As of right now, I have five debts to pay off: a car loan, a personal loan, a school loan, and two credit cards. The school loan (-$4,452) is from the Bank of Mom and Dad and, despite having the lowest interest rate, it is the first debt I want to pay off. Fortunately, Mom and Dad are letting me live at home rent free, until October 1st, so I plan on taking full advantage of having the extra money.
Every two weeks, I net anywhere from $1,230 – $1,300. From now until September 2nd, I will receive 7 paycheques. With each cheque, I plan on paying:
-$149 to my car loan
-$117.42 to my personal loan
-$600 to my school loan
-$30 to credit card #1
-$896.42 x 7 paycheques = -$6,274.94
I am also expecting an -$800 tuition reimbursement from work, so I may be able to pay off closer to -$7,000 of debt in just 3 months!
My goal is to pay off both my school loan and credit card #1, first. Unfortunately, I will only be able to pay the minimum on credit card #2, which will leave it at it’s current balance for a while, but that is a price I (literally) have to pay right now. Once the school loan and smaller credit card debt are out of the way, I can start to chip away at my second credit card, all while making my bi-weekly car and personal loan payments.
When I move out in October, my debt repayment will slow down dramatically. At that time, I may take on a second job (yes, on top of my full-time job and school). Until then, I need to take advantage of living rent free and lower my current debt by as much as possible.
Have you ever set an aggressive debt repayment plan for yourself? How much did you pay off and in what amount of time?