Adding to my Debt

In Uncategorized on March 16, 2010 at 11:18 am

Despite where the title of this blog post might lead your assumptions, know that this blog has primarily been about my credit card debt only.

Until now.

I love to play with my Excel spreadsheet “Debt Reduction Calculator” from vertex42. It has single handedly kept me motivated to stay on my debt repayment plan. To enter a few numbers and see the resulting debt free dates pop up gets me excited. Lame, I know. There is also a sheet that outlines the payment amounts to make to each debt every month until you are paid off. Its great! You can also enter lump sum amounts to any debt and it recalculates your payment schedule. Neato. And you can play with your plan by ranking your debts in priority order. You can snowball the payments, pay lowest balance first, or highest interest first. And you can play with the options and it spits out how much interest you will be paying in total over the lifetime of your debts. Trust me, seeing that number alone will get you motivated to pay everything down as quickly as humanly possible!

Up until two weeks ago I only had my credit card debts entered into the spreadsheet. This is because they are my primary focus right now. I am dedicated to them until they are gone forever.

I decided to go a little wild. I entered ALL of my debts. I entered my car loan, my student loans, and our mortgage. I put in all of the interest rates, monthly payment amounts, and the debt amounts. It was fun!

Ok, well seeing my debt free date get pushed back 15 years (due to mortgage amortization) wasn’t fun, but I loved to see where I would be in 3 years, 5 years, 10 years, you get it.

I took the mortgage off the calculator though because we don’t know how long we’ll actually be in this house and we consider the mortgage better than rent. Plus, our home value is higher than what we paid so let’s just pretend it doesn’t exist right now, okay? *sticks head in sand*

Anyways. All of this just to say that I’ve added 4 more debts to my repayment plan and the outcome looks good.

Credit card debt free by July 2011.
Car loan debt free by February 2012.
Free and clear of all my student loan debt by April 2013.

And that does not include any extra payments I make, any future increase in salary, or interest rate renegotiations. Which I do regularly – about every 6 months I review what interest rates are at various banks/credit cards and call and ask for consideration to lower, or an opportunity to transfer balances.

So in at max three years I will be completely debt free except for our mortgage. Hurray!

  1. Yay!!! Good for you for figuring out a payment plan and a game plan for the rest of your debt. I did that too when I was getting out of debt, and I made it a game with myself – how many weeks can I shave off of that debt-free date that I set for myself!?

  2. That’s awesome!
    I don’t include my mortgage on my debt calculators either. I figure, when I have the rest of my debt paid down I can start making extra payments to the mortgage

  3. YAY! congratulations!! I love this game too! So far it’s my favourite one to play – because it means financial freedom at the end of the game. Nothing better than that!

    it’s almost like the mortgage is the only debt we are somewhat ok with and only because it’s a debt on an appreciating (we hope) asset!

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