Miss Money

Miss Money is my anonymous personal finance blog. I will divulge my career opportunities, income, expenditures, savings, and debt. My goals include moving my net worth from "negative" -$45,500 to -$33,000 in one year, get out of credit card debt and improve my FICO credit score from 656 to 750.

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Location: South Carolina, United States

Saturday, September 10, 2005

Debt Reduction Plan Still on Track

Even with all of the unexpected expenses involved with moving for my new job (including buying a car), I crunched some numbers to see how my debt reduction plan will pan out with my new increased income and lower living costs.

I will be out of credit card debt by April 2006 at the latest. This is earlier than my last estimate of October 2006. This will be due in part to putting as much of my reimbursements onto my cards as possible and using my higher income as leverage to pay it down quicker.

I will be able to up my credit card budget line from $450 to $700 per month in my new position!

Once I am out of credit card debt, I am going to shift my focus onto paying off my car. That should be paid off in November 2007 at the latest. This is great because I plan to drive it for 5 to 7 years so I won't have payments after that. It was my goal when buying a car to get a longer loan term (5 years) with lower payments, so that I could focus on my credit card debt first and still pay off the car early! I didn't want to new necessity of having a car to throw off my financial goals. I got a car that I could more than afford on my new salary and I am committed to paying it off early.

After that, it is all student loans from there. The bulk of them will not be paid off until 2011-12 but that's still a hell of a lot earlier than the 25 year term estimated!

2 Comments:

Blogger Ivan said...

It sounds like you have a plan to get you out of debt as soon as possible. I wish you will and will be back to see how you progress.

September 17, 2005 5:33 AM  
Anonymous mbhunter said...

Great stuff here. Keep it up! I'm including this post in the Carnival of Debt Reduction, to be posted Monday, September 19th. Let me know if you'd like to host -- these are the kinds of posts that fit the carnival perfectly.

September 18, 2005 1:00 AM  

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