What do you guys think of my plan

What do you guys think of my plan

This is my plan to pay off debt, with each payoff I include the monthly payment I already make plus what I have paid during the time of paying the previous debt, if that makes sense. 1050 is the starting amount I will be putting toward debt each month. The monthly budget on the left is not super relevant except that it shows what I automatically pay per month currently.

It's not completely accurate as my wife and I each get an extra paycheck every 5 months, so we will put a good chunk of that towards debts and pay them off a little sooner.

I was just wondering what you guys think and if this is a good plan or if you have any advice? TIA!

Also, if this is not the place to post this I will happily delete the post!

in debtfreeby Muffiny123

19

100%

14d

Normal-Whereas-220

8

14d

You're taking the right steps especially with putting everything in a spreadsheet. Just make sure you're making more than the minimum payment and putting as much as you can toward the debt each month.

OP

1

14d

Thank you! I pay more than minimum on my car payment and slightly more on my student loans, maybe I will put a bit more than minimum on the personal loan each month too. Thank you for the input, much appreciated 😊

Wizzle_Pizzle_420

4

14d

Looks great! This is one of the better plans. Though if you picked up some random work here and there a few times in a month, you can get there faster. An extra $200 a month can go a long way and that might be 2-3 odd jobs. Regardless please rein it in once it’s paid off. Things can get out of hand real quick when we’re debt free and having not learned any good habits from our mistakes. Nice work!!

OP

1

14d

Yes, definitely! I did not have very good money habits in my early 20s but trying to get it taken care of now ☺️

RequirementIll8141

3

14d

Great plan I love it. Looking at this I need to switch to boost for Tmobile get my payments way lower.

OP

2

14d

My wife got a really good deal on tmobile (metro) years ago so she has a special rate, I believe boost still does $35 for new customers though :) it only has 10 gigs data per month but the unlimited plan is $45 if I remember correctly

RequirementIll8141

2

14d

Ima check it out bc I pay $160 for (2) lines My personal and my business. Unlimited data tho

OP

1

14d

Damnn. Yeah I will say that Boost can be spotty in my area at times but it's a good trade off for me personally

RequirementIll8141

2

14d

I do like how your expenses aren’t that high at all though. I’m working on lowering all my monthly expesnes by constantly shopping around. My mortgage increased due to property taxes (it was a new build) it just has caused so much stress honestly.

OP

2

14d

Yeah we got very lucky with our rent being much lower than average. I hope you are able to figure out a better situation for your mortgage!

RequirementIll8141

2

14d

Yes we protested the property taxes again this year. We will see what happens once our mortgage lender does another analysis. Should be enough in escrow now.

Lessons learned. We did a new build and on the paperwork the lender did the property taxes at the value of the land vs the appraised improvement once the house is built.

Thank you 🙏🏽

Adventurous_Fail_825

2

14d

That looks like a pretty good plan. I like knocking out that Cc debt quickly. I’d ask for that $69/year annual fee be waived every single year - which they will do if you call and ask.

Questions: 1) What’s in the emergency savings account ? 2) How’s the retirement savings going ?

OP

2

14d

Savings is very minimal right now ($~100) but once I get the ccs paid off we'll be saving what we can, I'm think of saving all of the "extra" that goes toward the debts until I can pay them off in a lump sum (one at a time) with some leftover so that we at least have something to fall back on if anything happens.

Retirement automatically comes out of my paycheck and is about $200 a month, I know that's lower than ideal but as we get debt knocked out I'll allocate more toward retirement.

OP

1

14d

Though now that I think about it saving all of the extra would make the payoff time longer due to interest, so maybe I'll start with saving $100 per paycheck? Not sure yet...

2

14d

Suggestion: Start saving a small amount now to build the habit. Even $25/paycheck or month. If an emergency comes up, you have $1,500/month to work with to sort it out. What’s the risk of something more expensive coming up? What would the impact be? Would it go on a credit card? I think your answer to that impacts the savings vs payoff decision. You could also readjust to save more once the personal loan is gone while still using most of it to pay off debt.

OP

2

14d

Now that you say that I think I should have enough room in my budget to still go with my intended amount per month and then save a little extra on top of that, maybe $50 or so per check and still have enough for necessities. Thank you for the advice :)

Adventurous_Fail_825

1

14d

The payments : is that monthly ? What’s your net monthly income ?

OP

2

14d

Ah yeah sorry I didn't explain it too well. I'm doing the avalanche method, so on the left is what I currently pay on all of the debt. On the right is what I intend to pay towards the debt (per month) one at a time, until they clear and then I will move onto the next one below it. My wife and I net $5100 combined.

Adventurous_Fail_825

2

14d

Ohhh ok.

Dramatic_Scale3002

2

14d

You should sell your car and get something cheaper, paid for in cash. Getting debt free does always mean keeping the car or house or boat or whatever you couldn't initially afford and continuing to pay it off, sometimes it means selling the object and paying off what is left on the loan (if anything). $36k on the car is crazy, if you were serious about getting out of debt then you would get rid of it and swear never to get an auto loan ever again.

OP

1

14d

I understand your point, but I don't feel it's necessary. If it was at the point where my debt was unmanageable I would sell it.

Edit: That said, I really do appreciate your advice. I'll run some numbers and take it into consideration. I do plan on refinancing when possible at the very least.

suggesting_ideas

2

14d

Annual take home pay minus annual expenses equals debt payoff. Paying it off in 3 years or less is awesome. Faster the better.

suggesting_ideas

2

14d

Use the debt avalanche method to save the most.

OP

1

14d

Yes that's what I'm doing sorry I forgot to mention that in the post. The reason the 0% card is so high up is because once my 0% period is up it will raise to 29.99% 😬. It doesn't end until December but I would rather just get it taken care of.

2

13d

Your plan is to take 3 years to pay off debt? I would cut that time in half or more by selling the car and paying for a used one in cash

OP

1

13d

3 years isn't too bad I think, considering I have 5-10 years left on all of the loans if I were to just make minimum payments on everything. But it's something I've considered and will think about, I just don't want to deal with the headache of a beater atm.

2

13d

It doesnt have to be a headache, but you have to have a good eye on what youre buying and get an inspection prior to buying if you do.

I usually go after toyotas or hondas

OP

1

13d

For sure, I have actually been looking at some and keeping my eye on the market, the car prices in my area are pretty ridiculous rn but there's occasionally good deals

Elegant-Hunt-1532

2

13d

how can I make similar right column with formulas.

OP

1

13d

I use the NPER formula, idk if i can explain it too well but it basically calculates how long you will pay off a card/ loan by taking into account interest, yearly fee, and monthly payment. It works in both excel and google sheets

OP

1

13d

Here's an example for the formula I used in the cell for my personal loan payoff =NPER(H6/12,J6,G6+1022,0), the 1022 being what I will have paid as my regular payment during the 2 months it takes to pay off my credit card the line before

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