How To Plan- your thoughts please
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How To Plan- your thoughts please
| Mon, 10-05-2009 - 5:08pm |
I have heard that you should plan to pay off your debt within three years for it to be realistic and feasible...(With my huge debt this seems impossible...)
What are your thoughts and wisdom about this?


I am have not heard of the three-year magic number, but I think we are in somewhat similar situation. I am almost 40, single, with an annual income just barely over $100,000. The only debts I have are a mortgage and some $63,000 of student loans. I have worked out a plan to pay off the student loans in 54 months and still allows for a decent contribution to retirement funds (about 20% of my before tax pay) and some T&T ("travel and toys") money left. So it should be possible to tackle $52,000 in three three years if you plan well.
I also find that having a spread sheet showing the debt amounts going down, savings going up, etc., helps me stay focused.
I will tell you about me. In September of 2007 We owed around 30,000 and
I have noticed a lot of the debt management companies that advertise on t.v. say that if you can't pay off your debts within 3 years then that's how you know you need them.
Thank you all...Maryann, Marie and Robin
First Marie...Ty for being similar...Its nice to know that we are in a similar boat and I love your savings plan...I have been saving for retirement since Age 16 and am happy with my
Hi Duke,
I have heard of the three year rule. Actually its Gail Vaz Oxlade who really pushes for three years (Till Debt do Us Part). Her logic is that after three years, people start to experience debt fatigue and will start to rebel and fall back into their old habits. However, she doesn't count mortgage or student debt (usually) in that three years.
I'm trying for a two year payoff for consumer debt while growing some savings at the same time (I'm lucky in that my consumer debt is at 5.9%).
Bex -
I would think you would have to factor in the amount of your income vs. mandatory bills, vs. funds you can free up and what you want to get rid of.
Norma
"Patience is the best remedy for every trouble"- Plautus
The reason it is feasible is because of the debt snowball. As you pay things down you are paying more principle than interest and it goes faster at the end. You could do this in three years(likely a lot less with your income), but don't kid your self it takes dedication and not charging anymore.
And it really doesn't matter how long it takes because being debt free is priceless.
Good luck.
Hi Bex, Galstorelady and Norma....