check in (checker in? No, that's not right...) to see my finances after I spent a late Mother's Day with my Mom and after most of my bill payments went through.

Checking: $152.42
Savings: $1822.20
Pocket Book: Like $2 bucks?? I spent the remainder of my cash on Powerball tickets (that did not go well).

What I owe on my credit card: $119.92
What I owe Wells Fargo: $84,162.72

I treated my mom to lunch which cost $50 (put on my credit card) BUT she treated me to a full tank of gas, a hair cut, and a mani/pedi. I might go ahead and pay another $50 or so on my credit card but probably closer to next pay day. I still need to go grocery shopping but that should only cost me around $50.

I can't believe how far down my loan has gone in only 5 months. I'm so close to paying off $10,000 in principle. I think once that happens (and I potentially get a raise sometime in October) I might start shifting around how much I pay. I want to help my mom with the student loan that she has for me. She owes around $38k and I'd like to help her pay it off so she can save for retirement.

I keep looking at the financial road map I made; in just two years I will be close to only owing around $50,000. Then I can slow down on the payments and start saving for a house. I try to broach the idea of buying a house with my boyfriend but he doesn't really seem that into it which is a bummer but not terribly unexpected. Like most things in life I'll probably do that on my own (or with the help of my mom, haha). I figure I can easily save up the $20,000 or so down payment and I should have rocking credit so hopefully I can find a cute little house to call my own.

GOAL

I'm 90% I didn't do the last few days on my 14 days of Love blog thing. I was so out of it on cold medication last week I honestly don't care. I'm finally coming through the worst of it though. My sore throat has disappeared and now I'm just a walking bucket of snot. Which actually isn't too bad; at least I can blow my nose and move on with my life without having to take intense medication that makes me a walking zombie.

So I spent a couple of days doing my best to map out my financial future. It's imbedded in my DNA to try to plan and organize even if it's silly. My life sometimes feels like a series of jokes and downfalls of my plans. What is that saying? "Best laid plans"? I'm making this financial map with a big, giant, humongous grain of salt. I know things occur, I know bad stuff comes up, I know that there will always be road blocks to my goals. HOWEVER, I will work my hardest to reach my goal so I can finally be debt free.

Using an Excel spreadsheet I worked out the numbers if I continue to pay $1745.60 a month in student loans. My original deal with Wells Fargo was a $90,000 loan on a 30 year repayment plan that when calculated with interest will eventually cost me around $230,000 to pay back. BUT, if I stick to my twice a month payment planing (paying a total of $1745.60 a month) I will finish paying off my loan by April 1st of 2018.

It's both amazing and heartbreaking for me to potentially be free of this loan in 5 years. Amazing because not many people can rid themselves of such a large amount of debt in such a short amount of time. Heartbreaking because even though I'll finally be free of debt I'm going to have to miss out on so much. I'll be 33 the time this is (maybe) over. Only then will I be able to start saving for a house and that will take me a few years to do. By the time I can afford a house payment I'll be (probably) 35 or 36. Only then will it be responsible to have children (at least for me). I'm still partially on the fence about having children but I know that if I was to have them I'd want it to be earlier than that. I sometimes think it's best to put away certain life plans because it makes me feel too sad about my current situation. Luckily, I doubt I'll ever get married which (for me) is such a blessing because I could never afford a wedding (even one of those super adorable cheap-y Pinterest weddings).

I don't want this post to be a super bum out, even if I am feeling pretty bummed out right about now. For the past few years my heart has been pulled toward fostering children. Maybe this whole debt thing is to prevent me from having my own biological children because I have a bunch of lovely foster children just waiting for me. I would love to hit 33, be debt free, start creating my dream home and then bringing in loads and loads of children who just need love. I babysit for a friend of mine sometimes and baby's are hard. They crawl everywhere and it's your job to teach this little thing how to be a person. That's a pretty insane thing to do. When you foster children you get this lovely little human who pretty much already knows the basics and it's your job to love them and give them a better home than what they came from. How easy is that?!?! These children come from terrible homes with drug addicted and abusive parents. To be a great parent to them you just have to be there and be healthy and loving. I'm awesome at that.

