I don’t even know where to start with this post. I’ve had a lot going on over the past couple of months, hence my absence. Well, that, and the fact my introvert self is still a little uncomfortable, OK a lot uncomfortable, with posting about myself. In any case, I’ll go ahead and share how I did with my 2018 goal of paying off my students loans.
Well, to put it simply, I fell short on my goal. I did not succeed. As I explained in my mid-year review, this plan was based on me taking on a second job, which I did not do. I also experienced a setback earlier in the year, having not received some cash I was expecting, and quite honestly, I did not put in the much needed effort required to create a lucrative side hustle. I failed to do what was necessary for one reason or another.
In mid-November 2018, I had just over $21,500 left to pay. I was on the verge of making a $2,000 payment, and with that, about to celebrate finally reaching the teens, when I learned that I had to stop the party before it even started. I got the news that my job was going to be eliminated at the end of the year. With that in mind, I felt the need to hoard cash, so I decided to not make any large payments towards my debt in November and December. I only paid a total of $100 each month towards two of my loans to cover the minimum payments. The other two didn’t, and still don’t, require any payment until November 2019.
Despite having fallen short on my 2018 goal and having skipped two months of payments, I don’t consider this a complete failure. All in all, I managed to reduce my debt by about $23,000 in 2018. My initial debt amount in August 2017 was $60,611.37. I began January 2018 with $44,441.24 and ended the year with about $21,500. I’d be lying if I said that I wasn’t disappointed.
While I knew that I would still have a student loan balance at the end of the year, I had hoped that it would be in the mid-teens. I was so eager to reach that milestone. It was hard for me to skip my November and December payments after being extremely diligent all year. So hard, that I ended up submitting those payments in January. I know it sounds crazy given that I’m jobless. However, I felt comfortable doing that because I was going to receive a small severance package, which I knew I could stretch while I look for a new job.
As it stands right now, my current student loan balance is $16,459.11. I used the payment I made in January to pay off one of my high interest loans. It’s so nice to see “PAID IN FULL” when I log into my account!
I’m now left with three loans, two at a 1.875% interest rate and the other at 6.75%. I’ve only been sending in a total of $100 since February for my two lower interest loans. I’ll continue to do so until I find a new source of income, which should be soon. At that point, I intend to obliterate all three loans once and for all. That’s my main 2019 goal!
How did you do with your 2018 goals? What have you set for 2019 and how are they coming along?