Jordan and I have a budget date coming soon; and we will need to decide if we should approach paying off the Line of Credit and our Savings (including planned spending) monthly or lump sum as well as if we should count on rent in the budget; or use it as surplus to pay off the LOC early.
If we attacked it lump sum; the repayment/saving schedule would look something like this:
This plan assumes that we will be able to incorporate about $500/month into our annual budget for the first six months of 2014 from our new roommates. The Emerg fund would see a lot more money then in our plan; because at the end of the year; everything extra would go to that.
Monthly, would look something like this:
I would really appreciate comments/suggestions/challenges to either plan.
Part of me really wants to 'set it and forget it' and not have a bunch of manual transfers every month - the other part of me wants that debt gone and pay as little interest as possible.
Jordan doesn't want to count on the rental income; but I think that income is income and we should count it.
What do you think?