THE DAY HAS FINALLY ARRIVED! I am going to post my first debt roundup, my starting point to becoming debt free. I have put this day off long enough, mainly because it is going to be painful to see that number etched in eternity. Not many people know just how much debt I have - just one person really, besides me lol. That has been intentional, but also counterproductive to my desire to change course
Student Loans: 83% - The bulk of my debt is student loans. They total an incredible $192,000, all payable to good old Sallie Mae. Even at 3.75% interest, the minimum monthly payment is over $600.00 yikes!
Car Loan: 8% - Next on my list is my car loan. The balance is about $19K, with an interest rate of just under 10%. The high interest rate is due to my past money problems. Currently I pay an extra $100 a month on this loan, in an effort to gain equity so I can refinance to a better rate.
IRS Debt: 4% - I owe just under $10K to the IRS. I have no payment plan with them. My tax returns for the past 6 years have been around $2500, which the government has taken as payment for my past due balance. I anticipate the same amount for the next 4 years at least, which should close out this debt.
Credit Card: 3% - My credit card balance is about $6200, and I currently working on paying this off. I make payments of about $400 a month, with 70% going toward the principle. I hope to have this paid off within 12 months.
Personal Loan: 2% - I took out a personal loan of $3200, not out of need, but because a friend advised that I should add a trade line to boost my credit score. In hindsight, it was probably a very foolish decision because my interest rate is so high. I am debating with myself about whether or not to just pay this off over the next year and save on the interest, because I wanted to focus on one of the other bigger debts first.