Note: This is the introduction that Jasmine has provided in hopes of becoming the next blogger at BAD. Once reading her post, feel free to comment or ask relevant questions to her situation and this blog. More information about this position can be found here
Hi BAD Community!
As a potential future blogger for Blogging Away Debt, I was asked to write an introductory post sharing my debt. While I had wanted to start with who I am and not what I owe, life throws curveballs. So I’ll start with what I owe, and we’ll circle back to who I am if you choose to follow me on my debt payoff journey. To frame my debt journey, I will share these upfront details: I’m Jasmine. I’m a 27 year old business analyst living in Northern VA. I’ve been working at the same job for 4 years and am finally starting to earn enough to be able to aggressively tackle my debt while still having some semblance of a life.
Here’s my debt breakdown:
- Car Loan: 9982.30 (Just made an extra payment last week to bring it under 10 grand!!)
- ACS Education Loan: 10689.17
- Wells Fargo Personal Loan: 2557.39
- Sallie Mae 1: 2801.86
- Sallie Mae 2: 4814.66
- Sallie Mae 3: 2745.82
- Sallie Mae 4: 2684.73
- Sallie Mae 5: 4741.73
- Sallie Mae 6: 2973.94
- Dept of Ed 1: 6069.72
- Dept of Ed 3: 2181.81
- UFMB Personal Loan: 3438.81
- Total Debt: $55,690.94
Paid off since starting my debt journey:
- Dept of Ed 2 + Credit Card + Regular Payments = $12108.40
I’ve been reading this blog since Adam and Emily took over. When they shared that they would be leaving, I immediately reached out to Jeff to take the reins. I love the fact that you readers will be tough and hold me accountable. (Trust me…I need it!) I’m in a fortunate living situation (which I’ll elaborate on in another post) that allows me to be able to focus on paying down my debt, and I’d appreciate having all of you along to support me and be that good angel on my shoulder when the spending devil is tempting me 🙂
Jeffrey strain is a freelance author, his work has appeared at The Street.com and seekingalpha.com. In addition to having authored thousands of articles, Jeffrey is a former resident of Japan, former owner of Savingadvice.com and a professional digital nomad.
First, hi to a fellow Northern VA reader! I am already envious of your housing situation considering the rent in this area. 🙂
What’s your timeline for payoff?
Also, this may be for a later discussion, but why don’t some people consolidate their federal loans? Maybe it’s not worth the trouble if you’ll be paying everything off swiftly but I was just wondering. My loans qualify for forgiveness and to be part of the program, I had to consolidate.
Good luck!
Hi Meghan!
Nice to meet a fellow NOVA reader 🙂
If I choose to stay in my living situation (I live rent-free in the basement of the family I nanny for), then I think with that and maybe some additional sacrifices, I can be debt-free by 2016. Since right now, I anticipate moving to my own place next year, it’ll push my debt repayment back a few years to about 2018 (assuming my current salary and not accounting for raises, tax refund payments, etc.).
I’ve considered consolidating especially since some of my rates are outrageous (near 7%…), but looking at my finances, my car will be paid by the end of this year. If I stay with this family for another year or 2 and put the grand or so towards those after the car, they shoud fall down pretty quickly, so I didn’t think it would be worth the hassle. I’d definitely be open to hearing opinions though as consolidation is not something I’m all that familiar with…
I hope you’re enjoying the snow day. I assume that those loans, even at close to 7%, have a lower rate than the others. If that’s the case, consolidating would lower the overall public student loan monthly payment and would allow you to throw more at the high interest things. If you make under $80,000, you can deduct up to $2,500 in student loan interest as an above the line deduction, and interest that is capitalized as part of the consolidation counts. The consolidation through the Dept. of ED is actually very easy.
If your interest rates on your other loans are lower than your student loans, then it may not be worth it. My consolidated loan is massive, but I’m doing IBR with the 10 year forgiveness route. Some people think you should pay it out of principle, others think that if a program exists, you might as well participate. My loans will qualify for discharge before I can pay them off no matter what, so I read this site to make sure I don’t go in to any other debt, finance my retirement, and save enough for a decent emergency fund. 🙂
Thanks for all the great info! They are less than the others, but I’m on graduated repayment with them, so the payments for all Sallie Mae and Dept of Ed total 150. I’m actually tempted to pay the ACS and Wells Fargo first since those have set payments that are higher so freeing up that money would accomplish more even though the interest rates are lower for those. That’s one of the many coming decisions I could use help with.
I’ll definitely have to take a closer look at consolidating.
Those other topics are all things I have to visit. I have to admit retirement savings is beyond my scope right now…other than my company match. I did just reach my $1000 emergency fund. It’s a little sad that that’s the most I’ve ever had in the bank, but it’s also really thrilling to finally be seeing some progress 🙂
If you plan to pay off the student loans early, it is better NOT to consolidate. You can pay one off and reduce the monthly minimum payments overall. This frees up extra money in case you hit a financial road block. Student loans, in my opinion (I am a bankruptcy attorney), are the worst type of debt. They are virtually impossible to get rid of outside of being disabled (still difficult) and death.
Thanks Mitz! I definitely understand your opinion of student loans. It may not seem like it, but I do consider myself lucky. Considering my family contributed nothing to my education and I chose a 50000/year school, I only had to finance 1/5 of it. I do hope to be one of those lucky few to kiss it all goodbye, and soon. The lofty goal is debt-free by the big 3-0!!
Way to be! I feel the same way about mine.
You have my vote to be a blogger. Your situation kind of reminds me of mine that I had a couple years ago before I got serious about my debt. Good luck!
Thanks Kristina! I’d love to hear more about your situation. It’d be nice to know there’s light at the end of the tunnel 🙂