Financial Surprises
I took out a loan in March, nine months ago today, on a five year amortization, bi-weekly payments. I made a goal to pay off 25% of the loan by the end of the first year, rather than the less-than-20% you expect if you make no extra payments. At the end of every pay period, I'd take whatever I had left over and zero-out my net gain by paying that onto the loan. By doing this, I reached that goal very early. The payment that moved me beyond the 25% mark was in early November, four months ahead.
My second goal was 33% (one-third), and I again set it at the same one-year mark. Thanks to a quarterly commission, I made that payment today, a payment large enough to cover that gap plus at least one more normal payment. If I make no extra payments between now and when the loan renews in March 2015, I'll have paid off 40% of this loan in one year.
My next goal, then, will be to get to 50% as soon as possible. Without extra payments it will happen in September. I doubt I'll make that by March. However, it's a great goal for my birthday in June.
This will be my last consolidation loan. Anything after this will be with equity or at least have purpose and worth, not just be the paying off of debt.
My second goal was 33% (one-third), and I again set it at the same one-year mark. Thanks to a quarterly commission, I made that payment today, a payment large enough to cover that gap plus at least one more normal payment. If I make no extra payments between now and when the loan renews in March 2015, I'll have paid off 40% of this loan in one year.
My next goal, then, will be to get to 50% as soon as possible. Without extra payments it will happen in September. I doubt I'll make that by March. However, it's a great goal for my birthday in June.
This will be my last consolidation loan. Anything after this will be with equity or at least have purpose and worth, not just be the paying off of debt.