Debt Repayment Plan Redux

Debt repayment plan reduxIt took a while but things are starting to get back on track. I started my new full-time gig this week. I will finally be able to start my debt repayment plan again. Here is my original post on The Debt Snowball Method.

That is the method that I plan on using to pay my debt off with. Dave Ramsey who is the author of the book “The Total Money Makeover” actually has 7 baby steps that help you get to financial freedom.  The baby steps are listed in the image below.

bv_baby_steps_main

Before I start my plan I am going to save between $500-$1000 in my emergency fund. With 2 jobs and online income coming in, I should be able to get that done before January.

Once I have that amount saved I will start the snowball method. I don’t spend too much money anyway so I should see a difference in the debt balances sooner than later. In my post titled “Debt & Life Balance” I stated that I was going to use principles from Dave Ramsey and also T. Harv Eker who is the author of “Secrets of the Millionaire Mind“. I still plan to do that. I will give up a lot of things but traveling is not one. I still will take a trip every once in a while. I just have to make sure that I continue to make enough money to do both. It will happen.

Something that I will be doing different this time around is that I will be making payments on all debts, even my fed loans which are in deferment. I have to put something on those loans to keep the interest down. Not paying on loans that were deferred or in forbearance is part of the reason that I’m in this predicament now.

My new start date for the snowball method is January. I also have adjusted the date that I want to have the debt paid off to October 17th, 2018. That will be my 35th birthday. In late December I will have a post documenting all the debts and the amounts. I’m looking forward to eliminating this debt once and for all.

Have you paid off a large sum of debt? How long did you do it? What sacrifices did you make?

Make sure you follow my journey by subscribing below!

Email Address 

Debt, Life, Motivation , , , ,
number_format_i18n( get_comments_number() ) ); ?>
  1. I am so amazed and impressed with your resolve Jason! You really will go far in life with the determination that you continue to exhibit. Kudos and big high 5!
    Jacqueline Gum (Jacquie) recently posted…Daylight Saving Time… Where’s The Justice?My Profile

  2. It’s great that you’re taking strides to be debt free. I haven’t paid off a huge sum of debt. I did pay off my car recently but my student loans are still lingering. I’m cutting my cable and going to sell off some of my items to pour some funds into the loans. It’s good that you still plan on traveling every now and again. I tend to go a little stir crazy if I don’t take a trip so I’m sure you feel the same. It’s nice to get out any enjoy life.
    Jessica recently posted…How Manners Took Me from a 50 Cent Job Offer to a 50 Dollar PayoutMy Profile

  3. I’m the same way. I have to travel every now and then. It helps me to get refocused from time to time. I had my cable company lower my plan. I sell items on eBay monthly. I believe that you will do well.

  4. Tim

    We are alike in this respect Jason. I loathe being in debt and do all I can to stay away from it….or pay it off almost as soon as I have it. I think it is the only way to live unless you have a billion dollars laying around 🙂
    Tim recently posted…Gram Parsons Found Joshua TreeMy Profile

  5. You’ve made so much progress. My sister could use these tips 😉
    Jeri recently posted…#YearInReview: Happy Holidays #2014My Profile

  6. Good luck to you Jason. I know you will reach your goal by October 2018. With determination like yours, you just can’t fail.
    Lenie recently posted…Car Emergency Kit – NOT in the Trunk, Please.My Profile

  7. Good luck with your new job. If you give it the same amount of thought and preparation you are applying to your debt, I’m sure you will be successful.
    Ken Dowell recently posted…Light Show!My Profile

  8. Paying off debt is such a big step. Unfortunately not too many people do it, they keep pilling it up. Great post and great tips.

  9. I wish that you will get rid of debt. The way you are planning and careful I am sure that you will do it. All the best.
    andleeb recently posted…Ramadan, Now and ThenMy Profile

  10. It sounds like you have a solid plan in place. I think it is a good idea to build up a small emergency fund before tackling a concentrated debt re-payment. Without that, there’s a good chance of just building more debt. Good luck.
    Donna Janke recently posted…Prickly Pear CookingMy Profile

  11. A solid plan indeed Jason. I won’t doubt if you can find ways for anything in life as well. Loans may not seem that big of a problem, but if mishandles, they do pose some threats, and having to find great ways to handle it means you can handle almost everything in life.

  12. Paying your debt and become debt free is a brilliant decision. I congratulate you for your plan in repaying your debt. I know you will go far because of your determination.
    Samantha Inglis recently posted…How to improve your chances of going bankrupt in AustraliaMy Profile

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge