Excellent question, bloggy friends. I have some lofty goals....not sure if it will all work out, but I am gonna try!!!!
Debt Snowball. The next victim on our list is G-man's car. Actually, the end is near on that one. Taking $2,000 from our refi money plus the regular payment for May only leaves a few hundred left on the loan. With three paychecks in May, this is a no-brainer. I am tenatively setting May 16 as the pay off, but depending on how things go, we might wait until the end of the May to make the official payoff.
After the car....CC1. That stupid card was paid off for a blink of an eye, and it needs to go back to that. With the money freed up from paying off the car, we should be able to work through this one fairly quickly. The catch to this....we only really have this money freed up for 4-5 months.
As of Sept 25, Student Loan #1's monthly payment will increase from $82 to $229. We had always planned for the car to be paid off before that happened so the "car" money will become "student loan" money. It will still leave $200 in play to snowball, so we have to take advantage of the full amount while we can.
Once we get to the fall, we will have to reexamine everything. I am not sure where all the numbers will be by then. As a general idea the snowball will go: Car, CC1, CC2, CC4, Student Loan.
Notice I didn't put Lending Club in there. That is because I "think" that will be paid off around the same time CC4 will be, so it really isn't getting any extra action. But we will see.
My Car. Alas....my car turned 150,000 miles this morning. And while it is still chugging along, it won't last forever. I would like to start saving for a new car, but haven't quite figured out how to pull that one off yet.
Insurance Stuff. One of our goals for the year was to get more life insurance. Since I will be 36 next week, and G-man will be 40 this fall....I would like to figure this out this summer. I know we can't afford as much as I think we will really need, but I would like to at least get the ball rolling on this one.
So now...for the goal of the moment....
I would like to be under $60k in debt by my blog anniversary in August. That is a little under $8,000 to pay off in 4 months. The car will be about a third of it, so I think it possible. We are sure gonna try! G-man has been putting in for overtime, so as long as we stick to the plan, I think we should be ok!!!
Thoughts? Would you do it differently?
I think you've got a great plan here!! I will root for you for your August goal, I think you can do it!!
ReplyDeleteSounds like a solid plan and you seem to have thought of all angles. I'll be looking forward to watching your progress and will be here to celebrate when you reach that August goal!
ReplyDeleteSarah
I think it looks good, and having those dates there helps keep you fixed on the goal. Sounds like G-man is more on board with the plan now which is good.
ReplyDelete$8000 in 4 months will be great!1
Look into getting G-man's insurance before he turns 40! There is often a $jump between 39 and 40.
ReplyDeleteNo, you are doing the right thing. If it isn't the right thing you will know. I had to change my strategy three times to get where I am right now. You may have to also. But you will know. Trust yourself and do not debt. I am proud of your progress. Keep it up, because it is good for the rest of us. Selfish little being, I am.
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