1/06/2014

2014 - Debt Pay Off Plan!

Well - it's time. All of the holiday bills are in, and I've reconciled my spreadsheets with who we owe what to.
We had done a lot of holiday shopping for other people, a lot of shopping for ourselves and each other - as well as travel and some emergency expenses (parking, meals out) we had in December (my grandfather had a stroke). We are still holding on to a lot of cash while we wait to see what Jordan's first pay looks like (Jan 15th), and we are still waiting dental reimbursements ($3,000), and school reimbursements ($900). All of that said - I wanted to get our tracking bars updated, and start the year off on the right foot!

We have though - started making progress and it shows in our Networth which has already increased by about $2,200 in the first week of the year.

We paid off the Amex card which was around $900 owing, settled up with our family that we purchased gifts for (on their behalf), and made a payment on the MasterCard.  I transferred the balance (as it was about to start accruing interest) over to the LOC, so the M/C balance is now also $0.

The LOC, with an interest rate of 5.49% and the Escape with an interest rate of 6.90% are our two debt priorities for this year.  In the short term - we are expecting the dental and educational reimbursements which will bring the balance down to $25,100 - from there we have regular weekly payments of $100 which will bring it down (throughout the year) to $19,900.

We have about $6,000 in our chequing account earmarked for the LOC as well which should get us down to about $14,000.  So - in pretty short order we should have gotten this down quite significantly.  Our ability to get the rest of it paid off will depend greatly on Jordan's income which we expect to vary quite a bit.

The LOC maximum is $40,000 so once we get $5,000K paid off, we can move the balance of the Escape over and save a bit on interest there.  The Kia is at 0% interest - so we'll pretty much just ignore that as far as additional payments go.
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1 comment:

  1. Sounds like a good plan. Make regular extra payments, throw any extras you get. Good idea to move money from the LOC to the car since the LOC has a lower interest rate, helps to pay that down faster :)

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