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New Debt Reduction Plan for 2012

November 29th, 2011 at 07:52 am

Looking ahead to 2012, I have thoroughly pondered how I could possibly be completely out of debt by the end of the year.

Hmmm, as I have lost countless hours of sleep, I came across an idea. My best ideas come in the middle of the night.

What if I could just live off my income and use what my husband gives me to pay back my debt. Let's take a closer look.

My new 2012 regular income will be $1631/monthly. Here is what needs to come off that amount.

*Mortgage: $900/month
*Savings account transfer: $50.00
*Consumers Gas: $180.00 Right now, I am living off a credit of approximately $750, which will take me out of the cold months of next year.
*Electric: $163.00
*Cell phone plans: $100.00 I rounded this number up.
*Internet, cable, landline: $164.00
*Vehicle and Homeowner's Insurance: $143.00
*Water Softener Salt: $25.00
*Sewer Bill: $20.00
TOTAL: $1745.00

Leaving me $114.00 in the hole. But, I am living off a credit right now with my gas company, so that difference could be made up here. This makes consumers actually $66/month that I will keep adding to my checking account which by the time the credit balances out to when I will start owing again, I should be a head in my checking by around $300ish.

Now, for the debt part: The past few years, what my husband has given me from his income averages around $12,000 a year.

Right off the git go in 2012, I am going to get the Art Van paid off and my income tax return will pay off the Care Credit balance before the interest kicks in on that debt, leaving me around $10,000 owed. If I take what my husband gives me and completely apply it to my debt, I believe I could actually have all of my debt gone by the end of the year.

As for the rest of the expenses and unexpecteds, like groceries, gas, my new grand-daughter's baby shower, etc., I can use the money I make from my babysitting and house cleaning business to pay for those areas. I will just have to stay creative and put in a larger garden in the summer and do more canning, freezing, and harvesting next fall.

I have also started a craft business, which has made me a profit so far. I would like to just keep putting all of those monies directly into a seperate account until I can get to a point of paying myself.

And, my summer beach job money can go directly into my savings account to pay for the larger bills like property taxes, Christmas and emergencies, which is what I did last year and it worked out great.

The issue is when should I purchase a vehicle. I am still sharing my daughter's vehicle and eventually, I am going to have to get a vehicle of my own. So this is the area I am working on, but I will figure something out.

3 Responses to “New Debt Reduction Plan for 2012”

  1. ThriftoRama Says:

    It sure sounds like a solid plan.

  2. LuckyRobin Says:

    Sounds like you have prepared a great plan for the coming year.

  3. Jerry Says:

    I like the way you are thinking and being creative with your planning, and I am sure that it will lead to some insurance of a successful 2012 for you! Good luck, and keep at it... Smile Jerry

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