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Three years of paying minimums on my student loans finally clicked last week | Debt Free or Die Trying - Rigidtalk

Three years of paying minimums on my student loans finally clicked last week

I was sitting at my kitchen table in Dallas looking at a $47,000 balance. Had been paying $180 a month since 2021. Felt like throwing a bucket of water at a house fire. Then I ran the numbers on a loan calculator. Found out at that rate I'd pay until 2045 and owe $23,000 just in interest. That sick feeling in my stomach made me change course. Sold my truck for $8,500 cash and put it all toward the principal. Now I'm working doubles at the warehouse to throw $1,200 a month at it. Has anyone else had a moment where the math finally scared them straight?

2 comments

2 Comments

phoenixb663mo ago

Oh man this reminds me SO much of my buddy Mike from back in Phoenix. He was paying on his car loan for like four years and thought he was doing fine because the payment was only $150 a month. Then one night he brought his laptop over and we sat there punching numbers into a calculator. Turns out at that rate he was gonna pay over $9,000 in interest and have the car for basically ten more years. He went white as a ghost right there in my living room. Sold his dirt bike that weekend and put the cash down plus started paying $400 a month instead. Said it felt like finally taking the blindfold off. That moment of pure math reality is brutal but necessary.

richardk263mo ago

Respectfully @phoenixb66, I see that story a little different. Mike was probably better off keeping that dirt bike and just refinancing the loan instead. The interest rate matters way more than the payment amount. If he was at 4% or 5%, that $150 payment was fine and he could have just thrown extra cash at the principal whenever he had it. Selling toys to pay down debt is a short term fix that doesn't teach you how to manage money long term. The blindfold metaphor is good, but sometimes people overcorrect and make life worse for themselves. You can keep the fun stuff and still pay off a car if you know what you're doing with the numbers.