This activity really aligns with what Jordan and I were talking about over the last few weeks - increase mortgage payment, pay of LOC, or pay off escape. Well...let's look at it all and make a plan.
Gail feels very strongly that all debts must be paid within three years of starting a pay off plan in order to avoid debt fatigue. It has to be quick enough to realize gains without being so fast that it feels like an impossible task.
So...leaving our mortgage out of the equation we have two car loans and a LOC - given that the Kia has a 0% financing I'm going to focus on the Escape and the LOC.
Using Gail's Own Up to Your Debt Worksheet online, I came up with the following options:
Jordan and I currently have $900/month committed to debt repayment - so we're short $230.96/month to get it paid within three years. I believe very strongly that we will be able to come up with these funds with Jordan's Commission - but we need a way to stay on top of that.
To help us do this, I've done two things.
- Added an extra line item on our monthly budget 'Extra to Escape' (because it has the highest interest rate) - as a reminder that money needs to go there before into the planned spending categories.
- Added a tracking bar on my blog to stay accountable for the extra $8,314.56 we need to come up with over the next 36 months.
So, there's the plan...what do you think?Check out the My Money, My Choices program by clicking here.