I was so excited to pay off my ugly 1-12 loan with a balance of $4031.60 with the ugly interest rate of 6.8%. I decided to keep a baseline amount in my savings account and use anything over the baseline to pay off bigger balances off my loans to take an avalanche approach, so I free up more money to put towards my loans.
My other loan at 6.8% is the 1-10 that I am working away at still and plan to have gone by the end of this year. So here is the breakdown of what I did:
Amount over baseline savings: $4068.00 (Used to pay off 1-12)
My 7/31 paycheck I have an extra shift and my two pay raises from the past 2 years that I pretended that I did not get: $224.29
8/14 I received a quarterly bonus from work: $462.80
My 8/14 paycheck I have an extra shift and my two raises from the past 2 years that I pretended that I did not get: $224.30
My auto debit for my monthly payment is now $168.15, I still pretend that I have a payment of $200, so I added the difference which was $31.85
Total put towards loan 1-10: $979.64
This leaves a remaining balance on 1-10 of $2398.07
I plan to have this paid off by the end of 2015.
I have been very busy with work over the past month, which has been stressful in the short term, but if it helps me to pay my loans off faster, it will help me in the long run.