Feel the pinch, it's the first of the Month

hbl_2

My first substantive payment on my graduate study loan came out today.

£500!

Last month's was £263, but this wasn't enough for my tastes considering about £60 of that was towards interest. £500 gives a much bigger impact on the balance and makes me feel like I'm finally getting started.

Roll on 1 September!

beanielou

Arent you lucky that you can afford to pay that much?

Willsnarf1983

beanielou wrote:

Arent you lucky that you can afford to pay that much?

is that bitterness?

Well done on the payment, keep it up but also remember to have a life

Will

gallygirl

Well done - but can I ask why you're paying off the graduate loan 1st rather than getting your overdraft down to fee free level? The £800 attracts around £7.33 interest per month, whereas £800 graduate loan attracts only £3.83? Only £3.50 a month, but over £40 over the year?

hbl_2

ali007 wrote:

Well done - but can I ask why you're paying off the graduate loan 1st rather than getting your overdraft down to fee free level? The £800 attracts around £7.33 interest per month, whereas £800 graduate loan attracts only £3.83? Only £3.50 a month, but over £40 over the year?

My maths is that the study loan costs me £60 or so a month, so the sooner that gets down the cheaper it will become. That kind of interest dwarfs my overdraft, but I'm also paying that down as I go. The idea is to get it back in black within the year, by paying it down where I can.

The overdraft may be the highest interest, but it's also the lowest amount, and 6% of 13000 is a lot more than 11% of 800.

As for being able to pay £500 a month beanielou, I'm a single 26 year old with no kids, no girlfriend, no car, no commute. I have an iPod and a PC, a shelf full of books, and a subscription to DVD rental. Seriously. What else am I going to spend £500 on?

With my meagre income, it leaves about £230 for the month. I'm confident I can keep the payments up at that level for the forseeable future.

gallygirl

Ah, but 6% of £800 is a lot less than 11% of £800 which is what we're really talking about. And then you would have £3.50 a month extra to pay off the graduate loan early......:rotfl: :rotfl: :rotfl: :rotfl: ok granted not by much but it's the principle that matters.

But splitting hairs really, important thing is it's all going DOWN!!!!!!

beanielou

No i dont think bitterness but I do think that OP is lucky to be able to pay £500 pm to one debt alone but thats just my personal opinion.As hbl says he is lucky that he has no other commitments.I have a lot of other commitments.
Such is life.