Okay, so that experiment was much shorter than I had planned, but I did learn a great deal. I am reworking my plan to pay down the Wanda Loan (yet again).
As I have said before, never be afraid to change what you’re doing in order to respond to the outcomes of what you have done in the recent past.
I, for one, have often said “Well, that sucked,” and then promptly altered my plans.
Anywhoos, this past Saturday was Payday, and so I made my first bulk payment on the Wanda Loan. In so doing I have learned two key things.
The first of which is that these payments are not automatic nor are they instantaneous; heck, they are not even promptly processed.
It took the two and a half business days (as in Wednesday, morning) for this payment to be processed. Apparently these payments are processed manually, and so take time (don’t ask me why).
The second thing I learned is that no interest was taken off of this payment, meaning that all of this extra money goes straight onto the outstanding balance of the loan.
It is the combination of these two things which kills the plan that I had to pay an extra hundred dollars on the off week from my usual Wanda Loan Payments.
You see, first of all, since no interest is being taken off of my extra payments there is no sense in waiting.
Second of all, since no interest is taken off, I am not reducing the amount of interest that has accrued.
Thirdly, since these payments are not prompt, they toss the plan to reset the amount of interest accrued into the dustbin.
So, what I will be doing, is simply putting the bulk amount that I had planned on the loan each payday.
I have modelled what would happen, and even if nothing changes in the way my regular payments are handled (meaning if I still pay as much interest as I do now) I will still be able to pay the loan off by December 22, of this year.
So, I can relax, somewhat, and just clomp on ahead. I am hoping that the interest portion of my regular payments drops significantly, meaning I can pay this loan off sooner.
There are still more variables that can throw this plan off, but at least I know what can happen, and that it is possible, really and truly possible (and probable) to be debt free this year.
As always: Keep your head up, your attitude positive, and keep moving forward.