You may recall that several posts ago I mentioned my ambitious plan to get completely out of debt in relatively short order.
So I finally got around to getting everything set up. I’ve scheduled payments on my big credit card, and it should be paid off by the end of January at the latest. We already make a payment on it each month from our family account, so my adding payments from my personal account will more than triple the original amount.
Then I calculated how long it would take to pay off the car if, when I’ve finished paying off the big credit card, I apply the same amount of money to the car. Another year or so.
I then calculated how long it would take to pay off the car if first we slightly more than double the amount we’re paying from the family account each month, and then, once my big credit card and the car payments are gone, that money gets applied to the house.
All other things remaining the same (no job changes, health issues, etc.), at the outside it will take 5 years to get the house paid off as well, although I think we can probably do it in 3 years.
Do you know how wonderful I’ll feel when I’m no longer carrying any credit card balance, when my beautiful car is paid off, and when my house is paid off?
When I do manage to get a promotion and a raise, the equations will change for the better. (Notice I said when, not if? Yeah, I’m thinking positive here.) I like having a plan not just written down, but programmed.
How are you working to eliminate financial stressors in your life? Or have you already paid off all of your debt? If so, what tips can you share?