Casa Adalia

May, 2017Archive for

She’s now a commissioned Air Force officer, so unfortunately, 2nd or 3rd jobs are out of the question

Sunday, May 28th, 2017

Her disposable income is better than I thought it was, so she can handle the extra jump if she swaps it out to a lower interest rate. There aren’t any fees associated with doing it up front, but I’m having her check and see if she can pay off a specific loan or earmark extra payments to go to a specific loan, or does it just blob together.

So at issue now is, she has a 20,600 loan at 7.9%. This is the one which would take the majority of the swap out.

Then she has
3500
3500
4392
8000 (ish)
11000 (ish)

with interest rates ranging from 3.4 to 6.0, attached almost in reverse order of the dollar amounts shown.

Would it be better do you think, to fold the first 3500 and half of the 2nd one into the max she can swap out (25k)? Or just fold in the 4392 loan in its entirety?

And then, is she better off sticking with a normal debt snowball and knocking off lowest to highest, or knocking off the highest balances first?

Just amazing how smart I became in her view AFTER it was all said and done (I had set her up with a decent paying job transfer back when she was a freshman…but her bio mom talked her in to turning it down because “it’s important to have FUN FUN FUN when you’re in college”. Of course, did bio mom foot any of her college expenses? yeah, you already know that’s a big fat ZERO.) So who’s having fun NOW, eh?

I’d say that saving interest is a good idea

Tuesday, May 9th, 2017

It’s not like she’s taking out more debt. I agree with Cindy. If there are fees involved, be careful.
My main focus would be to help her get GAZELLE! She needs to light a fire under her butt and go as fast as she can to get rid of all of it. Whatever works. Transferring loans is just the tip of the iceberg. She needs to cut, cut, cut her budget. No more coffee, no more dining out, no more haircuts, no more manicures. Get the cheapest cell phone out there. No more clothes or shoes. Get a second or third job. Work and put every penny she has to those loans. She will feel exhilarated and jubilant once they are GONE forever! I’d say not five years but maybe 2? Have her live off of half her income or less and slam all the rest on her loans until they are gone.
The guy got rid of 100K of student’s loans in 10 months. He is an interesting writer and he keeps you wanting to read more. Hope your daughter can get it paid off quick, so she can move on with her life.