I figured out a way to make this repayment a little easier to swallow. A reward system (a reward other than the joy I get from not being in debt). Every time I pay off $10,000 in principle I get to buy myself a present. With each $10,000 principle pay off the gifts can get better. They can be whatever I want. I've estimated paying off $10,000 in principle by September 2013 and I've already started thinking about what I want. Nice makeup? Some new clothes? Basically, I want to drop $50-$100 on myself. Yes, that money could go towards my loans but it's nice to treat yourself.

Need Some Inspiration

There comes a time in everyone's journey (towards whatever) that you need a little motivation/inspiration/fuel for your fire. I'm about to end month one of a two year journey towards financial freedom. I keep looking at how far I have to go instead of looking at (and appreciating) all the progress that I've made. So while I sit here and enjoy my morning coffee and eggs here are some easily Googled stories of other people who have faced the student loan debt monster and survived.

Paying off $22,000 in debt in 18 months

Paying off $15,000 in Student Loan Debt
Does it make me a monster to sort of eye-roll when people talk about "debt" that's under $20k? I'm pushing triple digit debt over here and would KILL for some itty bitty amount like that.

Advice for those with Medical School Debt
Apparently it is not uncommon for those with Medical School Debt to make student loan payments of $3,000 a month. I'm sure they probably look at my debt situation and eye-roll, haha. Also, in order to keep things in perspective this article talks about how there are still senators making payments on their student loans.

I had found other articles but I've already featured them before, there's the crazy kid who ate rotten food to save money (don't do that, just buy fresh food, paying off debt isn't that important) and then the jerk face who managed to pay off $90,000 in student loan debt in one year (and he just happens to make $100k a year).

This isn't the greatest blog post of all time but every once in a while it's important to remember that you're not alone in debt. Millions of people have money problems and there's so much inspiration and good advice out there. I'm going to make it through this mess, it's not going to be easy and it's going to take some time but in 2 years I'm going to be in such a better place.

Crunching Numbers

Source

Way, way, way back in September of 2011 I posted my monthly budget. I was trying to figure out ways to save up for my student loan bills. It was after that time that I was mailed the letter saying I owed $821 a month in student loans. I want to take a look back and update the numbers to see how far I've come in a little over a year.

Looking back I have no idea how I managed to scrap an extra $745.60 out of my 2011 finances. I know I couldn't really afford to make any more payments on my previous student loan which was embarrassing and frustrating. Luckily, my Mom was able to help me with that. I am very proud to say that I have made every student loan payment now myself and even though it's hard I feel very accomplished for doing this.

How I saved money this past year:
-Got a better job where I make about $10,000 more a year (thank you Lord!!)
-Moved in with my boyfriend, splitting the costs of bills is a life saver
-Free cable and Internet due to my boyfriends job (yes!)

I've been taking the bus more and more which is great at saving on gas costs. I've been terrible about it this past month because it's been really cold and I've been working two jobs. Leaving the house at 5am or 6am and getting off at 10pm is hard enough without having to wait for a bus. But it's definitely my goal to take it more this month. Got to pinch pennies where ever you can!

