by Hope
First off, thank you so much for your constructive advice over the last couple of weeks while I sorted out my priorities and created a new debt plan payoff. (You can read my last debt number update here.)
So without further ado, here is the new plan with estimated pay off debts. The debts are listed in new priority order with current balances and estimated pay off dates with new plan:
| Name | Balance | Interest Rate | Minimum Payment | Estimated Pay Off |
| Line of Credit | $623 | 15.95% | $218 | Aug, 2014 |
| Joint Account | $807 | 0% | $0 | Oct, 2014 |
| Car Loan – NV | $30,762 | 6.79% | $696 | Mar, 2017 |
| Retail Card #2 | $3,297 | 25.99% | $99 | May, 2017 |
| Car Loan – Honda | $1,900 | 0% | $0 | Jul, 2017 |
| Credit Card | $5,083 | 13.9% | $150 | Jul, 2017 |
| Student Loan | $31,687 | 2.88% | deferred | Oct, 2019 |
| Retail Card #1 | $0 | | | |
| Property Tax | $0 | | | |
I ABSOLUTELY HATE that I am looking at Oct, 2019 for pay off…so after much review and soul searching there is more to this story…I AM PUTTING MY CAR UP FOR SALE! On Tuesday of next week I will clean up the car, get the state inspection and put it on the market. That $696 payment and $30K debt is going away!!!
That is why the car loan is currently #3 as I believe I will be upside down when I get an offer so I neat to get as much paid off as a I can and then I will look at a small loan from my local credit union to make whatever difference is needed.
With that in mind, and with some extra income this month, I anticipate both the Line of Credit AND the Joint Account paid off by July at the latest. So if those two are paid off as expected AND my car sells for close to asking price, this will be my debt pay off plan.
| Name | Balance | Interest Rate | Minimum Payment | Estimated Pay Off |
| Car Loan – Honda | $1,900 | 0% | $0 | Sept, 2014 |
| Retail Card #2 | $3,297 | 25.99% | $99 | Dec, 2014 |
| Credit Card | $5,083 | 13.9% | $150 | Apr, 2015 |
| Student Loan | $31,687 | 2.88% | $218 | Apr, 2017 |
| Car Loan – NV | $0 | | | SOLD |
| Line of Credit | $0 | | | PAID OFF |
| Joint Account | $0 | | | PAID OFF |
| Retail Card #1 | $0 | | | PAID OFF |
| Property Tax | $0 | | | PAID OFF |
This will expedite my debt free life by 2 1/2 years…BEFORE my boys would go to college!!!
Now with this in mind there are a few caveats regarding the car sale…
- In selling my car, whenever we have the twins’ siblings here, we will be stuck at home except for places we can bike too. Ugh!
- After selling my car, I will have to learn to drive a manual because that’s what the Honda is. Ugh!
- I will not be able to take any foster/adoptive placements because the Honda only seats 5.
- And of course, I will need to pay it off ASAP, but will only carry liability insurance on it so my property tax/insurance costs should go WAY down.
I am fully prepared to make these sacrifices for now. I have spent a lot of time thinking about it and looking at the numbers. I can’t say that I don’t HATE the thought of not being able to help some kids in need, but I know this is the right course of action for right now.
This plan will allow me to 1) pay off debt on my credit report (helps my debt to income ratio,) and should 2) clear up some credit issues as accounts show paid and closed thus raising my credit score. Can you guess where I’m heading?
I will start dealing with the housing issue this fall after I begin on the second debt plan…woohoo! (And I may have some news on that sooner as well.) The earliest the twins will get driver’s licenses is the end of next February. At that time, I will revisit the car situation and consider purchasing a USED larger car MAYBE. Hopefully you will stick around to guide me.
So tell me, what do you think of my plan? I AM SO MOTIVATED by those pay off debts!
