Tuesday, February 28, 2012

February Financial Update

I already spilled the beans in an earlier post, but February was a really big month for me.  I paid off my first student loan!  Woohoo!

Student loan #1 had the lowest balance by far, but it just feels so good to have that account closed.  Not too mention also having one less lender to deal with.  

Here are the numbers.

$1785.15 total I paid towards my student loans.

                   $994.12 Minimum Loan Payments (55.7%)
                   $791.03 Snowball Payment (44.3%)

                    $643.63 Amount to interest (36.1%)
                  $1141.52 Amount to principal (63.9%)




Notice how some of my loan balances remain unchanged after making a payment?  That's because there is outstanding unpaid interest on the account.  I am not actually sure where that interest came from since it should have all been capitalized in to the principal.... but my next goal is to pay off that interest, so that each monthly payment has the highest efficacy.  Looking back, it would have made the most financial sense to tackle this interest first before getting rid of my first loan.  However, the difference would have been about $25, so not much of a loss in the grand scheme of things.

2 comments:

  1. That zero is lookin pretty hot!!! Keep up the good work. I'm about to take out some loans myself and reading your site really helps!

    -sherri black

    ReplyDelete
  2. Hi Sherri,
    you're so right! I love seeing that big ol' ZERO!

    As for your loans, if you have any questions PLEASE zing them over my way. I am more than happy to help in any way that I can! I know sometimes they are just a necessary evil, but hopefully you can avoid the major pitfalls.

    ReplyDelete