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I finally completed step two of my plan. It took longer than I thought to get the Citibank funds into Sallie Mae. In fact there are still a couple of more days before Sallie Mae will credit my balance. The main thing is, I sent that e-payment on its way, so my part is done.

The next steps are to set up new autopayments and run new projections. I'll wait to see what my new minimum payments are at Citibank and AT&T before I do, but I'll tuck an extra grand into Sallie's ample bosom before this month's out! ;-)

Hope y'all don' mind my sharing all the gory details. It helps me stick to my plans and I do appreciate the feedback I got from xraymd on this topic. I'll let y'all over here know when step 3 is complete (if there actually IS anyone over here, hello?), but I'll probably take my musings over to the credit card board, since I'm essentially more into Citi and AT&T now than I am into Sallie. (Debtors are such fickle suitors, especially Foolish ones!)

Anyway for anyone interested here are the new stats (all rates fixed):
Sallie Mae SUB 7% [before: 37,032.28] 12,157,94
Sallie Mae UNSUB 7% 10,066.51
AT&T MC 4.9% [before: 3901.27] 12614.04
Citibank Visa 4.9% 17,770.29
Add'l Citibank Visa 3.9% 15,993.00
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Greetings, zeppocat, good going! I see that you paid down the Sallie Mae SUB rather than the UNSUB. Are you on a deferment - if so, you might want to have Sallie Mae actually put those funds first to your UNSUB because the UNSUB generates interest under a deferment and the SUB does not.

Even if you are NOT under a deferment, the SUB funds are still eligible for later deferment if your circumstances change, so you still might want to have Sallie Mae re-route your large payment to first retire the UNSUB funds as fully as possible. I know it is the same 7% interest you pay to either loan if you are not presently deferred, but why not rid yourself of the loan that has the worst potential to bite you when the other loan has more favorable potential terms? Just ask Sallie Mae to reapply the payment exclusively towards the UNSUB to pay it off, leaving the SUB next paid only after the UNSUB is retired.

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Just a heads up, thought I might mention to check your credit report when this is all said and done. My experience following consolidation was that my "paid off" loans still appeared, in addition to my new consolidated debt. While your situation is not exactly the same as mine, I could see how your debt could be reported twice, making it harder to get creidt in the future.

Also, there is some debate here regarding tax deductibility of credit card interest. You might want to check into that for your situation.


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