In my last post, I stated that things are not as bad as they once were. Now, I am begging to differ. Currently, there is a tax lien on my credit report that I was not aware of. Also, there are two undergraduate student loans that need to be paid off so I can qualify for the teacher loan forgiveness program. There can not be any loans prior to 1998 to be able to receive this forgiveness.
Day before yesterday I found out that I didn't meet the requirements to receive financial aid for this term. Turning lemons into lemonade. Not getting financial aid will cut down on the amount of money I will owe once I complete my PhD. On the other hand, this is $4,310 that could be going to something else. The world and it's occurances are something. There are actually three terms in one year. That totals $12,930 a year. I keep telling myself, this is money and interest I do not have to pay out once I am finished.
Since finding out this news, my mind has been going a million miles a minute trying to sort out my plan of action to pay off my debts. Yesterday, I pulled my credit report and found that I have a 587, 635, and 635. My scores are better than they were without the tax lien.
This is my plan of action:
Pay $2,000 a month of debts for the next year. This will total $24,000. Using that money will allow me to pay off the tax lien in three months. Starting in September, it will be paid off by December. Through it all, I am going to continue paying something on Wachovia and US Dept of Education.
Life Happens
Life happens and it is all up to me to make sure I stay afloat. It is so easy to give up and just fall victim. I refuse to be a victim to my debt. Giving up vacations to pay off debt is a sacrifice and I am willing to sacrifice that money to have financial freedom. Another thing, I have $54,000 in school debt. The funny thing about that is I make about this much yearly.
Overall, I am somewhat saddened by not receiving financial aid. This is the outcome of not doing what is needed at the moment. Thinking about my life and how I have wasted time, energy, and money by not doing something when it needed to be done. No longer can I do that to myself. I am tired of doing this to myself and my money. Maturity is taking place and I am proud to say I am ready for the changes to occur in my life. Sacrifice is what is taking place in my life. I am ready for the changes and the debt will be handled.
1 comment:
The new issue of Reader's Digest has an excellent article entitled "Fiscal Fitness." It gives suggestions such as tracking your spending,automating bill paying, paying down debts beginning with the biggest first, spending less, saving, and having a family pow-wow on finances. It also stresses getting insurance. Worth reading!
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