Financial woes...

Well...it's not really woes exactly....in reality, I have a pretty good handle on all things financial. I have pretty gosh darn good credit...I make decent money...I overpay my bills...and I have a pretty good head on my shoulders when it comes to savings (that means I am cheap). I have been thinking a lot about how much I make...what bills I pay off...and how I am saving money. And...I had an awakening epiphany in the last 24 hours or so.



I paid off my car last year....2 and a half years early mind you. I felt really proud about that...still do. I don't have much debt...well...kind of. I don't have a car loan. I don't have credit card debt (I pay my bill in full each and every month). But...I have student loans...and a big chunk of them considering that I have a bachelors and a masters degree. I have long resigned to be paying back those loans for the rest of my natural born life.

Ok...here is the mistake I have been making since I paid off my car. I decided that I was going to be Ms. Smarty Pants and put the same amount I used to pay each month on my car loan and put it into a savings account and then be able to buy another car a few years from now right off...and not have to take a loan. Sounds like a smart financial decision, yes? Well...kind of. I am proud of myself for taking that money each month and putting it away...and not just spending it on something else. However...it isn't the smartest decision when I have these student loans still kicking around.

So...I am going to take that money (minus a little which will remain in savings just in case my car needs repairs, etc)...and I am going to stop saving it each and every month...and I am going to instead put it towards my student loans. I went online to a financial calculator do-hicky and figured out that if I did that...I would pay off my loan 4 years earlier....and I would save over $3000.00 in interest. I think saving 3000 bucks is much better than putting it away for a car.

Plus...I could verge on being debt free. I know that student loans aren't really something I am concerned about...it's good debt and all. But well..debt is debt...and I don't want it in my life any longer than it needs to.

I have a safety cushion of savings...it's time for my to get cracking on these loans and bust them out of here. I have already put a great dent in them. I don't use credit cards anymore...and if I do...they are ALWAYS paid off each and every month. I am no longer allowing credit card companies to get rich off of me. (I haven't paid a dime of interest on my credit cards since early 2004). My credit is good so I can get pretty low rates...if I am looking to buy another car or a house. I have already paid off more than 1/3 of my student loans...and my loan is set up to be paid off in 30 years. (30 years! Can you believe that?? It may be a nice monthly payments...but 30 years???)

So...as of next month...no more savings...and money is being paid off these loans. I feel a lot of energy and enthusiasm when it comes to knocking this debt out. It'll be a battle for years, but not nearly as many years as I (or the banks) had planned on.


P.S. There is a special show on tonight on ABC's 20/20 (10pm) all about debt collectors and some of their shady practices. I am going out tonight, but I definitely think I am going to tape it. I haven't had any experience with the big bad debt collectors...but it sure looks interesting.