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The bumpy road to financial independence. . . .

 

Wednesday, December 3, 2008

Ouch.

Well, I did it. I logged into my SallieMae account (I had to create a new password, it had been so long). The amount I owe on my student loan is just a bit more than I had anticipated. My indebtedness to the U.S. government is:

$56,915.91

I'm not really sure how to go about tackling this, because it's just so overwhelming to me. Of course, while I'm dithering about, getting another degree (paying for it myself, this time), and generally trying to ignore the elephant in the room, interest is accruing on this bad boy.

In fact, if I were to make the 'required' $437.33 payment for the next 21 years, I would end up paying a total of $112,453.65.
Which is simply unacceptable. By my rough calculations, I would have to pay almost $400 a month just to cover the interest payments alone (my consolidated interest rate is at 8.25%, which cannot be changed).

So, I'm trying not to cry at this point. I know, deep down, that this is just going to take a degree of creativity (and lots and lots of time), as well as some major changes in terms of my income and my expenditures.

Right after I go out and buy and devour a bar of organic chocolate, I think I need to spend some time searching the blogosphere for those motivating success stories, from 'real people' like me who overcame the odds and paid off similar (and even larger) debts than mine.

2 comments:

marci357 said...

Congrats on grabbing the bull by the horns and at least looking at it face to face! That was step one!

Now - how do you tackle it? One baby step at a time, and throw everything extra at it that you can.

For motivation - see a year ago archives for beingfrugal and oh my aching debts, and maybe that will help out some. They've come a long way - as have you :) Moneyning and frugaldad are two others I'd recommend.

And it's just one bite at a time...go for it! You can't start any sooner on it!

frugalgrad.com said...

I am still in college but my loans already sent chill to my spine. I try to reduce the loan by taking loans to pay off past loans so my balance will not be as high and the interest will not be as much. We do as much as we can right? Credit card debt, student loans, then grad loans, mortgages, car, medical bills, and the list keeps going on and on and on. May be today I will be counting debts instead of counting sheep.

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