Received the refund, for the house after the refinance, the amount was $779. I also received a refund, thank goodness, for my professional membership from the job, in the amount of $219.
Now that I have a nice chunk set aside for professional membership and certifications, $763, I’m going to stop contributing to that account and add the amount I was contributing to the student loans. My membership is ridiculously high $219 and the certification (two) are about $150 every other year, and of course they’re due in different years 🙄🤦🏽♀️. So with $800 saved, this should cover those expenses, plus I get a refund so I can stop saving after July. Once I’m told no more refunds, I’ll kick the savings back up again.
I promised myself that any money I get, something will always go in the savings, pay yourself mentality. I’m not saving as much as I would like to, I’m trying to pay off the student loans but I vowed to always put something up.
So out of the $779, $100 went to the EF and 619.90 went towards the cash back credit card payment. The $619.9 includes the appraisal, $510, and two fees of $54.95 for the refi, so overall I did not spend anything out of pocket and made money using my credit card cash back.
I had about $60 left, so I paid $30 towards the student loan and left $29 in my checking account as a buffer. I also paid the $219 (the refund) towards the credit card, for my professional membership fee. I like the idea of using the card, not carrying a balance and earning cash back. Even if it’s just $30 a month, that’s $30 I have to add to my student loan every month.
When I went to pay my student loan, I saw that there was a allocation option, never noticed it before 🙄🤦🏽♀️, so I clicked on it. Low and behold, I can allocate the percentage I want applied to each loan, interest first of course. I noticed that the loan that showed a balance of $29k was actually split into multiple loans. The smallest balance is just over $6k, that means that at the rate I’m going, $1k month, I can have this loan paid off by December. I feel so much better, knowing that these loans are broken up and that I would be able to pay one off this year. I feel like I can make some traction.
Lastly, the prayers are working, my friend’s mom is doing better, she’s still on the ventilator and in ICU but she’s doing much better, thank God and thank you all for your prayers.
That’s it in a nutshell.
Refund, Cash Back and Student Loans
July 8th, 2020 at 04:22 am
July 8th, 2020 at 05:27 am 1594182472
July 8th, 2020 at 01:54 pm 1594212851
I know Dave Ramsey says to pay the smallest balance first, but if there is a significant difference in interest rate, it may make sense to pay from highest interest rate to lowest.
You are seeing the difference small amounts can make by smartly using your credit card for rewards. The same is true with interest.
Also, if you feel comfortable, look at the bills you are paying like cable, cell phone, insurance and see if they can go to your credit card. I paid my car insurance that way yesterday - I got $6 back. It’s not a lot, but it’s mine. Plus it is tax free - if I had to ‘earn’ that $6, I would pay $1.5 in taxes! So I am happy to get it...but I know I will pay my credit card in full. This game isn’t for everyone, but you seem like you have become very disciplined and can make the system work for you!
July 8th, 2020 at 02:38 pm 1594215495