When I made the decision to become serious about my debt a few months ago, I realized that while I had been paying the minimum balance on them, I did not know updated numbers about how much I owed! So I started digging around and here are the final numbers.
Student Loan : 20333
Parents’ Loan : 10000
Ella Car Loan : 10150
Mike Car Loan : 9233
Total amount owed = $49716
Wow that’s a lot of money!
For my first semester, my parents lent me the money for tuition and textbooks and said I could pay it back whenever. I know that in their mind, they considered it as a gift and did not really expect it back. But it sounds so lame to have your parents pay for Grad School, especially since they paid for my undergrad. They might have to pay for my sister’s wedding in a year or two and I am determined to pay them back before that. However since it is interest free, I think I will hold off from paying it till I get rid of my Student Loan. My Student Loans are at 4.5% APR and both the car loans are at 5.5% APR.
I know that a lot of people say to pay off the loan with the most interest rate first, but my student loans have been hanging over me ever since I graduated and I think I want to get rid of them first. So I will be making minimum payments to the car loans while trying to pay the student loans. After the student loans are done, I want to save up the 10000 I owe my parents and give it to them. It will be a little difficult because, I can’t go around making $50 snowflake payments to my parents! 🙂 After those are done, we will have to start tacking the car loans.
It all sounds so overwhelming when I put it out in black and white. I hope that I get to pay it off soon. I know it’s going to take a lot of dedication, but I think we will be debt free soon!