Thursday, November 20, 2014

Target End Date - Revised

This week I am starting think of financial goals that I would like to accomplish in 2015. The main goal is paying down the big three debts that I have and in this order
  1. Pay off the Personal Loan $5,788 as of today
  2. Pay off/down Credit Card @ $9,000 as of today
  3. Pay down Student Loans @ 6,220 as of today
There are also 3 options that have been circling my head on how to get these bad boys paid off.
Keep in mind that I get paid bi-weekly so most of these are broken down by the pay period instead of per month.

  • Debt Snowball 
    • Paying the minimum on the last two debts and the max I can pay on the first debt.
    • My debt budget will be hovering around $700 
      • Personal Loan Payment $540 - paid off by April 2015
      • Credit Card Payment $100 - paid off by Oct 2015
      • Student Loan Payment $60 - paid off by Jan 2016
  • Pay off within the year - 26 payments
    • Debt budget approx $850
      • Personal Loan Payment $250 - paid off by Nov 2015
      • Credit Card Payment $350 - paid off by Nov 2015
      • Student Loan Payment $250 - paid off by Nov 2015
  • Pay off within 1.5 years - 39 payments
    • Debt Budget approx $600
      • Personal Loan Payment $150 - paid off by May 2016
      • Credit Card Payment $250 - paid off by May 2016
      • Student Loan Payment $200 - paid off by May 2016
This doesn't include any extra payments that I might be able to pay out next year. Either way - this will be sooner than the Target Date I have set for myself which was July 2016.



Which one do you think is the best option? 



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3 comments:

  1. AnonymousNovember 20, 2014 at 5:54 PM

    Have you looked into interest rates/ interest payments... Which option would maximize payments with less going into interest?

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    Replies
    1. UnknownNovember 21, 2014 at 11:04 AM

      I have actually considered that - I should've posted them as well. But the personal loan actually has the highest @ 11% and I wanted to pay the CC next since a huge chunk will be off the 0% rate by Feb. 2015. Thanks for dropping by!

      Delete
  2. MorgaineNovember 21, 2014 at 1:10 PM

    Sounds like a good plan, and ahead of schedule! I would go with option 2 since it gets you out of debt the soonest but even option 3 is ahead of the game. So, if something was to happen one month that where you couldn't meet the debt repayment goals you'd still be doing well :) Good luck!

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