Sunday, September 23, 2012

August Financial Update

I honestly don't know why I put this post off for so long... Every time I sat down to write it, I ended up writing about something else.  I think it's largely based on the fact that I haven't put anything extra towards my loans in a long time and the stagnancy of those six figures is really starting to get to me.

For the Month of August:

   $944.12 total I paid towards my student loans.

                   $944.12 Minimum Loan Payments
                       $0.00 Snowball Payment

                    $521.28 Amount to Interest (55.2%)
                    $422.84 Amount to Principal (44.8%)

                    Percentage of Principal Paid (0.35%)

D-E-P-R-E-S-S-I-N-G.  I know I've got to start hammering away at my loans, but I keep going back and forth about which one to pay extra towards.  The precision scientist in me says, pay off #2 (17k), the highest interest rate, first!!  The impulsive side of me says, pay off #5 (8.9k), we need a motivational win ASAP!  And the crazy side of me that thinks buying a house might be a good idea says, pick #3, pick #3! (10.8k)  High interest and a low-ish balance, fast way to reduce debt-to-income ratio and knock out a high interest loan!  Hmmm...

My first inclination was to knock away #5, my lowest balance just to feel like I am making some huge progress.  It would be purely an emotional win.  Then I decided that $2,000 more isn't really that much bigger of a commitment and since the interest rate is significantly higher I would be coming out farther ahead in the end.

I think it's a good trade off, and since the decision is made I can finally stop whining about it on my blog!  lol, so sorry.

Hope you all had a great weekend!

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