7/19/2013

Update: LOC, Big Backyard Project, Shares & Escape Pay Off Plan


In November of last year, I was offered a Line of Credit with BMO.  We accepted it, thinking that it couldn't hurt to have the funds available - especially with planning our Big Backyard Project.  A few months back, we actually increased it from $10,000 to $40,000 thinking that it would be a way to also pay of the Escape at a lower interest rate.

When we polled our readers, everyone suggested that we increase our payments as well as pay off the Escape with the LOC.

We haven't done it yet (waiting until the dust settles with the Big Backyard Project), but we're getting close.



We currently owe a total of $15,337.77 on the LOC - this includes payments for the backyard to date (Fence, Deck, materials for garage) as well as about $3,530 in spending from our MasterCard that was unplanned (some costs with the Escape - windshield, new tire ect., spending more money on birthdays then planned, as well as extra costs from camping more than we had planned).  We're expecting the following upcoming bills that are planned to be covered by the LOC as we pay it off as aggressively as possible:
  • $5,775
    • Labour for garage
  • $356.30
    • Last 8 Feet of Fence
  • $6,782.10
    • Investment purchase of Shares through work
That will bring the total LOC balance to approximately $28,251.17.    We’re planning on being able to pay off $12,500 to the LOC for the remainder of this year (less then originally planned - details on that later when I finally catch up on our month-to-month spending updates) which will leave us carrying $15,669 forward into 2014.

The original plan was to carry forward $0 into 2014.  This changed to being comfortable with carrying less than $5,000 into 2014.  With the addition of the share purchases, and spending more this summer than planned - we're now looking at a significantly bigger number.  I'm sure we'll make a plan for that too - just haven't looked at the 2014 budget yet.

Let's loop back to the Escape - we currently owe about $18,500 there.  If my approximations are right for the last big of the garage and the share purchase - we should be able to transfer the balance from the Escape Loan (also with BMO) over to the LOC sometime in late Fall.  The balance owing on the Escape will be about $16,600 which would bring our total debt load (not including the mortgage) to be - $32,269   

We will then increase the automatic payments and treat the LOC line any other loan and get it paid off as quickly as possible.  

So, there it is - all of the details of our current projects and debt load.  I've probably missed a few details so please feel free to ask questions if you have them.

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