We talked yesterday about Jan’s discovery that the interest rate calculations aren’t exact, so I’m not going to swear this is a perfectly correlated difference. But the monthly amount I have set up in the debt snowball is $700/month, throughout our payback schedule. The fees only added up to $3300, but the difference over time + interest was six months * $700 = $4200. That $900 difference was the interest paid. Sigh. For most of my life, compounded interest was my enemy. Refreshing to see it finally showing up as my friend.
Also makes me realize that the sooner I can put big payments down on the total owed, for any of these bills, the “bigger” that extra payment will be thanks again to the interest. Wonder how much $$$ I could get if I sold a few used cats……….
our late fees have been waived!!!!!! YAY!!! I didn’t dare hope that they would really be waived, but the accountant suggested we may as well try. The IRS steadily sent us letters since our petition about mid-November, that it was still under review, and they might want additional supporting information. I was getting ready to send all that stuff, crossing fingers, dreading that it wouldn’t be enough. But today, unexpectedly, we got the letter that the late fees have been waived. This cuts our IRS bill down from roughly $8800 to a mere $5500.
I didn’t exactly earn that, and I’ll never be late again on taxes after facing such steep late fees. This gazelle got lucky to have escaped with a lower tax bill. But escape she did, and I’ll be happy with that. Yeah!!!! Just goes to show, it never hurts to ask