I have a debt free date! June 25th 2014

Uggh. This week was a total blow out. The weekend saw me use almost all my piggy bank savings plus charge my credit card – although this was more out of convenience and I put the cash back on it the next day. But that cash came from my savings account.

At the moment, I’m feeling fairly annoyed with myself but the thing I am most excited about this week is the debt smashing mission is ramping back up again. When I posted my fortnightly budget in January, I said things would start changing around March – until then I would be making fairly minimal payments towards my final debt – personal loan. I had a few trips to accommodate (weddings and such) in the early part of the year.

But March is the kickoff for channeling as much cash as possible to my debt.

I want to be debt free on 25th June 2014

At the start of the year I said I would actually be channeling a lot more cash into savings and pull back on the aggressiveness of debt repayment. This reason for this? I want to travel again at the end of this year to Central America, and I wanted to see cash in the bank. I can’t wait any longer to travel and I felt like I wanted to see that bank balance increasing to give me the comfort that I would have that cash at the end of the year to go. It was really a mental thing.

My plan has totally changed though. By paying off my personal loan first – with an end date of June, I will be saving approx $1200 in interest and repayments from now until March next year. March is when I plan to return from my trip Central America. If I was to still to have a balance owing on my loan when I left, although small, I would be making repayments while I was away and also paying interest. I would also still have a loan hanging over my head. I don’t want that. My goal is debt free travel.

SO! As of the 5th of March, I will be making a repayments of $650 a fortnight towards my personal loan. My loan currently stands at $5,677.56. This is my final debt!

Interest charges are approx $73.00 per month at the current balance – obviously this will reduce as I pay off more –  and fee for servicing my loan is $10.00 per month, this will remain the same.

I have set my debt free date at 25th June 2014. That is 9 fortnightly pays from 5th March – with each pay $650 that totals $5,850.00.

Current loan $5677.56 + interest repayments for 4 months (estimate) $220.00  + loan servicing fee for 4 months $40.00 = $5,937.56 total.

So I will kick in extra on that final payment to clear the balance. You can see my revised fortnightly budget here.

The light at the end of the tunnel is really starting to shine 🙂 – and it looks a lot like debt freedom!

This is the little count down I’ve posted on the fridge to keep debt repayments at the front my my mind! Image

6 thoughts on “I have a debt free date! June 25th 2014

  1. Its so exciting to have a date so soon to be debt free! I don’t know about you, but it gives me more motivation! Good Luck!

  2. Jocelyn says:

    Debt smashing mission! I love it, go go go! I agree, debt feel travel will feel that much more awesome 🙂

  3. How exciting to be so close to your debt free date!!! Congrats! 🙂

  4. Lana says:

    YAY for becoming debt free soon 😀

  5. morgaine80 says:

    Awesome plan! Good luck! 😀

  6. […] I had a huge budget fail when I first set about paying off my debt in March 2013. I drew up a budget which showed I would be out of debt in October 2013. The budget was unrealistic. It didn’t account for EVERYTHING and it left me with very little spending money.  I knew for awhile it wasn’t working but I kept at it, and kept beating myself up when I went over budget (surprise, surprise) each month. Then I hit Debt Fatigue in a big way – I was WAY off my (unrealistic) goal and it would be another 8 months of debt repayment past October. Frustrated, disappointed and sick of debt – I stopped blogging for awhile, although I continued to make smaller repayments. Then I regrouped – I got my shit together with a realistic budget that included everything and set about attacking debt again with my new debt free date. […]

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