The last several weeks have been interesting. This year, when I received the unexpected windfall of a tax return, I was able to crush my credit card debt with ease. This came about six months ahead of my original debt killing model. I’ve been using the time to plot my next course, so to speak. I’m entertaining the idea of veering away from the snowball method.
That’s right. The battle with student load debt is about to get cray. I’m gonna go HAM on this so I wanted my strategy to be sound. This is what I’m looking at:
Sallie Mae: 30ishk
Fed loan: 10ishk
Netnet: Just under 3k
The snowball method would have me knock out the nelnet loans first. And ordinarily, I would agree. However, both my federal loan and the sallie mae loan are in collections and have been for years. I pay both of these collection agencies a small sum each month. The purpose of this is to keep them from calling my house 18 times a day. I’m not really making any headway on the principal.
Sallie mae recently contacted me and told me that they would be willing to settle for 6k, which I of course did not have because I’m poor af. Ole SM dings my credit report every month for being in default while the federal loan does not. The nelnet loan is in good standing thanks to a rehab program. I’ve come to the conclusion that if I want to rehab my credit to the fullest extent and pay off my student loan debt as fast as possible, I need to be rid of the Sallie Mae loan first. Now this doesn’t mean I’m actually going to do it. This is simply where my head is at the time of this journal entry. And luckily for me, I’ve got some time and some financial wiggle room, so I can take my time.
I’ve inserted this sweet little progress bar so that we can all keep track of how fast I’m saving up to throw this lump sum at my debt.
Also, the fed loan doesn’t show up on my credit report. Which is weird. So my estimated net worth was actually about -48k, making my initial net worth report inaccurate. Sorry about that. I’m poorer than originally indicated.
Related: 2016 Net Worth Report
I’m now content writing! Freelance writing is officially a reality. The money, while not great, is more than most of the mills pay. I’m very happy with the company I’m working for. They give great editorial feedback and have been paying consistently. Not a single complaint so far.
WAPH continues to make me extremely happy as a creative outlet and while I don’t make much off of ad revenue, I think it’s still worth it to keep them up. So I will continue to do so.
Right now I’m making roughly $20 a month in passive income. Most of this is coming from my cash back credit card, which I pay the balance on every time I get a paycheck. The rest of it is ad revenue and interest from my acorns account.
I haven’t been with acorns for long enough to write a full review, but so far I really enjoy it as an investing for noobs kind of platform.
For right now, I think that I’m going to stay on this course:
Save money to pay off the SM loan in a lump sum.
Continue content writing while exploring other freelancing opportunities.
Continue to increase my passive income as I am able.
To me, this seems like a great plan. There’s a few other things I’m working on, but for professional and personal reasons, I don’t feel comfortable mentioning them just yet. Stay tuned!