Tonight we added an extra $100 to my monthly student loan payment. The interest rate on my loan is relatively high and cannot be consolidated because it is a private loan. I knew that paying some of it off early would save me years of interest charges, but I had no idea how much until I sat down and did the math tonight. That $100 would rack up $1,326.76 in interest over the life of my loan! That’s a LOT of wasted money!
After seeing that amount, Him and I decided that we will pay $100 more than the minimum on my student loans every month. We are already paying at least $200 extra on our highest rate credit card in an effort to pay it off quickly. We both recently got raises so this is an effective use of the additional income.