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Debt in Venice - The Book of the Celestial Cow

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March 28th, 2007


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07:46 pm - Debt in Venice
Dear Polter-Cow,

We are pleased to inform you that you are now debt-free. You did not have nearly the burden that others do, since your parents paid for college and your dad paid the unsubsidized portion of the loan for your last semester of grad school. You only had a mere eight thousand dollars to worry about, which you were paying off slowly and gradually. Then, you got a job, and you worked for close to a month straight, and you used that overtime pay to knock down your principal. You celebrated the new year by once again knocking down your principal. Then you discovered that you had not cashed a paycheck from the previous year, and since you had not even realized you had that money to begin with, you knocked down your principal once again. By this time, you were becoming antsy, as you had in been in repayment for a year, which meant that the loan had served its benefit to your credit rating. You increased your monthly payments in an effort to more quickly rid yourself of having to pay hundreds of dollars in interest.

Since you save more than you ought to and don't spend enough, you had the funds to pay off the loan entirely but were afraid of losing your security blanket. Then came your substantial tax refund, which you resolved to once again use to knock down your principal balance, but that tactic subsequently inspired you to pay off the loan entirely, since you were financially able to, and the interest you were paying was just wasted money.

In an amusing coincidence, your annual bonus was almost equal to your tax refund, and together, they were just about enough to pay off your loan. You also received an infinitesimal raise due to the fact that you were only officially an employee for three months in 2006, so how could you possibly deserve a decent raise at this time? Take comfort in the fact that you received stock options and restricted stock, which, in the future, can be turned into money. Next year, your monetary rewards should be much greater.

As we said earlier, our records show that you no longer have a student loan hanging over you. The only debt you currently have to worry about is your massive credit card bill, inflated by car repair and auto insurance. We wish you luck in your future endeavors.

Love,
The World

P.S. The government is a little slow and took out $150 on your due date despite the fact that they had just received your payoff amount. Rather than give it back to you, they're going to sit on it for two or three months and then give it back.

P.P.S. Also, you overpaid by seven dollars. Look for that in two or three months, too. Buy yourself a sandwich.

P.P.P.S. Wait until you get married, have kids, and buy a house. You'll be fucked.
Current Mood: pleasedpleased
Current Music: MC Lars - 21 Concepts

(44 memoirs | Describe me as "inscrutable")

Comments:


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[User Picture]
From:sabra_n
Date:March 29th, 2007 02:52 am (UTC)
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Congratulations! (she said, bitterly looking at 10 years of payments in the future...)

-blue
[User Picture]
From:spectralbovine
Date:March 29th, 2007 02:54 am (UTC)
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Yeah, that seems to be most people's reaction to this news. Heh.
[User Picture]
From:glasseseater
Date:March 29th, 2007 03:03 am (UTC)
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i hate you.

not really.

well, maybe.
[User Picture]
From:schnappycat
Date:March 29th, 2007 03:04 am (UTC)
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Congrats!
[User Picture]
From:towers_of_ivory
Date:March 29th, 2007 03:11 am (UTC)
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Awesome.
Yeah, don't buy a house! Ever! Or get married! Come drink lattes in Paris with me and be selfish, selfish, selfish!
xoxoxoxo
[User Picture]
From:spectralbovine
Date:March 29th, 2007 03:14 am (UTC)
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I've never had a latte!
[User Picture]
From:kerrypolka
Date:March 29th, 2007 03:15 am (UTC)
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Congratulations! :)
[User Picture]
From:latropita
Date:March 29th, 2007 03:25 am (UTC)
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Congratulations! (I say having not yet experienced the joy of debt)
[User Picture]
From:spectralbovine
Date:March 29th, 2007 03:31 am (UTC)
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It is not joyous! It is dumb! You're like, "Here is my monthly payment." And they're like, "Thanks! We'll put this toward your principal and use this for the interest." And you're like, "Wait, wait! No, put it all toward the principal! That's the sum that's causing me interest in the first place!" And they're like, "Right, but we want the interest now." And you're like, "Can't I just pay all the interest at the end? If I just paid the principal, this process would go a lot faster, wouldn't you say?" And they're like, "Faster for you means less money for us!"
[User Picture]
From:sjester
Date:March 29th, 2007 03:40 am (UTC)
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Congratulations.

