Oh baby, if you thought last month’s debt reduction was impressive, take a look at October!
Parent PLUS debt down: $5,811.19
Mortgage lowered: $213.61
Overall debt reduction: $6,024.80
October had three opportunities to make extra payments toward Parent Plus #1. This month my boyfriend paid rent early in the month, so I immediately paid that toward my debt. Then my escrow check and the return of my extra mortgage payment found it’s way into my mailbox after my refinance in September, so after double and triple checking that my sinking fund for taxes and insurance is set up correctly, I applied the entire check amount to my loan. Then, to my surprise, my boyfriend paid rent again just before October ended, so bam! to the loan it went. Combine all of that with my new higher payment because of my lower mortgage payment, and I paid almost $6,500 this month just toward Parent Plus loans.
And now just look at that sexy balance on loan #1: $0.00! GONE! SEE YA! BYE BITCH!
And PP loan #2 is already in the low $15,000’s. Better watch out – I’m coming for you next!
One of the many statistics I revel in: In the last 2 months, I have paid $14,281.86 toward Parent Plus loans, reducing them by almost $13k. Doesn’t that number just blow you away? It excites me. At the same time it horrifies me.
The excitement is obvious. I have a plan and I’m executing it. I’m doing the damn thing! Often I’m exceeding my own expectations. The progress I’m making is baffling. Where is all of this money coming from? I’ve read it many times before…once you start paying attention to your money, magical things happen. Money comes out of the woodwork from the most unexpected places. But this magic only occurs when you do the right thing with it. Could I have taken that money and blown it on an amazing vacation, new carpeting, new appliances, new windows, remodeling my bathrooms? Lord knows, I need all of those things. But the plan only works when you focus on one thing at a time.
Here’s why it horrifies me: That is a fuck-ton of money. So much money! How did I get all of that money??? And it’s just…gone.
That $14k is nearly the amount that Parent Plus loan #1 started at. Just think if I’d been able to save that kind of money when my kids were little and pay the tuition without loans! It’s 2/3 what I paid all last year ($27k) toward my kids’ college related expenses. And 2/3 of that is what I’m racking up in interest this year alone ($9k+).
Honestly, when I look at it I want to vomit. And celebrate. But most of all it motivates me to keep banging away at this debt because I WILL WIN.
Other debt posts:
The Death of Parent Plus Loan #1
September Debt Reduction
August Debt Reduction
July Debt Reduction
June Debt Reduction
May Debt Reduction
The Death of Parent Plus Loan #7
April Debt Reduction
August Debt Reduction