Thursday 12 October 2017

I Have My Freedom Number!

Today is a Wanda Payment Thursday . . . THE LAST WANDA PAYMENT THURSDAY! 

Yes, this is the last regular payment (unless the bank forgets to stop taking payments) that I will ever make! 

The next payment will be my last, and that one will be my made the 23rd (Payday). That will be the payment which will pay off the Wanda Loan.

That means that I will be paying off the outstanding balance. Over the course of the loan that outstanding balance has been affected in two ways.

The first is when I make those large payments on my paydays. 

Those are easy to calculate the effect they make on the outstanding balance. What I pay is how much the outstanding balance drops. 

For the regular payments, those have been harder to predict. 

This is because there has always been a constant shift between the amount that is taken by interest and the amount that reduces the outstanding balance. 

(64.80% of each payment went to interest when I started tracking the loan, to 20.17% of today’s payment). So, yeah, those large, extra payments really made a difference to the outstanding balance.   

I figured out a bit of a formula and used that to predict what the drop would be each time. Well, this time my prediction was spot on. 

(Not bad, if I do say so myself.)

I won’t say the number because the exact number is irrelevant. To some it would be less than they spend on office supplies in a month, to others it may be more than their annual salary. 

The fact is that I know what I need to pay off the loan, and my budget says that I will have that much in my account come payday, (and very little extra).

So this means that what the outstanding balance is today is the amount that I will pay to pay off the Wanda Loan.

Now, it is possible that there may be some sort of fee or other penalty in paying the loan off early.

It is my understanding that there are no such penalties with regards to the Wanda Loan, but I have an email in to the banker I have been dealing with, just to check.

(I hate surprises with regards to finances.)

This is another step towards Total Debt Freedom, and it is good to see that things are falling into place. 

As always: Keep your head up, your attitude positive and keep moving forward!

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