For the last month or so, I’ve felt really stuck in life. After making the decision to not go to Colorado, I couldn’t seem to make any decisions on what I did want to do. Yes, I always have a handful of ideas floating around in my head… but I couldn’t commit to anything. Finally, after recognizing that most of what was holding me back was my debt, I realized what was really going on: I’ve been suffering from debt fatigue.
After 13 months of putting so much energy into paying down my debt, I’m happy with my progress but just want it to be over and done with. I’m still making all my payments, still saving, etc. but you have no idea how desperately I want to say eff it! (excuse me) and just go buy the things I want. I also want to be able to start saving for a down payment, but the thought of “doing it all” with only small numbers going towards everything is incredibly daunting.
The question now is: how am I going to kick this bad attitude / situation? And there really is only one answer: I need to pay off the rest of my debt and I need to do it fast. So, here’s where I’m at right now…
Personal Loan: Balance ~$5,320
This one time, when I thought I was going to get my finances in order, I consolidated all of my debt into a loan. The interest is currently at 7% and I make bi-weekly payments of $149 to it.
Car Loan: Balance ~$5,200
Obviously, this is the loan that financed my car. The interest is only 1.9% and I make bi-weekly payments of $117.42 to it.
Both loans are scheduled to be wiped out in April 2014. My plan is to continue making my bi-weekly payments, while saving extra money on the side. Every time my savings balance reaches $500, I’m going to make an extra payment on my personal loan. I will do that repeatedly until it is paid off and then do the same with my car loan. Since I’ll already be paying off about $3,000 on each this year, I just need to come up with an extra ~$4,520 to wipe them both out for good. If I add in my next tax return, I could be done as soon as April 2013.
When everything is paid off, I’ll be able to save upwards of $800-1,000/month for a down payment. And I’ll be able to say I paid off $28,000 of debt before the age of 28. Talk about motivation!
Have you ever suffered from debt fatigue? What did you do to get out of it?
PS – Thank you again to everyone who wished me a happy birthday on Facebook, Twitter, Instagram, email, etc. this weekend! xo