Personal loan- $1500
If I make only the minimum payments, I will be paying back a total of $5430 in interest alone– just on my credit card and student loan! (I didn’t feel like doing the amortization calculations for the car loan.)
That number seems so high, but it’s actually on the low end of debts for people my age. Most people have 20k in student loans alone! So, I consider myself blessed that I’m able to afford to actually pay these off and not declare bankruptcy. Speaking of, did you know if you declare bankruptcy they won’t erase your student loan debt? That baby is with you ’til you die.
The good news is, I’ve already begun chomping down at my car payment. Right now I owe $7978 on my car. I’ll have that baby paid off in full by September 2016, if not earlier. From there, I’m hoping to snowball it on credit card and eventually my student loan. If my calculations are correct, I’ll be completely out of debt by my 27th birthday– exactly 5 years after I started the process of becoming debt free. By my 28th birthday, I hope to be enrolled in a Master’s program… so I can take on more debt. Crazy, I know, but you have to pay for grad school somehow!
My goal is to hopefully pay off my debts in full by my 25th birthday so I can start my Master’s program sooner. Crazy, I know, but a girl can dream!