This is my blog about getting rid of my debt. I always tell myself I am going to do it, I even plan for it by making up new budgets for the entire year and a spreadsheet to track it all. Then the first month comes and BLAM! Over-spending just blows my budget away, which in turn just removes all my motivation for paying down my debt. I then continue to overspend the next month and figure I will go back on track the month after. This cycle just repeats over and over again. Well not anymore!
So my stats are:
2 House's 263,500.00
Student Loan 40,551.00
Personal Loan 5,000.00
Consumer 10,400.00
Total 319,451.00
I graduated from college in February of 2008, and had incurred 42,000 of student loan debt, and my husband head about 4,000.00. So over the past 5 years we have paid $5,449 off our student loans, at a $1,000 a year that will take us a long time. Something needs to change.
We own both our vehicles, without debt, but they will both need to be replaced soon. Since we have not saved for new vehicles (We just purchased a new home in March) we will have to purchase 1 on credit. My current car has 310,000 miles and yes, you read that correct. I commute 105 miles everyday to work, so a dependable car that doesn't cost a fortune is important.
I have expendable income each month of 1,200.00, in order to be successful in the endeavor I am going to assign 600 at the start of this, to pay down my debt. As things settle down with the new house, and expenses become more predictable I can increase that amount, but for now I feel this is very doable.
Baby steps.
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