My Next Debt Repayment Plan

Now that my education is fully paid for, it’s time for me to start tackling my credit card debt. I only have a few months to make aggressive debt repayments on it, before I need to move out of the ‘rents house again. So, let’s see what I can do.

I have five paycheques from now until the end of November. My plan is to put at least +$600 per paycheque on my credit card debt. If I can do this, my debt should go from -$6,500 to approx. -$3,500 (plus some interest, of course), by December 1st of this year.

During these next 2.5 months, I am going to continue doing what has been working for me so far: not going to the bar, not drinking much alcohol at all, and basically never shopping. But Baby Bro’s 16th birthday is coming up, as is the biggest holiday of the year – dun dun dun, Christmas! And, I desperately need a haircut now. Anyway.

If I move out January 1st, December is going to be tight tight tight. A huge part of me is hoping the ‘rents will let me stay at home until February or March but we’ll see what happens closer to then. Either way, moving out with -$3,500 of debt in comparison to -$6,500 puts me way ahead of the game.

My payments will obviously slow down, once I move out, so I need to get as much paid off as I am comfortable with. The biggest issue will be whether or not I can ignore my soon-to-be available credit. Cross your fingers I have the strength!

  • Can you get your credit limit reduced when you’ve paid off some of your card? After I paid off my cards, I felt like I had no desire to rack them up again. After living on a tight budget to pay things off, it somehow seemed easier. Also, living with a budget really helped me to figure out what I could pay for and what I couldn’t. If you’re worried though, I’d definitely just eliminate that temptation by lowering the limit on your card. :)

    • You know, I’d rather not… a couple years ago, my credit card limit was $14,500 and I regret lowering it. Why? Because it is better to have more available credit. I’d rather stay strong and refuse to use my cards for anything other than ordering cheap textbooks online.

  • oh how I wish I had the option of crashing on someone’s couch for a few months and saving a few bucks in rent!
    I hope you get to stay with your parents as long as possible it will definitely set you up for success in the long run.

    I agree that lowering your spending limit will help you avoid temptation, but also keep in my that you need to be about 60% below the limit to keep a good credit score. (at least I think it is 60%)

    • I hope I get to stay w/ them for as long as I can, too!

      I’m definitely not planning on lowering the limits on my card… I just need to lower the amount owed to 60% or less (like you said), as fast as possible!

  • Sounds like you have things on track, this is very exciting. As much as I love the holidays I hate how expensive they are….I miss the days when you could just hand-make someone a card and call it a day!

    • Totally. Although, I do have some inexpensive gift ideas this year. In fact, I kinda can’t wait for the holidays, so I can post ’em… :)

  • I’ve fantasized before about moving back in with my parents to save money, ha ha. Though I don’t know if the savings (rent + utilities = $275) would offset the hassle and the whole living with my parents thing. :) But I think it’s awesome that you’re making it work, and doubly awesome that you’ll be paying $600 per check to debt! I hope they let you stay longer. That would be AH-mazing.

    • Yea, it definitely wouldn’t be worth it for you… when I move back out, rent is going to be ridiculous. (You’ll see!) I’m going to try to shoot for, hmm, February or March? ;)

  • You can do it! I will be crossing all body parts for you. For Christmas this year maybe you can try giving homemade gifts from love? If you good at drawing I would send give them a portrait or if your good at cooking put together a recipe jar etc.

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