Graduated Learning: Life after College

I got my degree, I got a job…now what?

Loan payments getting real September 30, 2008

Filed under: Personal Finance — Stephanie @ 10:31 pm
Tags: , , , , ,

I came home on Monday to see a few important-looking pieces of mail on my kitchen table.  And they both had to do with my new car.  One was the official paperwork from my car insurance.  I’ll admit, I’m not quite sure I understand everything relating to my car insurance.  It’s possible that I didn’t get a good deal, or that I got the wrong sort of coverage.  I’ve decided that reading through the information can wait until this weekend, when I can actually work through it to make sure I understand what’s covered and if I got all the correct discounts and everything.

The other piece of mail came from the credit union that I got my car loan from (through AAA).  I think this piece of mail really made the payments hit home.  I received my “Loan Payment Book”.  It’s basically a booklet with tear out pages with the amount due that I’ll send in every month.  I’m pretty sure that I can do this online (not 100% certain), but hopefully that’s the case, as I’m not really keen on paying for postage every month, and risk not paying on time.  I realized that there are two different ways to look at this booklet.  I can either look at it and feel overwhelmed:  look at all these payments that I’ve got due each month.  I’m going to be paying for this car (with interest) until almost the end of 2013.  Or I can look at it as an easy thing to accomplish:  I’ve only got to pay this amount 60 times, and then I own the car free and clear.  Granted, either way I look at it, I’m hoping I can pay this off sooner, which will lower the total amount I’ll end up paying.  But it’s definitely a visual plan that will help me to see progress towards owning my car.

So, we’ll see.  I’ve mentioned in the past that I hope to pay down all my debts a lot faster than the banks would like me to.  But this does make me realize that I should actually have a plan for paying off my debts.  I know plenty of people talk about debt snowballing, and I’m pretty sure I’ve seen a link from another blog to this before, but there’s a pretty simple site to help you figure out just how long it will take to pay everything off.  Now, instead of telling myself (and you all) that I’m going to pay “extra” every month, I can actually look and see what amount I should pay.  Sounds like this could actually provide results.

One can only hope!

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3 Responses to “Loan payments getting real”

  1. Shtinkykat Says:

    I too got a payment booklet from my credit union for my car loan. I ripped out the coupons every month for maybe about 6 months. Eventually, I just startted keeping progress on my debt snowball spreadsheet. I don’t even know where that booklet is anymore! 😀

  2. supafrantastic Says:

    Oh what a GREAT site! Thanks for linking to the snowballing site; I’m excited to see I might be debt free only as late as 8 years and 4 months later – which is over 1.5yrs earlier than if I just made minimum payments indiscriminately on my loans. 🙂

  3. Gritz Says:

    Congrats on the car! I run a website called Gradspot.com and just stumbled upon this blog — I’m definitely going to start checking it out. Our site is devoted to helping recent grads thrive in life after college, and we’ve got a few “survival guides” on cars and car insurance. Hopefully they can be of some help if you need to track down any more info.


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