Monday, October 31, 2011
Debt Free by Thirty: The Plan
I recently decided that I want to eliminate my student loan debt by the time I turn thirty, which is twelve months away. Right now I have $9,188.92 to go.
Obviously I need a game plan.
Here's what I figured-
*Right now around $53 per month goes toward my principle payment (my total payment is about $80/month).
*I have $3,000 of loan forgiveness which should be credited by the end of the school year.
*I'm planning on putting my tax return toward my student loan. I'm planning for another $2,000 there.
*This leaves me with around $300 per month to pay on my loans to make this happen.
Yuck. I'm not looking forward to this, but I know I can do it. And with interest rates so low, even my Summer Saver only gets me 0.7% more in interest than I pay on my loan. So while I love the feeling of saving money, I also know that it's not much more beneficial to wait on my student loan.
If I go with this plan, I can keep contributing to my Roth IRA, my 403(b), and still save around $300 per month. And Dave Ramsey would be proud. It's "WWDRD?" approved.