Hello all, I thought that I would take the opportunity to "fess up" to my starting point for 2013. I am planning on starting my own weekly or biweekly accountability so that I can follow my progress. So . . .
Car Loan as of 01/06/2013 : $6895.94 (biweekly payment $140.00) calculated at 0.9% fixed
Student Loan as of 01/06/2013: $19,306.43 (monthly payment $275.00) Note this one will go up on a daily basis as interest is calculated daily at about $2.67 calculated at 5.5% variable (interest is tax deductible)
HELOC as of 01/06/2013: $12,389.94 (biweekly payment of $50 plus a montly interest only payment) calculated at 3.5% variable.
Total debt as of Jan 6, 2013: $38,592.31
Target debt for December 31, 2013 : $25,000.00. Its a BIG goal but I think I can do it!
So my plan is as follows:
Redo my budget to allow for an increase in my biweekly payments to the HELOC (even if it's just $25 extra a week).
Redo my budget to allow for an increase in weekly spending money. I actually haven't raised my spending or gas allowance in over 3 years and the cost of food eats up most of my weekly allowance and my gas money won't even fill the tank anymore. The result is that I jump to the CC's to gill gaps (probably more than I should) and then the debt repayment gets sidetracked).
Split all extra money that comes in (i.e. tax refunds, extra paycheck months, mileage cheques) 50/50 target debt and a target sinking fund (i.e. if there is something I really want I will target the "me" fund. If I konw the dogs are coming up on their vaccinations, I will target that).
Every day go in and "round down" my account to the nearest dollar and send the extra to my LOC (I did this when I was saving for my vacation and it added almost $40 without me even noticing!).
WIsh me luck!