Two Down, One to Go

 

Great news!  I’ve officially paid off my second loan this year!  In March 2012 I paid off my smallest loan, a measly $3300-ish, and starting working hard towards the worst of my college loans. 

I set a goal of paying at least $1200 in loan payments per month ($200 minimum payments, plus $1000 extra).  I have succeeded every month in 2012 so far, except May.  I didn’t work at all in April, and I traveled across the country twice during the month, so with no paychecks coming in in May, I think I only paid about $400-500 extra (I did get a tax refund to help out).

Some months I managed to pay more.  For example, $2500 in February (thank-you filthy rich Aspenites with children), and $1600 in August (I wanted it gone!) I think I’ve done a great job.

It looks like two loans, they were dispersed at different dates, but I paid them together, without the option of paying one and not the other.  I also paid $0.26 extra accidentally.  How do I go about getting them to pay that back to me?

Now that my high-interest loans are gone, I have a mere $7,700 at 1.75% interest left to go. I could easily complete this in six to seven months going at my rate, but I’ve chosen not to.

What!?!?!  I know, I know, but read on.  It is actually a much better choice.  I’ve been researching a lot about retirement lately.  Up until now I have done squat with retirement.   I need to get my Roth IRA started. Tomorrow.  I could wait 6 months to do it, and pay the loan off, but then I’d miss out on 2012.  With the Roth IRA, you can only put in $5000 a year, and there is no making up for it if you miss a year.  I’ve already missed 12 years!  I’ve been making over $5000/year for over 12 years now, and could’ve already been rich!  I read that I have until April 2013 to get the $5000 in for 2012. 

So that’s where my next $5000 will be going.   When the time comes, I’ll have to consider whether to then pay my loan or continue with the $5000 for 2013. 

If I keep going like I am, I could have the first $5000 paid by end of December.  However, come November I don’t know if I’ll have a job.  I kind of want to spend the holidays with my friends in Ohio for once, and might not be able to make the payments for November and December.  I think having it in there by the end of March is a good enough goal though.

I was so excited about all this that I spent the afternoon searching for a part-time job to work on my three days off.  I did not have success.  I’ll have to make sure I do something while in Ohio though.  Even if it is a minimum wage burger flipper.