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My New Debt Plan and other Plans

March 13th, 2011 at 08:24 pm

A few months back, I made a spending plan, whereby I allocated $500 to go towards my debt. Doing that had my debt elimiated in 30 months, knowing that I could add any extra monies and have it gone by December 2012, was my goal; and still is my goal.

Well, after I started that plan, I did get two debts paid off, but now since the beginning of the year, I have only been able to put $355 per month towards my debt, due to my husband being laid off from work since Thanksgiving week and both vehicle and homeowner's insurance due in March and April. He has been back to work for a few weeks, so we are making progress.

But I did redo my snowball on the "what's the cost" website and it states that I will have my debt paid off in 49 months if I keep paying $355 month. I, of course, intend to add any additional monies I get from my income tax returns, garage sales, passive income, etc. to put towards that debt so that I can become debt free by December 2012 (21 months). Earlier would be nicer.

I am still putting $250-$300/month away into my emergency fund to cover the cost of Christmas, property taxes, insurances, car and house repairs, so that I am not caught off guard in the future. This emergency fund goes up and down when those bills are due.

Plus, I am having all of my summer job money directly deposited into a savings account to allocate for a car in September 2011, unless sharing a car with my daughter is still working out. Nonetheless, I will have money for a vehicle whenever that time comes.

Doing it this way relieves my stress of paying my regular household bills and my debt. And then when I do get any extra income, I can allocate it where it is deemed appropriate.

1 Responses to “My New Debt Plan and other Plans”

  1. creditcardfree Says:

    Sounds like a good plan. I hope you find lots of extra income this year to put towards your debt. You are doing great!!

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