Minimum payments are nice when you’re on a tight budget, but what about when you have so many minimums that even those become overwhelming??
Take a look at my monthly “minimums”:
- Chase Credit Card: $435
- Discover Credit Card: $45
- Upstart Personal Loan: $216
- Private Student Loans: $803.50
- Federal Loans: $640
That’s $2,139.50 A MONTH!!!!!!!!!!!!!!!!!!! At this rate, I don’t even make enough to pay rent on top.
A couple things I did. I refinanced my private loans. Can you believe I was due to owe $980 a month to Wells Fargo before refinancing? Yes, $800 is a lot, but so is my bill of almost $100,000. This is mess #1.
My federal loans. I currently put them into forbearance until I can straighten them out. I just finished an application for income-based repayment, so crossing my fingers the amount will go down… Even $500 would be better for right now. Mess #2.
My Upstart and Discover balances are almost paid off. I know that with a debt snowball, I need to add those minimum payments on top of the others in order to continue my debt-free journey, but to be honest, with such high minimums, I would be okay with one or two less payments a month to help provide more of a financial cushion. I am looking for a part time job to help boost income, but until then, No more Upstart means my monthly debt payments will go down.