I’ve crunched my numbers again this morning; this is what I do – crunch numbers and come up with completely unrealistic repayment plans. Amend my scheduled payments and write all about it in my note book only to change my mind again in a few days.
I’ve given myself an end date of 31st December 2016 and I’ve calculated (without interest) that it’s average of $233.33 per week. My absolute minimum per week is $300 so yes realistically I can pay this off. Whether I will or not remains to be seen!!
I’ve now decided that instead of trying to pay equal amounts of everything at once including paying my future self in savings, I’ll do the snowball method. This means my smallest debt will be the first to go. After this, all payments will be back to my primary bank so that my new history will start to look a lot better. I tried to talk them in to lowering my interest rates but since I’ve only been paying minimums to them for the most part of my loan and credit card, I don’t look too exceptional in their books. This will change after my other bank debt goes and I can concentrate on this. One step at a time.
I only want to have $1000 in my savings account which is sitting at $600, in 2 weeks I can bring it up to $1000.
One of the hardest things for me to come to terms with is that I will really need to focus on this over the next year. I think that’s part of the reason I’ve put it off for so many years. A year is a long time when divided by pay weeks!
I’ve started a list of the amazing things I will do once I am debt free.
Buy a NEW car. Brand new, from a dealership. 2016 model. The idea of new debt after my old debt is gone scares me, though Ev told me it’s not something to worry about. Pay my minimums, if I want or need the debt gone – sell the car. But the idea is I will have enough savings to pay it off after a couple of years if I really want to. This will help improve my credit rating as I’ve often missed payments and had to pay late fees and although it’s not a bad rating, it’s not as good as it could be.
Save $15,000 in one year. After seeing how much I can put away each week this should be easier than once thought. I don’t spend much on myself. I have been to the salon twice in the past year. I’m not fashionable enough to buy clothes often. I’m not in to new gadgets and toys, make up or anything else costly. I rarely drink and prefer to eat at home. My only large expenses on myself are tattoo appointments!! I do have quite a big one coming up next month which I will need to work out soon. Most likely this will come out of my $1000 savings fund.
After all of this is gone I can’t even imagine how I will feel. My whole adult life, being in debt is all I’ve known.