Wednesday, April 10, 2013

Second $0 account balance in two months

I graduated from college in May of 2011, and my student loan grace period ended six months later.  I've been making monthly payments on all of my loans since then -- even during the year I was living in Madrid.  I'm so glad I didn't defer them that year, as other auxiliares de conversación in Spain did.  On February 13, 2013 I paid off my first student loan (much thanks to my seasonal weekend job I began in January and my federal tax refund)!

And less than two months later, I now have a new photo to share:

I've paid my second student loan in full!  (The stafford loan up top was rolled into my consolidation loans, so that first one doesn't count).  The speed at which I'm paying these is thanks to my seasonal weekend job and my state tax refund.  Also my regular job.  And also to the fact that I don't spend much of what I make!  (well, I spend it on loans - basically).  I have automatic payments each month, which are more than the minimum payment.  Then whatever extra money I have in my bank account at the end of each month goes towards the loan with the highest interest rate.

The other reason I've paid off my second loan so quickly is that once you pay off one loan, it's a sort of snowball effect from there.  As soon as I paid off the first one, I bumped up my monthly payment of the second loan by the amount I had been paying each month for the first loan.  And now that this second one's paid off, I can add the amount of that monthly payment to my ECSI monthly payment.  ... are you seeing the snowball?

So now I've got two loans remaining: ECSI (not pictured above because it's located on a different, really stupid website that looks like it's from the early 2000s), and my last stafford loan.  I am in good shape, and will definitely make my goal of paying these off by 2015!

[Have you entered my Easter egg contest yet?  Last day to enter is Monday, April 15!]
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