If you noticed above the difference between what I spend now versus what I make leaves a nice little chunk of ~$1000 left each month. This would be the extra $1000 I plan on spending each month on my student loans. I had contemplated just making an additional payment each month and putting the rest in savings but the difference is pretty astounding:

I remember every time I called Wells Fargo and asked for help I never understood why they only thing they suggested was paying more. Now I sort of get it, it's the interest that kills you. I'm at about 8% interest right now and most of what I pay doesn't do anything to chip away at the principal loan. They way I see it, this year I'm paying around $6000 dollars in interest no matter what, I'd rather pay a little extra and pay off $3000 more of my loan. I've done the math for about 2 years out and if I keep making huge payments I could knock it down to around $50,000 which is so much more manageable than close to $100,000. Now, this math is all based around my interest rate staying at 8%, knowing my luck it'll skyrocket to a million and I'll just die. However, if that doesn't happen, or if *gasp* luck could smile down upon me and LOWER that interest rate I can make such a huge interest in 2 years. I'm a little bummed about not being able to save for a house but once I pay off this thing I'll have so much extra cash it'll take me a year to save up.

So that's it. That's my financial goal for this year. Pay as much of this silly, stupid, God awful loan off as I can. However, here's the catch. I want to be able to do it and still have a life. I read an article recently about a guy who managed to pay off $26,500 in student debt in 2 years. This is great. Except dude did some CRAZY ass shit, like not turning on the heater in Atlanta winters. I turn on the heater and I live in Texas. He also sometimes ate spoiled food. I'm all about financial goals and sacrifices but I want to prove that it is entirely possible to save money and pay off debt without becoming a shell of a person. I can live life and live it BETTER than before because I'm becoming more and more financially sound.

Positive Changes

Things are going much, much, much better :) My boyfriend and I had an amazing talk and we're on a good path again, I've come to terms with my current crazy schedule, and I'm making more of an effort to see friends.

I haven't really shared much about my work for a few reasons. This is the internet and frankly, while I put a lot of stuff on this blog, I really don't want anyone knowing who I am. I like my privacy. But I can share what is bringing me down. I work in a 24 hour unit. The schedule that I was hired for is evenings but recently (as in the last 6 months) we've had a major shortage and I've been switching back and forth from evenings to overnights. Overnights aren't that bad really but when you switch back and forth it can be a killer on your mood/psyche. Also, there is no set schedule. Sometimes the schedule is only released a week at a time and there's even been a few times I've only been informed of my shifts the night before they start. It's been rough to deal with and I know that it's caused me to become depressed which has negatively affected my relationships with my friends and boyfriend.

BUT there is hope. While I've been applying for other jobs there are two lead positions open at my work. One is for the graveyard shift. I know no one really wants that one and I think I might go for it. It would mean more money, a set schedule, and it would look amazing on my resume. While it is sort of shitty to use a promotion at your job to get another, different job my work place has been incredibly shitty to me and my sleep pattern. So suck it work.

BUT OMG THERE IS OTHER BETTER NEWS.
Today I (or my mother but whatever, you don't know me) made the last payment on my loan from UT. It's alllllll gone!!! GONE!!! GONE!!! Sorry.

I can't believe it's gone and in only 5 years! I'm so freaking happy :) This plus my raise at work PLUS other things being payed off means that in a few months I can (hopefully) refinance my awful Wells Fargo loan in a few months.

I guess the thing that I've learned in these last few months is that things can always be worse and they can always be better. That's just life. No one has it easy. Take this guy. Student loans ruined this guys life. He doesn't have a home because he wanted to get a job in a field he was passionate about. That's crazy. That's unfair. I have it rough but I have a support system.

I'm hoping that the future gets better. My boyfriend and I are thinking about moving in together which is not only awesome because more time with my boo but I would be saving a bundle. Plus, I really want to be able to do sweet stuff for my man. He does so much for me and he takes care of me and because I'm always broke I feel like I owe him so much. I know he doesn't care but I do. At least if we lived together I would be able to cook and clean and organize to "pull my weight". Those are things that I enjoy and are free :) Honestly, I'm super excited because I'd be able to pay more on my student loan PLUS buy a sewing machine. Yeah, I live the crazy life.

Just a quickie...

Who just paid $2000 on their UT loan? This chick. Oh yeah, 2 more months and that sucker is done and then I can set my sites on destroying my Wells Fargo loan.