I was a little hesitant to create this next post because it’s pretty personal and lets you see exactly how overboard my spending has been these last few years. But I decided I needed to be straightforward and transparent with you all to show you exactly what I am doing to get out of debt. Be nice! 🙂
I recently went Excel sheet crazy and was trying to figure out the quickest way possible to get out of debt. I’ve heard so many different theories on the best way to pay down debt and all of the information just didn’t seem to fit my situation. (Pay down the highest balance first, pay off the higher interest first, get rid of your private student loans ASAP.) Those generic catch-all phrases just didn’t make much sense to me. So I created about fifteen Excel sheets using different methods to see which one came up with the quicker payoff date.
What I came up with was a mix of [easyazon_link identifier=”0785289089″ locale=”US” tag=”brigcent-20″]Dave Ramsey’s[/easyazon_link]s snowball mixed with [easyazon_link identifier=”1594482241″ locale=”US” tag=”brigcent-20″]Suze Orman’s[/easyazon_link] common sense. Here is a breakdown of my current debts and the order I plan to pay them off:
- Home Improvement store credit card @ 0% interest – $379
- Private Student Loan @ 4.5% interest – $5,516.33
- Car Loan @ 2.99% interest – $4449.13
- Federal Student Loan @ 6.5% interest – $6,472.26
- Department store credit card @ 0% interest – $1613.75
- Furniture store credit card @ 0% interest – $6199.59
- Private Student Loan @ 3.0% interest – $38,797.36
While I’m taking a chance that the highest student loan’s interest rate could go up (it’s variable), it makes sense to pay off the others and use those payments that will no longer be there to attack the last student loan. So here it is, if all goes as planned:
September of 2017 is the month I will turn 30 and be debt free!
It’s exciting to put a date on it. When will your debt be paid off?
Photo by Nomadic Lass