Ugh, I have to start paying mine in June. Which means I need a job that lasts more than three weeks.
[User Picture]
From:spectralbovine
Date:March 29th, 2007 03:44 am (UTC)
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Jobs help. You might be able to defer if you don't have one.
[User Picture]
From:zimshan
Date:March 29th, 2007 04:03 am (UTC)
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I so do not look forward to this.
[User Picture]
From:denisef
Date:March 29th, 2007 04:13 am (UTC)
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Congrats! You will be fucked once you get married and have kids, though. Trust me. ;)
[User Picture]
From:shpyum
Date:March 29th, 2007 04:24 pm (UTC)
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Your icon is amazing.
[User Picture]
From:beathen
Date:March 29th, 2007 04:51 am (UTC)
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Congratulations on paying off your loan! I can't wait until that happens to me!
[User Picture]
From:jeeperstseepers
Date:March 29th, 2007 10:54 am (UTC)
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The World writes good letters!
(Deleted comment)
[User Picture]
From:punzerel
Date:March 29th, 2007 11:57 am (UTC)
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Yay! That's so awesome. *not looking forward to taking out grad school loans*
[User Picture]
From:pidgehuss
Date:March 29th, 2007 12:03 pm (UTC)
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That is SUPER AWESOME! I, too, do not have crippling student loans, I have roughly $16K total to pay ol' Sallie. (I went to grad school for free, because OSU had a sweet internship program in my field, though they've restricted it quite a bit now and made it infinitely harder to get a tuition waiver. Though, living on an intern's salary did put me into deep credit-card debt, but that I'm almost done with and am only putting off paying the last bit because I have a pair of jeans to return to the Gap that I bought with that credit card and I want to get that money back, pay it off, move my money from the attached bank account into my new bank account that earns interest and then close everything having to do with Chase. Which...all hinges on me driving myself to a Gap store. That is utterly sad, I'm aware.)

Baaaack on track. So, yay, even though you have about half as much debt as I did, I am please to see it didn't take you years and years to pay it off. I've been putting double or triple the amount of the payment in each month, as I can afford to (read: it's a hell of a lot easier now that I have an income again), and once I'm done with my credit card, I can put the surplus money towards that. Not that paying $700 or $800 a month will really help me kill the loan that quickly, but I'll do what I can in the meantime.

I'm curious, how did you get them to pay your principal down? Had you just gone through all of the accumulated interest at that point? I have quite a bit of interest to get through still, before I even touch my principal. Can you pay a sum to reduce the principal? My fiancee is selling his car, since we only ever use one at any given time anyway (also, public transportation in Columbus is tricky, but certainly useable for work), and he wants to use that money to go towards my student loan, since that's our only substantial debt (...THUS FAR). Any advice you have on this principal thing would be super.

So, in conclusion: Yay for you! I talk about my own damn finances way too much to people who couldn't possibly be interested! Wait, does getting married mean you're fucked? (Other than the obvious...heh.) Or just kids and a house? Cause I think I'm not bringing any tiny children into the world for a few years. Hmmm. Also, more yay for you-ness!
[User Picture]
From:spectralbovine
Date:March 29th, 2007 02:57 pm (UTC)
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I'm curious, how did you get them to pay your principal down?
This is the trick: schedule your payment for the day after your monthly payment. Interest is calculated based on how long it's been since your last payment. So if you pay a hundred bucks for your monthly payment, thirty bucks will go to interest, which sucks. But, if the very next day, you drop in a thousand bucks, only a dollar will go to interest, meaning the rest knocks down your principal. Ta da!

If your loan doesn't work that way, then I don't know what to do.
(Deleted comment)

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